Your team pours countless hours into creating compelling social media content, but that growing follower count isn't translating into donations. It’s a common and frustrating problem. While your supporters are active on social platforms, your fundraising methods might still be stuck in email inboxes and direct mail. The disconnect isn't your message; it's the journey you're asking donors to take. The right technology can bridge this gap. This guide will walk you through how to select the best fundraising software for nonprofit organizations, helping you find a tool that turns your social media engagement into a sustainable pipeline of new, dedicated supporters for your cause.
Key Takeaways
- Prioritize a Strong Donor Hub, Not Just a Payment Tool: The most effective fundraising software is built around a robust donor management system (CRM). This allows you to track every interaction, personalize your outreach, and build the meaningful relationships that improve supporter retention.
- Match the Software to Your Fundraising Strategy: Before you look at demos, identify your organization's primary goal, whether it's converting social media followers or managing large-scale events. Choosing a platform designed to solve your specific challenges ensures you invest in a tool that will actually deliver results.
- Plan for the Total Investment and a Smooth Transition: The true cost of software includes transaction fees, potential add-ons, and the time needed for implementation. Create a clear rollout plan that covers data migration and team training to ensure the new platform becomes an asset, not a headache.
What is Fundraising Software?
Think of fundraising software as your nonprofit’s digital headquarters. It’s a system designed specifically to help you manage all the moving parts of your fundraising and supporter engagement efforts. Instead of juggling spreadsheets, email lists, and payment processors that don’t talk to each other, this software brings everything into one central hub. At its core, it’s a database that organizes all the crucial information about your donors, volunteers, and supporters. But it’s much more than just a digital address book. It’s the engine that powers your campaigns, processes donations, and helps you build meaningful, lasting relationships with the people who believe in your cause.
What It Does and How It Helps
The main goal of fundraising software is to help you manage your donors and raise more money more efficiently. It acts as a central command center, storing and organizing information about everyone who supports your work. This allows you to see a donor's complete history at a glance—every donation, event attendance, and interaction. This centralized view is a game-changer. It helps you understand your supporters on a deeper level, making it easier to send personalized thank-you messages and share relevant updates. By automating repetitive tasks like sending receipts, the software saves your team valuable time, allowing you to focus on building the one-to-one relationships that turn one-time donors into lifelong advocates.
Different Types of Fundraising Tools
"Fundraising software" is a broad term that covers a wide range of tools, each with different strengths. Some platforms are all-in-one solutions that combine donor management, email marketing, and campaign tools into a single package. These can be great if you’re looking to bring your entire system under one roof. Other tools are more specialized, focusing on a specific area of fundraising. You might find software dedicated to peer-to-peer campaigns, grant management, or event planning. For example, modern solutions are emerging that focus entirely on social fundraising, helping you connect with supporters through channels like Facebook Challenges. The key is to find the right mix of tools that fits your organization's unique strategy and goals.
Clearing Up Common Misconceptions
One of the biggest myths about fundraising software is that it’s too expensive or complicated for smaller nonprofits. The reality is that the right technology can level the playing field, giving organizations of any size the tools to run effective campaigns. Many modern platforms are designed to be user-friendly and affordable, helping you do more with the resources you already have. Another common concern is that technology feels impersonal. But good software should do the opposite—it should handle the logistics so you can focus on the human connection. It’s not about replacing relationships; it’s about strengthening them. By organizing your data and automating tasks, you gain the insights and time needed to create more personalized, impactful experiences for your supporters, as many successful nonprofits have discovered.
Key Features Your Fundraising Software Needs
Choosing fundraising software can feel overwhelming, but it helps to think of it as hiring a new team member. You want something reliable, efficient, and designed to make your job easier, not harder. The right platform will streamline your daily tasks and give you the insights you need to build stronger relationships with your supporters. As you compare your options, look for a solution that checks all the boxes. Think of the features below as your non-negotiable list—the core functions that will truly support your mission and help you grow.
Donor Management and CRM
At its heart, fundraising is about relationships. That’s why a strong donor management system, or CRM (Customer Relationship Management), is the most critical feature. This is your central hub for every supporter interaction, from their first donation to their volunteer history. A good CRM allows you to see the complete picture of each donor, track communications, and segment your audience for more personal outreach. Instead of sending a generic email blast, you can thank a specific group for their long-term support or invite local donors to an event. This level of personalization is key to making supporters feel valued and is fundamental to improving donor retention.
Secure Payment Processing
Your donation page is where supporters turn their good intentions into tangible support, and they need to feel confident doing it. Your fundraising software must offer secure, PCI-compliant payment processing. But security is just the starting point. To make giving as easy as possible, you should also provide a variety of payment options. Platforms like Givebutter include popular methods like PayPal, Venmo, and Apple Pay. Another great feature to look for is a platform that covers transaction fees, like Zeffy, ensuring that 100% of a supporter’s gift goes directly to your cause. The fewer barriers to giving, the more likely a supporter is to complete their donation.
Campaign Management Tools
A simple "Donate Now" button isn't enough to inspire action. Your software should give you the tools to build compelling and interactive fundraising campaigns. This includes creating beautiful, branded donation forms that are easy to customize. For example, Funraise reports that its donation forms have an impressive 50% conversion rate. Look for features like progress bars, peer-to-peer fundraising pages, and the ability to highlight specific giving levels. These tools help tell your story, create a sense of urgency, and empower your most passionate supporters to fundraise on your behalf, extending your reach far beyond your own network.
Social Media Integration
Your supporters live on social media, so your fundraising strategy should, too. Modern fundraising software needs to do more than just add social sharing buttons to your campaign pages. It should integrate directly with these platforms to help you meet supporters where they are. This means having tools to run campaigns like Facebook Challenges or capture donor information directly from social interactions. The goal is to create a seamless journey from a social media post to a completed donation, all while gathering the data you need to continue building that relationship through channels like one-to-one messaging.
Analytics and Reporting
Data is your best friend when it comes to refining your fundraising strategy. You can’t know what’s working if you can’t measure it. Your software should offer robust analytics and easy-to-understand reporting dashboards. At a glance, you should be able to see key metrics like campaign performance, donor acquisition cost, and supporter lifetime value. Some platforms, like Funraise, even use AI to help predict future giving patterns. Having access to this information allows you to make informed, data-driven decisions, ensuring you invest your time and resources where they’ll have the greatest impact.
Mobile-Friendly Design
Most of your supporters will first see your campaign on their smartphone. Whether they click a link in an email, a social media post, or a text message, their first impression will likely be on a small screen. If your donation page is difficult to use on a phone, you’re losing donations—it’s that simple. Every element of your fundraising experience must be fully responsive and mobile-friendly. This includes easy-to-tap buttons, simple forms that don’t require excessive pinching and zooming, and a quick-loading page. A seamless mobile experience is no longer a nice-to-have; it’s an absolute necessity.
Event Management
If your nonprofit hosts fundraising events—whether they’re in-person galas, virtual 5Ks, or online auctions—your software should be able to handle them. Look for an all-in-one platform that includes event management tools to avoid juggling multiple systems. Key features include customizable event registration pages, ticketing capabilities, and tools for communicating with attendees before, during, and after the event. For auctions, you’ll want software that can manage items, track bids, and process payments smoothly. Having these features integrated into your main CRM ensures all the data from your event attendees and donors is captured in one place.
The Best Fundraising Software for Nonprofits
Choosing the right fundraising software can feel like a huge decision, because it is. This is the engine that will power your campaigns, help you connect with supporters, and manage your donor data. The "best" platform is the one that fits your organization's specific goals, size, and strategy. Are you focused on turning your massive social media following into a real donor pipeline? Or do you need an all-in-one system to manage every aspect of your fundraising from a single dashboard?
To help you find the perfect fit, I’ve put together a list of some of the top fundraising software options out there. Each one excels in a different area, from social engagement to all-in-one management to completely free platforms. Let's walk through what makes each of these tools stand out so you can see which one aligns with your nonprofit's mission and fundraising style.
GoodUnited
If your biggest challenge is converting your social media followers into actual donors, GoodUnited is built for you. While other platforms focus on traditional channels, GoodUnited helps you build 1:1 relationships with supporters directly inside social media DMs. It turns your anonymous followers into a community of named, engaged donors by making it easy to give right where they already are. Through tools like Facebook Challenges and automated messaging, it removes friction from the donation process and nurtures supporter relationships at scale. This is the ideal solution for nonprofits ready to create a sustainable fundraising channel built for today’s social landscape.
Givebutter
Givebutter is a powerful, all-in-one platform designed to bring all your fundraising, marketing, and donor management activities under one roof. It’s known for its highly effective donation forms, which convert potential donors at a rate four times higher than the industry average. As the top-rated software on G2 for fundraising, donor management, and auctions, Givebutter is a trusted and comprehensive choice for nonprofits that want a single system to manage everything. It’s a great option if you’re looking for a robust tool that can handle a wide variety of fundraising needs.
Funraise
For nonprofits focused on rapid growth, Funraise offers a suite of tools designed to scale your online donations. Organizations using Funraise see their online revenue grow by an average of 73% each year—three times the industry average. A big part of that success comes from their high-converting donation forms, which turn half of all visitors into donors. If your primary goal is to significantly increase your online fundraising results and you need a platform that’s proven to deliver growth, Funraise is an excellent choice.
Zeffy
Zeffy stands out with a truly unique offer: it’s a completely free fundraising platform for nonprofits. They cover all transaction fees, which means 100% of every donation goes directly to your cause. This model is possible because they ask donors for an optional tip to support the platform, but it’s never required. For organizations where every single dollar counts, or for those just starting out with a limited budget, Zeffy provides a full suite of fundraising tools without any cost, ensuring you can maximize your impact without worrying about platform fees.
FundRaiser Software
At its core, fundraising is about relationships, and that’s where FundRaiser Software shines. This platform is dedicated to helping nonprofits manage their donors, build stronger connections, and run more effective campaigns. It’s less of an all-in-one marketing tool and more of a focused donor management system. FundRaiser Software offers three different versions tailored to the needs of small, medium, and growing organizations, making it a flexible solution that can evolve with you as your nonprofit expands its reach and supporter base.
How to Choose the Right Software for Your Nonprofit
With so many options on the market, picking the right fundraising software can feel like a monumental task. But it doesn’t have to be. The key is to break the process down into manageable steps. Instead of getting distracted by flashy features, focus on what your organization truly needs to connect with supporters and grow its mission. Think of this as building a tech stack that works for you, not the other way around. By systematically evaluating your needs, budget, and existing tools, you can confidently choose a platform that will become a genuine asset for your team and your cause.
Assess Your Organization's Needs
Before you even look at a demo, take some time to look inward. What are your biggest fundraising challenges right now? Where are the bottlenecks in your workflow? While a solid fundraising CRM is a great starting point, every nonprofit has unique needs. Maybe your goal is to finally turn your social media followers into active donors, or perhaps you need a better system for managing event volunteers. Make a list of your must-have features versus your nice-to-haves. Involve different team members in this conversation—from development to marketing—to get a complete picture of what your organization requires to thrive.
Consider Your Budget and Pricing
Let’s be real: budget is a major factor. Securing funding for new software can be a challenge when every dollar is accounted for. Look beyond the monthly subscription fee and consider the total cost of ownership. Ask about transaction fees, setup costs, and charges for additional contacts or features. Does the pricing scale as your organization grows? Some platforms offer special pricing for nonprofits, so always ask. A transparent pricing model is a good sign that the company understands the financial realities of the nonprofit world. Your goal is to find a solution that provides a clear return on investment, not one that drains your resources.
Check for Key Integrations
Your fundraising software doesn't exist in a vacuum. It needs to play well with the other tools you already use every day. A lack of integration can lead to data silos, manual data entry, and a whole lot of frustration for your team. Before committing, make sure the software can connect seamlessly with your essential systems, like your email marketing platform, accounting software, and social media accounts. For instance, a tool that integrates directly with Facebook can automate communication and nurture relationships with supporters where they’re already active. This creates a more efficient workflow and a more unified view of your supporter engagement.
Look Into Support and Training
The most powerful software in the world is useless if your team doesn’t know how to use it. A new platform always comes with a learning curve, so find out what kind of support and training is included. Do they offer a dedicated onboarding process? Is there a library of tutorials or live webinars your team can access? Check reviews to see what current customers say about their support team’s responsiveness and helpfulness. Strong customer support is a sign of a true partner, not just a vendor. They should be invested in helping you succeed and build stronger relationships with your donors.
Verify Security and Compliance
You hold a lot of sensitive donor information, and protecting it is non-negotiable. Trust is the foundation of any donor relationship, and a data breach can shatter it in an instant. When evaluating software, especially any tool that processes payments, make sure it is PCI compliant. Ask about their data security measures, privacy policies, and how they protect against threats. Using a platform that hosts its applications securely on the cloud can give you access to enterprise-grade security without the enterprise-level price tag, giving you and your supporters peace of mind.
Breaking Down the Costs
Choosing new software is a big decision, and the price tag is a huge part of it. But the cost of fundraising software isn't just the monthly subscription fee. To make a smart investment for your nonprofit, you need to look at the complete picture, from transaction fees to potential add-ons. Understanding the different pricing models will help you find a solution that fits your budget today and supports your growth tomorrow without any financial surprises. Let’s walk through the common costs you’ll encounter.
Free vs. Paid Solutions
The word "free" is music to any nonprofit's ears, but it's important to understand what it means in the context of software. Some platforms are genuinely free for nonprofits. For example, Zeffy is a fundraising platform that covers all transaction fees, ensuring 100% of a donation goes to your cause by asking donors for an optional tip to support the platform. Other "free" platforms might pass the credit card processing fees on to you or your donor.
Paid solutions typically come with a monthly or annual subscription fee. In return, you often get more advanced features, deeper analytics, dedicated customer support, and greater scalability. The best choice depends on your organization's current size and future goals.
Monthly vs. Annual Plans
Most paid fundraising platforms offer two primary payment structures: monthly and annual. A monthly plan gives you flexibility. It requires a smaller upfront investment and allows you to switch platforms more easily if your needs change. An annual plan, on the other hand, usually comes with a significant discount, offering better value if you’re confident the software is the right long-term fit. Some companies, like FundRaiser Software, also provide flexible options like buying the software license outright or setting up interest-free payment plans. Always ask about the different payment models available to find one that aligns with your organization's cash flow.
Transaction Fees
Every time a donor gives online, a small percentage of that donation goes to a payment processor like Stripe or PayPal. These are standard transaction fees, and they can add up. The key is to understand how your fundraising software handles them. Some platforms simply pass the standard processing fee on to you. Others give your donors the option to cover the fee, which can save your organization a lot of money over time. Platforms like Givebutter also stand out by integrating with popular payment methods like Venmo, Apple Pay, and Cash App, which can make giving easier for your supporters and potentially impact your processing costs.
Additional Service Costs
The price you see on a pricing page is often for the base package. As your organization grows, you might find you need more. Think about what you’ll require down the road. Will you need to add more user accounts for your team members? Do you want to unlock premium features like marketing automation or advanced reporting? These capabilities often come at an additional cost. For instance, some platforms charge extra for specific feature add-ons or for increasing the number of users on your account. Before you sign up, get a clear picture of what’s included in your plan and what it will cost to scale.
Watch Out for Hidden Costs
Unfortunately, hidden fees can turn a great software choice into a budgetary headache. These are costs that aren't always advertised upfront but can appear during the setup process or later on. Common hidden costs include one-time setup and implementation fees, charges for migrating your existing donor data, and fees for integrating with other essential tools like your email marketing platform. As experts on selecting the right software note, these unexpected expenses can create friction within your team. The best way to avoid this is to ask for a detailed, itemized quote that covers everything from setup to support before you commit.
Setting Up Your New Software for Success
Choosing your new fundraising software is a huge step, but the work isn’t over yet. A successful launch is just as important as the selection process. How you introduce and integrate the new tool into your daily operations will determine whether it becomes an indispensable asset or a source of frustration. A thoughtful setup process ensures your team feels confident, your data is clean, and you start seeing a return on your investment right away. Let’s walk through the key steps to make your software transition as smooth as possible.
Plan Your Rollout
Any new tool can disrupt established workflows, so it’s natural to encounter some resistance to change. The best way to get ahead of this is with a clear and communicative rollout plan. Start by defining what a successful launch looks like for your organization. Set specific, measurable goals for the first 30, 60, and 90 days.
Map out a timeline that includes data migration, team training, and a go-live date. Share this plan with your entire team, explaining why you chose this new software and how it will make their work easier and more impactful. Getting everyone on the same page from the beginning helps build excitement and ensures everyone feels like a part of the process, not just a passenger.
Migrate Your Data the Right Way
Your donor data is one of your most valuable assets, so moving it correctly is critical. A messy data migration can create problems that take months to untangle. Before you move anything, take the time to clean up your existing data. Remove duplicate contacts, update outdated information, and standardize your formatting.
Decide what information is essential to bring over to the new system. You may not need to migrate every single data point from the last decade. Once your data is clean, perform a test migration with a small subset of your records to spot any potential issues. An effective data migration strategy ensures you start with a clean slate and can trust the information in your new software from day one.
Train Your Team Effectively
For your new software to be successful, your team needs to feel comfortable using it. A single, one-hour training session is rarely enough. Plan for a comprehensive training program that caters to different learning styles. This could include live training sessions with the software provider, on-demand video tutorials, and written guides.
Consider appointing an internal "champion"—someone on your team who can become an expert on the software and act as the go-to person for questions. Ongoing training is also important. Schedule regular check-ins to share tips, answer questions, and introduce more advanced features as your team gets more comfortable. This approach empowers your staff to use the tool to its full potential.
Set Up Your Integrations
Your fundraising software doesn't operate in a vacuum. It needs to connect with the other tools you use every day, like your email marketing platform, accounting software, and social media accounts. Before you launch, make a list of your essential tools and map out how they will connect to your new system. Many modern platforms offer direct integrations that you can set up in just a few clicks.
Connecting your systems creates a single source of truth for your data and automates tedious tasks. For example, integrating your fundraising software with a tool like GoodUnited allows you to seamlessly turn social media followers into named donors in your database, saving time and eliminating manual data entry.
Measure Your Results
The only way to know if your new software is working is to track your results. Using the goals you set during your rollout plan, identify the key metrics you need to monitor. This could include donor retention rates, average gift size, new donors acquired, or campaign conversion rates. Most fundraising platforms have built-in reporting and analytics dashboards that make it easy to track your fundraising success.
Schedule time to review these reports regularly—weekly or monthly—with your team. Analyzing the data will help you understand what’s working, identify areas for improvement, and demonstrate the software’s impact to your stakeholders. This data-driven approach ensures you’re making the most of your investment.
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Frequently Asked Questions
I run a small nonprofit. Is fundraising software really necessary for us? Absolutely. It's a common myth that this kind of software is only for large organizations with big budgets. The right tool can actually help a small team do more with less. It automates time-consuming tasks like sending donation receipts and organizing supporter information, freeing you up to focus on building relationships and advancing your mission. Think of it as a central hub that keeps you organized and efficient as you grow.
What's the difference between an all-in-one platform and a specialized tool like GoodUnited? An all-in-one platform aims to be your single solution for everything—donor management, email marketing, event ticketing, and more. It's great if you want to consolidate all your activities in one place. A specialized tool, on the other hand, focuses on doing one thing exceptionally well. For example, GoodUnited is designed specifically to help you turn your social media followers into engaged donors, which is a common gap for many nonprofits. The best choice depends on your biggest challenge: are you looking for a general command center or a powerful solution for a specific problem?
With so many features, what's the one thing I absolutely can't compromise on? Your donor management system, or CRM, is the heart of any fundraising software. It’s the feature you can't afford to skimp on. This is where you store and track every interaction you have with your supporters. A strong CRM gives you the insights needed to personalize your communications, understand your donors' histories, and build the lasting relationships that are crucial for long-term support. Everything else is built around this core function.
How can I justify the cost of new software to my board? When talking to your board, frame the conversation around return on investment, not just cost. Explain how the software will save valuable staff time by automating manual tasks, allowing your team to focus on higher-impact activities. Show how it will help you raise more money by improving the donor experience, personalizing outreach, and providing the data needed to make smarter fundraising decisions. The right software isn't an expense; it's an investment in your organization's growth and sustainability.
We already have a system in place. How difficult is it to switch to a new platform? Switching systems does require some planning, but it's more manageable than you might think. The most important step is cleaning up your existing data before you move it. A good software provider will offer support and guidance through the data migration process to make it as smooth as possible. Also, look for a company that provides solid training and onboarding for your team. A clear plan and a supportive partner can make all the difference in ensuring a successful transition.
