A donor database refers to any software used by nonprofits to manage their potential and current donors, volunteers, or other supporters. Many software programs are available to choose from, and each has its strengths and weaknesses.
How Does Donor Database Software Work?
This software is designed specifically for nonprofits, political campaigns, fundraising events, and other organizations. The primary purpose of donor database software is to manage relationships with donors.
This software allows you to know everything about your donors. It keeps track of who they are, their interests, how much they had donated in total, when they last donated, and much more.
Why Use Donor Database Software?
Your donor database is one of your most valuable assets. This critical resource contains information about every person who has ever donated, volunteered, attended a fundraiser or event, signed a petition, or otherwise participated in your organization’s activities. For example, Blackbaud’s online donor database reports that its users typically see a 35% growth in the number of donors, 48% growth in the number of gifts, and 44% growth in total dollars raised.
How is the Software Structured and Set-Up
Donor database software typically consists of three main components. The first is a data entry tool for entering new prospects, major gift donors, and small gift donors into your system. This can be done manually or automatically using integration with your CRM system (such as Salesforce). Once prospects are entered into your donor management system, you can then segment them based on their level of giving.
Basic features for online donor database software include:
Contact Information Tracking
Donor database software will track your donors’ contact information, including their name, address, phone number, email address, etc.
Donor History Tracking
Donor database software will track your donors’ donation history, including how much they’ve donated, when they’ve donated in the past, what special events or appeals they’ve participated in, and more.
Reporting
Donor database software will allow you to create reports based on your donors’ contact information, donation history, preferences, etc.
Data Security
Donor database software will protect your donors’ information by allowing you to set up user permissions, security levels, and more.
Campaign Tracking
Donor database software will allow you to track your donors’ participation in special events or appeals.
Donor Communications
Donor database software will allow you to send out emails, texts, and more directly from your software.
Donor Management
Donor database software will allow you to manage all of your donors in one place.
When Should You Consider Implementing Donor Database Software?
Several factors come into play when determining if you should implement donor database software in your nonprofit fundraising strategy. Donor database software can be accessed online or on your desktop via an app. These options allow you to see a list of donors, history, and much more in a user-friendly interface.
Although you don’t need donor database software to collect donations, there are some advantages that it can offer your organization.
