8 Tips For Choosing The Right CRM for Nonprofits

A Customer Relationship Management (CRM) system is more than just software for nonprofits; it’s a strategic tool to manage donor relationships, streamline volunteer coordination, and enhance fundraising activities. In an era of rapid digital transformation, a nonprofit CRM can drive significant improvements in operational efficiency, donor engagement, and mission success.

With Salesforce’s 2022 Nonprofit Trends Report highlighting that only 12% of nonprofits are “digitally mature,” yet these digitally mature organizations are four times more likely to achieve their mission goals (Salesforce Nonprofit Trends Report, 2022), it’s clear that choosing the right CRM can be transformative for nonprofits.

Choosing the right CRM for nonprofits is crucial as it directly influences operational productivity, donor retention, and transparency. Below, we explore essential tips for selecting a nonprofit CRM and how it can help achieve your mission more effectively.

Why Nonprofits Need a CRM

The nonprofit sector faces unique challenges, from limited resources to high employee turnover and increased demand for digital engagement. The right CRM can address these issues by:

• Boosting Donor Retention: With donor expectations rising, 60% of nonprofits say that their current technology isn’t meeting these expectations (Salesforce Nonprofit Trends Report, 2022). A CRM helps nonprofits meet these demands, improving donor retention and engagement.
• Enhancing Operational Efficiency: Salesforce’s report notes that 74% of nonprofits view digital transformation as essential to achieving their goals. CRMs are at the heart of this transformation, allowing organizations to automate repetitive tasks and manage data centrally.
• Increasing Mission Impact: Nonprofits with high digital maturity are twice as likely to see operational efficiency improvements (Salesforce Nonprofit Trends Report, 2022), enabling them to channel resources into mission-driven activities.

With these benefits in mind, here are eight tips to guide nonprofits in selecting a CRM that aligns with their needs.

8 Tips to Choose the Right CRM for Your Nonprofit  

Selecting a CRM system tailored to the needs of nonprofits can be transformative. Here are eight key tips to guide your decision.

1. Choose a CRM that Maximizes Data Use

Data is one of the most valuable assets for nonprofits. Grand View Research projects that the global CRM market will grow at a compound annual rate of 13.3% through 2030, driven by the need for data centralization and operational efficiency (source).

Look for a CRM that serves as a central repository for all donor and volunteer data, reducing the chances of lost or duplicated information. Advanced CRMs for nonprofits often integrate AI to analyze engagement trends and forecast donation patterns, helping organizations make data-driven decisions.

2. Ensure Enhanced Communication and Transparency

Effective communication is vital for nonprofits, and the right CRM can streamline this aspect. Statista reports that 66% of global internet users access the internet primarily via mobile, highlighting the importance of multi-channel communication.

A nonprofit CRM should offer multiple communication methods, from email templates and SMS to social media integration, so that supporters can be reached on their preferred channels. Additionally, tracking each donor interaction enhances transparency, allowing team members to access the full engagement history, regardless of staffing changes.

3. Boost Productivity Through Automation

Administrative tasks often consume valuable time in nonprofits. Reports found that using automation in nonprofits could reduce time spent on repetitive tasks by up to 20%. A CRM with automation capabilities for reminders, thank-you emails, and task scheduling can enhance productivity.

Automation enables nonprofits to reduce the risk of human error, maintain consistency, and ensure that resources are focused on mission-critical activities. For example, automatically scheduling emails or logging donor information saves time and enhances operational efficiency.

4. Look for Event Management Support

Events are central to nonprofit fundraising, and a CRM with event management features can streamline planning. According to Salesforce, nonprofits that implement digital tools for event management see an increase in engagement by 25% (Salesforce Nonprofit Trends Report, 2022). Look for a CRM that manages online and in-person events, allowing you to track registrations, send follow-ups, and analyze outcomes.

A CRM with event management functionality allows you to track registrations, manage attendee communications, and analyze event performance. This can lead to increased engagement, more effective fundraising, and streamlined post-event follow-ups.

5. Determine the Right Number of Users

When selecting a CRM, it’s important to consider who will need access. Many CRM platforms, including Salesforce and Zoho, charge per user per month, so determining your user count helps manage costs effectively. Involving your team in the CRM selection process can also improve buy-in and ease the transition.

By understanding which departments and team members need CRM access, you can choose a pricing plan that aligns with your budget and operational needs.

6. Prioritize a Cloud-Based CRM

In today’s flexible work environment, cloud-based CRMs are increasingly popular among nonprofits. 59% of nonprofits report that cloud technology improves data accessibility and collaboration (Salesforce Nonprofit Trends Report). A cloud-based CRM offers access from any device, providing real-time data access to remote staff and volunteers while maintaining up-to-date software security.

A cloud-based CRM offers automatic updates, enhanced security, and access from any location, which is especially useful for teams with remote staff or volunteers. This accessibility ensures data consistency and keeps all team members informed and connected.

7. Look for Integration Capabilities

Nonprofits often use various software applications, from email marketing tools to accounting software. The ability to integrate a CRM with these tools is essential to avoid data silos and improve workflow. According to a Capterra report, nonprofits that integrate CRM and accounting tools can reduce data entry errors by 40% (source).

Look for CRMs that integrate seamlessly with other applications to streamline workflows and maintain data continuity. This integration allows your organization to have a comprehensive view of each supporter’s journey, enabling more personalized engagement.

8. Opt for a Mobile-Friendly CRM

In an increasingly mobile world, it’s essential for your CRM to be accessible on mobile devices. Statista reports that mobile accounted for 55% of global web traffic in 2022. A mobile-accessible CRM allows team members to access information and log interactions from anywhere, whether they’re meeting with donors or attending events.

With a mobile-friendly CRM, your team can engage supporters on the go, ensuring that no opportunity to connect is missed.

Final Thoughts

Selecting the right CRM for your nonprofit can have a profound impact on your operations, donor relations, and mission success. From data management and communication to automation and integration, a well-chosen CRM can help you reach your goals more efficiently.  In a report by Capterra that “65% of businesses adopt a CRM within their first five years.”  

If you’re looking for guidance on the best CRM for your nonprofit, Webuters can help. Our experienced team specializes in nonprofit CRM implementation, development and customization, ensuring that your organization gets the most from your technology investment. Contact us today to explore CRM solutions that align with your mission.