CRM Applications Vital to Non-Profit Fundraising

Sophisticated charity organizations have used CRM applications for years. Public radio and television stations were among the first non-profits to spearhead technological innovations for donor relationship management. By tightly coordinating follow-up fundraising campaigns using donor databases, development directors converted one-time pledges into long term memberships.

Remember when pledge drives used to look like this?



Pledge drives were inherently inefficient, usually relying on station staff or community members to beg for funds. Today's pledge drives look very different:



Borrowing a strategy from professional marketers, public media programmers launched stunt programming with merchandise tie-ins that attracted first-time donors to their stations. Though tight on margins, pledge premiums like CDs, books, and DVDs helped development teams grow their databases. However, the practice has resulted in what some critics call "pledge drive fatigue." Many of the fundraising specials created for PBS have little or no connection to stations' regular programming. Analysts wonder if, during a recession, the same impulse shoppers that purchase self-help CD packs will still help public media make their annual budgets.

Therefore, CRM applications have become even more crucial to organizations that must rely on existing donors. By using donor management tools to track a member's history and response rate, smart development officers can craft exactly the right message in the right medium to maintain or grow giving levels. This practice prevents donors from hearing the same message too many times, which can cause burnout.

Some organizations have integrated CRM systems into their online services, allowing members to enjoy deeper access to special programming or to order tickets to member-only events. Integration with the CRM systems of corporate underwriters also allows donors to receive targeted, third-party marketing messages on an opt-in basis. All of these strategies help increase the amount of funds that actually go toward supporting a station's mission.

Tomorrow, I'll show you how non-profits from other sectors are using similar strategies, along with some of the ways that clever not-for-profit organizations get their CRM applications for free or for cheap.