The Quintessential Guide to Effective Fundraising Tools for Charities

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Did you know that across all charities and nonprofits in the U.S., online giving counted for 26% of donations in 2023? How does your charity or nonprofit stack up to those statistics? If you’re one of the million+ smaller charities in the country, your organization probably struggled to bring in $50,000 or more last year, and that's barely helping your mission get anywhere. 

According to data from the National Philanthropic Trust, around 4.8 million Americans actively donate to nonprofits, giving a total of $557.16 billion in 2023, you can get a piece of the pie for your organization and mission with the right fundraising strategy. What do you know about fundraising software like Charity Navigator or PayBee? These nonprofit tools are a surefire way to elevate your organization to fundraising success. 

In 2024, you’re falling behind the competition if you’re not using donation platforms to get more reach into your market and capture new donors, supporters, and donations. The world is moving online, and it’s time your organization keeps up with the change of the tides.

We’re about to change all that for you with our review of tools for increasing charity fundraising results. We’ll discuss the best fundraising tools for new charities and give you the lowdown on how to choose the right fundraising tools for your strategy. 

The Different Categories of Fundraising Software, Platforms, and Strategies

Right now, you might find the concept of an online fundraising tool confusing, maybe even a little intimidating. Don’t worry, there’s plenty of marketers who are hesitant to shift away from the conventional methods and embrace new technology. 

There are different software tools offering varying functionality for different areas of your strategy. Some focus on email campaigns, while others help you out with managing your donor relationships, and others capture online donations directly from your official website. 

Orchestrating the tools under one umbrella is the key to success with these systems. When you get it right, software can automate a large chunk of your marketing responsibilities. Allowing you to fundraise and manage campaigns with a simple glance at a central dashboard.

Here are some of the essential fundraising tools for charities.

CRM Systems

CRM for nonprofits is part of the suite of non-negotiable online fundraising tools every charity or nonprofit needs in their backend systems. There’s a CRM solution for nonprofits at every level, from the holistic management coverage of Salesforce for institutions to the user-friendly simplicity of GoHighLevel for smaller org’s. 

CRM centralizes your donor database. It does away with the need for manual record-keeping and captures valuable data that lets you adjust your campaigns on the move. It’s a real godsend for charities that need more insight on donor relationships, and growing donations. 

Get information on donor retention, average gift size, and other demographic data. Automate workflows and execute your marketing strategy without lifting a finger. CRMs are a high-value tool for any nonprofit or charity, and some are inexpensive or even free, while others can cost a pretty penny. 

Choosing the right CRM depends on the size of your organization and what you want to achieve with rolling out the tool. Fortunately, most CRM companies have dedicated service reps available to walk you through every feature and explain why their solution is the best fit for your team and organizational goals. 

Donation Platforms

Now, let’s get onto discussing the power of integrating donation platforms into your online marketing strategy. Free tools from GoFundMe and Donorbox make it easier than ever to capture online gifts from your donor base. They feature embedded forms on your website that link directly to payment portals backed by the PayPal Giving Fund or Stripe for convenient gifting. The data shows that using this strategy increases donor conversion by 10% over using non-embedded form strategies on your site. 

A top-rated fundraising platform like DonorsChoose or Kiva are another piece of the puzzle in your holistic software solution, and they’re essential for capitalizing on online donor behavior. 

Donation forms are the touchpoint between your charity or nonprofit, and the donor's wallet. They make it easy for your donor to give when they’re feeling generous, and they reduce the steps to completing the donation, which is a big deal in increasing the completion rate of online donation conversions and fundraise effectively. 

Social Media Tools 

We all live in the TikTok and Instagram age, and there’s no escaping the impact it has on society. Social media fundraising tools help your organization make the most out of your following, presenting them with a well-curated content strategy that drives engagement and commitment to your organization. 

Use social media to promote your fundraising campaigns, and take donations directly through platforms like Facebook and YouTube that allow for online fundraising events on their platform. If this powerful medium doesn’t feature in your content strategy, you’re leaving a whack of donations on the table. 

Social media marketing tools, like the Facebook ad manager, give you a dashboard to track the metrics for your campaign. You get all the data you need to make decisions on your strategy in real-time, in one convenient dashboard. 

Email Marketing Solutions

Email software is another essential fundraising platform for nonprofits and charities. While most of us cringe at the thought of receiving emails, the reality is email marketing is still one of the most effective marketing tools for nonprofits, accounting for 14% of revenues in 2022. 

The key to success with email marketing is optimizing your copy and headlines. When you personalize these components of the strategy, you’ll see a huge jump in results. When donors and supporters get a personalized email, they’re more likely to open it and read it, that's why this strategy increases open rates by a staggering 329%.

Automate the campaign with tools like MailChimp. Schedule and send all your emails for one space, and integrate it into your CRM to track everything from a central dashboard. With email marketing software, you complete another piece of the puzzle in your software toolkit, giving you the power to leverage your donor list, and it’s all about farming and maintaining the database as you progress with your strategy.

Choosing the Right Fundraising Software for Your Organization 

Now that you understand the basics of fundraising tools and what they do, the next step is finding the tool that's the right fit for your strategy. You want a tool developed for your needs. For instance, we talked about SalesForce for CRM - while it’s a powerful tool, a smaller organization won’t get the full value they need from it because it’s got such advanced functionality and every feature they need.  

Effective charity fundraising tools are tailored to your strategy requirements and your organizational structure, but what do you look for in the right software solution? Here’s an overview of a few ideas to get you on the right track.

Take the Platform UX and Navigation for a Test Drive

The user experience (UX) and ease of navigation are the top factors you’re looking for when selecting your tool. It’s no good having software that you pay hundreds of dollars for every month, but you only use a few of the components. 

So, in our CRM example, we could get better value using a system like GoHighLevel, where we can adjust the functionality we need and pay for those tools only. Then, we can scale up the system's functionality as we grow. It’s a pragmatic way to handle the immediate needs of your marketing strategy, with the future growth you expect from rolling out the system.

Most software developers offer free trials of their systems, so use it as an opportunity to assess if it's the right one for your charity. Choose a few options from top-rated providers and get your team involved. Ask them what they think about the platform overview from providers on your shortlist, and which they think offers the best functionality and would be the easiest to rollout.

The user experience design will end up being the hill you die on if you get lost in the bells and whistles of platform functions versus UX. So, roll out a software solution that everyone on the team finds easy to use.

Understand the Tool’s Functionality and Utility for Your Strategy

What are you getting out of the tool you use? There are plenty of tools to enhance fundraising for charities, but some are better than others. You need a package that brings value to your existing fundraising strategy and brings in more supporters and donations to keep your mission moving forward. 

For instance, maybe your donor base relies on WhatsApp as their primary means of text-based communication. If that’s the case, you need a CRM that provides test marketing through WhatsApp integrations. If it doesn’t have this functionality or features, then it doesn’t serve your strategy, and you’ll need to find another solution that does.

Do you understand the benefits of the tool? If you’re having trouble assessing the functionality of the software, reach out to the support team. Most sites have chat-based support, with plenty of resources on hand to unpack the features and functionality of the tools they offer. They’ll take you through everything you need to know to make an informed decision on whether it's the right toolkit for your organization and how you intend to roll it out to your team. 

Choosing a software solution requires a thorough platform overview and it’s a serious decision and beyond choosing a provider with the lowest monthly subscription fee. Going down the wrong path with a system that doesn’t resonate with your team and strategy will end up costing you time and effort you can’t get back. 

Does It Have Compatibility with Existing Software Platforms and Solutions?

We already touched on the software’s integration capabilities, but now it’s time to emphasize just how critical this feature of the software you choose is to its functionality. Integrations let you pull everything in your strategy into a centralized place for better management and improved outcomes. 

For instance, does the tool integrate with email, social media, and collaboration/communication tools? Does it have features to manage payment gateways, offer an affordable transaction fee, and automate tax receipt creation and issuance? Integrations turn your marketing systems into a powerhouse, giving you access to everything you need to boost donor relationships, farm more donations, and reach your fundraising goals. 

Check out the User Reviews Before You Take the Plunge

So, which one of the charity software solutions do you go with? Like we said earlier, it's a big commitment of time and resources, so you don’t want to end up with a lemon, you need something that works right from the jump-off. 

That's where consumer reviews come in handy. Visit sites like TechSoup to see tool comparisons from different providers and use other people's experiences to shape your decision on the right choice for your charity or nonprofit organization. 

What Can Your Budget Accommodate?

Nonprofit budgeting is a huge component of success and the bottom line defining whether the organization keeps its doors open, or falls into the abyss and fails. So, what can you afford to spend on software tools to further your mission? 

The good news is that there’s an online fundraising platform out there at every price point. There are plenty of useful free tools, and others available for huge discounts on pricing if you reach out to the developer and tell them you’re a nonprofit looking to implement their tool. 

So, there’s no reason to let price or a monthly fee be a sticking point in your decision to roll out software tools at your organization. 

Integrating an Online Fundraising Tool into Your Nonprofit Strategy

Choosing the right software tool is only half the battle. The real work comes to the party when you roll it out with your team and put it to work. Sometimes even the best-laid plans fall apart, but with the right preparation, you’ll hopefully avoid calamities during the rollout period, and overcome the inevitable hiccups you’ll encounter along the way to mastering the tool. 

Understanding Best Practices for Successful Tool Rollout

Don’t expect everything to run smoothly in the first few weeks of the rollout. You’ll get resistance from your team to changing the way they work, and you’ll face tech problems that leave you feeling frustrated, but that's just all part of the game, and you’ll need to roll with the punches. 

Patience is your friend on this one, so kick your frustration to the curb and examine how your team uses the tool and where they’re experiencing sticking points in the features. 

When you eventually get it right, you’ll have a roadmap of success that forms your best practices in using the new software solution. From there, it becomes easy to train any new team member into using the tools, allowing them to achieve the same benefit and utility as an advanced user, but without the steep learning curve. The same concept applies to automation.

Automating workflows is incredibly beneficial for the team, cutting down on the time they spend doing repetitive tasks. But setting up the workflow can seem challenging at first, you’ll have to deal with confusion, and plenty of time in the chat with support ironing out the details. It takes close collaboration between management, the IT team, and the people using the system to create a bespoke workflow management solution that works for everyone.

But when you get it right, you’ll understand what makes it work. You’ll have real data showing you how it's benefiting productivity and fundraising outcomes for your charity, doesn't that sound like it's worth the time and hassle?

What Platform Communication Integrations Do You Need?

Over the last five years, we’ve seen an explosion in collaboration tools across all business sectors. With companies forced to operate remotely in 2020, tools like Zoom and Slack took centerstage as people worked from home. 

These tools literally became lifesaving apps that kept commerce going, despite the enormous challenges presented by a radical change to the working environment. This fresh approach to communication boosted productivity, despite teams working outside the office. So, why change what's working? Companies and nonprofits stuck with these innovative tools, bringing about a new era of team communications and collaboration.

Innovative fundraising tools for nonprofits feature integrations with other software tools for better 

team collaboration and communication. After all, we all know that communication is everything. With tools like HubSpot and Asana, you get real-time connectivity with your team and donors from any location. It’s possible to remotely manage teams around the world and keep everyone on the same page with campaign progress.

What Training Does the Software Provider Offer?

Integration strategies will always take a turn on how you expect them to go. While one person on the team might have no problem incorporating the new systems into their work, others may have trouble letting go of the legacy system they’re using, or they might have issues with understanding how to navigate the functionality of the new platform. 

Fortunately, developers have dedicated support teams running around the clock. It’s as simple as accessing a live chat team or bot for more resources or attending a live video chat with a service professional who walks you through how to process a task. Training is everything when it comes to speeding up the learning curve of the team to utilizing the full potential of the software tools, and the results they achieve for your fundraising campaigns. 

Monitoring the Smooth Roll-Out of Fundraising Tools with Your Team

Introducing flashy software tools into your nonprofit management and marketing structure might sound like it’s the best thing since sliced bread, and it is. But the reality is the tools can only achieve results if they’re operated by competent users who know how to leverage the functionality they offer. 

We’ve discussed the importance of training and the value it brings to rolling out the software. But the process also requires careful attention from management into how the team is using it, the results they get, and the problems they encounter. 

Welcome suggestions and give the team the support they need to fast-track the rollout and implementation process. Hold regular training sessions on-demand with internal team members who can offer training sessions for their colleagues through your collaboration tools. 

Creating a supportive environment for the team means you experience fewer pitfalls in the onboarding process and faster success when rolling it out.

Showcasing the Successful Implementations of Fundraising Tools

Let’s kick off this section with a review of fundraising success stories. We’ll look at how real-world nonprofits of all sizes implemented fundraising tools to boost donations and the software tool impact on the organization's strategy. 

EY Foundation

In 2024, EY decided to take a deep look into how it can use software solutions to improve employee skills training for youngsters from economically oppressed backgrounds. They were also interested in looking at how tech like VR and AI will affect the future of work. 

The group wanted to pull out all the stops from the skills training they provide the younger generations, training them with future-proofed skills that prove valuable in all fast-evolving sectors of the economy.

The EY team researched how newly emerging tech solutions and software can be developed for inclusivity, allowing all young people to use them and leverage their skills effectively. To accomplish this feat, the team needed to understand the opportunities and the pitfalls.

In February 2024, the EY team introduced next-gen AI training across all of its flagship employability skills training programs, providing hundreds access to a customized AI platform, with full training on its use.

EY also trialed ways of using emerging tech to deliver work. The company ran its first-ever tech-based charity event in an online digital environment representing the EY offices. The function invited charities from across the United Kingdom to discover what implementing these systems could do for their fundraising efforts and operations. 

The metaverse-style event extends to plans for how EY wants to train young people, bringing a real-time case study to life in a virtual environment.

Moving forward the EY team continues to build on these foundational successes, using better connectivity to navigate digital poverty and keep up to date with the relentless tech advancements in tech where it can add the most value to work. The team says its success lays in listening to young people’s views, learning from the experts, and losing the fear to experiment 

Speakers Trust

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Speakers Trust is already a tech-savvy organization and they’ve been reaping the benefits of using Zapeir and Airtable for the better part of a decade. So, this organization already understands the power of using software tools for fundraising and operations streamlining. 

Using data-driven applications allowed the organization to improve its communication with stakeholders, connect data, and automate workflows. 

The empowering functionality of the software solutions the team deploys allows them to communicate with 40,000 beneficiaries across 700 schools, without growing the team. ST had the goal of improving reach without adding to costs, but the team recently pivoted its strategy, including tech to bolster data collection for enhanced impact management, with the knock-on effect of boosting the funder and beneficiary experience.

The organization claims the game-changer for its fundraising goals was the implementation of AI automation tools, allowing the team to draw in-depth insights from data, using machine learning for accurate analysis.

Previously, the task of drafting impact reports was a chore the team didn't look forward to. It was an annual task everyone wanted to avoid. However, the implementation of real-time reporting tools allowed the incorporation of quantitative and qualitative data. Managers get daily email updates on the previous day’s impact, providing a 30,000-foot view of the strategy and how its responding to trends.

The team say AI and software applications are transforming how they deliver for their stakeholders and beneficiaries. However, the journey to success hasn’t come without challenges and roadblocks. Getting the team to adopt a digitally inspired culture without an IT department required them to embrace a no-code strategy for their digital transformation. This rollout balanced the tech’s potential with the team’s ability to manage the effect of the change. Needless to say, it was a learning process and the financial limitations in scaling these software solutions and strategic support in Privacy, Digital Product Development, and AI Ethics present ongoing issues that must be addressed in the near future.

Despite the ongoing challenges, the primary takeaway is that all charities can benefit from implementing a digital transformation, it’s not just for larger nonprofits. Identifying the important roles tech can play in small and mid-sized charities will increase fundraising impact, extend reach, and transform the way teams achieve objectives.

SHASBAH

During 2023, SHASBAH decided to change up its communications strategy, opting for s new approach to how the team uses digital platforms in fundraising and operations. The team attended a course on digital transformation hosted by Digital Charity Lab, resulting in the team deciding to implement email marketing into its fundraising and awareness campaign strategy. 

As a result of the success in rolling out the solution, the organization shifted to email marketing as its primary driver of campaign success. Previously, the team exclusively relied on social media to shout out its accolades to its community and connect with donors, supporters, and volunteers. The issue was that the reach on social media wasn’t great, and awareness was low in the donor and volunteer community. 

The team decided to attack the issue from a fresh angle, creating an email list from its 160-member subscriber base. The team used email marketing tactics and systems like MailChimp to increase their subscriber base by 19% in just six months - that’s massive growth in such a short space of time. Now, the team uses social media for outreach, and they’re experimenting with tools and strategies using analytics. They track metrics to see which posts get the most engagement and reach, and they measure comments and likes as a sign of engagement between the content and the target audience. 

The team's migration to using email marketing software required an investment into learning how to use it and how to navigate challenges like inputting existing data, how to identify spam emails, and how to segment their list for personalized communications with different donor categories.

Looking Ahead to Future Trends in Fundraising Tools

By now, we can agree that software tools are pretty amazing fundraising innovations for charities and nonprofits looking to increase donations. Compared to the manual data-capturing legacy systems of pre-2020, software tools seem like a flabergasting technological advancement, and they are. 

But what’s coming in the future? With AI and Machine Learning coming into the fray, software development is on the precipice of a new revolution, and no one’s quite sure what that is right now. But one thing’s for certain, it’s going to change the game again, and marketers will need to adapt to these changes if they want to continue to further their mission with the fundraising they need to survive and thrive. 

Embrace Emerging Technologies and Tools

For your organization to stay ahead of the pack and capture as many donations as possible, you need to be nimble with your approach to adopting technology into your organization. The change in tech is mind-blowing, and there’s new innovations dropping every quarter. While you can’t utilize every release of software for boosting charity donations that comes onto the market, you can keep your ear to the ground for new solutions promising to add value to your donors, and your organization's mission and goals.

Adaptability means you’re quick to respond to the changes in donor behavior and how they choose to give. The reality is the internet is here to stay, and if you’re not using it to further your fundraising efforts, you’ll eventually wither into obscurity. With economic data showing strain on consumer spending and tightening disposable income, it’s no surprise that 2022 was a weaker year for most nonprofit fundraising campaigns.

By implementing software tools, you can make the most out of your resources, and improve results with donors, even in an economic downturn. But it takes the courage to act to ensure you stay ahead of trends and identify the changes in donor-giving behavior. Those charities and nonprofits that manage the shift to the digitization of their fundraising will be the new movers and shakers of philanthropy in the digital era.

Predictions for the Future of Online Fundraising

2023 saw the introduction of “Chatgpt,” and the public's first view at the utility of AI in our daily lives. What followed was the biggest tech boom in modern history and a rapid adoption of AI tech into everything we do online. 

From Apple announcing AI-powered iPhones, to Microsoft purchasing OpenAI, the creator of Chatgpt, we saw billions of dollars suddenly flood into the AI space. The improvement in chip technology and machine learning systems means AI is more advanced and powerful than ever, with some experts saying we could experience the “singularity” event in just a few short years after creating the first AGI model.

One thing’s for sure, AI tools for nonprofits will help automate many operational processes, and streamline operations to an extent that optimizes human interaction with these systems and the results they produce with donors. 

AI-based online fundraising solutions for charities will give management and teams deeper insight into the metrics driving the success of their campaigns. It will allow for the fine-tuning of strategies using data-driven outcomes that show fundraising growth in real-time. 

The truth is no one really knows what to expect from the integration of AI into our lives and businesses until it arrives. But we’re confident it presents the next big evolution in not only marketing and fundraising but in how we live our everyday lives and the decisions and choices we make.

Wrapping Up: Maximize the Results of Your Fundraising Strategy 

There you have it. We’ve looked at the top fundraising tools for small charities and the digital tools for fundraising success that they used to get outstanding results. If we’ve done it right, by now, you’re probably in a totally different headspace regarding your thoughts surrounding software tools for nonprofits. If you were wondering if these tools can add value to your charity or nonprofit, well, now you have the answer. 

Software isn’t just something that's “nice to have,” it’s quintessential to nonprofit fundraising success. Imagine the power of maximizing donors contributons with fundraising management tools like Network for Good or Classy, or boosting your fundraising reach with PayBee. 

Charity donation tracking tools bring you closer to understanding where you are in achieving your goals at fundraising results, with real-time data showing you how the donation momentum is building or falling at your event. 

But it’s up to you to take the leap and make it happen for your nonprofit. The longer you wait to make the move to digital transformation of your legacy systems, the more risk you bring to the future success of your fundraising campaigns, and the financial sustainability of your organization.

So, don’t delay. Start planning the roadmap for implementing a custom software solution into your nonprofit operations today. Getting started is easier than you think, and when you get the ball rolling, eventually all the pieces will fall into place. 

Software solutions future-proof your organization against the coming changes in consumer and donor behavior as we move through the digital age. By working with these platforms now, you create an organizational culture of embracing tech, using it to drive data-based decisions that push you toward achieving your fundraising goals, and in turn, your mission. 

The Quintessential Guide to Fundraising Tools: FAQ

What are the essential fundraising tools every new charity should consider?

Every charity needs a CRM to manage its operations and communications with donors and supporters. It’s a platform centralizing all donor data in one space, giving cloud access to anything the team needs, anywhere in the world, in real time. Along with a CRM, you need collaboration tools like Asana or Slack, and marketing integrations for tools like MailChimp. There are plenty of options out there, and many are free for nonprofits or offer significant discounts for NGOs looking to implement their tools.

How can I choose the right fundraising tools for my charity's specific needs?

Choosing the right software tool requires an extensive evaluation of the top tools in each category. It’s not an overnight undertaking and may take weeks of in-depth analysis into the tools available, and the options that work for your organization. When you have a shortlist of the tools you think will be a good fit for your team, take them for a test drive and ask the developer for a free trial. Assess how your team interacts with the tool, and get feedback on the best options for your organization.

How do I integrate fundraising tools into my existing charity strategy?

Implementing the software tool into your operations is the biggest challenge you’ll face, but you can overcome it with the right approach to managing the rollout. Your team will hit stumbling blocks along the way, but they can rely on the support they get from written and video resources, or from live chats with the support team. The key to successful implementation is to break down the barriers to entry in adopting the software, and the only way you can achieve this is with effective training and support.

What are some best practices for using fundraising tools effectively?

It’s a process of trial and error. However, the rollout of every successful system comes hand-in-hand with careful analysis of the steps involved in using the system. By reviewing how the team uses the software, you can form operations manuals that guide the easy onboarding of new users to the system. Best practices must include training and support for the team to reduce the learning curve and help them overcome the hurdles involved with utilizing every feature of the system to its full potential.

How can fundraising tools help increase donations for my charity?

Fundraising tools integrate with other marketing software to amplify your results. For instance. Linking the PayBee platform to your video marketing software gives you a way to host live hybrid events like silent auctions. Suddenly, your school auction goes out to more potential donors and supporters live over the internet, giving you the chance to increase donor participation, boost revenue collection, and host a successful event for donors that adds value to your fundraising strategy.