How to Implement and Use a Donor Management Platform: The Fundamentals of Donor Management

Donor management is essential to help you make the most of the information you collect. You shouldn’t be collecting data just to have it. Instead, you can use that information to encourage future donations, find potential donors, and build relationships with your existing donors. The donor management process is a vital part of the donor journey and is necessary to help you achieve your organization’s goals. 

But what is donor management? 

Donor management refers to creating and sustaining the relationship with your donors. Focusing on these relationships helps you retain your donors, encourage their investment, and further their engagement.  

Know how to utilize your data

While collecting data is important, knowing how to use the information is crucial for the success of your nonprofit. Using your data allows you to progress through the donor journey and grow your donor base. A donor management system can help your nonprofit: 

• Identify the potential for major donors: Donor data allows you to identify current donors who can make significant contributions to your organization. You can also look for wealth and philanthropic indicators to determine the likelihood of individuals becoming key donors. These donations are essential to growing as an organization and benefiting your cause. 
• Recognize the potential for new connections: Continuing to build your donor base is vital to sustaining the success of your nonprofit. The information you collect can help you identify the most important donors and new connections you can leverage for further contributions. 
• Prioritize specific engagements: When searching for prospective donors, you can look for particular indicators within the donor community to determine the best methods for engagement, encouraging significant contributions to your organization. 
• Create personalized communications and plan targeted events: You can personalize your outreach to each individual using the information you’ve collected. Customized messages help donors feel appreciated and acknowledged as a vital part of your organization’s cause. You can personalize communication and events by practicing segmentation. For example, you should address volunteers differently from first-time donors. 

Using your data in these ways allows you to progress through your donor journey and build on new and existing relationships. Developing these relationships helps encourage future donations and the advancement of your organization. 

Employ donor segmentation

Donor segmentation refers to splitting your donor population into subgroups according to their similarities. Creating these groups allows you to target specific donors to encourage future donations easily. Different ways you can segment donors include: 

• Age 
• Gender 
• Location 
• Volunteer history 
• Donation amount and history 
• Communication and donation preferences 

Each organization will segment its donors differently based on their needs. Segmentation allows you to understand the data you collect and make your communication efforts more efficient and successful. Donors will feel heard and cared for rather than just another number within your organization. 

Keep data secure

Donor information is critical to your organization, and these individuals trust you with their data. You must keep donors’ data secure by ensuring that the wrong people don’t have access to your database. Using a secure system is essential to prevent a data breach and gives your donors peace of mind. Change your passwords to these systems consistently and only allow necessary individuals to access this information. 

Not everyone in your organization should be able to access or edit the information within your database, especially if you store credit card or bank information. Also, refrain from including information you wouldn’t want donors to come across. For example, if a potential donor is hard to work with, you don’t want to have notes that insult the individual. While your database isn’t a public record, it’s better to practice discretion. 

Back up data

The data you collect is necessary for your organization to function efficiently, so you should take care to protect it from loss. Even quality data management software can have an error, potentially causing you to lose valuable information. If this information is lost, you’ll have to go through the data collection process again, which is tedious and time-consuming. It can also cause you to fall behind as you search for this information, preventing you from progressing in the donor journey. 

To avoid losing data, back it up so you still have access to the information if an error does occur. You can store your data securely in the cloud, allowing easy access and preventing you from losing valuable information. 

Donor management software helps you maintain the integrity of your donor data. If you’re a nonprofit with many donors, this software can save you time through automation and help improve your relationships with new and existing donors.  

Get to know GiveSmart Donor CRM today. From easy-to-use retention rate tracking and AI powered search to donor scoring and wealth management insights, we’re the donor management solution to best support your organization.