A Nonprofit CRM (Constituent Relationship Management) is a platform to track, organize, and store data of prospects and donors to build relationships and raise funds for the organization. CRM manages all activities of the organization’s stakeholders to increase awareness of the cause to achieve its mission and create social impact. For-profit organizations use CRM (Customer Relationship Management) to manage and track sales to further their goal of maximizing profits. In the business world, CRM helps them stay connected to the customers and prioritize their activities based on consumer preferences. Though certain companies package CRMs to fit the needs of both sectors, it’s prudent to adopt a CRM specifically designed for your industry.
Do non-profits need a CRM?
Most nonprofits work hard to manage daily tasks and keep up with the increasing demands of the organization and the sector. However, a day missed might have immense consequences on the organization, indirectly affecting the life and well-being of its beneficiaries. Moreover, the adoption and Implementation of CRM are painful and time-consuming. Therefore, despite these hurdles, nonprofits should adopt some version of digital transformation.
Digital transformation allows organizations to use data to understand the weaknesses and strengths of the organization and prioritize the areas that need attention.
Reasons for non-profits to adopt CRM.
Selecting and implementing a CRM might seem daunting for nonprofits new to the sector and those new to technology, and selecting and implementing a CRM might seem daunting. But, the more you know your prospect, the faster you can convert them to a donor and the closer you are to your mission. Here are a few top reasons for a nonprofit to adopt a CRM
- Centralize data
A central location for all constituent information and related activities provides the staff with a holistic view of the constituents — donors or prospective donors. Comprehensive knowledge of prospects helps devise a strategic fundraising plan to move them along the fundraising cycle. A good CRM designed for nonprofits facilitates this process and results in donor retention and increased donations.
- Data Segmentation and analysis
CRM provides a central hub for data which promotes data collection and ensures availability and accessibility to data. This data can be segmented and dissected to prioritize your focus areas that generate more return on investment in terms of money and time. Additionally, data analysis helps create a gift pyramid and pipeline that builds a foundation for future fundraising.
- Workflow automation – internal and external
Automation of workflows and processes helps with managing tasks that are mundane and repetitive. These processes include recording communications between all stakeholders within and outside the organization. In addition, alerts and reminders within the CRM will guarantee that nothing in your workflow will be missed or delayed.
- Multichannel marketing and fundraising
For marketing and solicitations, CRM facilitates nonprofits to contact the prospect/donor through a medium of their choice. Targeted communications help build donor loyalty and satisfaction, resulting in increased recurring donations and repeat donors.