September 10, 2024 | Andrew Lawlor

Running a nonprofit is all about building and nurturing relationships. Whether it’s donors, volunteers, or the communities you serve, serving and keeping everyone happy can be a juggling act. 

 

That’s where a CRM — customer relationship management software — comes in. Think of it as the glue and greese that keeps your connections strong and your campaigns running smoothly.

 

So, what exactly is a CRM for nonprofits? Why are they important? How can you use it to supercharge your campaigns?

 

This is what this guide covers. By the end, you’ll know exactly how to choose the right CRM and make the most of it for your organization.

 

Understanding CRM for nonprofits

Let’s start with the basics — beginning with the “what” of CRM for nonprofits.

 

What is CRM for nonprofits?

Typically, a customer relationship management solution (CRM) is a system used to manage and analyze customer interactions, data, and relationships throughout the customer lifecycle.

But for nonprofits, a CRM system isn’t just about managing contacts — it’s about creating meaningful, long-term relationships. 

Unlike a typical CRM system used in businesses, a CRM for nonprofit is tailored to your unique needs — tracking donors, managing volunteers, and coordinating campaigns all in one place.

 

 

Why CRM is crucial for nonprofit organizations

You must be thinking — Why does your nonprofit need a CRM? 

The key reason is that it’s the difference between just managing tasks and truly connecting with your supporters. 

Don’t let the name mislead you. While CRMs might sound like they’re all about managing customers, they’re actually game-changers for nonprofits.

A good nonprofit CRM helps you know your donors inside out, making it easier to personalize your outreach, boost donations, and keep your community engaged. It’s really about deepening relationships.

 

Check out Salesforce for nonprofits. 

 

What is CRM for nonprofits used for?

Nonprofit organizations like yours use CRM for three main reasons primarily.

 

1. Donor management

Your donors are the lifeblood of your nonprofit. So, naturally, managing those relationships should be a top priority. 

A CRM for nonprofit helps you keep track of every interaction, from donation history to personal notes, ensuring that no detail slips through the cracks. 

For example, when it’s time to send out annual fundraising appeals, your CRM can help you tailor messages based on past donations and preferences, making your outreach more effective.

 

2. Volunteer management

Volunteers are just as important as donors; managing them efficiently can be a game-changer for your organization. 

The right CRM lets you schedule shifts, track hours, and even recognize volunteer contributions. 

Imagine sending a personalized thank-you note to a volunteer who just hit their 100-hour milestone. Your CRM makes it easy to keep that personal touch while staying organized.

 

 

3. Campaign management

Running a campaign without a CRM is like trying to sail without a map. 

A CRM for nonprofit helps you plan, execute, and monitor campaigns from start to finish. Whether you’re launching a new fundraising initiative or organizing an event, your CRM ensures every step is tracked and every participant is engaged. 

 

For instance, after a fundraising event, you can quickly pull up a list of attendees, send follow-up emails, and track donations — all within your CRM.

 

How using a CRM benefits nonprofits

The pros of using a CRM for your nonprofit are plenty. Implementing this solution unlocks new ways to engage donors, streamline operations, and boost your nonprofit’s overall impact. 

 

1. Enhances donor retention

A CRM helps nonprofits maintain strong, personalized relationships with donors. It functions as a donor management system by tracking every interaction and donation history through a donor database. This leads to better-targeted communication, making donors feel valued and more likely to continue supporting your cause.

For example, if a donor contributes annually around the holidays, a CRM like Salesforce for nonprofits can remind you to send a personalized holiday greeting and a gentle donation reminder, increasing the likelihood of repeat donations. 

 

2. Streamlines volunteering

Managing volunteers can be a complex task, especially as your nonprofit grows. 

A CRM simplifies this process by organizing schedules, tracking volunteer hours, and automating communication, ensuring that volunteers feel appreciated and are consistently engaged.

Consider this example: If you have volunteers for an upcoming event, your CRM can automatically send out shift reminders and updates. After the event, it can also generate personalized thank-you emails, acknowledging their contribution and encouraging future involvement.

 

3. Improves campaign efficiency

With a CRM for nonprofits, you can manage all aspects of your campaigns in one place — planning, execution, and tracking. 

For example, during a fundraising campaign, your CRM can segment your donor base by giving history, sending tailored messages to frequent donors and different ones to first-time contributors. This ensures that your communication is relevant, leading to more effective campaigns and better results.

 

4. Improves decision-making with data

CRMs for nonprofits provide valuable insights through data analytics, helping you understand donor behavior, track campaign performance, and identify trends. This data-driven approach allows you to make informed decisions that can boost fundraising efforts and overall impact.

 

5. Increases fundraising success

By automating routine tasks like sending thank-you notes or segmenting donors for targeted appeals, a CRM frees up your time to focus on what really matters — building relationships and crafting compelling fundraising strategies. 

In turn, this often leads to increased donations and greater fundraising success.

 

6. Ensure better collaboration and communication

A CRM serves as a central hub for your nonprofit’s data, making it easier for team members to collaborate and stay on the same page. 

For example, when planning a large fundraising gala, the CRM ensures that the event coordinator, volunteer manager, and communications team have access to the same important information, like guest lists and donor preferences. 

 

This coordination leads to smoother operations, fewer mistakes, and more effective communication with stakeholders.

 

CRM tech features you need for effective campaign management

A CRM for nonprofits comes packed with features catered to your organization’s unique needs. Here are some key CRM features to look out for:

 

1. Fundraising and donation tracking

This feature makes tracking every donation simple and more streamlined. Whether it’s a one-time gift or a recurring contribution, this feature helps you manage donor data, streamline fundraising campaigns, process donations, and generate reports to monitor progress and outcomes.

 

More on fundraising and donation solutions for nonprofits here.

 

2. Email and communication tools

This is a no-brainer — a good CRM for nonprofits should have built-in communication tools. These allow you to send personalized emails, newsletters, and updates directly from the platform. 

It can segment your audience for targeted email marketing and automate routine communications, saving you time and effort.

 

3. Management features

• Contact management: This feature allows you to store and manage contact information of your donors and contacts, including donation history, communication preferences, and personal notes.
• Volunteer management: This feature often includes scheduling tools, automated reminders, and recognition programs to keep your volunteers engaged and organized. This helps you manage your volunteers more effectively by tracking their availability, skills, and hours. 
• Event management: From planning to execution, your CRM can help manage even attendance, sending invitations, processing registrations, and following up with participants. This ensures your events run smoothly and your engagement efforts are maximized.
• Grant management: For nonprofits that rely on grants, having a CRM with grant management features is crucial. This includes tracking applications, deadlines, reporting requirements, and funding status, helping you stay on top of every detail.
• Membership management: If your organization operates on a membership model, your CRM for nonprofits should help manage memberships, payment processing for renewals, and member engagement. This feature ensures that you can easily track member status and communicate effectively with your base.

 

4. Reporting and analytics

This feature helps you gain insights into your nonprofit’s performance with robust reporting and analytics. You can track the success of fundraising campaigns, donor information, volunteer participation, and more, enabling you to make data-driven decisions.

 

5. Integration with other tools

Your CRM for nonprofits should easily integrate with other tools you’re using.

Beyond convenience — it’s really about creating a unified, efficient workflow that minimizes manual effort and maximizes impact.

Here’s an example: When your CRM integrates with accounting software, donations recorded in your CRM can automatically update financial records, saving time and ensuring accuracy. This streamlined process means your finance team has ready-to-use data for reports and tax filings, reducing workload and minimizing errors.

 

6. Automation 

Automation in a nonprofit CRM handles repetitive tasks, freeing up your team to focus on strategic activities. 

For example, when a donor makes a contribution, the CRM can automatically send a personalized thank-you email, update their donation history, and set a reminder for the next engagement. This not only ensures consistent communication but also improves efficiency by reducing manual work.

 

7. Mobile Access

Mobile access allows your team to manage CRM tasks on the go, ensuring they stay connected and productive wherever they are. 

For example, during a fundraising event, staff can access donor profiles, log interactions, and update records directly from their mobile devices. This real-time access ensures that your team has the most up-to-date information, improving responsiveness and decision-making.

 

Key criteria for choosing a CRM for nonprofits

Not all CRM platforms are built the same, especially when it comes to serving nonprofits. Consider these factors when selecting the best CRM for your nonprofit organization:

• Ease of use: Your CRM should be intuitive enough for your team to pick up quickly. This includes a simple user interface, clean design, and straightforward navigation. If the learning curve is steep, you risk low adoption rates, which can lead to inefficiencies and frustration
• Customization options: Every nonprofit is unique, and your CRM should reflect that. Look for a CRM that allows you to customize fields, dashboards, and workflows to suit your specific needs
• Scalability: Your nonprofit might start small, but as you grow, your CRM needs to grow with you. Choose a solution that can scale, whether you’re adding more users, tracking more data, or expanding your operations
• Cost-effectiveness: Budgets are always a concern for nonprofits. While some CRMs for nonprofits offer extensive features, make sure they align with your budget. Look for solutions that provide value without unnecessary extras
• Customer service support: Having reliable customer support and access to training resources is crucial. Whether it’s online tutorials, webinars, or a dedicated support team, ensure that help is available when you need it

 

Top CRM for nonprofits organizations

With so many CRM for nonprofits available, finding the right software solution can feel overwhelming. Here’s a quick look at some top solutions that cater to nonprofits:

 

1. Salesforce Nonprofit Cloud

Salesforce Nonprofit Cloud is a comprehensive nonprofit CRM. It combines donor management, fundraising, program management, and analytics into a seamless system, giving you a clear view of your organization’s activities and streamlining your operations.

For larger nonprofits or those with complex needs, its advanced features like multi-channel fundraising and detailed analytics offer the tools you need to tackle bigger challenges.

Additionally, Salesforce also offers the Nonprofit Success Pack (NPSP). It is a set of specialized tools within Salesforce specifically designed to enhance core nonprofit functions like managing donor relationships and tracking campaigns. 

 

 

While Salesforce Nonprofit Cloud offers broad capabilities, NPSP focuses on optimizing key nonprofit features, making them complementary for a well-rounded approach to nonprofit management.

 

 

Top features include: 

• Donor management software to track and engage donors effortlessly
• Fundraising tools, streamlining campaigns and boosting donations
• Analytics, so you get real-time insights with detailed custom reports
• Customization features to tailor workflows and fields to your needs
• Scalability, so it grows with your organization
• Integration capabilities to connect seamlessly with other tools
• Advanced features that support multi-channel campaigns and complex operations

 

Explore Salesforce for nonprofits now.

 

Image source.

 

2. Bloomerang

Designed with small to mid-sized nonprofits in mind, Bloomerang is a donor management and fundraising platform. It offers user-friendly tools for tracking donor engagement, managing campaigns, and generating insightful reports.

Top features of this CRM software include:

• Retention tools, keeping donors active and engaged
• User-friendly interface – It’s simple and intuitive for nonprofits of all sizes
• Integration features to connect with your in-house tech stack 
• Email automation, so you can personalize and automate donor communication

 

3. DonorPerfect 

DonorPerfect is a user-friendly CRM for nonprofits, designed to simplify fundraising and donor management. It brings together tools for donation tracking, reporting, and communication, helping you stay connected with your supporters and grow your donor base.

The platform offers robust customization, allowing you to tailor fields, forms, and reports to fit your organization’s unique needs. Whether you’re running a small campaign or managing a large donor base, DonorPerfect scales with your nonprofit, making it a versatile choice for organizations of all sizes.

 

Top features of this nonprofit CRM software include:

• Fundraising automation to streamline campaigns and boost donor retention
• Donation tracking, so you can easily monitor donations and donor engagement
• Reporting tools for generating detailed reports for data-driven decisions
• Customization features to adapt fields and forms to match your needs
• Integration capabilities to seamlessly connect with accounting, email, and other essential tools

 

4. NeonCRM

NeonCRM, part of the NeonOne ecosystem, is designed to provide nonprofits with a comprehensive suite of tools for managing donors, events, and communications. It balances robust features with ease of use, making it a strong choice for organizations looking to streamline their operations.

This CRM for nonprofits excels at providing a holistic view of your nonprofit’s activities, helping you manage everything from donor relationships to event registrations in one place.

 

Top features of this CRM software include:

• Automation, simplifying repetitive tasks to free up your team’s time
• Integration so your in-house tech is in sync 
• Membership management, to manage member renewals and engagement effectively

 

5. Hubspot 

HubSpot is a versatile CRM that offers nonprofits a powerful suite of marketing, sales, and service tools — all in one platform. 

Known for its user-friendly interface, HubSpot helps you manage donor relationships, run marketing campaigns, and track engagement with ease.

It stands out with its robust marketing automation features, enabling nonprofits to personalize outreach and nurture relationships efficiently. 

 

Top features include:

• Marketing automation, so you can automate email campaigns and personalize outreach
• Reporting dashboards to access real-time analytics to measure success
• Scalability, so it grows with your nonprofit as your needs evolve
• Service tools to manage donor inquiries and support requests efficiently
• Offers a free CRM with limited features

 

Effective campaign management: Planning your CRM strategy

Now — you’re all set to choose the right CRM for your nonprofit. 

The next step is building a solid plan to put your CRM to good use. 

What are your goals? What data do you need to track? Consider this five-pointer roadmap as your guide. 

 

1. Define clear campaign goals

Before diving into the CRM for nonprofits, clearly define what you want to achieve with your campaign. 

Are you aiming to increase donor retention, boost volunteer engagement, or raise funds for a specific project? Having clear goals helps you configure your CRM to track the right metrics and tailor your outreach efforts.

 

Example: If your goal is to boost donor retention, your CRM can segment donors based on past engagement and set up automated reminders for personalized follow-ups, ensuring no one slips through the cracks.

 

2. Segment your audience

One-size-fits-all campaigns rarely work. 

Use your nonprofit CRM to segment your audience based on factors like donation history, volunteer activity, or interests. This allows you to send targeted messages that resonate with each group, increasing the likelihood of engagement.

 

Example: For a fundraising campaign, you could create different donor segments for major donors, recurring donors, and first-time donors. Each segment will receive tailored communication that speaks directly to their relationship with your nonprofit.

 

Curious if Salesforce for nonprofits is right for you? Talk to our experts.

 

3. Automate outreach

Automation is key to keeping your campaign running smoothly without overwhelming your team. Use your CRM to schedule emails, social media posts, and other outreach activities. Automation ensures that every step of your campaign is executed on time, without manual intervention.

 

4. Monitor and adjust in real-time

A good CRM for nonprofits allows you to monitor your campaign’s performance in real-time. Track open rates, click-through rates, donations received, and other key metrics to see what’s working and what’s not. 

Use this data to make adjustments on the go, optimizing your campaign as it unfolds.

 

Example: If you notice that a particular email isn’t generating the expected response, you can quickly tweak the messaging or subject line and re-send it to improve engagement.

 

5. Follow up and measure success

The work doesn’t end when the campaign does. 

Use your CRM to follow up with participants, thanking them for their involvement and sharing the impact of the campaign. 

Finally, measure your campaign’s success against the goals you set at the outset, using the data captured in your CRM to inform future campaigns.

 

Example: After a successful fundraising event, your CRM can generate reports that detail the total funds raised, donor engagement levels, and the overall ROI. This information provides valuable insights to your fundraising team for your next campaign.

 

CRM for nonprofits: Overcoming common challenges

Adopting new technology like a CRM for your nonprofit can feel daunting, but the benefits far outweigh the challenges. 

Every nonprofit encounters obstacles along the way, but with the right approach, these can be managed smoothly.

 

1. Staff resistance to change

Change can be difficult, especially when it involves new technology. 

Your staff may resist adopting a CRM due to concerns about learning curves, increased workload, or disruptions to their current workflow. 

To address this, involve your team early in the process by demonstrating how the CRM will simplify their tasks and enhance productivity. 

You can offer comprehensive training sessions and ongoing support to ease the transition and highlight the CRM’s benefits to win over skeptics.

 

2. Data migration difficulties

Migrating data from spreadsheets or legacy systems to a new CRM can be a gigantic task. Many organizations face issues with data formatting, duplication, or missing information. 

To mitigate this, select a CRM for nonprofits with robust data migration tools and support services. Work collaboratively with your vendor to plan a phased migration strategy — starting with a small subset of data to identify and address issues before a full-scale transfer.

 

3. Giving into tech debt 

Nonprofits often operate with limited financial resources, making the cost of a CRM a significant concern. 

However, giving into tech debt can set your nonprofit back even further. 

If you’ve invested in a CRM solution and it’s not working out for you, have the hard talk with your stakeholders. You’ll need to assess the cost of continuing with an inefficient system versus investing in a new CRM that aligns with your goals.

Additionally, to navigate budget constraints, explore CRMs that offer nonprofit discounts, grants, or flexible pricing models. Consider the long-term cost savings and efficiencies that a CRM can bring to justify the investment.

 

4. Lack of technical expertise

Smaller nonprofits may lack the in-house IT resources needed to manage the implementation and ongoing maintenance of a CRM. 

Without dedicated technical support, you run the risk of struggling with system setup, customization, and troubleshooting. 

To overcome this challenge, choose a CRM provider that offers comprehensive customer support, training resources, and user-friendly features. Consider leveraging expert CRM consultants or support services if necessary to bridge the gap in technical expertise.

 

Nonprofits could benefit greatly from CRMs

Implementing a CRM system can be transformative for your nonprofit. More than just a tech upgrade — it’s essentially a strategic move to redefine how you connect with donors and scale your impact.

Look beyond the basics: consider how advanced features like predictive analytics and automated workflows can help you forecast trends, optimize donor engagement, and personalize communication at scale.

 

Think about the integration potential with emerging technologies or tools you might adopt in the future. The CRM should (ideally) also adapt to evolving needs, whether it’s expanding your donor base or managing complex multi-channel campaigns.

By taking a strategic approach, you’re not just implementing a CRM for your nonprofit — you’re positioning it to maximize its impact.

 

Need help with CRM for nonprofits? Contact experts at Aptaria. 

 

FAQs:

1. What CRM do nonprofits use?
Nonprofits use various CRMs like Salesforce Nonprofit Cloud, Bloomerang, NeonCRM, and HubSpot. Each offers features tailored to donor management, fundraising, and campaign tracking.

 

2. Can CRM be implemented in non-profit organizations?
Yes, CRMs can be implemented in nonprofits to streamline operations, manage donor relationships, and optimize fundraising efforts.

 

3. Is Salesforce free for nonprofits?
Salesforce offers a free version for eligible nonprofits with limited features. More advanced functionalities are available through paid plans at discounted rates.

 

4. How much does nonprofit CRM cost?
Nonprofit CRM costs vary widely, from free or low-cost options to more expensive solutions. The cost usually depends on features and scale, typically ranging from $0 to several thousand dollars annually.