This might seem like a strange subject or one that doesn’t warrant an article, but boy, do we disagree!
Daily, we hear from nonprofits searching for a new CRM. And invariably, they have a list of up to 20 to 30 (!!) companies that they’re moving through, waiting for the lowest price or the best client testimonial or the nicest salesperson or something else to catch their eye or ear and get them to stop on vendor 15 or 16 and move the process forward.
Being a CRM vendor, CharityEngine understands that there are good CRMs for every nonprofit. And finding the perfect match can be a little tricky, but it doesn’t have to create a long list of phone calls and confusing details and competing demos.
There’s a better way to get started so you can make an informed and rational decision. And it’s doable! The goal is to create a shortlist of no more than five CRM vendors that you know are a good fit for your nonprofit.
Starting at the beginning…you have software that isn’t working for you. Maybe it’s outdated, or the data is too siloed, or your platform is being sunset and you’re being pushed to something new. Regardless, you’ve been tasked with finding a new CRM.
Where do you start?
Think about your nonprofit and your ideal CRM. What would it do for you? We recommend considering your needs across different categories, such as a donor database, specific fundraising modules (like events, peer-to-peer, advocacy), or payment processing.
Consider some newer tech you might not have. Do you want artificial intelligence to inform giving probability? Do you need the ability to segment audiences and hyper-personalize communications? Do you want fundraising tools and data that are in one place, or do you prefer a tech stack built of integrated tools?
What about email? Are your email deliverability rates good or do they need to improve? Do you need custom domain options or the ability to track metrics?
Reporting and analytics vary greatly between systems, so think about how data-focused your team is. The more you rely on data to drive fundraising strategies, the more advanced tools you will need.
What specific outreach does your team prefer? If your big event is an auction or your activities revolve around advocacy, you’ll want to make sure that functionality is included.
Maybe you need payment processing. Maybe you need a very user-friendly interface. Maybe you need someone to hold your hand during implementation.
When you identify the most important qualities of new technology and a new vendor, you’ll have a concrete list you can use in step #2.
Bonus: We’ve made this step easy! Download our FREE Selecting a Nonprofit CRM Toolkit. In it, you’ll get a popular guide that walks you through selecting a new CRM, as well as two editable worksheets. A Self-Assessment Workbook helps you analyze your current system, and a Nonprofit CRM Comparison Workbook lets you compare vendors side by side and calculate a vendor fit score to find a perfect match.
Now that you have a list of must-haves, it’s time to quickly find the companies that match what you need. Every CRM vendor has a different personality and a different market differentiator. For example:
See? Every company has a tagline that’s intended to differentiate them. And even beyond these, different companies market themselves to different-sized nonprofits or specialize in those with certain missions. The best way to get started is to find a comprehensive list of providers and the pros and cons. While these are sometimes skewed toward one provider, the information is usually quite accurate as the CRM community is small and we tend to be supportive of each other.
We’ve got a comprehensive comparison article that we’ve heard is very helpful in the research stage. Many companies offer similar information: Bloomerang has comparison pages, and CharityEngine offers an easy-to-peruse list.
What about pricing? It’s notoriously hard to find CRM pricing online because it is so specific to everything about your nonprofit’s needs. Pro tip: Look at the client list. If you’re a startup with two employees and a budget of $100 a month, find a client list that has some smaller nonprofits on it. If you have your sights set on being enterprise-level, see which companies serve those larger nonprofits. And if you’re right in the middle, you’ve likely got many options.
By now, you aren’t looking at 20 to 30 vendors. You’ve probably narrowed it down to 10 or 12 matching your size, price point, and needed functionality.
10 or 12 is better, but you can still cut the list down so you don’t fall victim to analysis paralysis. Steps one and two make step three much easier.
Aim to come out of this step with a list of no more than five top contenders. Believe us when we say that keeping even five different systems straight in your mind is a challenge! Get this number as low as you can without sacrificing a system that might work.
Tip: Keep a list of the CRMs you discount, along with the reasons why. This will come in handy if you want to revisit a company or if you need to explain your reasoning to your board.
You have a solid list of companies you can see being a good technology fit – now it’s time to see the system in action. Most often, you’ll visit the website and see a “book a demo” form. This will trigger a quick discovery call, during which you’ll tell a sales team rep about the list of required functionalities you have. Usually, the discovery call ensures the demo will be tailored to your needs.
Then you’ll book a demo, which usually takes about an hour to complete.
Approach the demo like an interview. You know a lot about this software, and you’ve considered how it needs to work for you. Ask the sales rep to run through the scenarios you’ll need:
You’re in the driver’s seat, so don’t worry about asking them to veer off the rehearsed course to show you what you want to see.
At this time, it’s critical that you ask about onboarding and implementation.
Get a good feel for what kind of partnership this will be after you sign on the dotted line.
And, while exact proposed costs often follow the demo in the form of a proposal, you can ask about “hidden” costs—data migration, support, extra users, extra contacts.
Never have one person in a demo. Bring your whole team! You’ll want questions, concerns, and feedback from people using the technology in different ways. Including everyone in the decision makes it much less likely they will grumble when it’s time to switch to a new CRM. (That link takes you to another free guide!)
Are you down to two or three options? Even if you’re still at five, it’s a shortlist! It’s time to ask for references. Every reputable vendor will put you in touch with a client or two about your size, or with your same mission, or even one that specializes in advocacy or peer-to-peer if that’s what you do.
Have a standard list of questions you ask each one, as that helps you clearly compare answers. Learn about their implementation process, challenges they’ve faced, and how responsive the vendor has been to their needs.
Go back to the company contact and ask how the company plans to grow.
Ask the tough questions. You won’t scare them off.
Getting from the chaos of dozens of vendors down to five is as easy as following simple steps. It doesn’t need to be overwhelming, and you don’t need to spin your wheels or waste time. By focusing on your nonprofit’s needs, conducting research, and strategically narrowing down your options, you’re working toward the goal of finding the tech that will propel your nonprofit forward and increase your impact.
With a solid shortlist, intentional demos, and careful attention to references, you’re ready to make a decision!
P.S. Here are the free resources linked in the article:
Selecting a Nonprofit CRM Toolkit
A No-Stress Guide to Switching Nonprofit CRMs
Stop Worrying About the Cost of a New CRM!
We hope this helps you narrow your list and find the software that best serves your nonprofit!