WIXLIB

Choosing A Donor DatabaseNetwork for GoodApril 15, 2008Robert L. WeinerRobert L. Weiner 43.8955

Agenda Why Bother?Common MistakesWhen to ChangeBuild vs. BuyNeeds AssessmentsCostsIdentifying potential vendorsTesting systemsChoosing a Donor DatabaseRobert Weiner1

Why Are We Here? “After people, data is your mostimportant resource.” — John Kenyon. A database is your institutional memory.– It allows the organization to survive staffturnover. A good database helps you work smarter.Choosing a Donor DatabaseRobert Weiner2

What Should You Expect From A Database?Your database should help you: Track your activities and assets(donations, events, solicitations). Monitor and forecast performance. Focus your efforts and workstrategically. Report to your board, donors, funders,public.Choosing a Donor DatabaseRobert Weiner3

Buying A Database1)2)3)4)5)Convene the right team.Specify your needs and priorities.Secure funding.Identify a pool of potential vendors.Test vendors against your needs. RFP/RFIScripted demosUsability testingReference checksSite visitsChoosing a Donor DatabaseRobert Weiner4

1.0 Convene The Team Convene a selection committee of functional experts(direct mail, major gifts, grant writing, gift entry,and IT). They should drive the decision-making. Include techies on the selection team, but don’t letthem make the decision alone. IT should advise on standards, and might manage theprocess. Get input from the real users. The decision should be based on input from allaffected parties. However, some needs will be mostimportant, and some may not be achievable.Choosing a Donor DatabaseRobert Weiner5

2.0 Needs Assessment What’s wrong now? What works well? Is software really the problem? Where do you see the organization in 3 to5 years? What do you really need? What are your top priorities? What can you afford and support?Choosing a Donor DatabaseRobert Weiner6

2.1 Prioritize Your NeedsFeatures0 not needed, 10 mandatoryPriorityCommentsDonor Management FeaturesRecords AdministrationGlobal change feature to allow mass update of a certain fieldbased on records returned from criteria.Tracks updates to records5Addressee/mailing name and salutations can be auto-createdbased on a prefix and a last name.User can set up data entry defaults.5It would be nice to know who last edited the5 record and when it was last edited.5Multi-level security.8Duplication Check / De-duplication Utility8Separate recognition names5Source: www.npowerseattle.org/education/resources/donor toolkit.htmChoosing a Donor DatabaseRobert Weiner7

3.0 What It Might Cost Software is often a fraction of the totalcost. Prices range from 500 to . Ballpark starting price for acommercial donor database: 0.25% to0.5% of annual operating budget.– 1M budget 2,500 to 5,000. Hardware (server(s), desktops,network)?Choosing a Donor DatabaseRobert Weiner8

3.1 What It Might Cost Additional modules? Interfaces to othersystems? Customizations? Training – will you need more than thestandard? Conversion cost will depend on howmuch/what kinds of help you will need. Annual support: 20% of retail price.– If you can’t afford the maintenance or training,don’t buy the software!Choosing a Donor DatabaseRobert Weiner9

3.2 Features That Can Affect Price# of records# of serversNumber of usersAutomationHosting bythe vendorTicket salesGiving clubs &honor rollsSoft creditsOnline ServicesMembershipsData updates(NCOA,CASS)Choosing a Donor DatabaseRobert WeinerMatching giftsLockbox supportPlanned GivingIntegrationRelationshipsCustom reports& analytic toolsPledge trackingConversion HelpSecurity levelsBuy vs. Rent# of copies of dbEvents ManagementMajor Gifts &ProspectManagementGrant Tracking10VolunteerManagementAdvocacy

3.3 Sample 5 Year BudgetItemSoftwareStaff trainingWorkstationsShared PrinterConsultingSupport, years 2 - 5Ongoing TrainingWorkstation UpgradesChoosing a Donor DatabaseRobert WeinerUnit155120CostTotal 5,000.00 5,000.00 750.00 3,750.00 1,250.00 6,250.00 350.00 350.00 125.00 2,500.00Total Year 1 17,850.00425 1,000.00 4,000.00 750.00 1,500.00 1,250.00 6,250.00Grand Total 29,600.0011

4.0 Identify The Vendor Pool Goal is to identify a few vendors for demos. Ask similar organizations, as well as on listslike TechSoup, CharityChannel, InformationSystems Forum. Vendors must fit your culture, staffing, andbudget, as well as meeting functional needs. Vendors should have demonstratedexperience addressing your issues.Choosing a Donor DatabaseRobert Weiner12

4.1 Optional: Issue a Request For Proposals Goal is to narrow the vendor field. Ask clear, unambiguous questions. Be Specific:– “Show how your system would handle donationsin , , , and ” not “Can it track gifts?”– “Show where your system would track cateringcosts” not “Can it handle events?” Anything you ask for you will have to readand score!Choosing a Donor DatabaseRobert Weiner13

4.2 Scoring the RFP ResponsesFunctionValue Score CommentsCan handle foreigndonations.100Can track eventcosts.66Can link relatedrecords.105Choosing a Donor DatabaseRobert Weiner14Can only handle . Notacceptable.Can only link 2records.

5.0 Software Demonstrations Goal: comparing “apples to apples.” Use on-site demos when possible. Either use scenarios for demos or tellvendors which areas you need to see. Demos must cover the most criticalfunctions identified by your needsassessment.Choosing a Donor DatabaseRobert Weiner15

5.1 Simple Demo Script Show how to:– Enter gifts, including a corporate match with“soft credit” to the individual.– Track multiple relationships.– Track a grant proposal from LOI to award.– Select records based on combineddemographic and gift criteria.– Create a new report.Choosing a Donor DatabaseRobert Weiner16

5.2 Complex Demo Script Add a record for Barney Rubble, with a 25 gift.– Add a separate record for Elizabeth McBricker,with a 10,000 multi-year pledge.– Marry the two records, change Elizabeth’s nameto Betty Rubble, and show joint giving.– They divorce. Show the database process. Areboth of them still major donors? Show an example of a lapsed donor report. Create a mailing list of donors who have givenover 500 cumulatively within the past 2 yearsor over 1,500 cumulatively in their lifetime.Choosing a Donor DatabaseRobert Weiner17

5.3 Demonstrations Make sure key stakeholders can attend demos. Invite all interested staff. Collect input from everyone.Simple Rating Form:AREARATINGData EntryMembership Mgmt.ProspectManagementEvents ManagementChoosing a Donor DatabaseRobert Weiner18COMMENTS

5.4 Grading The VendorsVendor1Vendor2Vendor3Complex rating form, with scores for each feature:Tracking membership renewal anniversariesTracking major gifts prospect movesTracking event costsTracking volunteer hoursRelationships can be tracked between records(employer/employee, spouses, board members)System allows for soft crediting of giftsSystem tracks scheduling of pledge paymentsHas a built-in custom report writer109561088301096651010791010910105Has canned reports that meet the majority of our needsGrand Total7737651071Feature/RequirementChoosing a Donor DatabaseRobert Weiner19

5.5 Usability Testing Get access to a demo system. Make a list of features to test. Grade the tests.System Usability Scale: g a Donor DatabaseRobert Weiner20

5.6 Reference Checks Talk to previous similar clients.– Was work delivered on time and onbudget?– How is ongoing support relationship?– Caveat: try to distinguish clientimplementation & support issues fromvendor problems.– Optional: visit client sites.Sample Reference Check Questions (pages 6 – 7):www.rlweiner.com/case handbook chapter.pdfChoosing a Donor DatabaseRobert Weiner21

5.7 Full Cost Proposal Get a final cost proposal, including:– Software license, including all modulesyou’ll need.– Any third-party software.– Annual license & support cost.– Training.– Consulting & conversion.– Interfaces & customizations.Choosing a Donor DatabaseRobert Weiner22

Databases Don’t Raise the MoneyThe right database can assist with:– Prioritizing and segmenting lists.– Prospect management and tracking.– Stewarding your current donors.– Identifying future donors.– Time-management.– Measuring and forecasting.– Asking the right person for the right gift atthe right time for the right purpose.This is only possible if data is captured andmade available to appropriate staff.Choosing a Donor DatabaseRobert Weiner23

Selection Recap1)2)3)4)5)Convene the right team.Specify your needs and priorities.Secure funding.Identify a pool of potential vendors.Test vendors against your needs. RFP/RFIScripted demosUsability testingReference checksDetermine the real cost.Choosing a Donor DatabaseRobert Weiner24

ResourcesBatchelder, Duff: Evaluating & Selecting FundraisingSoftware cfmBattin, Tom: Should Nonprofit Agencies Build or Buy aDatabase? .cfmPetulla, Maria: Making Order Out of Chaos: How a GoodFundraising Database Can Help You Raise More /feature27 2.pdfIdealware: articles on constituent databaseswww.idealware.org/articles/constituent databases.phpMills-Groninger, Tim: The Soft(ware) Side of FundraisingEffectiveness: www.nptimes.com/07Sep/070901SR2.pdfChoosing a Donor DatabaseRobert Weiner25

ResourcesTechSoup: Selecting Donor Management page4797.cfmTechSoup: Technology for Fundraising discussion forumwww.techsoup.org/forums/index.cfm?fuseaction list&forum 2022&cid 117Weiner, Robert: Finding the Perfect Fundraising Database in anImperfect Worldwww.rlweiner.com/grf/grf finding perfect database.pdfWeiner, Robert: Ten Common Mistakes in Selecting Donor Databaseswww.idealware.org/articles/ten common mistakes in selecting donor databases.phpWeiner, Robert: Why Building Your Own Database Should Be Your LastResortwww.rlweiner.com/nten/why building your own database should be your last resort.pdfMore resources are posted at www.rlweiner.com/resources.htmlChoosing a Donor DatabaseRobert Weiner26

More Questions?Robert L. 955Choosing a Donor DatabaseRobert Weiner28

Choosing a Donor Database Robert Weiner 8 3.0 What It Might Cost Software is often a fraction of the total cost. Prices range from 500 to . Ballpark starting price for a commercial donor database: 0.25% to 0.5% of annual operating budget. - 1M budget 2,500 to 5,000. Hardware (server(s), desktops, network)?