Why Every Nonprofit Needs To Have CRM Software

Introduction

Customer relationship management or CRM refers to the process by which a business adheres to engage with its customers. Data analysis plays a very important role in customer relationship management. 

Though CRM was largely associated with commercial businesses for the longest time, many nonprofits, too, are adopting it and benefiting from it in a huge way. Many nonprofits, however, continue to remain skeptical about it. While some are of the opinion that nonprofits don’t need CRM software, some are of the opinion that implementing it would unnecessarily add to their costs. 

Even if you have a large number of donors, you will have to accept the fact that several potential donors do not make any initiative towards supporting the causes you stand for simply because they don’t trust you enough. To earn their trust and increase the flow of nonprofit online donations, installing CRM software would be the right thing to do.

A nonprofit is set up with the selfless objective of helping society and resolving some of the issues people, who are a part of it, face. To do this efficiently and in the most effective manner, you must be ready to do everything that is required to be done.

Here are 9 reasons why every nonprofit needs to have CRM software:

• Automation

People working in a nonprofit have to carry out several processes on a day-to-day basis so that things run smoothly. The bigger the reorganization, the more the number of responsibilities you will have to deal with. In today’s times, many nonprofits suffer and even shut down as they find it difficult to manage their everyday operations. 

By installing CRM software, you can get some of these tasks or activities to take place in an automated manner. The accounts department, for instance, can work far more efficiently after the installation of CRM software. If a large number of your operations are automated, you will have lesser responsibilities to deal with. 

• Data Processing

A nonprofit has to deal with a large volume of data. When you use physical files or notebooks to maintain all the data and information you receive every day, you have to be ready to deal with inaccuracies that creep in because of human error. There is also a great risk of data getting lost or mixed up.

After you install CRM software, you can be sure about your data is being stored and processed in the best possible manner. Apart from keeping data safe, CRM software will also help you retrieve it as and when you need it. Instead of keeping a stock of countless files and documents, you can store all your data in one location.

• Donor History

Many nonprofits make the mistake of not keeping a record of their donors. They accept money from whoever comes by and do not check their credentials. Since money is being received and not given, some organizations believe that it is not necessary to derive some information about the donors. This a mindset that needs to change. 

Whenever somebody wants to contribute an amount for a cause that your organization supports, you must do a background check on them and record the details of the transaction, along with the donor’s name, properly. Using CRM software will help you accomplish this task easily. Apart from staying organized, it will also help you stay out of any kind of trouble in the future.

• Fundraising

If you are serious about raising a lot of funds for the causes you support, you should bring about a shift in your approach and use modern methods. Staying away from technology will not help when you are trying to raise funds. If you find it difficult to comprehend different technology-driven tools, you should seek the help of somebody who is good at it.

Most nonprofits, that raise a large amount of money every day to support certain uses, use CRM software. Without its help, you will not be able to raise funds in an optimal manner. While getting CRM software installed by a company, you should ask them about the different ways in which it can help you procure funds.

• Trust Building

As a nonprofit, you have to work towards winning the trust of your donors. And, this is something you have to work towards doing every single day. Whether it is a regular donor or a potential donor who is interested in making a contribution, you have to make them believe they can trust you and their money will be used effectively to support a cause.

The trust your donors have in your organization will reflect in the kind of donations they put forward. From retaining older donors to getting new donors on board, trust plays a very important role in a nonprofit. By installing and using CRM software, you will be able to make donors believe in the fact that you are doing everything ethically and by the book.

• Sending Emails

Believe it or not, one of the most important operational activities performed by a nonprofit is sending emails. Apart from sending emails to potential donors and businesses on a regular basis, you also need to use email services to keep your existing donors informed about all that you are doing. For instance, if you have managed to raise the required funds for a cause, you need to inform everybody about it.

The process of sending emails is long and time-consuming. Many nonprofits even hire individuals specifically to execute this task. By installing CRM software, you can get this task done faster and at a much lesser cost. It will also help you save up a lot of valuable time and focus on more important activities. 

• Event Management

Nonprofits organize events all the time. While some of the events are designed towards creating awareness around certain social issues, a few of them are put together to raise funds. Throughout the world, most nonprofits have struggled when it comes to organizing events or executing them properly. 

If you also have been struggling on that front, you should consider installing nonprofit event software. When you use software to organize events, things happen very smoothly. The purpose behind putting together an event, too, gets realized. During events, the software also helps you offer a built-in QR scanner and other facilities that could help your donors make donations quickly. 

• Internal Communication

For a nonprofit to work properly, individuals working for it should be on the same page. If there is a lack of communication or miscommunication, it will create issues for the organization both in the short term and long term. To ensure this does not happen, you must install CRM software to look after the organization’s internal communication.

In a nonprofit, the different departments have to be in touch with each other on a regular basis and ensure every piece of communication is conveyed properly. Communication issues have been one of the biggest reasons behind the failure of several nonprofits across the world. After installing CRM software, you can expect communication to be exchanged properly at all times. 

• Future Plans

When you want your nonprofit organization to grow with time, you have to plan accordingly. Apart from doing everything right in the present, you have to certain plans to secure its future as well. Across the world, most successful organizations, whether they want to make profits or not, use machines and technology 

CRM can provide you with statistical information after carrying out extensive data analysis. This information will help you figure out where you stand as a nonprofit today and the things that you need to do to propel your growth forward and support certain causes more effectively. When you install CRM software, you will get many tools that will help you make plans for the future.

Conclusion

Some nonprofits get wary of the word ‘customer’ being used in CRM and feel that a nonprofit implementing CRM would go against its basic principles. Do not let the terminology mislead you. 

If you make some effort and try to understand why it has been designed and the various ways in which it can help you, you will definitely consider using it. If you need help with installing CRM software, LiveImpact is the company you should get in touch with.