CRM for Charities

In the UK, more and more organisations in the charity and not-for-profit sector are deploying Customer Relationship Management (CRM) systems. And the charities that have implemented CRM successfully are reaping major benefits.

There are hundreds of Charities and not-for profit organisations covering everything from animal wellbeing to disaster relief. Irrespective of the size of the charity or the cause which they support they all have one thing in common - they give something to someone in need. However, in order to give, charities need to secure funding from a number of sources whether it is from private funders, membership groups or individual donations.

Recent changes in the economy have impacted on the way we spend our money. More and more of us are cutting out unnecessary spending, often this includes donations and this has had a negative impact on charities. However, not only has the level of funding decreased, administrative and transport costs have increased and there has also been a reduction in tax relief on charitable donations. All of this has adversely affected charities and the ability they have to help others.

In uncertain economic times it is crucial to hold on to existing supporters and funders, as it is these who could become the lifeline. However, in order to keep hold of them there needs to be constant communication between the charity and the supporter, but this can be difficult as within every organisation there is often information stored in a variety of different places. Often the level of information an individual has access to is determined by the department they operate in. Some departments will use spreadsheets, others will use paper files and there will be some who simply store information in their heads. However it is storing information in this ad-hock manor which could lead to the funding going elsewhere.

CRM systems have changed the way many charities and not for profit organisations operate. CRM provides charities with one centralised location to store all information about funders and supporters. This greatly improves the level of knowledge across an organisation and prevents departments working from different sets of information. CRM within charities is all about improving efficiency and effectiveness in order to increase the level of supporter and funder retention at the same time as helping the charity attract new supporters. In addition CRM systems can also assist in grant allocation and streamlines internal processes.

Properly implemented CRM systems will enable charities to store all their information centrally, eliminating duplication of effort and providing all staff with access to the same data. It also enables the charity to run more targeted marketing campaigns which help to secure attract new supporters and therefore further funding.

The term CRM is misleading as the strategy, software and processes apply equally to the management of every relationship, whoever the relationship is between. This is a concept which Microsoft have branded 'xRM' where the 'x' can be replaced with anything you like, whether it is 'Customer', 'Sponsor', 'Funder' or 'Donor.'

Implementing a CRM system will bring a number of benefits to a Charity including:

  • One centralised database - providing a complete view of all sponsors, donors and funders
  • Improved communication- between staff and between the charity and its supporters
  • Administrative are made easier as they are automated
  • Enhanced staff efficiency and effectiveness through streamlined processes.

Is Hosted or On-Premise CRM best for charities?

When considering implementing a CRM solution, there are two main hosting alternatives:

  • On Premise CRM
  • Hosted CRM

Both types of solution will improve the efficiency and effectiveness of the charity. However some charities are more suited to the On-premise platform where others are more suited to the hosted platform.

The advantages of the on-premise solution include:

  • Total ownership of the solution
  • No monthly fees
  • More Secure
  • Can be configured to meet the precise requirements of your charity

Advantages of the hosted solution include:

  • Quick to set up
  • Unlikely to need extra hardware or infrastructure
  • You can use the software as soon as you have bought the licence

Typically but by no means exclusively, on-premise solutions are used by larger charities which require a high degree of customisation, whereas the hosted solution is implemented by small to medium charities who feel they can entrust their data in an external system.

Charity Discounts on CRM Software

Irrespective of which method of deployment you choose. There are considerable charity discounts available on both Microsoft Dynamics CRM and Sage CRM licenses, in some cases these can be up to 80%.

Membership Management

In addition to improving the efficiency and effectiveness of an organisation CRM can be used to manage members. Membership Management Solutions based on CRM can enable charities to:

  • Manage members and provide a full list of payments
  • Track each sponsor/member through their involvement with the charity
  • Provide a self-service website to allow members to login form home and access the service at their convenience
  • Produce reports on all members and affiliates to provide information on overall membership status

Integrated CRM and Finance Solutions for the Education Sector

For the majority of charities performing accounting using accounting software has been seen as a must for a number of years. However, it is only recently that implementing a CRM solution has moved from being a nice to have to a necessity for the day to day running. Many organisations, including charities are now acutely aware of how CRM improves efficiency and effectiveness and how it provides a competitive advantage.

However, although running separate accounts and CRM solutions will bring benefits to charities there may still be some discrepancy caused by front and back office teams running different solutions. There are substantial benefits to charities implementing a fully integrated Accounts and CRM solution including:

  • Improved employee knowledge
  • Improved efficiency of the organisation
  • Fully integrated front and back office systems

Concentrix takes a product agnostic approach to supplying integrated CRM and Accounts software and provides the mid-market solution Sage 200 and Microsoft Dynamics NAV.

If you're a charitable organisation and need further information about CRM, Integrated Business Management software or charity discounts, please contact Concentrix on 01509 410500 or email info@concentrix.co.uk.