Cost-Benefit analysis of a Donor Management Software

cost-analysis donor management

In our previous blog, we spoke about the main features non-profits need to look for in a professional fundraising / donor management software.

In this blog we discuss about the Cost-Benefit analysis of a Donor Management Software.

According to the Fundraising Management Software UserView 2015 report, a high learning curve and lack of customisation options were among the top challenges for NFPs interested in implementing a Fundraising & Donor Management Software.

High Learning Curve

According to the report 67% of respondents have stated that there is a high learning curve associated with a donor management solution. Fortunately, the learning curve can be effectively managed via proper staff training, online support, tutorials and knowledgebase resources.

Lack of customisation and integration capabilities

67% of respondents have also stated that many off-the-shelf fundraising solutions are unable to adapt to their business processes and they need to often invest more in a customised solution or invest staff time in managing some of the processes manually. Organisations need to shop around and trial some solutions before making a purchase.

Donor Trend Analysis

With the help of an effective Donor Management software, NFPs can record their interactions with donors and uncover trends to streamline their campaigns. This helps them target donors according to their interests.

Targeted campaigns help increase response rates and donations. The ability to segment donors according to their interest area helps NFPs reduce donor churn.

Donor Relationship building

The use of an effective donor management software frees up the time staff spend in mundane administrative tasks and helps them focus on activities that matter such as building relationships with existing donors and sourcing new donors. These activities in turn bring in more contributions for the NFPs.

Reduced Campaign costs

Instead of sending the same direct mail to all donors, staff can categorise donors into different groups and tailor their messaging specific thereby reducing costs.

NFPs have reported a reduction in data duplication and data entry errors. The cost associated with data de-duplication is expected to run into hundreds sometimes thousands of dollars. The fundraising solution reduces these costs.

While implementing a donor management and fundraising software can pose challenges, its benefits outweigh the associated costs.

For a customised and agile donor management solution talk to the Empower IT team now or check out their Donor Management and Fundraising software.