Guard Against Financial Erosion With Fundraising
Software
Poor stock market performance, reduced government funding and increased
insurance costs have all hurt the nonprofit sector. As funding sources
continue to erode, increased fundraising activities may be your saving
grace. If you intend to expand your fundraising activities, state-of-the-art
fundraising software may be the vehicle you need to drive success. Not
sure what fundraising software can do for you? Let's look at myriad
software options available.
Q: HOW DOES FUNDRAISING SOFTWARE WORK?
A: Fundraising software's main function is to help nonprofits organize
information and improve communication with both current and potential
donors. It can also help you manage campaigns, special events, memberships
and even volunteer services. Virtually all fundraising software has
the ability to save, sort and retrieve data about your donors or prospects.
This includes information about the donors' interest in your programs,
their businesses, their donation histories and their education levels
and personal interests.
In addition, the software allows you to store information about prior
gifts and commitments and detailed records on specific donor communications.
You can also administer these programs to track volunteer services,
as well as the interests and skills of volunteers.
Fundraising software can do wonders, but there are limits to what it
can do. Before you invest in it, know this: Fundraising software doesn't
take the work out of fundraising. You'll still need a qualified staff,
and the time to set up the system and train staff on its use.
Q: WHAT SHOULD I LOOK FOR IN A SOFTWARE SYSTEM?
A: The key phrase here is "case-of-use." Sorting through
and accessing fundraising data should be a simple process. Fully investigate
the software's report-generating capabilities and ask the vendor numerous
questions. How fast canyou produce a standard report? Is there a lot
of flexibility in preparing customized reports? Is the system able to
produce reports that can support accounting department information needs?
Is it able to produce reports of contributions received by your nonprofit
and contributions receivable that can be used by, or reconciled to,
the accounting department? Tying together these two functions will save
time and increase efficiency.
Q:WHAT ARE SOME OTHER ESSENTIAL FEATURES I SHOULD LOOK FOR?
A: Other functions that are essential to this investment are the ability
to send regular mail, e-mail and electronic newsletters from your database.
An ideal system will allow you to send announcements about your events
or activities to those who have expressed interest in your programs.
In addition, the system should be able to accept and acknowledge incoming
e-mail.
Q: DOES THE SOFTWARE INCLUDE MEMBERSHIP AND VOLUNTEER SUPPORT?
A: This feature can send reminders about renewals and acknowledgments
of payments, track different categories of memberships and create membership
cards. Volunteer management is also available in some systems. Features
include tracking volunteers' time availability, interest and skills
and acknowledging them.
Q: ARE THESE SYSTEMS PORTABLE?
A: You can either purchase software or you can license online software.
If staff will be working from differentocations, online software could
be beneficial. Employees won't have to dial into your server and will
be able to access the software whether they're across town, at home
or in a hotel room across the country.
Q: WHAT DO THESE SYSTEMS TYPICALLY COST?
A: The cost will, of course, depend on the kind of program you choose
and any extras you want to add on. Generally, fundraising software costs
range anywhere from a few hundred dollars to more than $25,000. And
if you add extra features, this usually means additional costs. (See
"HighEnd Fundraising" on page 4). Obviously, total cost as
well as upfront costs and complexity are determining factors in your
final purchasing decision.
Q:WHO WILL TRAIN SYSTEM USERS?
A: Having this wonderful software won't do you any good if your staff
isn't properly trained on how to use it. Find out what kind of training
support is available. Does the vendor offer onsite or online training?
Does it provide videos or seminars for additional training?
A CORNUCOPIA OF CHOICES
With fundraising software, you have a lot to consider before investing.
Only by examining your situation and the programs available will you
be able to make the right choice. Remember, your financial strength
could depend on this decision. You can get an idea of the different
software packages out there by visiting the Association of Fundraising
Professionals Web site (www.afpnet.org). Once you have an overview of
what's available, we can help you select one. Call us today.
High-End Fundraising
The more you spend on a fundraising software
system. the more you're likely to get out of it. Not every nonprofit
will need all the latest bells and whistles, but if you plan
on making a serious commitment to aggressive fundraising, your
system may need to include some of these high-end features:
• Special event support that allows users to send invitations
and acknowledgments,
• Payment processing (charge cards and other types of
payments),
• Multiple-year pledge tracking,
• Events financial tracking,
• Fundraising campaigns (including pledge reminders),
• Matching gift tracking,
• In-kind donation reports, and
• Activity reporting and summaries (including grant-seeking
support, planning and foIIow-up).
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These
publications are distributed with the understanding that the author,
publisher and distributor are not rendering legal, accounting or other
professional advice or opinions on specific facts or matters, and, accordingly,
assume no liability whatsoever in connection to its use.
