We have all become accustomed to how fast technology changes. Whether a car that’s just a few months newer can drive itself or the new iPhone upgrade means AI can do your laundry, there’s always something newer and shinier just around the corner.
As a nonprofit, your team might be conflicted. Do you stay with the system you have, accepting workarounds and shortfalls because it’s mainly exactly what you need, or do you wade into the complex and sometimes cumbersome world of finding new technology that might catapult your fundraising to new heights?
Unfortunately, the cost of using an outdated system goes beyond the value of your familiarity with it. If your nonprofit continues to rely on a stagnant system to track fundraising efforts and engage with supporters, you may struggle to keep up.
With donor expectations evolving—and competition for attention growing—modern technology is no longer a luxury. It’s a necessity.
In the big picture, centralized data transforms nonprofits, making them more nimble, responsive, and better equipped to foster donor loyalty. Let’s explore why upgrading to a modern nonprofit CRM could be the key to unlocking your organization’s potential.
The nonprofit sector is undergoing a digital transformation. Organizations that embrace modern technology are better positioned to succeed and impact their missions, while those clinging to outdated systems risk falling behind.
For example, a nonprofit relying on spreadsheets or disconnected tools may struggle to deliver personalized donor experiences, losing opportunities to build lasting relationships. Meanwhile, organizations adopting modern CRMs can automate workflows, centralize donor information, and provide seamless communication—all while freeing up valuable staff time.
The data supports this shift. According to the Nonprofit Trends Report, organizations that leverage modern CRM technology experience a 20% increase in donor retention rates and see a 23% boost in overall fundraising revenue. Additionally, CharityEngine clients transitioning from legacy systems report a 32% increase in new donors and up to 30% more recurring giving revenue within the first year. The simple switch to a new CRM can have an instant impact, raising more money without one additional fundraising email.
While sometimes it’s easy to identify a modern CRM (one that uses artificial intelligence to calculate giving probability is likely a modern CRM), sometimes it's more complicated. Beyond the obvious, what attributes might you be looking for if you agree it’s time to upgrade your CRM?
Here’s what makes a CRM modern:
This list can serve as a guide as you evaluate your system and others.
You might see terms like “all-in-one” or “integrated tech stack” bandied about, but what is the big deal with all of this?
Here’s the truth: having all your core fundraising tools in one place is helpful if you want to run complex multichannel campaigns. As you build the campaign, you literally drag and drop channels and steps into a sequence.
An integrated tech stack, however, means that emails might be sent from one platform, events might be managed in another, donation forms might be on a website platform, and SMS campaigns might run from yet another system. As you can imagine, integrating all those tools into a sequential multichannel campaign could be a challenge.
The greater question, though, is whether it’s important to have all your data in one place. And it is! Without relying on updates and syncs, your data is always complete and in real time.
Other benefits include:
What are the practical implications of centralized data?
Imagine a donor who has attended two events, won an auction prize, volunteered once, and made regular online donations. If you see all of this information when looking at a donor record, you can craft a personalized message acknowledging the donor’s history with your nonprofit, deepening this relationship.
And—this really happened to one of our clients—you don’t make the mistake of asking a regular donor why their regular contribution was missed, not knowing they mailed a big check. When all the data is in one place, there’s complete insight.
Nonprofits responding to natural disasters and economic change understand the need for agility. And while your nonprofit might not have to suddenly fill a food bank or find housing for displaced families, all nonprofits should be aware of external fluctuations and events and the changing tide of donor expectations.
For example, imagine you’re running a multichannel campaign and you identify one channel that is significantly outperforming the others. You will want to be able to reconfigure the campaign quickly.
What else can a modern CRM empower your nonprofit to do?
Remaining agile is a nonprofit superpower. If you can adapt to change, you’ll be well-equipped to grow.
There are a lot of solid CRM solutions out there, and there is the right match for your nonprofit. We offer free guides with worksheets that can help you narrow down your choices (or you can take a shortcut!).
It’s key to find a system with the tools you need and make sure there are caring human beings who will remain invested in your growth and success. Don’t settle for less.