Nonprofit CRM vs Traditional CRM

Modern nonprofits use different kinds of software to improve productivity and enhance their operations. Arguably, CRM software is the most important tool. But what is nonprofit CRM software? And how is it different from conventional CRM software?

Nonprofit CRM Software Explained

Typical businesses use a CRM (Customer Relationship Management) platform to track their contact details and customer interactions, manage accounts, and follow up on leads. But this type of software isn’t always suitable for nonprofits. Typical CRM tools focus on financial data and work better for profit-driven organizations that rely on customers for sales.

On the other hand, nonprofit CRM software is a Constituent Relationship Management System. It gives nonprofits a full view of their relationships with all their constituents. Organizations use nonprofit CRM to manage the relationships with their backers, donors, staff, and volunteers more effectively.

Nonprofit CRM Manages Constituents, Not Customers

As stated, CRM for nonprofits helps manage relationships with people unique to nonprofits. A typical business doesn’t have donors or volunteers, but a nonprofit usually does. These relationships are sometimes critical to the health of a nonprofit. For example, an animal shelter may rely on a large group of regular volunteers to rescue cats, dogs, and other animals from across the city. With a nonprofit CRM, such a shelter can manage their volunteers more effectively.

Similarly, a nonprofit may need to develop relationships with potential donors in order to secure the first gift. It may also use CRM tools to strengthen relationships with older donors for repeat giving.

Nonprofit CRM is More Cost-effective 

A robust Customer Relationship Management (CRM) system designed for businesses can be pricey. But nonprofit CRM is typically cost-effective to use. For example, one of the best tools for not-for-profit organizations, Sumac nonprofit CRM, is reasonably priced despite being quite sophisticated.

To use this CRM, organizations simply have to start with the base software. The base software helps nonprofits with contact management, reporting, and email marketing.

Next, nonprofits can choose from 11 add-ons for more advanced functionality:

  • Case management: Helps streamline service delivery
  • Memberships: A complete membership management solution
  • Donations: Different donation tools in one place
  • Volunteers: Streamlines the process of volunteer management
  • Grant Management: Helps develop a strategy to win grants
  • Course Registration: Streamlines the setup of courses
  • Online Webforms: Helps attract new donors through the nonprofit’s website
  • Forms: Collects additional information about constituents
  • Proposals: For managing special donation situations
  • Prospecting: Helps identify more generous donors
  • Custom: A customizable module unique to a nonprofit

After selecting their add-ons, nonprofits can configure the CRM based on their needs. 80% of the system is already configured for nonprofits that want to improve productivity and workflow immediately.

Nonprofit CRM Offers Privacy and Security 

Nonprofit CRM may carry security features unique to nonprofits like shelters, hospices, and palliative care facilities.

For example, healthcare organizations in the United States must comply with the Health Insurance Portability and Accountability Act (HIPAA). Likewise, Canadian organizations must comply with the Personal Information Protection and Electronic Documents Act (PIPEDA).

Many nonprofit tools are both PIPEDA and HIPAA compliant to protect the security and privacy of patients.

These are just some of the differences between conventional CRM and nonprofit CRM. You can learn more by exploring the website of a popular nonprofit CRM solutions provider.