What Fundraising Tech Tools Does Your Nonprofit Really Need?

Donations power your nonprofit organization’s work, and as such, every nonprofit needs fundraising tools that fit its unique needs. Whether they need support for marketing, processing donations, or running unique types of events, online fundraising platforms are the backbone of any modern nonprofit’s funding strategy.

However, with such a wide range of tools available, it can be difficult to know which ones are right for your nonprofit. In this guide, we’ll explore several fundraising software solutions and assess what types of nonprofits they are the right fit for. 

Donation tools

A donation form is the foundational piece of fundraising software nonprofits need to gather donations online. Donation tools generally consist of three parts:

• Donation form: Donation forms are the front-facing tools donors interact with to give to your nonprofit. Your donation form tool should ensure this page is accessible for users of all ability levels, creates a cohesive brand identity, and requires entered data to be consistently formatted. 
• Donation processor: Donation processors are responsible for transferring funds from your donors’ bank accounts to your nonprofit’s. These tools prioritize security to protect your nonprofit from potential data breaches that might otherwise put your donors’ sensitive financial information at risk. 
• Donor profiles: These profiles house information about individual donors that you can use to maintain relationships. Donor management tools are more complex than a simple donation form, but many include both donor profiles and integrated donation processors. If you decide to purchase separate solutions, make sure you can integrate your other donation tools with your donor management platform so data flows seamlessly between them.

Along with gathering donations, your donation form is one of your most essential data collection tools. It allows you to gather basic information about your donors, such as their names and contact information, laying the foundation for future outreach and relationship building. 

Nonprofits this fundraising tool is right for: All nonprofits intending to fundraise online need donation form software. The complexity of your donation tools will depend on your nonprofit’s size, specifically how many donors you need to create records for. 

Peer-to-peer fundraising software

You can improve your fundraising potential by recruiting supporters to fundraise on your organization’s behalf. This is known as peer-to-peer fundraising, and software gives nonprofits and supporters alike the tools they need to conduct this unique fundraiser. 

Specifically, peer-to-peer fundraising software provides nonprofits with: 

• Unique donation pages. Participants in a peer-to-peer campaign can set up their own personalized donation pages. This way, friends and family members can donate to a loved one they personally know rather than an organization they may be unfamiliar with. 
• Gamification features. Keep your participants motivated with gamification tools. These include features like point systems and leaderboards that encourage participants to push themselves to raise more and incite friendly competition among supporters. 
• Team fundraising. Your supporters can work together as a team to raise funds on your behalf, too. Choose a peer-to-peer solution that allows for group pages used by multiple individuals.

Peer-to-peer functionality often comes as a feature in other fundraising software platforms. When evaluating peer-to-peer solutions, consider not just what individual tools can do but also if a peer-to-peer platform will smoothly work with the rest of your software. 

Nonprofits this fundraising tool is right for: Peer-to-peer fundraisers are ideal for nonprofits with active, online supporter communities. If your nonprofit is just starting out, a peer-to-peer fundraiser might not be an ideal choice. However, in a few years’ time, it might become a fundraising staple. 

Crowdfunding tools

If your nonprofit needs to raise a significant amount of money for a specific project, consider hosting a crowdfunding campaign. Like the name implies, crowdfunding campaigns rely on inspiring a crowd of people to come together and give to one central cause. 

Popular websites like GoFundMe and Kickstarter are crowdfunding tools, but there are also a host of platforms created specifically for nonprofits. These specialized tools give your nonprofit more control over your campaign page, allowing you to customize your page’s design, add donation tiers to encourage contributions, and post progress updates to keep donations coming in. 

When selecting a crowdfunding platform, consider whether it uses a “flexible funding” or “all-or-nothing” model:

• Flexible funding provides your nonprofit with all funds donated over the course of your crowdfunding campaign, regardless of whether you reach your goal. For instance, if you aim to reach $50,000 but only reach $45,000, a flexible funding crowdfunding platform would still award your nonprofit with the accumulated $45,000 at the campaign’s end. 
• All-or-nothing incentivizes fundraising by only awarding nonprofits if they hit their campaign target. Otherwise, all donors receive their donations back. This approach is more often used by small business ventures as it incentivizes individuals to invest in projects, knowing they will earn their money back if not enough funders come on board. 

Choose a platform with the best model for your nonprofit or specific campaign. Then, set a deadline that gives supporters plenty of time to contribute but also instills urgency to donate quickly. 

Nonprofits this fundraising tool is right for: If your nonprofit has a major project you need funding for, consider starting a crowdfunding campaign. Remember that crowdfunding campaigns are meant to generate a burst of revenue for an individual project, rather than act as a continual source of funding. 

eCards

eCards are a unique, flexible fundraising tool. Nonprofits can leverage eCards for a number of purposes, including: 

• Fundraising. Add eCards to your nonprofit’s eCommerce store for an extra fundraising opportunity. Supporters can purchase these electronic greeting cards to send to friends and family along with a custom message written by them. Charity eCards are especially popular during the holiday season when donors are likely looking to send cards and feeling the holiday spirit of generosity. 
• Donor appreciation. Encourage more donations by thanking donors for their gifts with eCards. Whenever donors give above a certain amount, thank them with a personalized eCard. 
• “In the name of” gifts. Similar to charity eCards, you can make eCards a part of your fundraising process when supporters choose to donate in someone else’s name. When supporters select this option, they’ll be prompted to choose an eCard design, enter the email address or phone number of the person they’re donating in the name of, and write a custom message. 

To increase your eCards’ fundraising potential, create fun, memorable designs related to your nonprofit. For example, check out these eCards from the nonprofit One Tail at a Time:

These holiday eCards combine the nonprofit’s photogenic animals with seasonal decor to create designs supporters will want to share with family and friends. Take photos of your nonprofit’s work, hire a graphic designer, or leverage an eCard platform with plenty of graphic design assets to create eCards that fit your nonprofit’s audience. 

Nonprofits this fundraising tool is right for: Nonprofits with online stores can easily add eCards to their fundraising strategy. However, any nonprofit looking to encourage donations or improve its supporter recognition efforts can leverage eCards.

When it comes to investing in fundraising software, the first step is understanding your nonprofit’s needs. Consider what types of fundraisers will serve your nonprofit at this point in its operations, as well as what tools will set you up for future growth. Then, start your research and approach vendors to request demos to see their tools in action.