Nonprofit CRM

Evaluation Guide
Your fundraising software and database is the backbone of
your nonprofit.
Contents
As your primary vehicle to prioritize outreach to prospective
donors, cultivate existing relationships, and grow your
3 Identifying
supporters’ impact, your CRM also helps you automate Requirements and
processes to work more efficiently. Stakeholders

4 Functionality Checklist
When it comes to selecting a new fundraising CRM, you are
about to make a big investment—not just a financial one, but 6 Pricing / Total Cost of
also an investment in the future of your nonprofit, the loyalty Ownership

of your donors, and the mission you serve. And your nonprofit 8 Vendor Evaluation
has a lot of options.

So where do you start? How do you narrow the list of options?

What features will enable your staff to best serve your donors
and track the entire donor journey?

In this toolkit, you’ll find:

• Insight on how to identify the right priorities and which

stakeholders to include

• Checklists of features and functionality as well as

underlying technology considerations

• Tips on evaluating vendors and which questions to ask

• Considerations for understanding the total cost of

ownership and pricing models

• Steps to take in preparation of moving your data to a new

database

©September 2022, Blackbaud, Inc.

This white paper is for informational purposes only. Blackbaud makes no warranties,
expressed or implied, in this summary. The information contained in this document
represents the current view of Blackbaud, Inc., on the items discussed as of the
date of this publication.

All Blackbaud product names appearing herein are trademarks or registered

trademarks of Blackbaud, Inc. The names of actual companies and products
mentioned herein may be the trademarks of their respective owners.

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Identifying Requirements and Resource Requirements
• Determine IT requirements
Stakeholders
• Identify any internal infrastructure limitations such as
Before you get started, it’s critical to fully understand the
your server and/or data storage capacity (unless data is
problems your organization is trying to overcome. Defining
to be hosted by the software provider)
your priorities allows you to clearly state what you need
• Determine personnel bandwidth and/or staff limitations
from a solution, and, more important, how it will help grow
which might hinder change management
your organization. It also gives you an opportunity to take a
step back to evaluate your current processes, and identify • Consider necessary customizations, upgrades, or
where there’s room for improvement. integrations with current systems

Consider this question as you’re defining your unique Time Frame

needs: Are these the necessary steps to complete a • Establish a realistic time frame for the evaluation
process, or could there be a simpler way to achieve the • Identify any internal roadblocks (upcoming events,
same (or even better) outcomes? campaigns, stakeholder approval, etc.)

Your requirements should reflect a holistic view of the • Determine an ideal go-live date, and work
organization, not just one department. Take the time backwards to allow proper time for evaluation and
to meet with internal teams to define their needs and implementation phases
expected outcomes. This will help you obtain buy-in from
Functional Requirements
all impacted teams and avoid unintended disruptions.
• Evaluate existing tools you might be able to combine for
easier use and vendor management
LIST OF REQUIREMENTS
• Determine the shortcomings of your current technology
Here are the key categories to focus on in the preliminary
stack and identify your biggest opportunities for growth
stages of your search:
based on current metrics
Current and Future Goals
• Consider anticipated growth and trajectory based on
current YOY numbers HOW TO ESTABLISH REQUIREMENTS

• Determine which added efficiencies can impact that • Include stakeholders early and often
trajectory and how
• Define current processes
• Set realistic expectations on the cost of status quo • Identify gaps
(staying with current systems) versus upgrading systems
• Map out the ideal state
Budget • Prioritize your wish list
• Conduct online research to understand the market • Gauge your team’s technical
• Define a range that makes sense to your organization capabilities
(see cost considerations on Page 6) • Always tie back to your organization’s goals
• Seek insight from stakeholders and peers who may have • Conduct ROI research
migrated systems recently or in previous roles

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STAKEHOLDER MANAGEMENT ultimately select. We have you covered with a ton of
resources you can leverage at your next board meeting.
Consider improved donor relationship tracking, reduced
administrative tasks, integrated online payments,
streamlined reporting, more robust analytics, and
predictive insights. Evaluate your performance against peer
A stakeholder is defined as an individual, group, or organizations using the Raiser’s Edge NXT
organization that is impacted by the outcomes of a ROI Calculator.
new fundraising solution. This includes your donors,
fundraising staff, executive leadership team, board of
directors, etc. It is important to understand their needs
and expectations to gain alignment in evaluating new Functionality Checklist
software. After you’ve identified your organization’s requirements,
it’s time to create your must-have, nice-to-have, and
The best way to accomplish this is to ask each
love-to-have functionality checklists. This is where it’s
stakeholder: “What are your top three challenges today?”
important to unite your teams and consider functionality
This becomes your pain or problem list, detailing the
for IT administrators, database administrators, marketing
barriers to leveling up and meeting your strategic goals.
and events teams, gift managers, frontline fundraisers,
Once the list is made, everyone can vote on the 8-10
and department heads.
problems that they feel are most important to solve with
new technology. This approach also achieves alignment As you build out your priorities, try to organize the
with your stakeholders more quickly. features and functionality according to the outcomes
you’re seeking to achieve.
Lastly, you might need board approval for a new
software budget and signoff on the vendor you An example of a simple checklist is on the next page.

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Functionality Checklist OUTCOME: Reach and Engage New Supporters
Integrated online and offline communication tools
OUTCOME: Operate More Efficiently
Native crowdfunding and P2P fundraising platforms
Cloud-based mobile access Online donation forms and payment processing

Unlimited users Send and track emails directly from the database
On-site event management tools
Role-based work centers and portfolio
management Program management
Traditional (paper) mail tracking tools
Automated work flows
OUTCOME: Expand Relationships with Donors
Action-triggering needs-attention tags
360-degree view of constituents including
Notes and action/communication tracking preferences, associations, and all interactions

Out-of-the-box reports surfacing key fundraising Wealth and propensity-to-give ratings

metrics Major donor prediction

Performance dashboards and benchmarking Suggested ask amounts

Data health assessments
Security controls
Automated updates of contact information and
Training, support, and community resources donor active/inactive status

In-product help eReceipting and Gift Acknowledgment

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Pricing / Total Cost of Ownership
Total cost of ownership (TCO) is a financial estimate
intended to help buyers and owners determine the
direct and indirect costs of owning a product or system.
TCO includes the costs of owning an asset, going
beyond the purchase price to look at the true investment
required. Like buying a car, you must consider all incurred
expenses of an asset, such as repairs, insurance, and fuel.

If you think the board wants to talk numbers during the

initial meeting, then return on investment (ROI) is what
you want to focus on. Think of ROI as a justification for
the investment, and the total cost of ownership (TCO)
as the bottom line cost. The ROI belongs in the first
meeting; the TCO shines in the second.

For example, the return can manifest itself in solving

operational shortcomings. Perhaps you keep member
data in your finance system, an excel spreadsheet,
and in an online member directory. You can show the
ROI of a new system by profiling these inefficiencies
and showcasing the pain caused to your members. Be
specific, and have the numbers to back up your case.
We know this is a lot to process. We
Arriving at the TCO is where you will spend the bulk
of your time at meetings with the board. This shows
outline typical cost of ownership
the outcome of your selection process, and where categories on the following page.
you define your requirements, determine the upfront
investment, and outline the ongoing operational costs.

As outlined in the first section of this toolkit, there are It’s important to add up all the one-time costs for each
several factors that go into determining the TCO, and it solution including software licensing, any needed
is best to get as close a direct comparison as possible hardware, implementation and/or integration work, and
with competing systems. primary staff training.

Each vendor’s prices are based on different factors, Then total the additional years of the ongoing costs
so it can be hard to formulate direct comparisons. for each solution over the course of the contract. This
The best way to compare prices is to determine the is likely to be mostly licensing subscriptions and any
software configuration from each vendor that has all projected supplemental training for advanced or new
the components your organization requires, and identify staff. By looking at the one-time and ongoing costs over
set-up versus subscription costs. If one vendor’s offer is several years, you can begin to understand the total
missing a needed function, identify another way you’d costs to your organization.
provide this functionality, usually through an additional
point solution vendor. Add that to the costs when you
consider Vendor A.

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COMMON COMPONENTS OF SOFTWARE CONTRACTS
Total cost of ownership (TCO) is a financial estimate intended to help buyers and owners determine the direct and
indirect costs of owning a product or system. TCO includes the costs of owning an asset, going beyond the purchase
price to look at the true investment required. Like buying a car, you must consider all incurred expenses of an asset,
such as repairs, insurance, and fuel.

This is the cost for filtering and aligning data from your old system into
DATA CONVERSION your new software. Variables include the source, format, and age of the
data in your incumbent system.

Similar to data conversion costs, these are typically costs associated

with setting up your new system. Sometimes this item on a proposal
IMPLEMENTATION SERVICES
includes the data conversion in addition to any needed customizations.
Be sure to ask what is included.

This is the cost of using the software. This is usually a monthly or annual
SOFTWARE LICENSING
subscription.

Training can be delivered in a variety of ways—in person, live online, or

through recorded videos. Weigh the preferred mode with its associated
TRAINING
costs. Typically, the more hands-on and tailored to your organization’s
specific needs, the greater the cost.

Technical support no longer means a phone number for technical

assistance. Many vendors now offer a wide variety of delivery systems
TECHNICAL / PRODUCT SUPPORT
(phone, email, chat, online knowledge bases) to help customers. Be sure
to understand what each vendor provides and what costs extra.

Some solutions require maintenance services and fees outside of a

MAINTENANCE
subscription cost. Ask about any ongoing requirements.

Consulting fees include professional advice on the best way to support

CONSULTING your needs in your new system to ensure you’re set up for success
within the system and across your business processes.

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Vendor Evaluation HIGH-LEVEL VENDOR EVALUATION PROCESS
Selecting fundraising software can be overwhelming,
• Conduct your own research by
but it doesn’t have to be! Your approach to evaluating
consulting vendor websites, trade
potential software partners should match your needs.
publications, and peer review sites
With that in mind, every organization’s evaluation
process will differ depending on: • Identify top candidates and notify
vendors of your interest
• Organization complexity
• Schedule requirement discussions and
• Workflow complexity discovery calls (prior to demo)
• Risk exposure • Schedule demo with key stakeholders·
• Level of investment • Follow up to get stakeholders’ feedback

ASK THE RIGHT QUESTIONS • Score each vendor using a scorecard

As you begin the discovery process, be sure you’re • Select a finalist

asking sales representatives questions relevant to your
unique needs—not just listening to their spiel! Here’s
some food for thought:
PREPARE FOR VENDOR DEMOS
• How long has your company been in business?
Following your discovery conversations in which you’ve
• What is your experience with developing fundraising communicated your requirements and restrictions,
solutions for nonprofits? conduct a demo. These can be done online in a self-
• What tools do you provide clients to follow industry guided format, or delivered one-to-one by a sales
best practices? representative. While both can be insightful, the latter
• What awards or recognition has your company typically provides more value and allows you to ask
received? questions as you see the software in action.

• Is the software solution cloud-based and mobile Be sure to include the right people from your
accessible? organization, including relevant department directors,
IT staff, end users (especially power users and
• How many users can we have?
administrators), and final approvers.
• Is your software customizable?
• How are payments processed? SELECT A FINALIST

• What does implementation include? How long does Based on all the factors we’ve laid out in this guide,
it take? it’s time to select your new fundraising software. The
evaluation process has many moving parts, but if
• Does your company provide any training to enhance
you’ve done your due diligence, you’ll choose the right
the use of the platform?
fundraising partner who can ensure your organization
• What type of support will we receive? exceeds its goals and champions your mission!

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits,
higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and
individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, data intelligence,
and expertise. Learn more at [Link].

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