Looking to improve your nonprofit operations in 2023? Implementing new software can help - but only if you avoid some common pitfalls. Read on to learn the top 10 nonprofit software mistakes and how your organization can steer clear of them.
In this blog post, we'll cover key mistakes nonprofits make when selecting and implementing software across five critical areas:
Customer Relationship Management (CRM)
Donation Management
Volunteer Management
Project Management
Financial Management
For each area, we'll overview typical errors and provide tips to avoid or correct them. We'll also point out red flags to watch for when evaluating new software.
Whether you're exploring options or gearing up for a software rollout, this guide will help you choose and implement solutions tailored for nonprofit success. Let's get started!
CRM software helps nonprofits manage constituent data, relationships, and outreach. It's essential for fundraising, donor retention, and communication.
Many CRMs lack tools purpose-built for nonprofits, like donation tracking and volunteer management. Opt for solutions with constituent-focused features like:
Donor profiles with giving history
Email marketing and segmentation
Event management and registration
Integrations with nonprofit accounting software
Ease of use is critical, especially for non-tech savvy employees. Ensure the CRM:
Accurate donation tracking is essential for nonprofit fundraising and financial reporting. Here are some key mistakes to avoid:
Spreadsheets are prone to errors and invisible data corruption over time. Choose dedicated fundraising software with features like:
Online donation forms and Stripe integration
Robust reporting on giving metrics and trends
Automatic tax receipt and acknowledgment emails
Seamless syncing with your CRM
Look for software that centralizes donation processing by integrating tools like:
Online credit card processing
ACH payments and bank transfers
Text-to-give mobile campaigns
Apple Pay/Google Pay
Robust integration avoids manual entry and reduces human error.
Volunteers are a nonprofit's lifeblood. Avoid volunteer management mistakes with the right software approach.
Trying to track volunteers via spreadsheets or notes creates duplicates and inaccuracies over time. Invest in a volunteer management system that:
Maintains a central database of volunteer records
Allows self-signup and coordination of availabilities
Posts calendar-view schedules and assignments
Tracks hours served for reporting
Lack of proactive communication leads to forgotten shifts and frustration. Look for tools with:
Automated reminders of upcoming assignments
Email and text capability
User portals for self-managing profiles and shifts
This reduces the burden on staff and boosts volunteer retention.
Bring order to chaos by improving nonprofit project coordination. Watch for these project management pitfalls:
Shared project information gets lost across email chains and personal lists. Opt for shared software like Trello or Asana that allows you to:
Create project boards with tasks, due dates, and assignees
Set reminders for upcoming deadlines
Attach files and include comments/notes
Give project team members access to collaborate
Email and personal contact lists create internal silos. Ensure your software encourages cross-department sharing via features like:
Organization-wide access to projects and workflows
Task assignments and notifications across teams
File-sharing across projects and teams
Breaking down silos boosts productivity and alignment.
Don't undermine your mission with poor financial oversight. Here are nonprofit finance software traps to avoid:
Many small business tools lack nonprofit-specific features like fund accounting, grant management, and FASB compliance. Choose systems designed for nonprofit finance like:
Aplos
QuickBooks Online Nonprofit Edition
Sage Intacct
Tedious financial tasks and spreadsheet-based reporting drain staff time. Look for process automation like:
Online purchase approvals
Automated invoicing and expense reimbursement
Scheduled financial reports
The right software removes bottlenecks and creates transparency.
Avoiding common nonprofit software pitfalls takes research and planning. But powering your mission with purpose-built technology yields big rewards in efficiency, accuracy, and insight. Use this guide to inform smarter software decisions that empower your nonprofit.