What is donor management?

Donor management involves identifying a potential donor, persuading the potential customer to make a donation, and then encouraging the donor to continue their financial support.

Many organizations rely on donations from individuals and companies to defray operating expenses, making the organization-donor relationship a significant priority. These groups often rely on donor management systems to stay in touch with donors and maximize donations. Donor management typically includes the entire process of identifying a potential donor, persuading the potential client to make a donation, and then encouraging the donor to continue their financial support. Groups that receive a significant amount of income through donations often use the services of consultants or fundraising experts, as well as donor management software packages, to increase or maintain contribution levels. Since the advent of the Internet, these software packages have become increasingly sophisticated, offering a range of features that,

Organizational fundraising can be a huge task as it often involves persuading an individual or company representative to give money to a group with no expectation of reimbursement. While there is a huge human factor in growing donors, as personal contact with key donors is a crucial element for successful fundraising campaigns, the process also requires structure. Good donor management incorporates a system whereby contact with donors is constantly monitored and evaluated to enable the development of the best approach to dealing with individual donors and to encourage ongoing contributions. These approaches may include offering incentives to donate, such as invitations to events, awards embellished with the organization’s logo, as well as other perks and privileges for generous contributions. Also, donor wall at the organization’s headquarters.

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Due to the complexity of managing hundreds or even thousands of relationships with financial contributors, many organizations invest in donor management software. These software packages vary in features but typically integrate databases that include donor information and a contact history with the ability to track a donor’s donation pattern. Staff and consultants responsible for donor management may refer to this information when making decisions about targeted campaigns or engaging in direct communication with individual donors. Other features that are often included in this type of software include contact management features that allow groups to conduct email or direct mail campaigns or to identify good times to call a donor on the phone. Some packages even include online fundraising tools, such as a back-end system that can be connected to the organization’s website to encourage online donations.

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