{"id":27481,"date":"2023-05-25T09:54:38","date_gmt":"2023-05-25T13:54:38","guid":{"rendered":"https:\/\/www.donorperfect.com\/nonprofit-technology-blog\/?p=27481"},"modified":"2023-05-25T09:54:58","modified_gmt":"2023-05-25T13:54:58","slug":"evaluating-nonprofit-fundraising-software","status":"publish","type":"post","link":"https:\/\/www.donorperfect.com\/nonprofit-technology-blog\/nonprofit-technology\/evaluating-nonprofit-fundraising-software\/","title":{"rendered":"6 Overlooked Factors for Evaluating Fundraising Software"},"content":{"rendered":"\n

Fundraising software has become a vast marketplace as the tech industry continues to grow. Buying a constituent relationship management system (CRM) is not an easy decision – budget, features, data migration, and stakeholders all come into play as you consider countless solutions. It can be overwhelming for a nonprofit organization to vet several CRMs before finding the perfect one, and it\u2019s especially tough to find a software company whose values align with yours. <\/p>\n

When reviewing the pros and cons of potential vendors, you may want to consider some less obvious factors before making your final decision.<\/strong><\/p>\n

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1) Company ownership<\/h2>\n

An often overlooked attribute of software is its ownership. The majority of software companies in the tech industry are owned by venture capital or private equity firms<\/a>. While this is not inherently bad, it can lead to some unforeseen and less-than-desirable outcomes down the line. Many times these companies are acquired by larger companies when it comes time to satisfy the requirements of their investment. <\/p>\n

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Mergers and acquisitions can be problematic for a multitude of reasons:<\/strong><\/p>\n

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  1. The acquiring company may stop developing the software product.<\/li>\n
  2. Users of the software may be forced to switch to the company\u2019s primary solution.<\/li>\n
  3. Contracts may need to be renegotiated at less favorable terms. <\/li>\n
  4. Staff may be laid off, leading to decreased customer support and expertise. <\/li>\n<\/ol>\n

    Mergers and acquisitions are not few and far between either. Blackbaud alone acquired 20 companies<\/a> over the span of just five years, and even more recently, Classy<\/a> was acquired by GoFundMe. Looking for privately owned companies can save you from the hardships that acquisitions bring. Employee-owned companies<\/a> are able to focus on what is best for their employees and customers, resulting in a better experience for the user. <\/p>\n

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    As an employee-owned company, we are not beholden to any outside interests that are not aligned with the interests of our clients.\u201d<\/p>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t

    – Lauren Sheehan, President of SofterWare, the company that founded DonorPerfect Fundraising Software in 1981.<\/p>\n\t\t\t\t\t\t\t\t

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    2) Product improvements and fixes<\/h2>\n

    Research and development are vital to the success of a software product, especially as new innovations are introduced to the industry. You\u2019re constantly working to improve your fundraising game, and your CRM should be working just as hard for you.<\/p>\n

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    Invest in fundraising software that isn\u2019t going to remain stagnant. Release notes are a great resource when evaluating meaningful change in a product. You can look at the frequency of the releases and do a deeper dive to see if they are composed mostly of \u201cbug fixes,\u201d improvements to a current feature, or brand-new functionality. If you can\u2019t find them posted publicly on the website, don\u2019t be shy about asking for a recent history of product releases. <\/p>\n<\/section>\n

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    3) Security<\/h2>\n

    No matter which CRM you choose, you will be storing and recording a lot of sensitive data. It\u2019s important to prioritize the security of your donors\u2019 information by choosing a product that is secure from cyber threats. Their dedication to your mission, in large part, depends on their trust in you.<\/p>\n

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    A few recommendations for evaluating vendor security:<\/strong><\/p>\n