Customer relationship management (CRM) software has helped tremendously and has revolutionized how non-profit organizations interact with customers. While CRM adoption has been a leading contributor to increased customer satisfaction rates, better brand loyalty, and increased revenues, another tool available to non-profits is donor relationship management (DRM) software.
DRMs can do everything from scouting potential donors, personalizing donor experience, and even aid in creating large scale outreach programs. All of these features of a DRM can be responsible for larger and more frequent donations for you non-profit.
How It Works
At its core, DRM (sometimes referred to as “non-profit CRM”) is about establishing one-on-one relationships with your donors. But to use DRM applications effectively, you’ll first need to understand how they work and the information they typically require. Without a complete profile of donors, you run the risk of not knowing who’s most likely to make major gifts or respond to certain types of solicitations.
For this reason, it’s important to provide DRM database software training and access to all staffers who come into contact with donors and prospects. Every interaction provides an opportunity to learn more about individuals and companies. Assuming everyone knows how to operate the DRM system, and actually uses it, your team can build a rich reservoir of data to improve donor outreach.
For example, a planned giving staffer might note in the DRM database that she met with a potential donor to discuss donation options. Although the man was receptive, he seemed to want to know more about the charity before committing to making a large gift. A different staffer who’s recruiting new board members might view this note and reach out to the prospective donor about joining the board — a perfect opportunity to learn more and become invested in the charity’s future.
Other Examples
Consider one of the most rewarding giving arrangements for many non-profits: the monthly sustainer program. To build yours, you might solicit donors you think are likely to make automatic monthly gifts, based on past discussions with your staff, their giving history, and demographic information. With this robust data, you may be able to reach out selectively and add sustaining members in a more cost-effective way than if you’d committed resources to contacting every donor in your database.
DRM systems can also be used to personalize donor offerings, such as individual giving programs. For example, an older donor with a sizable investment portfolio might be interested in a giving plan that involves contributing appreciated stock to a charitable remainder trust that names your non-profit as the remainder beneficiary. If executed, the plan could result in a major donation to your organization at the donor’s death, as well as provide the donor with income and gift tax savings and a lifetime income stream.
Choosing A Vendor
There are a variety of DRM solution vendors. These include large companies that also develop business CRM software, such as Salesforce, and non-profit specialists such as Bloomerang, DonorPerfect, and Little Green Light. Before choosing a solution, evaluate several options based on cost (some solutions may be free), functionality, compatibility with your existing systems and software, and the availability of customer support. Contact us for suggestions.
