CRM for Nonprofits – What You Need to Know to Choose the Right One

In the heart of the nonprofit sector, where every resource and moment counts, selecting the right technological solutions is more than a matter of efficiency — it’s about amplifying impact and better serving the community. While Customer Relationship Management (CRM) systems often take the spotlight in discussions about nonprofit technology, it’s vital to delve deeper into the specific needs of your organisation. Do you need a CRM for managing donor relations and fundraising, or is a Client and Case Management System more suited to handling your service delivery and program management?

This distinction is not just academic; it’s the key to unlocking the full potential of your technology investment and ensuring that your nonprofit’s operations are as effective as they can be.

CRM vs. Client and Case Management Systems: Knowing the Difference

Nonprofits frequently gravitate towards CRMs due to their popularity and buzz. However, what many actually require is a Client and Case Management System, especially when managing service delivery to clients.

The distinction lies in the stakeholders they serve and the functionalities they offer.

• CRMs are typically designed for donor management, fundraising, event planning, and general stakeholder engagement. They excel in managing relationships and communications with donors, volunteers, and members.
• Client and Case Management Systems, on the other hand, are tailored for program implementation and service delivery. They are crucial for organisations that manage a range of programs and services, particularly those with strict government and funding body compliance and/or reporting requirements.

Evaluating Your Nonprofit’s Needs

Before jumping on the CRM bandwagon, assess your nonprofit’s primary needs. If your organisation is heavily involved in client service delivery with complex program management and compliance requirements, a Client and Case Management System should be your focus. However, if what you need is to manage donors, fundraising, event planning and want marketing and social integration capability, then a CRM is probably best.

IMPORTANT – Sometimes your needs in one area far outweigh the other. If this is the situation, what you may need is a Client and Case Management System that can do a bit of CRM, or a CRM that can do a bit of Client and Case Management. It all comes down to arming yourself with an understanding of each type of system so that you can correctly judge your needs and be armed with questions for potential vendors!

Implementing Dual Systems: A Balanced Approach

It’s not uncommon for nonprofits to need both a CRM and a Client and Case Management System, as they cater to different aspects of nonprofit operations. Implementing both systems can offer a comprehensive approach:

• Use a CRM to nurture donor relationships, manage fundraising campaigns, and engage with volunteers.
• Deploy a Client and Case Management System to handle the intricacies of service delivery, client tracking, program management and financial reporting.

Considerations for Running Dual Systems

• Integration: Where necessary, ensure the systems can share relevant data while maintaining distinct functionalities. Look into API capabilities and support for data exporting and importing between systems.
• Training and Adoption: You will need to provide targeted training for staff to efficiently use both systems.
• Cost and Resource Allocation: Evaluate the investment in terms of cost, time, and resources to manage both systems effectively. There will potentially be two vendors to deal with, and two sets of licence fees.

Key Features to Look For in a Nonprofit CRM

1. Donor Management: Look for a CRM that provides a 360-degree view of your donors. Tracking donation history, communication preferences, and engagement levels helps tailor more personalised interactions.
2. Fundraising and Campaign Management: Your CRM should facilitate fundraising campaigns, track progress, and integrate with your financial software for seamless accounting.
3. Event Management: From planning to execution, your CRM should help manage events efficiently, track participation, and evaluate success.
4. Volunteer Management: An ideal nonprofit CRM will streamline scheduling, tracking, and communicating with volunteers.
5. Reporting and Analytics: Robust reporting tools are essential for measuring income, understanding donor trends, and making data-driven decisions.
6. Integration Capabilities: Ensure the CRM can integrate with other tools and platforms you use, such as email marketing software and social media.
7. Customisation and Scalability: The CRM should be adaptable to your nonprofit’s evolving needs and grow with you.
8. User-Friendly Interface: A user-friendly CRM increases adoption rates among your staff and volunteers.
9. Payments Management: Capability to manage different payment options, generate invoices, and handle financial details like GST, making it easier to manage donations, event registrations, and other payments.
10. Data Security and Payments: A system that handles direct payments must be compliant to Payment Card Industry Data Security Standard (PCI DSS).
11. Cost-Effectiveness: Budget is a significant consideration for nonprofits, so evaluate the total cost, including setup, training, and ongoing maintenance. Be careful to review the ongoing transaction costs of the CRM (often a % of the sale), as they can vary greatly and should align with your operations i.e. lots of small transactions vs. a fewer large transactions.
12. Flexibility: How easily can functionality be changed to meet your changing needs?

Key Features to Look For in a Nonprofit Client and Case Management System

1. Comprehensive Client Profiling: Ability to create and manage detailed client profiles, including personal information, case history, and unique needs with a “single view of client.”
2. Case Tracking and Management: Tools for planning and tracking the progress of each case, including goals, actions, reviews, assignment, KPIs and outcomes.
3. Workflow Automation and Customisation: Automated processes for common tasks and the flexibility to customise workflows to suit different program requirements.
4. Compliance and Reporting Tools: Robust reporting capabilities to ensure compliance with government regulations and funding body requirements, including customisable reports for internal and external use.
5. Document Management: Secure storage, easy retrieval, and management of documents related to clients and cases.
6. Collaboration and Communication Tools: Integrated tools for effective communication within your team and with clients, including notes, email integration, and alerts.
7. Data Security and Privacy Compliance: Strict security measures to protect sensitive client data and ensure compliance with privacy laws and regulations.
8. User Access Control: Ability to set different access levels for staff and volunteers to ensure data integrity and confidentiality.
9. Outcome Tracking and Impact Measurement: Tools to measure and report on the outcomes and impact of services provided to clients.
10. Mobile Accessibility: Mobile-friendly solutions or apps that allow field staff to access and update client information remotely.
11. Customisable Client Forms: The ability to customise intake, consent, medication, incident and other forms to centralise data collection.
12. Scheduling and Appointment Management: Features for scheduling appointments, sessions, or meetings with clients and managing staff schedules.
13. Integration with Other Systems: Capability to integrate with other tools and platforms, such as CRMs, fundraising software, and financial systems.
14. Support and Training: Reliable customer support and comprehensive training resources to ensure effective implementation and usage.
15. Flexibility: In a world of constant change, it’s important that your Client and Case Management Systems are designed to adapt and grow to meet your ever-changing needs. For example, can the system support CRM functions?
16. Partnership with Technology Ally: It’s important to forge a strong partnership with a committed technology provider, such as SmarterSoft, who understands the unique challenges of the nonprofit sector​.

Evaluating Vendors: Questions to Ask

1. Do you have experience with nonprofits? Vendors familiar with the nonprofit sector will better understand your unique needs.
2. What kind of customer support do you offer? Responsive and knowledgeable customer support is vital, especially during the initial setup phase.
3. Can you provide references from other nonprofits? Testimonials and case studies offer insight into real-world application and satisfaction.
4. How does your platform ensure data security? Nonprofits handle sensitive donor information, making data security paramount.

For more information visit Selecting the Right Information System for Your Nonprofit: A Comprehensive Guide.

Conclusion

Choosing the right technological solution for your nonprofit involves a nuanced understanding of your organisation’s unique needs. While CRMs are invaluable for managing relationships with donors and volunteers, a Client and Case Management System is indispensable for effective program delivery and compliance. In many cases, running two separate systems is not only advisable but necessary to cover all operational aspects of your nonprofit.

Remember, the right technology empowers your organisation to focus on what truly matters – making a positive impact in the community.

Photo by Javier Allegue Barros on Unsplash