How Successful Charities Use Software for Fundraising to Stay Organized
- By Christine OKelly
- Published 06/17/2009
- Business
Christine OKelly
View all articles by Christine OKellyHow Successful Charities Use Software for Fundraising to Stay Organized
Small non-profit organizations, and even some larger ones, often use simple home made systems for important tasks such as tracking donations. Non-profit fundraising can be far more successful when using specifically designed fundraising software rather than Excel sheets and finance programs that have been adapted to meet the unique needs of fundraising.
Software for Fundraising Gives Better Organization
Any kind of financial software will provide better organization and tracking of financial information than systems of paper records or spreadsheet programs. The ability to generate customized reports, budget analyses and financial projections means fewer financial surprises. However there are needs unique to charity fundraising that these applications can't satisfy.
For example, while contacts can be managed by other customer database applications, donor management software gives the tools needed by the non-profit world. Donors are different than the "customers" of for-profit organizations and the tracking and marketing tools right for one won't be quite the right fit for the other.
Software for fundraising allows a non-profit to focus efforts on lucrative donors while tracking other contacts who may become donors in the future.
Convenience Leads to More Donations
A non-profit business is still a business and maintaining a steady revenue stream is vital. Implementing software for fundraising makes donation easier for supporters and easier donations means more revenue.
Adding the capability to accept online donations can make a huge difference to a charity's bottom line. When donation is a mere click away, benefactors are more likely to contribute on impulse. Online fundraising is much faster than depositing checks and the non-profit can use the donations that much sooner.
Software for fundraising allows donors to set up recurring donations. Charities don't have to keep nagging donors for more contributions. Instead, supporters can set up regular donations. The non-profit has a steady and more predictable stream of income.
Enhanced Security
When it comes to data security, there are two areas that need to be addressed: theft and disaster.
Any organization handling large amounts of money is a target for thieves. While we'd all like to live in a world where the non-profit industry was safe from crime, the sad fact is people will steal from charities just like they steal from banks or other corporations. Software for fundraising encrypts financial transactions, protecting both the non-profit organization and their community of valued benefactors.
Data should be protected against catastrophes such as fires or natural disasters. Paper records are very difficult to back up without laborious copying. Electronic records can be duplicated more easily, but if stored locally are still subject to loss from disaster. Software for fundraising run from a central server provides data redundancy and automatic backup. Critical information such as donor lists and financial records can be quickly restored even if the entire office is lost.
Software options for fundraising management are inexpensive and easy to use. With all the features offered, there is no reason for non-profit organizations not to be using them.
