Question 1

What is Fundraising Software?

Accepted Answer

Fundraising software is vital to nonprofit organizations, as it constitutes a significant percentage of nonprofit revenue. Fundraising software gives nonprofits a single source for relevant fundraising data, allowing them to focus and streamline their efforts. Solutions in this category also promote and manage various methods of fundraising, allowing organizations to launch multi-pronged campaigns. Multi-method fundraising is key to ensuring all possible demographics and methods of communication have been leveraged. Fundraising software is the central operational base for any and all fundraising strategies carried out by a specific organization.

Question 2

Who Uses Fundraising Software?

Accepted Answer

Nonprofit organizations use fundraising software to raise money for their specific cause. The money is funneled toward whatever the organization needs help with, be it overhead, event costs, or something else. Within the organization, the employees tasked with fundraising utilize the software most often, though higher-level employees will use the data gathered by the software to formulate strategy and maintain an overview of fundraising operations.

Question 3

What are the Different Kinds of Fundraising Software?

Accepted Answer

There are a few major types of fundraising. They differ greatly in the audiences they try to capture and the feature sets they contain. 
 Peer-to-peer fundraising software — Peer-to-peer solutions are the newest craze within the nonprofit space, and there is ample evidence to support the notion that it provides more opportunity for fundraising greater amounts of money. Peer-to-peer is typically included as a feature within a larger fundraising solution, but there are specific peer-to-peer platforms as well. The basic notion of peer-to-peer fundraising software is that it extends the reach of the organization. Instead of the onus being entirely on your organization to produce fundraising results, it turns your donors into advocates. These advocates will then reach out to their network in order to raise money for your organization. Peer-to-peer fundraising platforms often focus on donation events and team-based donation. This configuration allows your advocates to become team leaders and spearhead the charge to organize and get people involved in a given cause. Team members will get their own donation pages, easily created and distributed by team leaders, to promote their own fundraising efforts. The entire goal of peer-to-peer is to extend the network of actively engaged donors, thereby increasing the amount of donations your organization receives. An example in recent years was the ALS Ice Bucket Challenge, which leveraged the power of peer-to-peer fundraising to drive over $100 million in donations in a short period of time. 
 Text-to-give — This type of fundraising software has taken off in the past couple of years. The benefit of these solutions lies in their ease of use and the ease with which donors can give to an organization. Text-to-give solutions leverage phone service providers to facilitate an easy transaction. Nonprofits can implement text-to-give software and utilize it at events to make donation gathering easier on both sides. 
 Auction — Auction fundraising software is a group of fundraising solutions that facilitate the planning and management of fundraising auctions. Auctions are a great channel through which nonprofits generate large amounts of revenue, and auction-specific fundraising software allows nonprofit organizations an easy way to put on auctions more easily. 
 Crowdfunding – Crowdfunding fundraising software refers to applications that allow users to leverage the power of their networks to raise money. These applications provide sharing functions so campaigns can easily be shared among your network and their connections, with the hope that the campaign will pick up enough steam to go viral. 
 Matching gift – Matching gift fundraising software refers to applications that facilitate employer matching of the charitable contributions of employees. These programs are popular ways for companies to engage in philanthropy, support their employees’ out-of-work interests, and check some boxes off on the corporate social responsibility checklist. As a nonprofit, matching gift programs are a fantastic way to leverage corporate desire for philanthropy and to double the donation amount.

Best Fundraising Software - Page 15

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