4 Tips for Choosing Your Nonprofit Donor Database

Choosing a donor database is a lot like hunting for the right romantic partner with online dating tools.

You are likely working from a long list of characteristics and browsing potential matches from brief descriptions and a few images. If you find something (or someone) that checks many of your boxes, you may schedule a demo—kind of like a first date. If the date goes well and the conditions are right, it could lead to wedding bells and a happy union between your sustainable nonprofit and a powerful CRM.

While choosing a donor management solution may not be an “until death do you part” level of commitment, but it’s still the first step in a long and successful relationship.

At SalsaLabs, we take on the role of matchmaker by helping nonprofits leverage powerful technology to meet their goals. To help you find a donor database that can be your team’s “other half,” we’ve compiled the following list of tips:

  • Create a project team, plan, and timeline.
  • Evaluate core functionality.
  • Consider compatibility with the rest of your tech stack.
  • Determine what additional features are essential for your organization.

The right donor database will support many aspects of your organization, from fundraising to volunteer management. So before tying the knot, make sure it’s meant to be!

Create a project team, plan, and timeline.


Selecting a software solution is no small undertaking. This is true for any type of software, but considering the immense impact that your supporter database has on your organization and mission, it’s especially important to follow an organized procedure.

Before diving into the decision-making process, you’ll probably have a general idea of the features your nonprofit is looking for—after all, there’s a reason you’re in the market for a donor database!

Establishing a plan upfront will give you clearer guidelines for evaluating the available databases and ultimately narrowing down your options to a few top contenders.

Assemble a team. Make sure you have all of the right people on board to make the decision. Depending on the size of your organization, you’ll want to invite anywhere from 2 to 10 people to weigh in on the decision. You’ll want to include the individuals who are directly impacted by the new system, the biggest consumers of information from the system, and anyone else who will have valuable input. The team reviewing the software will also help determine who will be using the software, which, depending on the system you choose, may factor into the budget decision.

Set a budget. Donor databases are built with a range of organizations in mind. Consider data like your number of donors, annual fundraising capacity, and major gift revenue to come up with a price point that makes sense for you. Be sure to establish this financial metric early on so you don’t waste time considering tools that are out of reach. However, if you’re a small nonprofit, you should choose a donor database that can scale up as your organization grows. Finally, it’s important to look for any additional customization or implementation costs when evaluating the price tag of each option.

Create a requirements document. You’ll want to develop a list of major functions and features that the donor database needs. As you create this document, try to limit yourself to the essentials and stay away from hyper-specific items. In general, it’s best practice to focus on what you need to accomplish rather than exactly how. The rest of this article will outline some characteristics you may want to consider.

As you go through this process, insist on defining your project plan in writing. This will ensure you stay on track and find a donor database that meets your needs and expectations.

Evaluate core functionality.

When considering expectations for your potential donor database, there are some core features you should look for.

You’ll want to keep the following core features in the back of your mind throughout the process, even if your primary focus is more specific:

Donor profiles and contact information. In addition to standard fields like name, address, and geographic location, look for a system that allows for custom fields. This will ensure you can record details that are specific to your organization’s audience; for instance, if you’re looking for a donor database for an animal shelter, you may want to record whether each supporter is a dog or cat person as well as the names of their current pets.

Analytics and reporting. The goal of your donor management software is to be able to store and use data effectively. While virtually all CRMs will offer reporting and visualization features, the complexity and flexibility of these can vary. This one place where your project team will have invaluable input since the people who need to access these reports should be represented.

Both of these functions will come standard in most of the donor databases available on the market, but with a wide range of variation. The size of your organization and the required detail level of your donor profiles will help you determine how you need these features to operate. Consider what your organization needs to accomplish to decide the scope of features you need from a solution.

Consider compatibility with the rest of your tech stack.

Your donor database should integrate with the other tools your nonprofit relies on. If it’s incompatible with the other elements in your existing nonprofit technology ecosystem, it may not be a good fit for your organization.

Your donor database should track every engagement metric you have with supporters. As such, you’ll want to consider the systems that track different types of engagement opportunities. For instance, if a supporter signs up to attend an event and donates to your most recent event, you’ll want to be sure all of these metrics are recorded and analyzed by your nonprofit. While some databases may have one or more of these functions built-in, others will require separate solutions.

Consider whether your organization uses the following tools, and if they are compatible with the donor database of your choice:

Fundraising software. Since one of the core purposes of your donor database is to inform your fundraising strategy, you’ll want a software solution that integrates seamlessly with your fundraising software. As this article explains, some fundraising systems pair well with CRMs, and some don’t, so you’ll need to consider the capabilities of your fundraising software as well.

Volunteer management software. If a supporter volunteers regularly with your nonprofit, you want to record that information alongside your other donor data. To avoid manual input, look for a donor database that syncs with your existing VMS.

Matching gift software. Corporate matching gifts can be a huge source of revenue for your organization if you know how to take advantage of the programs. According to Double the Donation, an estimated $4 – $7 billion in matching gift funds goes unclaimed every year. If you connect your donor database with matching gifts software, you’ll be better able to identify supporters who are eligible for matched contributions.

Event registration tools. Whether you’re hosting in-person, online, or hybrid events, you’ll want accurate records of every attendee. It’s helpful to have CRM and event solutions that are well-integrated. Then, you’ll be able to segment and target supporters more specifically based on whether or not they attended a past event.

Communications technology. Make sure your CRM can integrate with the tech you’re using to connect with supporters. This includes more traditional methods like email marketing as well as newer practices such as texting and social media outreach. If your communications platform and CRM are well-integrated, you’ll be able to automate outreach based on other interactions in the database, ultimately increasing supporter engagement.

When all of your supporter data can flow freely throughout your tech stack, you’ll be equipped to build well-rounded relationships with each donor. Take stock of your existing software systems and find a donor database that pairs well with each, then add that information to your requirements document.

Determine what additional features are essential for your organization.

Once you move past core features and software integrations, you’ll want to start on a list of features that are critical to your nonprofit’s operations. This list will be the most important part of your search, but it will also take the most thought to develop.

Consider what processes you have in place that are a drain on your team’s time, then look for a donor database that allows you to automate them or even skip steps completely.

Here are a few examples of tools from Salsa’s nonprofit CRM to give you some ideas of additional features that may save your team time:

Communication tools. Fundraising campaigns and other outreach efforts are more efficient when they can be accomplished directly from your donor database.

Automation and scheduling. Automated marketing tools allow you to contact the right supporter, with the right message, at the right time.

Comprehensive donation tracking. You’ll likely want a donor database that can manage both online and offline donations, avoiding manual input.

Smarter engagement strategies. Based on the interaction data you have available, your CRM can recommend optimized engagement methods. These can even be queued up automatically with automation tools.

Of course, your organization’s needs are unique, so your project team should brainstorm and collaborate to determine your must-have features and add them to your requirements document.

With so many options available, choosing a donor database to meet your needs can feel like an arduous and overwhelming process. A CRM solution will help you get organized and better engage your supporters, so it’s wise to invest the time and energy upfront so you can reap the benefits for years to come. With these strategies in mind, you and your donor management software will be able to live happily ever after. Good luck!


About the Author: Gerard Tonti

Gerard Tonti is the Senior Creative Developer at Salsa Labs, the premier fundraising software company for growth-focused nonprofits.

Gerard’s marketing focus on content creation, conversion optimization and modern marketing technology helps him coach nonprofit development teams on digital fundraising best practices.

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First Millennials, Now Gen Z: A Recap for Those Trying to Keep Up

Now that they are all of-age, Millennials have joined the workforce (and volunteer force) with full steam ahead. The introduction of this generation to the workforce came as a jolt to many, as the values and motivations of this generation were unprecedented. Now, just as we’ve finally wrapped our minds around the nature of Millennials, another generation is cropping up behind them – Gen Z – and what a fascinating generation it is!

Reviewing the two, it helps to start with simple comparisons. Comparing Millennials to Gen Z, there are many similarities with subtle differences. For example…

  • Millennials are tech-savy, introduced to technology at a young age with home computers, laptops, cell phones, etc. In contrast, Gen Z are tech natives, born and raised with cell phones, iPads, smart watches, etc.
  • Millennials are motivated to engage in justice work (social, environmental, etc.) due to the dissonance between what they were raised to believe vs what they eventually learned over time due to self-educating resources. Gen Z are being born and raised with discussions of justice, and therefore have an intuition and familiarity with such topics. While millennials often drift into justice work, Gen Z root themselves in it.

There are also a handful of areas that are rather uniform in both generations:

  • Both generations are value and mission driven in their actions, beliefs, career choices, purchases, and philanthropic behaviors (including volunteering and donating).
  • Both generations are laser-focused on the positive and negative impacts of the companies and organizations they support or are affiliated with. They are no stranger to thorough research or accountability.
  • Finally, both generations appreciate the art, innovation, and creativity that comes with problem-solving — hence the warm embrace of “viral” culture in both generations.

How Millennials Pushed the Needle

Millennials began pushing the needle with their notably increased interest in careers in the nonprofit sector. Rather than climbing corporate ladders, Millennials want to do work that matters. This motivation, in combination with the 2000’s cultural surge in entrepreneurship, cultivated a brand new industry intersection that is quintessentially Millennial: social entrepreneurship.

If you think about it, social entrepreneurship leverages Millennial strengths perfectly: mission-driven work, technology-based solutions, creative branding, and digital social marketing.

Millennials are the generation that brought corporate social responsibility to the table — to the executive table, to be exact. Before, it was much more rare to observe corporate responsibility in action. Many corporations shared a common goal — to make more revenue. Until recently, corporate social responsibility made little impact on revenue.

However, Millennials leveraged their widespread digital presence and collective purchasing power to force corporations to care. There seemed to be a gradual realization: in order to appeal to the growing generation of Millennial workers and consumers, businesses needed to prove their values and measure impact.

This insight became important for industries of all kinds, including the nonprofit industry. Although the nonprofit industry was already values-driven and mission-driven, Millennials applied more pressure to nonprofit accountability. The idea being, “Your heart might be in the right place, but what are the true impacts and consequences to which you must remain accountable?” (For example, the issues surrounding voluntourism and White savior complexes.)

This question of accountability has bled into the decision-making process of Gen Z as well, which we will discuss next.

How Gen Z Is Pushing the Needle

Millennials started widespread conversations about justice, responsibility, and accountability in a way that forced corporations and nonprofit organizations to care and respond. In a way, Millennials built the foundation for the work that Gen Z would carry on (and is carrying on).

Let’s take the generationally shared question: “Your heart might be in the right place, but what are the true impacts and consequences to which you must remain accountable?”

As said in the Philanthropy Journal at NC State University, “The task of the nonprofit is to prove beyond reasonable doubt that they are who they profess to be, and that their impact is tangible.”

Gen Z does not only ask the tough questions — they find the answers, make decisions, and apply pressure accordingly. Meaning, for example, that they will not only decline a job offer from a corporation that is not aligned with their values; Gen Z will take it a step further to communicate the misalignment to those they are responding to, encouraging — at times urging — others to do the same.

After all, one of the major ways Gen Z has moved the needle is through the immeasurable surge and value of social influence.

Although it is more difficult for companies and organizations to truly earn this generation’s trust, the value of this trust is worth the effort of earning it. Gen Z relies on the trusted feedback of those they choose to follow on social platforms — whether those people are friends and family, internet friends, or celebrities and influencers.

Therefore, it becomes in the best interest of corporations and organizations to appeal to the interests of those influencers, as word will spread quickly, cost-effectively, and exponentially. If customer or constituent trust and feedback was important before, it’s even more important now.

Gen Z works as a collective, in many ways, rather than as an individual (as is more commonly observed in Millennials). Gen Z is more diverse than any of the generations before, and interestingly, that diversity inspires a much deeper generational understanding and commitment to advocacy for themselves and their peers. Although most of Gen Z is currently underage, it is safe to predict that the collective purchasing power of Gen Z will be far greater than even Millennial purchasing power. The thorough, thoughtful decision of one will much more effectively influence the decisions of their peers.

The majority of Gen Z is still quite young, so we have to watch our predictions over time. Here are a few predictions that are a safe bet:

  • As tech natives, Gen Z will request and require more technology solutions at worksites, volunteer sites, homes, and communities.
  • Eventually, the world will care about what this generation cares about — whether due to genuine interest and influence, or commercial/economic pressure.
  • Just as values-based and responsibility-focused careers were created or expanded for Millennials joining the workforce, new and prominent roles will likely be created for Gen Z as well. Workplaces will be restructured to include more roles relating to workplace justice and community impact, as well as roles that enforce systematic checks and balances, ensuring measured impact is followed closely by actionable accountability.

Stay tuned as the youngest generation grows up and joins the workforce. They are likely to bring great change to the world we live in, just as generations before have done in their own unique way.

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Get the Grant! Your Competitive Edge with SMART Metrics

Amidst a challenging year, nonprofits are zeroing in on the grants that will help them continue to deliver on their mission. As calendars are marked with application dates and deadlines, grant writers have the opportunity (and challenge) of completing a compelling grant proposal – one that will make their nonprofit shine even more brilliantly than the competition.

Although nonprofit teams are stereotypically not the most competitive personalities, the fact of the matter is that financial resources are in high demand, requiring a bit more magic from grant writers to land the grants their organization is relying on. Now, of all times, is the time to boast! Show off the incredible work of your nonprofit team.

Here’s the magic that I urge you to keep in mind as you get to work: tell a story of your past, present, and dream-scenario future. Then, explain with numbers why your numbers back the story of your past/present, and why (with numbers) your dream-scenario future is well within reason.

Nothing beats a grant application that displays both the head (pragmatism), heart (mission focus), and muscle (execution) of your nonprofit. Sounds like a winner to me!

Now the big tip – remember “SMART Goals”?

By this point, you may already have your SMART goals outlined. For example: “In 2021, we will launch 2 new programs across 15 county schools, reaching 15,000 students ages 13-19.”

Amazing! Now implement the same SMART (Specific, Measurable, Achievable, Relevant, and Timely) strategy to share metrics that prove you’re able to accomplish said goal.

SMART Metrics to Prove Your Salt

Specific

Show specifically what actions have been taken (or been maintained) and what impacts have resulted. This will be a foundational step to the work ahead, so take your time, and don’t be overly-critical of the first thoughts that come to mind.

Get the ball rolling by simply making a list! Jot down all initiatives and changes your nonprofit has made in the last year (or other relevant time period) in efforts to pursue the mission.

It can help to do this part as a team. Gather a think-tank team consisting of all departmental leaders in your organization. Everyone can chime in on the actions and accomplishments of their respective programs. (Bless the grant writer, who will likely be jotting all of this down and making order of this light chaos.)

Remember: not everything that will be said/thought at this stage will be kept! You’ll need to first identify which contributions are relevant to the grant itself, then workshop each contribution until it is, in fact, SMART.

That said, it’s alright if people start chiming in with general actions and impacts such as “Our clients are much happier with our programs!” – that example won’t make the final cut, but it will get the juices flowing for the team.

By the end, you’ll workshop these ideas to be more specific, such as, “We hired our first full-time event coordinator, which resulted in 3 more programs this year, and 25% better attendance.” (Ok…I’m jumping ahead. Let’s move on to “measurable” now.)

Measurable

Any metric needs to be measurable. How much, how many, what percentage, what ratio? You can make even the broadest statement measurable if you ask the right questions and do the appropriate data collection.

Let’s revisit the previous example and make it measurable: “Our clients are much happier with our programs!” Get started with questions like these:

  • How is happiness being measured? Attendance? Repeat attendance? Referrals? Survey results?
  • Are you tracking this data? (If not, start now! You’ll have the data at the ready for next year.)
  • Don’t forget the specificity – which clients and how many? Which programs and how many?

By asking the right questions and collecting the right data, you will end up with much stronger metrics, a much more compelling narrative, and an easy setup for a SMART goal. For example:

“Last year, we held 45 programs, of which 70% of attendees had attended at least 1 other program in the last 3 months, indicating strong community confidence in our programs. In the last year, we also welcomed a 12% increase in program attendance. Of first-time attendees, a whopping 80% were referred by someone who had previously attended a program. Word of mouth is powerful, but with a grant-funded community outreach and marketing budget, we will achieve…[insert the corresponding SMART Goal here; now that you’ve built the case for your SMART metrics, your SMART Goal will be a slam dunk].”

Achievable

These specific, measurable metrics will have already been achieved, which naturally bodes well for your ability to execute on your proposed SMART goals. If you’ve done the work before this step, you’ll easily check the box for “achievable”.

It boils down to the idea, “We’ve done it before and we can do it again even better.”

Relevant

Now that you have the most amazing data, telling the most amazing story about how you’ve done amazing things and can do many more amazing things if you just had the funding…it’s time to zero in on what (in this mountain of amazing-ness) actually matters to those reviewing your proposal.

It’s time to thoroughly trim the fluff. If you are applying for a grant that is focused on certain communities or outcomes, only use the data that correlates and speaks to those points.

Remember – nothing that you’ve done up to this point will go to waste. Data reports can be powerfully repurposed and recycled. Use the data for outreach to the community, volunteers, sponsors, or donors.

Timely

This will be another easy check mark, if you’ve done the above work already. Timebox your achievements into quarters, years, decades — whatever is most relevant to your organization and the grant it is applying for. Otherwise, you risk boasting incredible numbers with no context. Without context, the data itself is much less valuable.


Final thoughts

Some of your competition will apply for a grant using SMART goals, forgetting to intentionally comb through the SMART metrics that serve as a foundation for those goals. Use metrics to give yourself the best shot at an easy layup.

It’s possible that your organization is very small or brand new, making it difficult to gather historical data on your organization’s performance. That’s no problem – every organization must start somewhere! Here are some areas you can start collecting data on right away, that will give you more to work with next time you apply for a grant:

  • Number of community served (what is your reach?)
  • Demographics of community served (who are you reaching?)
  • Number of volunteers and volunteer hours contributed
  • Community/client satisfaction (collected via periodic surveys, or by number of returning individuals)
  • ^All of the above tracked within consistent time periods (so that you can measure change, progress, growth.)

Best of luck to you as you prepare to apply for upcoming grants. It can be a tedious process the first time around, but rest assured that the data will build on itself gradually over time, so long as you keep a data management system in place. With time, a data management strategy, and a keen eye, you’ll reveal even more compelling (and SMART) stories about your organization, and funds surely will follow.

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10 Myths About Managing Volunteers

A popular favorite from the VolunteerLocal Blog Archives.


Volunteer coordination is hard work, and there are a lot of misconceptions about what the role entails (and how to be successful along the way). We’re here today to de-bunk some of the most common myths we hear about volunteer management.

  1. You’re on call, 24-7. If you’re passionate about your job, managing volunteers could turn into an all-day, every-day gig. But with established communication protocols and an active team, you can (and should!) unplug. 
  2. You can’t solicit volunteers for donations. Many volunteers see their time as their primary contribution to an organization, but if there are costs associated with onboarding (background checks, etc.) asking them to cover those fees is a good path into the donor pipeline. 
  3. Volunteer trainings need to involve slides and manuals. Sure, you should cover compliance and protocols in an onboarding, but bring the mission to life with role-playing, behind-the-scenes tours or other activities that engage and inspire volunteers. 
  4. You should be happy with whoever you get. That old “beggars can’t be choosers” philosophy could really disrupt your organization. Screening volunteers is critical. They should be a right match for the organization, and placed in a role that maximizes their skills.  
  5. There’s no professional development for volunteer managers. So many people fall into this line of work. Seek out a support system of other volunteer managers who can share best practices through your local United Way, nonprofit professionals network or online forums. They can also recommend conferences and webinars to grow your skills. 
  6. Volunteer programs are free. While a volunteer program can bring great value to your organization, they’re like a garden that needs attention and investment to yield the best results. Don’t forget to build recognition materials, management software and other supplies into your budget. 
  7. Your organization should jump on every Day of Service opportunity or group volunteer request. Saying ‘no’ to someone (or lots of someones) who want to contribute to your organization can seem crazy. But if the activity is out of scope for your organization, a ‘yes’ can lead to confusion and cause more harm than good. 
  8. You’re the only one recruiting volunteers for your cause. Partnerships – with corporations, colleges and universities and other civic organizations – can create productive volunteer pipelines. 
  9. Liability and insurance isn’t your territory. Make sure you are working closely with your organizations’ compliance arm to ensure both volunteers and the organization are not putting each other at risk. 
  10. Measuring volunteer impact is impossible. With proper tracking of volunteer hours and assignments, your organization can put a relative dollar value on volunteer power. And by collecting stories of volunteer initiatives and outcomes, your leveraging powerful anecdotes to support your cause.

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