Online donations are a vital revenue source for most nonprofits in 2022. Most people expect to access online donation options, so you could be missing out on thousands of dollars without the right fundraising software.
Overall, fundraising software simplifies the entire fundraising process and daily tasks like tracking donors, receiving online donations, and building campaigns. Fundraising software can also give you the tools to run various campaigns, from peer-to-peer fundraising to email appeals.
But there are literally hundreds of fundraising software options on the market without clear guidelines about how to narrow down your options or pick the one that best fits your nonprofit. This guide will give you the insights you need to make the best all-around choice.
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Fundraising Software Basics
Let's start with a quick overview of what every nonprofit should know about fundraising software.
What is fundraising software?
Also called "online donation software," fundraising software is a tool designed to help nonprofits organize and execute virtual fundraising efforts. At a minimum, fundraising software allows you to accept online donations. Still, most options also streamline your team's fundraising and donation process and your donors.
Many fundraising software packages also have features for automating your marketing strategies, sending email and social media posts, managing individual donor information, and more. Some software specializes in one or two specific aspects of the fundraising process, like prospect research or identifying corporate matching gifts.
Who can benefit from using fundraising software?
Really, nonprofits of any shape and size can benefit from the right fundraising software. Online fundraising software can help you gather valuable donor information, boost first-time and recurring donations, and increase donor engagement through various communication channels.
For these reasons, any organization must set clear goals about what they'd like to accomplish with their fundraising platform. That way, you'll find software that best fulfills your intended goals.
6 Things to Consider Before Choosing Fundraising Software
While there are many questions and factors to consider before choosing a fundraising software, these five questions will help guide your search.
1. Consider how much time you have
The right tool will save you time. If the fundraising software is too complicated or has too many bells and whistles you don't need, that might be an obstacle rather than a benefit.
On the other hand, a more robust platform might allow for increased functionality down the road and give you plenty of room to grow. Either way, the software is only helpful if you have time to use it. Make sure the fundraising software you choose is one that you and your team can implement and use effectively.
2. Consider an all-in-one vs. mix-and-match approach
All-in-one systems are convenient because everything functions together, and data can flow seamlessly through your entire fundraising process. Everything " clicks " without workarounds or patches from your donations page to your CRM system and email database, everything "clicks" without workarounds or patches. These all-in-one systems make it easier to keep data updated because everything is housed in one location.
The downside of all-in-one systems is that what they offer in convenience and seamless integration they lack in flexibility. You may not be able to find an all-in-one system that provides everything you need at the price you can afford. Furthermore, you might find yourself paying for a lot of one feature that you don't need in order to get enough of another component.
For example, you might need to pay for more space on your CRM system, but that requires buying more donation pages you don't need.
Mixing and matching services to build what your nonprofit needs might require a bit of creativity and some clever workarounds. Many nonprofits find that they can patchwork various services together. Still, they must factor in time for maintenance and ensure all the different platforms share the right data. The mix-and-match approach can also make keeping track of prices and overall cost challenging.
3. Data security is an ever-growing factor to consider
No matter what fundraising software you choose, it's essential to keep donor data safe. Secure cloud solutions with strong system controls are practically a must in this digital age.
4. What tools are you already using in your fundraising strategies
You likely use other software like Google Calendar, Constant Contact, Salesforce, Quickbooks, or something more specialized. If you're thinking of investing in fundraising software to consolidate your efforts, then it's critical to choose a solution that actually works with what you're already using.
Consider what tools you're currently using that you want to sync with your fundraising software. The last thing you want is to unveil an exciting new software, only to discover that it doesn't play nicely with another critical tool you rely on.
5. Consider the viability and growth opportunities of the fundraising software provider
Not to sound cynical, but you need to be confident that the vendor you choose will be around for the long term and can grow with you. It takes quite a lot of time and energy to adopt a new fundraising software, so you want to choose one that will work for your nonprofit for as long as possible.
There are many potential risks of working with vendors that aren't well established or that don't have experience with nonprofits. Startup software companies may experience cash flow problems, customer service issues, or other challenges.
More established companies may lack understanding about the specific needs of nonprofits, meaning they're unable to customize the software to your preferences.
Discover how long companies have been in business and what kinds of clients they work with. Don't be afraid to interview current and past customers to learn what they have to say about their happiness with the product, customer service, and overall experience.
6. Consider the price and your budget
There is a range of price points for fundraising software, and it largely depends on the kinds of features you want. Some vendors charge by the month, and others sell annual licenses.
Unfortunately, hidden fees are common in the software industry. Ask about any additional fees for things like training, data imports, and other services.
Also, make sure the pricing structure is flexible enough to grow with the software as your needs expand.
7 Fundraising Platforms to Consider In 2022
While we believe Soapbox Engage delivers one of the best, most versatile all-in-one fundraising platforms for nonprofits, we want to highlight some other fundraising software you should consider.
1. PayPal
PayPal is ideal for small nonprofits just getting started or those organizations not quite ready to transition to more robust fundraising software. Most people trust PayPal, so adding a PayPal donation button to your startup's website is a reliable strategy.
PayPal is quick, reliable, and offers secure online giving options. They accept most credit cards, and they offer discounts on the payment processing fees to nonprofits. They even have touch-free options for events with QR codes and other features.
2. Double the Donation
Double the Donation is the leading fundraising software for nonprofits that focus on matching gifts. Their comprehensive database gives you access to thousands of profiles that can help you connect with companies that offer corporate giving programs.
Double the Donation integrates seamlessly with Soapbox Engage apps and Salesforce CRM systems, so your entire suite of fundraising software plays nicely.
Because corporate giving programs are constantly changing their regulations, Double the Donation does the hard work of keeping the database updated with all the current rules. They also add new companies with volunteer or matching gift programs! It's truly a time-saver and fundraising goldmine.
3. Cybergrants
If your nonprofit relies on corporate giving and philanthropy for a large portion of your financial support, then Cybergrants is an excellent fundraising software tool. This software provides a unified platform for all your giving programs. It supports grant management, employee giving, and employee volunteering.
Cybergrants has some great features that are unique to grants and corporate gifts. For example, it can help you stay compliant with grant rules and track grant allocations against your budget line items.
4. Donor Search
DonorSearch is a fundraising software that provides wealth screening options and profiles for donor prospect research. This tool will help you better understand your supporter's financial background, past donations, stock transactions, and other critical information to guide your fundraising strategy.
This fundraising tool will help you take your major giving campaign to the next level! DonorSearch has more than 300 categories to filter potential supporters. It integrates with most of the top fundraising software like Salesforce and Soapbox Engage.
5. iWave
iWave is unique in that it's designed to help you perform donor research. Like DonorSearch, iWave gives you access to wealth and philanthropic records, customizable profiles, and an overwhelming amount of information about potential donors.
iWave does integrate with most CRM systems and focuses on helping nonprofits conduct donor research to identify potential new donors. It's especially powerful when paired with other campaign-focused fundraising software, like Soapbox Engage. It gives you a competitive fundraising edge by allowing you to learn about prospects beforehand.
6. Bonfire
If your fundraising strategy includes selling t-shirts and branded custom apparel, then Bonfire is the fundraising software for you! Their platform allows you to create apparel to promote your cause. You can upload your own design or use one of their free design templates. Then, launch your campaign store and start raising money.
It's a great addition to a peer-to-peer fundraising campaign because supporters can launch their on Giving Campaigns on your behalf. You'll receive direct payouts from t-shirt fundraisers, and Bonfire offers downloadable support lists and contact information so you can follow up with all your supporters.
7. Soapbox Engage
We don't mean to toot our own horn here, but we wanted to give a shameless plug for Soapbox Engage. It's designed to be a versatile, all-in-one solution for nonprofits of all shapes and sizes. It integrates seamlessly with Salesforce and Microsoft Cloud for Nonprofits.
One key feature of the Soapbox Engage apps is that you can choose the configuration that suits you best. For example, you can add as many custom donation pages as you need. You only pay for what you need!
From fundraising to advocacy, our apps will help your organization accomplish your goals.
Now that you're ready to choose the right fundraising software for your nonprofit, here are three more resources to equip your fundraising efforts.
- Microsoft Cloud for Nonprofit: An Introductory Guide: If you're a nonprofit interested in using the Microsoft technology stack, the new Microsoft Cloud for Nonprofit now covers a wide range of services needed by most organizations, including constituent management, fundraising, volunteer management, program impact management, and more! This blog guides you through everything you need to know about Microsoft Cloud for Nonprofits.
- Digital Marketing Tools for Every Nonprofit: In today's global and digital world, marketing isn't an option for nonprofits–it's a necessity for success! As a nonprofit fundraiser, it's critical to ensure you're reaching your supporters in the spaces they use most frequently–in digital and real life. There are loads of free and affordable online tools to help you connect with your audience and save you time, energy, and resources.
- 4 Ways to Use Digital Ads to Promote Your Nonprofit: Marketing is an essential part of your nonprofit's success. But it's a constantly changing environment where strategies and approaches seem to transform overnight. This guide discusses how nonprofits can use digital advertising to enhance their mission and raise more money.
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