The importance of databases for small charities

Data is an invaluable asset for charities.

How do you store yours?

Word documents? Excel spreadsheets? Post-it notes?

Hopefully, the answer is ‘none of the above’ and you’ve invested in a solid database that’s accessible, user-friendly, and simple to navigate.

But, some charities still rely on these archaic methods to collect and store data.

In this post, we’re going to dive into the reasons why databases are important for small charities and look at the pros and cons of some of the most popular CRM (Customer Relationship Management) systems on the market.

But first things first.

What is a database?

A database is a computerised system that makes it easy to search, select, store, and update information. They can be used for all sorts of reasons, but charities tend to use them to:

  • Store data about staff, employees, donors, suppliers, and volunteers

  • Record and track donations

  • Streamline fundraising activities

  • Track grant applications

  • Manage gift aid

  • Generate thank you letters for donors

Why are databases important for small charities?

Having all this information under one virtual ‘roof’ can help charities improve communications with supporters, volunteers, and other teams within the organisation, and better target their fundraising campaigns.

And the benefits don’t stop there.

Here are three more reasons to invest in a database.

Accessibility

Having all your data in one place makes it quicker and easier to find the information you need.

Who has the time to shuffle through 92 pages of Excel sheets to find a phone number?

Consistency

A database makes it a lot easier to make sure you don’t have numerous records for the same supporter.

Optimised fundraising

Successful fundraising campaigns don’t just attract new donors. They retain existing ones.

Considering it less to retain than to attract new support.

A well-managed database containing key information about your donors, such as the number, amount, and frequency of their donations, can help you optimise your fundraising efforts.

You’ll know how and when is best to approach them and how much they can afford.

This will ensure you don’t alienate them by asking for too much, too often.

Pros and Cons of Database

Now we’ve clarified why a database is important, let's look at some of the systems used by charities – and the pros and cons of each.

Raiser’s Edge

A cloud-based fundraising and donor management tool built specifically for charities, Raiser’s Edge is used by charitable organisations around the world.

Pros

  • A well-known brand in the CRM (customer relationship management) market

  • Multifunctional and highly customisable

Cons

  • The system requires time and expertise to set up

  • It’s pricey

Donorfy

Popular with small UK charities, Donorfy is a simple, user-friendly contact database.

Pros

  • Easy to use

  • Free for small charities

Cons

  • Lack of customisation options

  • You need to upgrade to access the bells and whistles

Salesforce

One of the big players in the CRM world, Salesforce is an all-in-one solution designed to help you attract and retain donors.

Pros

  • Wide range of customisable features

  • A trusted resource, used globally

Cons

  • It’s complex to set up and configure

  • The cost makes it less viable for small charities

Lamplight

Another popular choice for small charities, Lamplight is an all-in-one database system built to support charity operations.

Pros

  • Designed specifically for small charities

  • An established brand in the sector

Cons

  • Complex modular pricing system

  • Setup requires professional assistance

Final Word

So, there you have it. We’ve delved into the importance of databases for small charities and looked at some of the options on offer.

Are you looking for fundraising talent to manage your database? Give us a call on 0203 750 3111 to start the conversation.

 
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