In todayโs fast-paced nonprofit landscape, efficiency, transparency, and relationship-building are crucial. A modern Customer Relationship Management (CRM) platform can significantly impact how nonprofits manage donor relationships, track fundraising efforts, and achieve financial clarity. But why should nonprofits consider upgrading their CRM now? And more importantly, why should finance teams be part of the decision?
This article, with insights from Andrew Horrow of Forvis Mazars, highlights the key benefits of switching to a modern CRM and how to get finance teams on board with the change.
Why Now Is the Best Time to Switch to a Modern CRM
1. Current Technological Trends: The shift toward data-driven, relationship-focused approaches has taken center stage in the nonprofit sector. CRMs such as Virtuous now offer scalability and flexibility, allowing organizations to meet the demands of both fundraising teams and financial oversight.
2. The Cost of Waiting: Delaying the switch to a modern CRM comes with hidden costs, from inefficient workflows to donor retention challenges. Outdated systems create barriers for fundraising and financial reporting, leading to missed growth opportunities for many organizations.
Key Efficiencies Gained When Switching to a Modern CRM
1. Improved Data Accessibility & Accuracy: Modern CRMs centralize donor data, making it accessible and accurate in real time. Nonprofits can create better donor segmentation, develop targeted outreach, and support financial budgeting and reporting. The visibility of real-time data enables quick, strategic decision-making.
2. Enhanced Collaboration Across Teams: When donor and financial data are unified, collaboration between departments improves. Shared data eliminates silos, ensuring that development, marketing, and finance teams are working toward shared goals.
3. Automation of Repetitive Tasks: Automation is a game-changer for nonprofits. From donor journeys to scheduled reports, modern CRMs reduce manual data entry and streamline workflows. Automated donor acknowledgments, customized nurture campaigns, and personalized communications help increase efficiency and donor satisfaction.
4. Better Donor Experience: With a modern CRM, personalized outreach becomes possible. Donors receive timely, relevant communications tailored to their journey, improving engagement and retention. Consistent, meaningful touchpoints make it easier to build lasting relationships.
5. Seamless Integration with Other Tools: Modern CRMs integrate with accounting software, online giving platforms, and marketing tools, supporting better financial reporting, compliance, and donor engagement. These integrations enable data sharing, minimizing duplication of work.
6. Scalability & Future-Proofing: Outdated CRMs may not keep pace with organizational growth. Modern platforms are built to adapt, ensuring that nonprofits have the tools to support fundraising growth, donor stewardship, and strategic financial planning.
Why Finance Needs to Be Onboard (And How to Get Them There)
Convincing finance teams to support the shift to a modern CRM is essential. Hereโs why:
1. Accountability and Shared Goals: Finance teams play a critical role in ensuring compliance, managing risk, and supporting accurate reporting. A modern CRM such as Virtuous facilitates better financial oversight, enabling finance to collaborate more effectively with fundraising teams.
2. Enhanced Reporting and Efficiencies: With integrated systems, finance teams can streamline month-end close processes, access real-time data, and improve financial reporting accuracy. These efficiencies free up time for strategic planning and analysis.
3. Mitigating Financial Risk: Finance teams must monitor donor-restricted funds and comply with financial reporting regulations. Modern CRMs provide the transparency and traceability needed to reduce risk and maintain compliance.
How to Get Finance Onboard
- Emphasize Efficiency Gains: Highlight how a modern CRM speeds up the month-end close and simplifies audits.
- Focus on Compliance: Show how better integration supports donor-restricted fund tracking and compliance.
- Collaborate Early: Involve finance early in the selection and implementation process to address their concerns and align on shared goals.
Real-Life Success Story
One nonprofit, a $30M social service organization, experienced transformative results after switching to a modern CRM. Their old system hindered automation and was not connected to their finance system. By adopting an integrated platform, they:
- Streamlined financial reporting
- Reduced their monthly close process by 4 business days
- Improved collaboration between finance and development teams
This success underscores the power of integrating development and finance functions through a unified CRM platform.
How Virtuous is Different
Virtuous stands out as a Responsive Fundraising Platform, allowing nonprofits to create personalized, data-driven experiences for their donors and supporters. Unlike traditional CRMs that rely on one-size-fits-all engagement, Virtuous uses donor signals to trigger timely, behavior-driven interactions. Hereโs how it works:
- Listen: Nonprofits are better able to track donor behaviors and identify why they give.
- Connect: Virtuous allows nonprofits to automate personalized donor communications and create responsive donor journeys.
- Suggest: The platform uses predictive insights to suggest the next right action, leading to deeper donor engagement.
- Learn: Nonprofits can use Virtuous to continuously improve through testing and validation of engagement strategies.
With robust features like integrated marketing, automation, volunteer tracking, and donor intelligence, Virtuous enables nonprofits to engage with donors at scaleโwithout sacrificing the personal touch.
Request a Demo of Virtuous Today
Discover how Virtuous can help your nonprofit streamline operations, enhance donor engagement, and support your finance team. Schedule a demo today to see how it works.
Special thanks to Andrew Horrow and Forvis Mazars for their valuable insights and contributions to this content.
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