Over the past few years, artificial intelligence (AI) and machine learning have taken the world by storm, with 83% of companies considering AI a top priority in their business plans and 9 out of 10 organizations supporting AI use to remain competitive. This surge in popularity illustrates the need for organizations of all kinds to keep up with technological trends to stay relevant—including nonprofits.
With a strong fundraising tech stack, your nonprofit can easily adapt to new trends, streamline operations, communicate with supporters, and ultimately raise more funds. We’ll explore some solutions your organization should have and how to optimize them for best results.
Fundraising Software
Fundraising software allows you to run different campaigns and collect donations. By facilitating fundraising for you, this solution organizes your efforts, provides a streamlined supporter experience, and makes it easier to raise more for your cause.
How to Optimize This Platform
- Look for a multi-faceted solution. There are so many different ways to fundraise, and your fundraising software solution should support as many as possible. Qgiv’s online fundraising platform guide recommends looking for a solution with options for donation pages, recurring giving, peer-to-peer fundraising, event fundraising, auction management, crowdfunding, and text-to-give so you can vary your approach using the same centralized platform.
- Investigate available integrations. When your software solutions integrate, data automatically flows between platforms, enabling you to make smarter fundraising decisions. Choose a platform that integrates with your constituent relationship management platform (CRM), marketing tools, and accounting software.
- Brand elements and pages to your organization. Create a cohesive fundraising experience by incorporating your branding throughout your donation, campaign, event, and other pages. Use your logo, brand colors, image style, and tone consistently across all fundraising elements.
Online Store
While you may think of clothing, apparel, and other product-based companies as the main types of organizations that rely on online stores, your nonprofit can also benefit from starting one. Creating an online store allows your organization to sell products in exchange for extra revenue and gives donors an additional way to support your mission.
How to Optimize This Platform
- Survey supporters about the products they enjoy. Instead of simply guessing what products your supporters would like to purchase, ask them directly so you can cater your online store to their preferences. For instance, if you want to run a food fundraiser but have many supporters with allergies, ABC Fundraising recommends running a popcorn fundraiser because popcorn is naturally gluten-free. Alternatively, if your supporter base loves shopping for less, consider hosting a discount card fundraiser where you sell cards that offer discounts to local businesses.
- Incorporate a progress bar or fundraising thermometer. If you’re running an online store to raise funds for a specific initiative or campaign, include a progress bar or fundraising thermometer so donors know how far you are from your goal. This small addition to your page encourages donors to contribute so they can help you make progress. For example, you may create a progress bar that says, “We’ve sold XX tubs of cookie dough and need to sell XX more to reach our goal!”
- Allow donors to cover payment processing costs. Some payment processors charge a per transaction fee. By giving donors the option to cover this cost, you can maximize the funds your organization raises from online store purchases. Approximately half of nonprofits currently provide this option, allowing them to funnel more funds toward their missions.
Financial Management Solutions
Once you accept donations, you’ll have to allocate the resulting funds accordingly. Financial management software helps you organize your nonprofit’s finances, stay accountable to stakeholders, and comply with regulatory requirements.
How to Optimize This Platform
- Select accounting software geared toward nonprofits. Your accounting platform should support your organization’s needs, providing tools for resource allocation, non-cash contributions, grant management, restricted funds, and financial statements. Look for a nonprofit-specific solution or a platform that you can easily customize for nonprofit use to support your financial management goals.
- Implement automation tools. Automation streamlines financial management and ensures you maintain accurate records. For example, PairSoft’s Accounts Payable (AP) Automation tool makes it easier to handle digital donations by automating data entry, matching gifts to specific campaigns or funds, and precisely recording relevant information in your financial systems.
- Enlist an expert’s help. As a busy nonprofit professional, you may not have time to set up your financial management systems for success. Reach out to a nonprofit accountant or fractional CFO who has experience working with similar organizations and can take this task off your plate so you can focus on your mission.
Donor Management System
Data fortifies your fundraising strategy by helping you learn more about your supporters, target communications to the right audiences, and match them with relevant opportunities. A donor management system or CRM allows you to store and leverage donor information for more precise fundraising asks and communications.
How to Optimize This Platform
- Conduct data audits. Regularly reviewing your data allows you to be confident it’s accurate and useful for reaching your supporters. Check for data quality, accuracy, and completeness, and identify any problem areas you’ll have to rectify.
- Cleanse your data. Implement data hygiene measures to ensure your database is accurate and complete. This process may involve merging or deleting duplicate entries, correcting errors, and appending missing information.
- Segment your supporters. Once you’ve cleaned your donor management system, segment your supporters into relevant groups that empower you to send more relevant fundraising communications. For example, you may create segments for one-time, annual, monthly, and lapsed donors to create messages based on each group’s engagement level.
Marketing Tools
Marketing is a stepping stone to fundraising. Promoting your campaigns allows you to boost participation and secure more funds for your cause. With the right marketing tools, it’s easier to stay in touch with your supporters about fundraising opportunities and reach new audiences.
How to Optimize This Platform
- Leverage solutions that align with your audience. Reach your audience where they are with fundraising communications on the channels they frequently use. For example, if you have a younger audience, you may use an SMS marketing app to reach them via text messages, whereas an older audience may prefer to hear from you via email.
- Conduct A/B testing. Many marketing platforms allow you to conduct A/B testing, which involves changing one element of your communications and evaluating which version performs better among your audience members. That way, you can pinpoint the types of messages your supporters respond best to and use those tactics to maximize the funds you raise.
- Create automated communication cadences. The fundraising process doesn’t end after a donor contributes. Proper stewardship requires consistent communication, and automation can help streamline this process. For instance, you may automate a thank-you email to send right after donors contribute, an email asking how else donors would like to get involved a week later, and an additional donation request a few months later.
Building a fundraising toolkit will equip your organization for success and make it easier to raise more. Choosing new platforms for your nonprofit should be a team effort, so work with your staff and board to identify gaps in your tech stack and decide how to fill them in together.
