Last month, I started this series about how to know if and when you need new fundraising or donor management software. Now that you’re aware you might have a problem, I want to assure you that knowing is half the battle.

Fundraising products vary from free online software and inexpensive packages to a wide range of solutions with varied features, price levels, and support and training packages. Choosing a system that fits your organization might seem like a daunting undertaking, but it doesn’t need to be.

As a matter of fact, you’re already farther along than you think. So, let’s start with the easy stuff – the things you already know!

What hurts now? What will hurt later on?

It always surprises me when organizations make technology purchase decisions based solely on a single pain point. Often, that one issue is resolved, but additional pains are discovered along the way, leaving organizations with buyer’s remorse.

The first and most critical step in selecting a donor management system is to take a good look at your development and fundraising initiatives. What is your current funding mix? How much time is spent on administrative tasks? What else would you like to achieve right now?

Gathering these and other facts, such as the number of current donor records you have, will assist you in identifying and ranking your technology goals, needs, and wants.

What do you need now? What will you need later on?

Careful analysis of your organizational infrastructure is another key to a successful evaluation. This includes creating an inventory of your existing technology, the computer skills of your staff and your budget. In each of these areas, consider where you’d like to be in two, three and five years.

It’s important to make sure the software, licensing or support packages you purchase will meet your organization’s expected growth, as well as supporting the diversification of fundraising initiatives and an increase or turnover in staff or volunteers.

What do you want to do with data?

Needing different functions for donor development and prospect cultivation is a primary reason to change fundraising systems. While you don’t want to overbuy, you don’t want to outgrow the system too soon either. Choosing a new system is certainly a delicate balance; there will be tradeoffs.

Who needs access?

Software is commonly priced by the number of users or seats. Therefore, you should establish how many staff members or volunteers will use the software and at what capacity.

Another important consideration is the amount of time it will take new employees to “ramp up” using the software. How easy is it to learn and use? How helpful is the in-product help? Are comprehensive training programs readily available for either interactive or on-demand classes? Are those classes affordable?

Type, number and frequency of reports

How much time do you spend on reporting? Many nonprofits require a large number of reports or need different reporting formats. Appropriate fundraising software often features easy-to-use report writers and a good number of standard reports to help simplify reporting tasks. Saving time and effort with reporting and query flexibility and pre-set reports is a key evaluation criterion.

Consider future needs

You don’t want to end up with a system that is too complex for your organization’s current needs. However, it’s important to consider the future. For example:

• Will you add fundraising activities requiring new functionality, such as event management or recurring giving programs?
• Are you avoiding a particular initiative because it would be too difficult to track with your current system?
• Will you want to apply for and track information on additional grants?
• Do you need remote access?

Purchasing an inexpensive but limited system you will soon outgrow could prove to be more costly than initially paying more for a feature-rich system that can accommodate your organization’s growth plans.

Integrating with other programs

Examine the related functions that will need to interface with your fundraising data, such as accounting, credit card processing, Microsoft applications, online donation programs, etc.

Prioritize your wish list

Using your evaluations, develop a function list to use in your software search. The tedious activities that must be completed on a regular basis, or which currently cost too much time or money, will dictate which features are higher in priority than others.

Prioritize the features in categories such as “must have,” “nice to have” and “helpful but not necessary.” These categories will help you maintain a clear picture of your most critical needs throughout the purchasing process.

If you need a starting checklist, organizations such as Nonprofit Technology Network (NTEN), TechSoup, and Idealware offer product round-ups with common feature checklists. From there, build the list as you evaluate your needs and talk with vendors and other charities.

Know your audience

Last but not least, consider the type of information you want to capture as well as the level of detail required. What detail is needed to build and maximize relationships, analyze giving trends and develop effective reports?

Consider each entity you report to – board of directors, grant and funding sources, donors, service recipients, a national organization, auditors – and then consider the types of detail demanded by each entity. These activities will help you quickly and easily compare costs and benefits of different software packages based on essentials, as well as factor in additional costs for desired but non-critical features.

Next month, we’ll take a look at why home-grown “free” systems are not really free, as well as the technology considerations impacting purchase decisions. Until then, happy evaluating!