You just want to help and make a difference. It is easy if you are a donor but if you are spearheading a nonprofit organisation, it takes many people and donation management tools to be successful. Your goals here are to find ways for donations to funnel into your organisation and handle all those transactions accordingly.
What is donation management?
Donation management is also called pledge management. It describes a process that you utilise to organise all donations received. For nonprofits today, this includes donations gathered online and in-person. The good news is that there are many systems that you can consider to help you manage an immense number of donations.
These systems range in size and scope depending on your needs and the organisation. If you are starting, a simple spreadsheet can help. However, if you are planning to expand your donor base, larger-scale donation management may be beneficial for your organisation.
What is managing donations important?
You think that adding donation management will complicate things. You should change this kind of thinking. Donation management ultimately seeks to make your life easier. It will also enhance the experience of your donors. In essence, donation management is a win-win for everyone. Here are the reasons why it is important to management donations:
• Donation methods are changing: you have to understand the habits of donors so you
can optimise your strategies. These days, majority donors prefer to give online. This means that donors continue to diversify the ways they choose to give. For this, you need a comprehensive system that can help you organise different avenues for giving.
• Donation data is available: data is valuable because it allows you to use the information to analyse the donors. This way, you can improve your fundraising efforts. A comprehensive system can help you collect data about your donors.
• Donor retention is possible: comprehensive donation management will support your long-term donor retention efforts. The keys here are gathering donor data and do something about it.
What are the important donation data you need to gather?
A comprehensive system will offer different data for you to gather. With the data around, you need to identify the most important one. Here are the must-have data you need to gather:
• Gift amount: this refers to the total gift amount that you receive every donation from a
• Gift frequency: this refers to how often the donors give.
• Source: this refers to the avenue the donors utilise to give.
• Payment method: this refers to how donors choose to make payment. This includes cash, check, direct withdrawal and credit card.
What are some best practices that you should consider?
When managing your donations, it is crucial that you follow best practices. You should start by using one dedicated place. Keep in mind that scattered data is counter-productive and unhelpful.
More importantly, designate a staff person. Donation management is beneficial for your organisation but it requires a person to frequently update and review the data. You also need to set a schedule for the review of your management practices on a regular basis.