The Importance of using CRM Software In Fundraising

Posted by Omolade Bangudu on 12 March 2023

There are so many factors that contribute to a successful fundraising campaign. From thinking of an idea that will inspire donations, to the logistics of planning the event and much more. One way to keep organized in your fundraising efforts is to use CRM software that has been specifically designed with fundraising in mind. In this article, we’ll explore exactly what a CRM is, why it’s important in fundraising and how you can use it in your next fundraising project to meet your goals.

What is a CRM?

Firstly, let’s break down the jargon! CRM stands for Customer Relationship Management. In the context of fundraising, a CRM is a useful digital tool which helps you to manage your tasks and relationships with both donors and supporters, keeping everything in one place to streamline activity. Essentially, it’s your go-to fundraising organization tool!

Why CRM Software is important in fundraising

So why do you need CRM software in fundraising? Donors and potential donors can be difficult to keep track of. Not to mention fundraising campaigns can be complex and sometimes very time consuming to manage. Using CRM technology enables fundraisers to manage all of this in one place, with tools to help them increase donations, build stronger relationships with donors for future projects and achieve their overall fundraising goals.

What are the benefits of using a CRM in fundraising?

Let’s dive into exactly how you can use a CRM in fundraising and the many benefits of doing so.

1. Streamlined donor management

With a fundraising CRM platform , you can store all of your donor information in one place, making it much easier and simpler to keep track of donations and other important details.

For example, the platform has the option to store contact information such as your donor names, addresses, email addresses and phone numbers. You can also see important information such as their donation history and any previous contact that has been made (for example from email campaigns).

This is important, as it allows you to find donor information quickly (gone are the days of confusing manual spreadsheets!), plus it allows you to easily contact your database of donors for future campaigns.

It also helps with building relationships with potential donors, since you can tailor your campaigns and communication to them based on their giving history and previous interactions with you or your organization. All of this ultimately helps you to reach your donation goals.

2. Donor segmentation and targeting

One clever way to use your CRM in fundraising is to segment your donor data based on certain criteria such as their giving history, demographics, and even interests.

For example, imagine you want to send out an email campaign to potential donors for your animal rights charity. You may want to tailor your messaging differently for those who have made bigger donations, compared to those who have made smaller donations in the past.

Why? If you set the donation bar too high, it may put off smaller donors from contributing. Equally, if you ask for too little from those who have more to give, you may miss out on additional donations.

Here’s an example below, with some tailored email messaging for two different groups:

A donation of £100 will go a long way – for those who have a higher value donation history

A donation of £20 will go a long way – for those who have a lower value donation history

Using your CRM tool, you can segment the two different audience types above so that your fundraising efforts are tailored to them, likely resulting in more donations for your cause.

3. Automate donor outreach

Donor communication is key to a successful fundraising campaign. From reminding your contacts of upcoming events, to sending thank you notes following donations, so that your donors feel appreciated (and are more likely to donate in the future!).

Done manually, this could be extremely time consuming, but thanks to CRM technology, your fundraising communication can be automated so that donors are automatically thanked for their donations and reminded of important upcoming events or donation deadlines.

As an example, a charity may want to keep engaging with its past donors, but rather than manually checking their last donation date, they can use CRM software like Givergy to automate the process for them.  This could be done by setting up an automated trigger so that, whenever a certain time period has passed (i.e 6 months since last donation date), donor contacts are sent an automated communication, keeping the charity front of mind and potentially generating further donations.

4. Track fundraising results

Knowing how successful your campaign and fundraising efforts have been is vital for ensuring your future fundraising campaigns are successful. That’s why having all the data insights and reporting that a CRM can offer is so important in fundraising.

Things like seeing what type of emails generated the highest open rates, or what strategies generated the highest number of donations, can help you to fine tune your future fundraising efforts.

5. Simplified event management

Using a CRM tool with a fundraising platform like Givergy can help you to manage your fundraising events from start to finish, and months down the line. This includes ticket sales, donations, auction item management, and even post-event follow-up.

Givergy’s event management tools allow you to easily set up your event, sell tickets, manage donations, and track your progress towards your fundraising goals. With Givergy’s new data integration with Blackbaud Raiser’s Edge NXT, a popular CRM tool among fundraisers, you can then link relevant event data to your donors that exist in the CRM, making it easier than ever to track your donors with the events they attend.

For example, your organization could use Givergy to record ticket sales for a sponsored run to manage guest check-in for a charity gala dinner, or host a silent auction. After the event is complete, details about donations, winning bids or prize draw purchases are synced with Raiser’s Edge so that you always have access to updated information on both platforms. Learn more about Givergy’s integration with Raiser’s Edge here.

6. Multi-channel fundraising

There are many different communication channels for reaching potential donors. From social media to email, your website page or even direct mail.

A fundraising CRM can help you to manage your campaign across all of these different channels, allowing you to easily see which channels are performing best, which can ultimately help you in further decision making. 

For example, you may launch a specific campaign on social media, encouraging supporters to share the donation request with their friends and followers. Your CRM can be used to track the success of this campaign and how many donations it generated.

7. Simplified newsletter management

It’s important to keep engaging with your previous and current supporters, so that they don’t forget about your fantastic cause. That’s why using a tool such as a newsletter is so useful for keeping your contacts updated on how your organization is using funds for your cause, and any upcoming fundraising events. Fundraising CRMs include the option to send a newsletter to your contacts, and even see which of these contacts are engaging and opening your newsletter, so you can improve your communications further.

8. Matching gift management

A CRM can also be used to manage matching gift programs. This is where organizations match donations made by employees of a company or other organizations.

The CRM can be used to track matching gift requests, manage the approval process, and even communicate with donors about the status of their matching gift requests. Another time saving feature which is sure to increase donations for your cause!

Use CRM software in your next fundraising project

By using CRM software, you can streamline your donor management, segment and target your audience, and make data-driven decisions to increase the effectiveness of your fundraising efforts. Not to mention the various automation features offered by platforms like Givergy can save you time and increase your overall outreach efficiency. 

Enhance your next fundraising campaign today, by opting for a fundraising CRM.

Omolade Bangudu

Marketing Manager

Omolade oversees the strategy, planning, and implementation of marketing and branding efforts for Givergy worldwide. With a passion for using creativity, technology, and data to drive results, Omolade is at the heart of growing the business.