How to choose a new fundraising CRM

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When it comes to technology, charities understand more than most how it can transform the way they work. According to research from software providers Blackbaud, two thirds of non-profit organisations understand how technology can help them and more than half choose to invest in it.  

Those who said they were making progress with technology were more likely to be collaborative, focused on supporter experience, and gaining more supporters than they were losing. Indeed, this new wave of support is vital, considering 32% of charities said their income had decreased over the last 12 months.  

However, despite the clear benefits of digital, Blackbaud’s research also showed that only 35% of charities said they were able to get the most out of their technology, meaning around two thirds of the sector is unable to capitalise on the advantages that digital brings – including more funds, new supporters, and better experiences for existing ones.  

For this reason, Blackbaud has created How to Choose a Fundraising CRM Solution – a practical guide to help charities assess, select, and adopt a new fundraising CRM system. The guide, which has been updated to include advice on preparing your team for new technology in 2023, shows charities how to find the right solution for their unique fundraising needs, whether that means replacing old technology or investing in a CRM for the first time.  

Below, we explore some of the key advice from the guide and demonstrate how important having the right tech in place can be.  

How to choose a fundraising CRM 

Ask the right questions 

The guide starts with an overview of cloud-based CRM systems and looks closely at the benefits they offer for charities, including increased flexibility, better security and recovery of lost data, and a reduced carbon footprint. 

But how do charities decide if this CRM system is right for them? According to Blackbaud, it begins with asking the right questions.  

These questions set out by Blackbaud can help charities build a business case for the technology they wish to implement, showing where it will add value to their work and how it will make a difference to their mission. 

For example, your use of technology always needs to align with your organisational purpose – what goals are you trying to achieve in the next one to five years? Secondly, charities should look at their existing data management tools and processes and identify areas where it can be improved to help achieve those aforementioned goals. 

The guide also includes a handy checklist for charities as they prepare to search for a new fundraising CRM, ensuring they are ready for the next step: selecting a vendor.  

Create a list of requirements 

The second chapter of the guide provides charities with a list of starter questions they should consider when approaching new suppliers for their CRM system. This includes questions around data security, typical implementation timelines, and ESG goals.  

The environmental friendliness of technology, in particular, is becoming increasingly important to organisations as part of their own sustainability strategies, while the procurement process provides charities with an opportunity to influence technology suppliers into becoming more environmentally responsible.  

As well as providing organisations with helpful starter questions, the guide also offers advice on how to interact with potential vendors, including sharing questions and considerations with them before meeting.  

“However, it by no means should be seen as a final list of what you hope to gain from a new solution,” the guide adds. “Vendors should have a strong level of expertise and be able to highlight the additional capabilities of CRM solutions, even questioning some of your needs and raising new considerations.  

“If a potential vendor doesn’t ask you additional questions or try to dig deeper into ways they can support your organisation, instead only agreeing to accommodate your basic needs, then this can be a red flag.” 

Measure your impact 

The third and final chapter of the How to Choose a Fundraising CRM Solution guide is about implementing your CRM system and what to do next. Research from Blackbaud found that 43% of charities do not measure the impact of their supporter experience activity, while 38% they wouldn’t know where to begin measuring.  

But measuring the impact of your CRM system allows charities to maintain progress towards its goals and demonstrate return on investment to your governance and leadership teams.  

“Now that your solution is up and running, it’s a good idea to keep track of your original objectives for the project, then you can work with your vendor to understand if and how you are achieving them,” advises the report. “Any reliable vendor will want to understand this too and will help you to build a picture of what success looks like.  

“If you can introduce this right at the beginning, you will be able to work together to understand how you are achieving your goals."