How to Choose a CRM System Based on Your Nonprofit’s Size

When you’re looking for new customer relationship management (CRM) software for your nonprofit, the choices out there can seem overwhelming. How do you know which CRM system is right for your organization?

There are many things to consider when choosing new CRM software, and requirements are unique for each organization.

Choosing, purchasing, implementing, and learning how to use a new CRM system takes time and money, so the system you choose should have some longevity. No matter what size organization yours is now, it’s important to think about the next three to five years to make sure the solution you choose can grow and evolve with you as your needs and goals change.

It can be easy to fall into a trap of getting by with the solution you have in place to avoid the short-term discomfort of going through a product selection and implementation project. But doing so can result in long-term pain from outdated software that requires time-wasting workarounds and the inability to execute some of your organization’s plans. In short, if you’re just getting by with your current solution, it’s probably time to look for a new one.

One aspect that can help you to create an initial list of options is the size of your organization, but keep in mind there are not hard-and-fast rules based on size alone. Size categories rely on annual revenue but also generally serve as a proxy for staff size and organizational complexity. Also, some of the CRM solutions listed might cross over into multiple categories, depending on an organization’s specific needs.

There are a lot of options in today’s CRM marketplace, so it’s not reasonable to list and categorize them all in one article. Instead, these solutions are meant to provide a starting point for your research into CRM solutions.

With that said, let’s look at four categories of CRM systems based on nonprofit size

Nonprofit Start-ups (Less Than $500,000 in Annual Revenue)

These organizations are just getting started and may even be volunteer-driven. They often rely on spreadsheets to capture data about donations, constituent interactions and more. Some might also use a variety of products for things like email communications, event registrations, donations and accounting. But each of these point solutions can turn into its own series of spreadsheet files downloaded from each individual platform. Sometimes, these organizations will take the time to combine these files into one big spreadsheet or even a home-built database. However, this approach can become difficult to maintain and can lead to inaccurate data.

The good news is that there are CRM solutions on the market for even the smallest of organizations with minimal budgets. These solutions offer basic CRM functionality and often do not charge a monthly or annual platform fee. Instead, they charge a percentage of transaction fees processed online.

A few platforms in this category include Funraise, Givebutter and Zeffy.

Small Nonprofits ($500,000 to $1 Million in Annual Revenue)

Nonprofits that have moved beyond the start-up level begin to have more complex processes, larger databases and more staff members. At this point, it’s a good idea to invest — even minimally on a monthly or annual basis — in a CRM solution that includes more features to help staff members work more efficiently.

These systems are less about robust CRM functionality and more about the basic features that small nonprofits need to support things like online donations, events, raffles and perhaps basic peer-to-peer fundraising and membership activities. The main benefit is a common donor management database.

A few solutions in this category to consider include Bloomerang, Charityproud, Keela, Little Green Light, and Neon One.

Mid-sized Nonprofits ($1 to $50 Million in Annual Revenue)

Larger budgets mean more staff members supporting more campaigns, programs, events, grants and other things that are mission-driven. With that, comes more CRM feature requirements and the need for more capabilities to help automate repetitive daily tasks so that staff can focus on work that requires a more personal touch.

These platforms offer more robust functionality than those suggested for small nonprofits while still being somewhat turnkey in nature.

Several options in this category include Blackbaud’s Raiser’s Edge, Bonterra’s EveryAction, CharityEngine, ROI Solutions and Virtuous.

Large/Enterprise Nonprofits (More Than $50 Million in Annual Revenue)

While not every nonprofit in this category will raise more than $50 million in annual revenue, these organizations typically have complex business processes, programs and functionality requirements and need a more robust and highly configurable or customizable solution with advanced features and capabilities.

Robust solutions also typically require more support from the organization’s IT team, a consultant or the product vendor to ensure that the CRM solution continues to integrate well with other solutions that the organization uses and continues to meet the needs of the organization’s staff.

Some options in this category include Blackbaud CRM, iMIS, Microsoft and Salesforce.

As you begin to research CRM options for your nonprofit, keep in mind that there are many considerations, and each organization’s CRM requirements are unique. Use these categories to begin your research and understand your options. It can also be extremely useful to work with a nonprofit technology consultant to help define your needs and evaluate CRM solution options to find the right match for your organization.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.