With so many platforms and vendors out there, choosing the right donor database for your nonprofit is no easy feat.

But when you consider how crucial your donor database is to the success of your operations, it couldn’t be more important to choose the right one.

With the right platform on your side, you’ll be able to get a comprehensive picture of your donors and more efficiently manage your efforts to see better fundraising results.

Unfortunately, many nonprofits go into the buying process unprepared. Without having done their research and knowing the right questions to ask, these organizations fall into many mistakes that can hurt their operations and limit their success.

Luckily, these mistakes are completely avoidable if you know what to expect when shopping for a new nonprofit CRM.

To prevent you from falling into the same traps, we’ll take you through the top 13 tips to keep you from making mistakes when choosing a donor database:

1. Don’t shop for the wrong type of software.
2. Put thought into your reasons for buying.
3. Select a platform that supports all of the users you need.
4. Find a platform that has room to accommodate all of your constituents.
5. Give your organization room to grow.
6. Choose a platform that supports all of the necessary functionalities.
7. Make sure the database can be integrated with the necessary third-party platforms.
8. Explicitly ask about price.
9. Make sure your platform doesn’t require difficult data migration.
10. Your platform must be secure.
11. The platform should come with enough training.
12. Make sure your organization will receive sufficient support.
13. Consult a second opinion.

By the time we’re done, you’ll be prepared to pick the perfect donor database. Let’s get started!

Need a refresher on buying software? Check out Salsa’s infographic before diving in.

Donor Database Tip #1: Don’t shop for the wrong type of software.

Fortunately for nonprofits everywhere, there are tons of different fundraising software solutions to help organizations optimize the fundraising process.

Unfortunately, this multiplicity only complicates the buying process.

When shopping for a new nonprofit donor database, you’ll first want to make sure that a donor database is actually the type of software you need.

To refresh, nonprofits use donor databases to house all of the important information they receive about their donors throughout the span of the donor’s’ relationship with the organization.

You can track virtually anything, like:

• Biographical information and demographics
• Contact information
• Households and relationships
• Donation and volunteer history
• Interests and affinities
• And much more!

Donor databases allow organizations to track all donor data centrally, so all data sources can communicate with each other to give nonprofits a 360° view of their donors.

All different types of nonprofits rely on databases to keep track of constituent information and daily operations. There are general, all-purpose nonprofit databases as well as specialized, industry-specific solutions such as museum management tools or camp databases. If your nonprofit has highly specific needs, make sure you search for software that supports those goals!

For all nonprofits, creating a centralized system for storing all of the information you collect from donors and other supporters is one of the first steps to developing more targeted fundraising and engagement strategies. Learn more about what goes into effective data management by reading this post from DNL OmniMedia.

The takeaway: There are many different types of fundraising software out there. If you’re shopping for a donor database, make sure it’s the best solution to fit your needs.

Donor Database Tip #2: Put thought into your reasons for buying.

If you’re considering a new donor database, it’s probably because your organization needs a change.

Maybe you’re limited by the incomplete insights you’ve been receiving from housing your donor data in multiple platforms.

Maybe you’re tired of wasting so many man hours cleaning up your data.

Maybe you’re already using a platform that’s too expensive, and you just want something a little more affordable.

Point is, there are many reasons why nonprofits shop for a new (or their first!) donor database.

While we couldn’t possibly list out all of the reasons organizations shop for new software, here are a few of the most common:

• To gain a more complete understanding of their donors.
• To achieve more efficient or seamless operations.
• To free up staff time.
• To better organize their data.
• To better oversee staff and volunteer efforts.
• To switch to a platform that’s easier to use.
• To upgrade to a platform that’s larger or more scalable.
• To switch to a platform with a more comprehensive feature set.
• To find a platform with better support or training.
• To change to a platform that’s more cost-effective.

While all platforms will provide similar benefits, some platforms will be better at providing certain functionalities than others.

That’s why it’s important to determine exactly why you’re shopping for a new nonprofit CRM. That way, you can make sure that the platform you end up buying actually aligns with your reasons for shopping.

The takeaway: Going into the buying process aware of why you’re shopping will ensure that your organization finds a solution that can address the areas you’d most like to improve.

Donor Database Tip #3: Select a platform that supports all of the users you need.

To accommodate nonprofits of all sizes, donor database vendors usually price their software partially based off of how many people can use it.

Unfortunately, many organizations go into the buying process unaware of this fact and end up buying a solution that can’t support all of the users they need.

That means at least one important staff member won’t have access to all of the tools and information required to help them do their job as well as possible, limiting the greater success of the organization.

Luckily, this mistake is super easy to avoid. All you need to do is determine how many staff members will be using the software before you buy. This way, you can select an interface that gives you the right number of users for your organization, like DonorPerfect:

While some organizations with small staffs only need access for one or two users, large organizations might need a platform that supports dozens. It all depends on the needs and makeup of your organization.

The takeaway: Don’t buy a solution only to find out that all of the necessary staff members don’t have access to it. Think about how many users you’ll need from the beginning to find a donor database that’s the perfect size for your organization.

Donor Database Tip #4: Find a platform that has room to accommodate all of your constituents.

The price of donor databases is also usually influenced by the number of constituent profiles that it allows.

And it makes sense! Nonprofit donor databases are donor-centric, so it’s only natural that their price would be determined by the number of donors they can accommodate.

As such, you’ll want to check (and double check!) that the nonprofit CRM you’re considering can hold the entirety of your donor base.

If not, you won’t be able to track all of your donors’ important information, leaving you with little to no insight into a portion of your base.

Check out DonorPerfect’s donor database software to see what a comprehensive product looks like for your constituent profiles. Below you’ll see a list of donor profiles:

Considering that one of the main benefits of using a donor database is to give your organization the most complete picture of your donors available, buying a platform that’s too small would totally defeat the purpose of buying new software.

The takeaway: Find a platform that’s the right size for you so that all of your donors will be housed comfortably in your new donor database.

Donor Database Tip #5: Give your organization room to grow.

On that note, when determining how many supporter profiles your new nonprofit CRM should hold, you’ll also want to look towards the future.

Chances are, your nonprofit is growing and changing quickly. And with the help of your new donor database, your growth should skyrocket!

Your donor database shouldn’t just support the number of donor profiles you have right now; it should also give you room to grow.

Buying a scalable solution ensures that you can continue accommodating all of the new donor information you receive as your base expands. If you buy a solution that’s too limited, you’ll only be buying a new donor database sooner.

However, be wary. While you want to dream big, you also don’t want to buy a solution that’s too large, or else you’ll be wasting money on something you don’t need.

The takeaway: When determining how many donor profiles your new database should support, consider the foreseeable future. You’ll want to strike the perfect balance by finding a solution that can grow with you but that still fits your current needs.

Donor Database Tip #6: Choose a platform that supports all of the necessary functionalities.

While most donor databases will have a similar set of basic functionalities, some are more comprehensive or specialized than others.

Because features vary from platform to platform, you’ll need to determine whether or not the provider you’re considering has all of the functionalities you need to execute your efforts.

For example, if you’re buying software with the main goal of making your operations more efficient, you’ll want to find a donor database with as many automated features as possible, such as generating donation receipts after supporters submit their donations online.

In addition to automation features, to get the most out of your CRM, you should look for the following capabilities:

• Detailed constituent profiles. Not only is it important for you to track a donor’s basic information and past giving history. To get a complete picture of each donor, you should be able to add custom fields to your profiles to track a donor’s interests and past interactions with your nonprofit.
• Gift management and custom webforms. When you have a CRM that can process donations and build forms, you don’t have to worry about transferring your donor data; it will already be integrated with your donor database.
• Email Communications. Collecting donor data can be used to improve your communications and provide donors with the most relevant information. With that said, having the ability to send out mass and automated emails through your CRM can make the process seamless. For instance, your segmented list of donors can easily be linked to your automated communications so that you can send targeted emails.
• Reporting and analytics. Another piece of your CRM should be focused on analyzing the data from your donor profiles and donation forms to provide you with reports on giving habits, as well as preferred donation methods. This information can help you improve your online fundraising efforts. Check out Salsa’s reports:

If the base platform you’re considering doesn’t have all of the functionalities you need, these gaps can often be addressed by compounding your donor database with expansions.

Expansions simply refer to other software solutions that have been developed by the same vendor and, as such, are easily integrated with your donor database.

For example, because Salsa specializes in CRMs, they provide excellent donor management software that can be integrated with your CRM to provide a more comprehensive set of features.

Whether you’re supplementing your donor database with expansions or just need the base software, make sure that your platform of choice will support all of the features you need.

If not, it’s time to look at a different solution!

The takeaway: Buy a donor database that has all of the required features so you can most effectively manage your fundraising efforts.

Donor Database Tip #7: Make sure the platform can be integrated with the necessary third party platform.

If the platform you’re looking at doesn’t have all of the features you need, you might still be able to supply those features with integrations.

Integrations are similar to expansions in that they can be added onto your donor database to provide additional functionality.

The only difference is that these platforms that have been developed by a third-party vendor, so incorporating them into your donor database might prove a little more difficult.

Some common donor database integrations include:

• Matching gift services
• Accounting
• Email marketing
• Social media management
• Wealth screening and prospect research services

Make sure that your donor database can support any integrations you need to fill in the features you’re missing.

If you’re already using a third-party platform to supply these missing functionalities, this will be as simple as asking your vendor if the software can integrate with your current platform.

Check out Salsa Labs’ donor database integrations with both Double the Donation’s matching gift tools below:

Salsa integrates with DonorSearch’s prospect research tools, too:

It will be much more difficult (and potentially detrimental to your operations) if it turns out that the third-party platform you’re using isn’t integratable with your new donor database.

Switching to a new platform will require more data transfer and time, since you’ll have to learn a new interface. In other words, it will only detract from your fundraising efforts.

The takeaway: Your new donor database should support all of the integrations you need to provide all of the features that will set you up for success!

Donor Database Tip #8: Explicitly ask about price.

Considering that price is one of the biggest anxieties that nonprofits have when shopping for new software, you’d be surprised by how many organizations don’t ask about price.

It’s an all-too-easy mistake to make. The organization goes onto the vendor’s website, sees the list price, and automatically assumes that’s what they’ll be paying.

While we would all like to hope that any donor database vendor would be transparent and spell out the costs, unfortunately that won’t always be the case.

That’s why it could not be more important for your organization to ask about the costs outright.

Donor databases are highly customizable tools. Thus, even the same platform can vary drastically in price.

The list price (that displayed on the pricing page of the vendor’s website) usually only accounts for the number of users, the number of donor profiles, and the basic feature set.

However, there are many other factors that can influence the price of your nonprofit CRM, such as:

• Expansions and integrations.
• Costs associated with training and IT support.
• Payment processing fees.
• Data transfer and clean-up.
• Updates to your software as technology advances.

Make sure your donor database actually fits into your budget by asking about costs at the beginning of the buying process.

The takeaway: The price of donor databases can be impacted by many different factors. Ask your vendor explicitly about costs to make sure your purchase won’t strain your organization fiscally.

Donor Database Tip #9: Make sure your platform doesn’t require difficult data migration.

In order to get up and running with your new donor database, you’ll need to transfer over all of the donor data you already have.

Unfortunately, data migration will always come with difficulties. It’s a long process that requires:

• Cleaning up your existing data (as to only transfer what’s relevant).
• Exporting it from the old platform.
• Importing it into the new platform.
• Going back over your data to ensure that it was correctly transferred.

Just how difficult this process is will depend on how compatible your current systems are with your new donor database and how much support the vendor provides.

With some platforms, data transfer will be much more involved. While this might not seem like a big deal, choosing software that requires an especially difficult data migration process is a big mistake.

Not only will this be a headache for your organization, but it can also put a dent in your operations.

Think about it: the longer it takes you to transfer your data over, the longer it will be before you can start using your new software to improve your fundraising.

But that doesn’t necessarily mean you should jump right in and do it yourself. Data migration is a complex process, and each platform is different. The best vendors will assess your data and provide you with assistance, if necessary.

Remember that your constituent data is the most valuable data your organization has — importing it right the first time will ensure your organization can raise more and be more efficient in the long run.

The takeaway: Data migration is a huge part of getting your donor database set up. Find a vendor who will provide you with the support you need so that it won’t be hassle.

Donor Database Tip #10: Your platform must be secure.

Your donor database will be home to all of your donor data, including your donor’s sensitive information.

That being the case, you’ll want to be absolutely sure that the donor database you’re considering has the proper security measures in place to protect this information.

One of the main features your donor database should include is advanced control over permissions. This feature will allow you to give only certain staff members access to information, so that only the people who absolutely need access to confidential information will have it.

Additionally, if your donor database comes with online fundraising tools (or you’re otherwise accepting donors’ payment information), you should make sure that the database is PCI-compliant. Being PCI-compliant simply means that the platform’s payment processing tools are in keeping with the security standards set out by the Payment Card Industry.

Failing to ask about security could mean that you’re putting your supporters’ confidential information in jeopardy.

If that information were to fall into the wrong hands, not only would you be damaging the trust you’ve so carefully built up with your donors, but you might also face legal repercussions.

Secure your peace of mind by asking your vendor about security!

The takeaway: Handling sensitive information requires the right precautions. Asking your vendor about security is the only way to ensure that your donor database can properly protect your donors.

Donor Database Tip #11: The platform should come with enough training.

Let’s be honest—many of us aren’t as savvy with technology as we’d like to think.

While we hope that your donor database will be relatively intuitive for your staff to use, learning how to use any new platform will naturally require some training.

Without the proper training, you and your staff might be able to use your donor database, but you definitely won’t be able to utilize it as effectively as possible.

Get the most out of your new software by making sure it comes with the level of training you need.

Most vendors offer a couple of different options for training to accommodate for a range of budgets.

The most basic option is usually a free, pre-recorded training video you can watch on the computer. While this will give your staff a general idea of the platform’s interface and functionality, training won’t be adjusted to fit the unique needs of your organization.

If you’re willing to splurge a little bit, you can pay to receive custom training. With this option, someone will walk your staff through the platform with a specific focus on the modules you’ll be using most. Training can either be done online or on-site, and staff will have the opportunity to ask any questions that might come up.

Whether or not customized training is worth it to you will depend on the needs and resources of your organization. But if you need it, make sure it’s a viable option.

The takeaway: The proper level of training will allow your staff to make the most out of the new donor database to see the best fundraising results.

Donor Database Tip #12: Make sure your organization will receive sufficient support.

Your working relationship with your vendor won’t just end the minute they’ve set up your donor database and taught you how to use it.

You’ll be using your platform for years to come (at least, we hope so!). Chances are, at some point during these many years, you’ll run into some technical difficulties.

If your vendor provides excellent support, this will be no big deal. They’ll quickly field your problem and get you back on track before you’ve strayed too far.

Now imagine the other scenario: your donor database suddenly crashes, and you can’t get a consultant on the phone. You try to contact them by email, but still no luck. Days go by before—finally—you hear something back.

After days of waiting, it looks like your problem is going to be resolved. But once you have that consultant on the phone, they’re inattentive and unhelpful, and it still takes them a week to fix the issue.

Meanwhile, your organization has been missing out on a countless number of fundraising opportunities. Who knows how many dollars you’ve lost or how many new donors you’ve missed out on.

Point being, it could not be more important to make sure that your platform comes with sufficient support. Your vendor should be readily available to help you with any issues that come up and should be able to address these issues with little turnaround time.

When it comes to your fundraising, it could make all the difference!

The takeaway: Buying a donor database with insufficient support can be detrimental to your fundraising. Make sure your software is always running at top speed by choosing a donor database with support that’s attentive, efficient, and available.

Donor Database Tip #13: Consult a second opinion.

Say you’re making a big purchase like a car or a mattress.

You’re shelling out your hard-earned dollars, so you wouldn’t just go into the purchase blind. We’re willing to bet that you’d probably go online or flip through Consumer Reports first to see if you could find any reviews that would help you make your decision. You might even ask one of your friends for their advice on which product they like best.

So, why wouldn’t you do the same when shopping for your donor database?

Second opinions not only attest firsthand to the value of the product you’re considering, but they can also give you that extra boost of confidence you might need before going through with the purchase.

In other words, consulting a second opinion will help you decide if the platform you’re considering is really the right one for you.

For the best advice, turn to current users.

While you can likely find reviews online, you should also ask your vendor if they can refer you to any of their other clients whose organizations are similar to your own.

The advice of current users will be invaluable. They use the platform every day, likely to assist with efforts similar to your own.

Nobody better understands the day-to-day difficulties that nonprofits face, so they’ll be able to give you a well-rounded view of the platform’s strengths and weaknesses.

It never hurts to ask, so don’t be shy about requesting references from your vendor. If they have happy customers and a truly great product, they’ll want to put you in touch!

The takeaway: A second opinion will give you the assurance and insight you need to decide if the new donor database you’ve been considering is the perfect fit for your organization.

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There are a lot of considerations that go into choosing the right donor database for your organization. With so much to think about from fundraising to constituent profiles, it’s no wonder that nonprofits can run into so many obstacles.

However, if you go into the buying process prepared, there’s no reason why you shouldn’t be able to avoid these mistakes.

Now, start the search for your perfect donor database!

For more information on donor databases, take a look at these additional resources:

1. Nonprofit CRM Software. Check out our guide on CRM software for all the tips and helpful pointers your organization needs.
2. Donor Database Software: Top 10 Nonprofit Platforms. Take a look at out top 10 donor database platforms for nonprofits to get your search started.
3. Salsa’s 7 Tips to Convince Your Board to Invest in Fundraising Software. If you need help convincing your board to invest in fundraising software, check out Salsa’s tips to win them over.

Matching gifts are a fundraising goldmine for nonprofit organizations and educational institutions, yet many organizations are unsure of how to make the most of the most popular type of corporate philanthropy. Many companies and corporations offer these matching gift programs, and the process is actually quite simple.

First, the donor makes a contribution. Then they submit a matching gift request to their employer, who confirms that the donation was made as reported. Finally, the company sends a matching donation to the organization or institution that their employee donated to.

Many companies outsource their matching gift programs to a third party vendor, or portal, that manages the matching gift program for them. This includes both the verification of the initial donations and the disbursement process for the companies’ matching donations.

Some of the major portal vendors include Benevity, YourCause, Cybergrants, and EasyMatch. Managing these portals can be a difficult part of the matching gift process, so we’ve put together the eight best practices for streamlining this process to make it easier on your staff.

1.  Create one universal username and password for your portal(s)

Oftentimes, your organization will be required to verify a donation in order to receive the matching gift, so you may need to log in to an online portal. This can get tedious when the number of donations awaiting verification grows and grows. Plus, your organization can accumulate access to multiple different portals and accounts.

Having one set of login credentials for your matching gift process will make logging into multiple portals so much easier. These login credentials can be shared amongst your organization. We recommend making your matching gift email address something simple, like matchinggifts@yourorganization.org.

Consolidating your login information will streamline the portal process in a few ways:

• You’ll receive all verification requests in one email inbox, ensuring that not a single matching gift opportunity falls through the cracks
• You can prevent losing access to accounts that may be tied to a specific employee at your organization
• You’ll have fewer sets of credentials to remember and keep straight when logging into your multiple portals

2. Create a master list of your portal links

Now that you’ve streamlined your portal login information, you’ll still need to find a way to organize the different portal URLs held by your organization. For example, Cybergrants (a matching gift portal) may send you a URL for every company that a match has been requested from. Meanwhile, YourCause (another portal) may send a different URL for each donation that needs to be verified.

In order to keep these links organized, compile them into a master list including:

1. Name of portal vendor
2. URL link
3. Name of company matching the gift
4. Frequency — track how often you need to check each particular portal

You may also consider dividing your list into relevant categories. For example, sort the portals by match deadline from the shortest to the longest. You could also sort the portals by the amount of claims they’ve typically had in the past so that you know which portals take more time to check.

Once you’ve created a master list of your portal URLs, it’s important to keep your list as current as possible.

3. Assign each portal to a specific portal manager

If you don’t have the capacity to assign all matching gift portals to one full-time staff member, consider dividing your portals among staff members. Assign each portal to a specific staff member who will own the management of that particular portal. Doing this will help your staff divide and conquer so that nothing falls through the cracks.

4. Determine a strategy for checking portals

Now that you have streamlined your login information and created an organized process for delegating and tracking your portals, you can determine a more detailed strategy for checking your portals. It’s not uncommon for organizations to lose sight of their portals and allow donations to sit dormant waiting to be verified.

Do you have a portal that you haven’t logged into for a while? Do you have more than one? Some portals may be less active and will only need to be checked when you receive a verification request. However, others may be full of requests and need to be checked every other week.

Determine how often you will need to check each portal and track the frequency on your master list. This ensures that the staff member assigned to each portal knows exactly how often to check it. Once you’ve put this strategy in place, stick to it so that no portal (or donations) will be forgotten about again!

5. Always record matches in your CRM or database

Tracking your matching gifts helps you to develop a better understanding of how much you’re raising specifically in matching gift revenue, which companies are donating the most in matches, and which companies may need follow-up if their matching dollars haven’t come in.

Chances are, you’ve already got a system of reconciliation in place, but may be forgetting to track matching gifts. You may choose to record them as “pledges” or “promised” under the donor’s record or as unconfirmed donations under the company’s record. However you choose to record them in your CRM or database, find a system that makes sense for your organization and track those matching dollars.

6. Work toward closing the loop with your donors through acknowledgment and reconciliation

After you’ve mastered your system of tracking your matching gifts, the next step is to determine a strategy to close the loop with your donors. Acknowledge your donors, not just for their donations, but also for their time and efforts to get their donations matched. You can send them a letter once a year for all the matches they’ve requested or send a quick email each time their matching gift comes through.

Thanking your donors for their matching gifts encourages them to make sending a matching gift request a part of their donation process every time. This also removes any doubt that their company’s matching dollars were received. Plus, this gives you a chance to highlight the impact that their matching donations have had on your organization.

7. Educate all staff members on matching gift portals

One of the best ways to enhance your overall matching gift strategy is to make sure that all staff at your organization, not just those involved in development and fundraising, know what matching gifts are and how your organization can get them. Educate all of your staff on the simple workflow of matching gifts.

Further, educate your staff on the verification process and the different portals that companies use for their matching gift programs. When your staff understands the process, they will recognize a matching gift verification request when it comes in and will feel confident about how to handle it.

8. Collaborate with portal vendors

Each of the portal vendors are different, and they each service thousands of companies who have varying matching gift programs. If you’re not finding the details you need, have questions, or have feedback, don’t hesitate to reach out directly to the portal for help! The best way to have your specific needs met is to work with their support team.

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Conclusion: One of the most effective ways to make sure that your organization is making the most of matching gifts is by mastering your matching gift portals. It can be a bit daunting to untangle your existing portal information, but once you do, it’s so worth it! Now you can sit back and watch the matching gift revenue roll in.

Planning a major fundraiser is exciting, and the potential payout can provide the funding to launch your nonprofit’s mission forward by leaps and bounds. But is your nonprofit ready to run such a large-scale fundraising campaign? To find out, conduct a feasibility study.

As the name implies, this study essentially determines whether your fundraiser is feasible, making sure your nonprofit is equipped to launch a successful fundraising campaign. These studies not only inform you whether your campaign is viable but also help nonprofits cultivate a fundraising strategy based on direct feedback from key stakeholders.

Due to the important role these studies play in nonprofit management, we’ve provided a list of seven steps that will help your organization conduct a successful fundraising feasibility study:

1. Set clear goals for your fundraising campaign
2. Understand the true purpose of the feasibility study
3. Consider outside assistance
4. Prepare your case statement
5. Determine key stakeholders
6. Be open to the feasibility study’s results
7. Implement strategies based on the fundraising feasibility study’s results

But before jumping straight in, let’s do a bit of preparation of our own and review a few feasibility study basics.

Fundraising Feasibility Study FAQ

What is a feasibility study?

A fundraising feasibility study is a tool nonprofits use to determine whether a fundraising campaign is viable. Most often, feasibility studies are enacted in preparation for large public initiatives like capital campaigns. 

The study itself involves interviewing key stakeholders to determine their perceptions of a nonprofit’s reputation, the need for a proposed project, and the level of support they would be willing to offer. These stakeholders vary depending on the nonprofit’s connections and proposed project the major campaign is meant to fund but often include:

• Community leaders. Is there a need for the project you intend to fund through your proposed fundraising campaign? Speak with beneficiaries, organizations you work with, and potentially your town or city’s political leadership to determine if your campaign is needed and will have community support. 

• Organizational leadership. Does your nonprofit have the internal infrastructure, experience, and stability to run a major fundraiser? Speak with board members, your organization’s executive director, the head of your fundraising team, and other relevant parties to determine your nonprofit’s internal capabilities. 

• Sponsors. Corporate sponsors can be essential for providing the financial backing nonprofits need to host events, maintain a sustained campaign, reach new audiences, and hit their fundraising goals.  

• Major donors. Major donors already provide significant support to your nonprofit, and many of them may have the capacity and affinity to increase their financial backing during a major campaign. 

Through these interviews, the feasibility study essentially determines if the nonprofit’s proposed fundraiser is likely to find success and will ultimately be a worthwhile endeavor for the nonprofit and its beneficiaries. 

When should a feasibility study be conducted?

Feasibility studies are useful tools, but there is no need to conduct one prior to every fundraiser. While it’s upsetting when a routine fundraiser falls short of its goal, most nonprofits can ultimately move past the disappointment and pledge to donors and beneficiaries alike to do better in the future with little fallout. 

However, sometimes nonprofits need much more funding than normal, often to launch new initiatives, construct new buildings, or significantly expand operations. In these situations, it makes sense to call for a capital campaign. 

In contrast to small fundraisers, these large fundraising endeavors failing poses distinct risks. The possibility of failure for a major campaign wouldn’t just be detrimental to a nonprofit’s mission, but a public affair that could undermine the organization’s legitimacy to donors. 

For instance, let’s say a nonprofit only manages to collect half of its target from major donors by the campaign’s deadline. At that point, what action should the nonprofit take? Attempt to fulfill the project despite lacking startup funds? Return the gifts to the donors? Extend the deadline and try to find new fundraising sources? All of these options are less than ideal and can harm a nonprofit’s relationships with its donors and beneficiaries. 

Who conducts feasibility studies?

Nonprofits will need to look internally for part of the feasibility study, but ultimately, these studies should be conducted by a trained third-party representative. For your feasibility study, hire an experienced capital campaign consultant. This consultant can provide an objective perspective on your nonprofit’s current fundraising capabilities, ensuring you receive an honest answer as to whether your proposed campaign is possible. 

After the feasibility study is conducted, your capital campaign consultant can help you in one of two ways:

• If your nonprofit did not pass the feasibility study, your consultant can suggest an alternate, more attainable goal or offer recommendations for how to improve your operations to position your nonprofit for a successful campaign in the future.

• If your nonprofit passes the feasibility study, the consultant will provide a roadmap for your campaign moving forward. Note that nonprofits usually hire separate consultants to assist with the campaign itself and purchase feasibility studies as a stand-alone service to avoid potential conflicts of interest. After all, a consultant who knows that they’d be hired for the duration of a campaign may be more inclined to gloss over issues and suggest that the campaign moves forward.

We’ll explore how to find the right consulting service for your nonprofit later on. But for now, let’s hit the ground running and jump into the first step of your fundraising feasibility study.

1. Set clear goals for your fundraising campaign

Before you can determine whether a project is feasible, you need to know exactly what hope to achieve. The more specific you can be about what your fundraising campaign will achieve for your organization and mission, the better.

The amount of work you’ll need to put into this step depends on the nature of your fundraising campaign.

For example, let’s say you’re looking to grow your endowment or earn major gifts on your nonprofit’s anniversary. In this case, you simply need to determine whether financial stakeholders are supportive and how best to market your campaign to them. As such, your goals can simply be a target fundraising amount or a percentage of donor engagement.

In contrast, if you’re planning a capital campaign, you need an in-depth understanding of the associated costs and logistical details for completing the project. These specifics allow you to set an accurate fundraising goal and better explain your case for support to donors. 

Let’s take a look at an example of how to outline your capital campaign’s purpose:

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Nonprofits should follow this example and perform the needed legwork to outline the details of the project their major fundraiser will support before the feasibility study is conducted.

In this example, the nonprofit would likely consult with construction firms or contractors to determine how exactly the kitchen areas would be expanded, as well as the costs and challenges that the project would entail. These initial details are helpful for informing the following feasibility study, which would determine the best course of action for raising funds to make this project happen.

2. Understand the true purpose of the feasibility study

A truly successful feasibility study will do more than determine your fundraising goal. While these studies can and should be used to outline your campaign’s logistics, they are also a support cultivation and planning tool.

Think of it this way: a feasibility study is a formalized opportunity to ask donors and key community leaders for their thoughts and opinions on your nonprofit and cause. By asking them for their reactions and feedback to your proposed campaign, your nonprofit showcases how much you value these leaders, increasing the odds they will support you during your fundraiser.

Nonprofits who use feasibility studies strategically can reap huge rewards, regardless of the results of the study. For example, a fundraising feasibility study can actively help you:

• Excite major donors prior to the campaign so that they’re eager to contribute.
• Incorporate stakeholders’ feedback into your proposed project so that they feel trusted, engaged, and valued.
• Strengthen your infrastructure by identifying weaknesses in your organization.
• Take your marketability to the next level by meeting donors where they are.
• Develop your nonprofit’s case statement or case for support (which we’ll discuss in more depth later on).

These benefits can help you build sustainable relationships and stronger messaging, not just for the campaign in question but for your nonprofit as a whole.

3. Consider outside assistance

A feasibility study involves interviewing key stakeholders and asking questions to gauge their perception of both your nonprofit and your proposed fundraising campaign.

As mentioned, nonprofits should seek fundraising counsel in the form of a fundraising consultant or consulting firm. These experts can help you approach your feasibility study strategically to get the information you need and set up a framework that will strengthen your campaign.

Since hiring outside assistance is another expense, you may be wondering whether a feasibility study can be conducted in-house. While nonprofits can oversee their own feasibility studies, there are a few reasons why they should seriously consider opting for third-party assistance:

• There’s value in hiring someone who has deep experience interviewing donors, analyzing the results of those interviews, and reporting to a nonprofit board.
• A trained expert may offer unique insight into your community if they’re local (e.g., these Indiana-based consultants would have considerable knowledge of the fundraising climate in Indiana’s primary cities) or a fresh perspective if they’re remote.
• Your nonprofit’s team may be biased. Just as you would want to avoid hiring the same consultant to conduct your feasibility to also assist with your capital campaign, you should be cautious of your own conflict of interests. If you begin your in-house feasibility study with a strong desire to launch a capital campaign, that may sway the results of your study. 

A fundraising consultant can assist you with nearly every aspect of the study, from conducting interviews to using the results to develop campaign strategies.

However, while you should hire an external consultant, your team can and should still be part of the process. 

An example of seeking expert advice

Capital Campaign Toolkit’s campaign experts have created a Guided Feasibility Study that campaign directors can use to improve their donor relationship-building skills. Specifically, campaign directors can work with one of the Toolkit’s expert advisors to:

• Prepare for the study, including choosing donors to interview and requesting interviews.
• Train for the study and learn essential skills for conducting open and honest conversations.
• Analyze the results of these conversations and prepare a report for the board.

The Capital Campaign Toolkit empowers these leaders to build relationships before the campaign begins, encourage early donor engagement, and even secure early gift commitments.

4. Prepare your case statement

Once you know the details of your project, you need to communicate them to donors in a cohesive, brief, and persuasive manner. A case statement, or a case for support, takes a nonprofit’s goals and outlines them clearly for stakeholders.

Often, your capital campaign leadership and marketing staff will develop your case statement. This document should generally be created soon after you set your campaign goals as it directly affects the rest of your planning.

To convey your goals, your case statement contextualizes your proposed campaign within your organization’s larger purpose and vision. Essentially, it explains why your campaign advances your mission, is necessary for your work, and needs to be conducted at this time. 

Specifically, a case statement should include:

• Why the organization and mission are needed
• The organization’s impact (the more specific, the better!)
• The benefits of the project and the problems it seeks to solve
• The specific challenges and potential solutions that are likely to occur during the campaign
• An estimated fundraising goal or budget
• The nonprofit’s brand, name, and logo, as well as relevant photos and testimonials

Send your case for support to interviewees prior to your meetings with them so that they can review the information thoroughly in advance. Then, when you sit down to interview them, they’ll be ready to provide feedback and ask questions about your project.

Keep in mind that a case for support can (and should) be refined based on the feedback that you receive during the feasibility study. That way, your case for support is as strong as possible when it’s time to release it to the public.

5. Determine key stakeholders

Feasibility studies largely revolve around the interviewees’ feedback, questions, and concerns. Ensure these interviews are core stakeholders whose opinions have a meaningful impact on your nonprofit. 

When considering candidates to interview, think about people who’ve actively contributed to your campaigns. These candidates should “walk the walk.” Avoid individuals who are spread too thin or who tend to gravitate toward any and all community campaigns.

To put it simply, candidates should have a strong, genuine connection to your cause and organization. You also want a good mix of candidates who can provide insight into various aspects of your proposed project and fundraising campaign. 

Specifically, you should consider these key types of individuals:

• Current and former board members
• Current or former major gift donors
• Planned gift or legacy donors
• Key volunteers
• Community stakeholders (e.g., community foundations, trust offices, etc.)
• Business owners and vendors
• Recipients of your services (e.g., grateful patients, alumni, students, etc.)

Along with having the necessary insight into your nonprofit to provide useful advice, these candidates are also highly likely to contribute to your campaign once it’s launched. The feasibility study is the perfect time to start cultivating corporate giving opportunities such as challenge grants, as well as major gifts from individual donors.

6. Be open to the feasibility study’s results

When you receive the results of your fundraising feasibility study, there are three likely outcomes:

1. The study reveals that your project is feasible, and your donors are eager and willing to support you. Start your project right away to capitalize on the excitement.
2. The study reveals that the project is feasible, contingent that problems are addressed. Before moving forward, resolve these problems or come up with a plan for tackling them during the course of your campaign.
3. The study reveals that your project is not feasible. Your organization will need to build a stronger infrastructure before tackling a project of this degree. Though disappointing, it’s better to accept these results and use the information you’ve gleaned to strengthen your organization than attempt a fundraiser that may damage your relationship with donors if unsuccessful.

It’s much better to refrain from conducting a campaign than to conduct one that fails. An unsuccessful fundraiser can bring negative publicity to your organization, undermining your legitimacy to donors.

No matter the outcome, the next step is to share the results with your board. Be fully transparent about the study to ensure your board members have a thorough understanding of the results.

You can also share your findings with other stakeholders if you deem it necessary, though you’re only obligated to do so with your board. For example, a major donor who was excited about your campaign may need to know if the initiative doesn’t launch, or they may be thrilled to learn that you’re moving forward.

7. Implement strategies based on the fundraising feasibility study’s results

Now that your fundraising feasibility study is complete and your team has assessed the results, you’re ready to start implementing smart strategies to make your next campaign your best one yet.

As discussed, there are two major paths you will take depending on whether your study determined if your organization is able to launch your fundraiser at this time. 

If your study finds that it’s not the right time to move forward with your campaign, your consultant may suggest:

• Holding a series of smaller campaigns to grow your annual fund. The larger your annual fund, the more equipped your nonprofit is to meet an ambitious campaign goal. Without a proven fundraising record, it’s unlikely you will reach a major fundraising goal.
• Stewarding more major donor prospects for necessary gifts. Your organization can’t reach your fundraising goal without having great relationships with multiple major donors. Your team may need to focus on connecting with high-capacity supporters before kicking off your capital campaign.
• Investing in fundraising software or other internal resources. Without the right tools on hand or the right individuals supporting your organization internally, you may not be able to carry out your campaign.

If the study shows that a few strategic areas need to be addressed before the campaign kicks off, your consultant can also help your team identify how to implement these adjustments. For example, these strategic shifts might include:

• Adjusting your fundraising goal, timeline, or project. It’s possible that your team has the resources and capacity to fundraise for a less ambitious campaign. Instead of putting the campaign off entirely, shift expectations to allow your team to start collecting donations for a smaller-scale project.
• Realigning your gift range chart to more strategically distribute necessary gifts. Your consultant may determine that your gift range chart isn’t feasible. They could suggest soliciting higher donations from major givers or more low-level gifts from donors in general when your campaign goes public.
• Putting a greater emphasis on donor stewardship tactics like fundraising events, solicitations, and more. During your feasibility study, your consultant may discover that your supporters aren’t being sufficiently stewarded. In this instance, they may recommend ways to better connect with high-value donors and steer them toward giving, such as by promoting matching gifts or helping individuals understand their impact via storytelling.

Remember, your nonprofit consultant can offer your organization unique insight into how to prepare for the campaign you envision, even if that means heading back to the drawing board.

Now that you know how to conduct a successful fundraising feasibility study, you’re ready to tackle this beginning stage in your next campaign!

Fundraising Feasibility Studies Wrap-Up

Major fundraising initiatives like capital campaigns can give your nonprofit the boost it needs to propel its mission forward by leaps and bounds. However, before getting wrapped up in the excitement of future fundraising, feasibility studies make sure your organization is ready to accomplish your goals. 

One way to shore up fundraising support and keep your organization financially healthy is through corporate giving. From sponsoring your campaigns to providing support throughout the year through matching gifts, philanthropy is an untapped source of revenue that helps many nonprofits better position themselves for future fundraising. 

To discover more about corporate philanthropy, check out these resources:

• The Ultimate Fundraising Guide to Corporate Giving Programs. Is your nonprofit new to seeking corporate partners? Get an inside look at corporate giving programs and what your nonprofit can do to earn from them. 
• 16 Impactful CSR Statistics Charitable Companies Should Know. Interested in learning more about the current state of corporate social responsibility and how it might impact your nonprofit? Check out these up-to-date statistics. 
• Nonprofit Marketing: How to Spread Awareness & Win Support. Marketing is essential for driving needed donations ahead of and during your capital campaign. Hone your outreach strategy with these tips.