Non-Profit Fundraising Sector

Our team is looking at the non-profit fundraising sector and how IT is transforming fundraising strategies. The companies that we are each analyzing are:
• Donor Management Software and Services: Salesforce, BlackBaud
• Donor Aggregators: Yourcause.com, Kiva, Charity Water
• Non-Profit Direct Service: Root Capital

Already IT has been transforming this sector and as we analyze its impact today and moving forward, here are a few of the key themes we have identified:
• Social Networking: Already social networking has played a big role in changing the tools of fundraising. On both Facebook and on more specialized social networks such as Yourcause.com, the range on donors has widened, bringing in more donations but also sometimes smaller donations. However it remains to be seen how to best tap into these social networks and whether there is a place for the specialized social networks.
• Donor Management Software: BlackBaud and Salesforce are two of the primary providers of Donor Management software, which is the CRM for non-profits. They are becoming more and more sophisticated in their applications and interfaces with different donor channels such as social networking. A key question is how the data will be used and how prevalent these systems will become among the non-profit fundraising sector.
• Reporting and Impact Measurement: With the IT systems provided by companies such as BlackBaud and Salesforce, the level of data available to non-profits is increasing however the usage of the data is still being developed. More and more non-profits are being asked to provide measureable outcomes and impacts in order to obtain the grants and donations that they survive upon. This new demand by foundations and donors is altering the way in which non-profits are being held accountable. This is being observed at non-profits such as Root Capital where they received a large grant but along with it, significant reporting requirements in terms of measureable impact.
• International Philanthropy – Online platforms have enabled new markets and new recipient of philanthropic giving to emerge. Kiva is a prime example that has linked donors from affluent areas with small business in struggling economies. Without the online platform providing the information and connection between these two groups, this giving would be less possible. The question remains as to what other populations may be connected for philanthropic purposes through online platforms.