What Is Donation Management Software?

As a not-for-profit organization, donations are essential to keeping your organization alive. Many not-for-profit organizations rely on a solid network of donors to provide the bulk of their funding. However, typically every organization is in need of new donors and new money in order to grow or even just to continue doing good works. Soliciting donors, keeping the donors happy and tracking the money coming in are all essential parts of managing a not-for-profit and the process can be time consuming and difficult. Fortunately, donation management software can save time and be an invaluable aid to those in charge of not-for-profit donations.

Donation management software is special software that is designed for not-for-profits and for organizations that rely on donations to operate. The software is intended to meet the specific needs of these types of charitable organizations and is designed to help make essential not-for-profit management tasks easier.

Some of the different features that donation management software might include are:

  • Features that allow you to keep track of contact information. This would include contact information for both existing and potential donors. Having the names and contact info of all donors readily accessible is absolutely essential and donation management software will give you a better way to organize all of this contact info.
  • A method of tracking gifts that are received from donors. When you receive a donation or gift, you will need to make sure that you understand where it came from. This is essential for budgeting, for properly thanking the donor and making him/her feel appreciated, and for getting a better idea of where the money is coming from. Good donation management software places a strong focus on gift tracking.
  • A method of tracking money pledged for donation. When someone promises to give, you need to know this and be able to follow up- especially if they don’t send the money as promised or if you don’t collect right away. Donation management software makes collecting money pledged easier than ever.

In addition to these essential features that every charitable organization or not-for-profit organization needs, there are also added features available on donation management software. You may even be able to customize the software to choose among the features that are essential to your specific operation. For instance, if your organization is one that routinely runs pledge drives, then you’ll need different modules in your software program to help you support this. If your organization is one that focuses on donors sponsoring a child or an animal, on the other hand, then the donation management software features will need to be tailored towards this type of structure.

Regardless of what your organization does or what type of information you need at your fingertips, the point of donation management software is to make accessing your data easier. If you choose the right software, the fundraising process will become easier than ever before, leaving you with more time to focus on doing the good works your not-for-profit was created to do.


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