How to Implement and Use a Donor Management Platform: Building a Donor Database

Keeping track of donor information allows you to make better decisions within your organization, such as how you can continue to engage your existing donors and target new donors. A quality donor database will help you easily manage information and understand the specifics of each donor, allowing you to create campaigns that inspire and encourage their continued support. 

What to look for in donor management software 

Donor management software can help you streamline the management process and track your donors’ relationship with your organization. Each software has various functions to assist you with the donor journey. Some donor management systems mainly act as a database to help you keep track of your donors. Others allow you to create entire campaigns within the software. If you choose donor management software for small nonprofits, make sure it can scale with your organization as you grow. 

When you’re choosing a donor management software, consider the following to get the most from the program: 

• Easy-to-use dashboard: The dashboard should provide valuable information that you often access. Rather than creating another report each time you need access to specific information, you can see everything you need from a robust dashboard. It should also be easy to navigate the dashboard with customization options to suit your organization’s needs.
• Donor segmentation features: Donor segmentation is essential to track specific types of donors and sort them into subgroups based on relevant information, such as location, age, and donor status. This information helps you determine how you can build on your relationship with these donors and keep them engaged with your organization.  
• Customization options: The donor management software you choose should allow you to customize your software to suit your needs. For example, you should be able to create custom forms for your website and relevant pages to enable your donors to fill out information for your specific needs. You should also be able to customize various fields and profiles to assist with the segmentation and organization of data.
• Automation: One of the benefits of donor management software includes automation, which streamlines the management process and gives you more time to focus on your mission. You should look for specific automation capabilities when choosing software. For example, a quality program should prevent duplication. Donors often have multiple forms of contact, including several emails or phone numbers. Duplicates can quickly occur when you manage donors independently, so your software should prevent these duplications. Also look for features like automated reminders, task organization, and data access.
• Solid security features: Keeping your donors’ information secure is critical to protecting their privacy and securing valuable information for your organization. The donor management software you choose should have robust security features to prevent a data breach.

How does a donor database work?

If you’ve never used donor database management software before, you may not know how it works. These databases store relevant information for each donor, allowing you to pinpoint donors you need to contact to encourage further engagement. A donor database works by: 

• Collecting and saving relevant donor information 
• Analyzing fundraising information 
• Keeping your nonprofit data in one place 

Many of these processes are automated and save you valuable time, saving you time when you’re analyzing data and making reports and allowing you to build on your donor relationships while focusing on achieving your mission. 

How to manage your donor database

Once you start using donor management software, it’s essential to learn how to manage the donor database to make the most of your software. Your database is only as good as the information you include. Having plenty of information about your donors allows you to determine what you need to focus on or change within the donor journey. 

The first step is to determine what donor information is relevant to include within the database, including donor contact information or the history of their donations. You can keep this information accurate and complete by creating a standard data entry method. Keep all data up to date and correct to ensure you can contact your donors, access accurate reports and easily find the information you need. 

Standardize your data input methods and establish these rules within your organization so you have clean and consistent data within your database. 

Different ways you can manage your donor database to keep the latest and most accurate information include: 

• Choosing a strong customer relationship management (CRM) program: A CRM management program allows you to keep track of all your donor information in one place rather than across multiple programs. You can also contact each donor through a quality CRM program, streamlining the process. A CRM program can save you the trouble of trying to sort through various programs to find the information you need. 
• Creating quality and robust donor profiles: You can start collecting information to create donor profiles once you’ve chosen a CRM program. The more information you have about your donors, the better your relationship likely is with them. Information you should have in your donor profile includes their name, amount and frequency of donations, contact information, type of engagement with the organization, and your relationship start date. 
• Regulating data entry: You should regulate how you manually enter your donor information to ensure it’s organized and accurate. Everyone who has access to the database should know the rules and follow them closely. Regulating your data entry makes finding information and fixing flaws within your management system easier. 

What kind of data should you collect?

When gathering information from your donors, use the best data collection practices to ensure you collect relevant and accurate information. There are two types of data you can collect—quantitative and qualitative. 

• Quantitative data allows you to gain valuable insights that help you set goals for each of your campaigns and the success of your organization. This type of data is easy to track since it focuses on numerical metrics. 
• Qualitative data relies on feedback from your donors. For example, if donors are unsure how or where they can support your cause, you can use this data to make changes and improve your processes. 

Both types of data allow you to track trends to improve your relationship and donor engagement. The type of information you should collect includes: 

• Basic information, such as the donor’s name, address, and contact information 
• Donation history, including the amount and frequency of their donation and their chosen 
• Donation method 
• Interests 
• Other organizations that they support 
• Volunteer history 
• Any other important notes that are relevant to your donor relationship 

Donors want to see how you use their contributions to benefit your cause. Collect information that details where the organization uses its donations, the impact of these donations, and the measurable results. Gathering the correct information allows you to cater to each donor’s needs and the different segments. 

Using donor management software, such as Donor CRM, has many benefits for nonprofit organizations. As a nonprofit, you need to prioritize your relationship with your donors. Your donors are the backbone of your organization and help you make progress. Donor management software simplifies the process and reduces the chance of errors. 

Connect with a Donor CRM expert today.