FUNDRAISING SOFTWARE
Fundraising Software: Where to Begin
By Duff Batchelder, Management Solutions for Nonprofit Organizations  -- duff@millbat.org  •  Used by Permission.
For an expanded version of this article see:   www.techsoup.org/howto/articlepage.cfm?ArticleId=182&topicid=2

Fundraising database software has gone from being a luxury to an everyday necessity for most development offices.  However, unlike most other software genres, instead of facing few choices, purchasers are confronted with a multitude of options -- at every price level -- from introductory-level shareware or freeware programs available on the Internet to comprehensive proprietary packages with sophisticated add-on modules. 

As a result, one of the most common computer-related questions voiced by development officers is:  “How do we choose a fundraising database program that meets our needs best?”  If that’s your question, then following is sure to help you find an appropriate answer.

Q:  We know we need a database for recording, tracking, reporting, managing, and implementing our development program.  Where do we begin?

A:  Begin your search with a thorough analysis of your current development program.  Try to answer these questions before you begin to look at possible software packages:

• Program: What are the specific activities in your fundraising program plan (e.g., annual fund, major gifts, planned gifts, direct mail, grant writing, special events)?
• Budget: How much can you afford spend? 
• Numbers:  How many donors and prospects among your individuals, corporations, foundations, friends, do not solicits, newsletter only, etc., etc.?
• Staff:  What is your structure, level of expertise?  Who will input data?  How many concurrent users?  Will additional users be added?

Next, make a determination of where you think you will be in three to five years in each of those same areas.  These two steps will help clarify the most basic priorities required of your software.

Q:  What can we expect to pay?

For an excellent cross-section of prices and products at all budget levels, please refer to the Development Directions handout, “Sampling of Software Products.”

Q:  What should I ask a software sales representative?  What things should I look for in the product? 

A:  Before looking at software, an organization needs to be clear about all of its current and future needs operations (refer to the first question above about program, budget, numbers and staff).  Having that information, some of the other questions you might ask your supplier are:

• Do the software’s features meet your specific program management needs?
• Does the supplier help configure or otherwise set up the software to reflect how your program operates?  If not, who will do it?
• How many user-defined options can you use to tag or otherwise “code” a name on your list?
• How are gifts, grants, pledges, and pledge payments recorded?
• Can you search the database with ease using multiple criteria?
• How do you search for and segment groups of constituents?
• Does the supplier have any other clients locally that you can call or visit?  Be sure to get references even if not local.
• What would be the total cost for your installation (the software purchase price including costs for all necessary user-licenses, data conversion, annual technical support, and initial staff training)?  Ask the question twice so there are no surprises.

Q:  What about training for the staff? 

A:  Most sophisticated fundraising database programs will require a fair amount of staff training in order to be used effectively.  In most cases, paying for additional (i.e., more intensive) staff training -- either on- or off-site -- is advisable after the initial training, which is usually free.  Identify at least two people in your organization to learn the program really well.

Q:  What about creating my own fundraising database in such off-the-shelf database programs as Access, Excel, Filemaker Pro, Paradox, or Approach?   

A:  For new or small not-for-profit organizations, the rule of thumb for creating your own fundraising database is … don’t do it!  Unless you have a full-time professional MIS person on staff (and not an outside consultant and certainly not a well-meaning board member’s nephew), it is not a smart or even cost-effective idea to build your own system.  

There are many reasons for this … including all the time (read: expense) it takes to study your program; map out the database layout; design the file structure; build the required files; design the tables, forms and screens; load or convert data; build reporting systems; and debug the database.   Why go through all this trial-and-error headache and expense when there are software products (see our lists of software products and prices) that will give you what you need now – and provide room for future growth?  Why re-invent the wheel?

Keep in mind also that with a home-grown system -- as you find that you need more features (or reports, or whatever) -- it’s going to cost you more to have those elements added to your database.  It will be even more costly if you have to use a new programmer who does not know how your original system was developed.  Go with the tried and true.

On this same subject, be sure to review the Development Directions handout,
“The Road to Perdition:  The Case Against Building Your Own Database.”