Nonprofit Software Solutions: How to build the best tech stack for your organization

Running a nonprofit is no small feat—especially when you're trying to stretch every dollar and make the most of any money coming in the door. Whether that be fundraisers, donations, memberships, or, in my opinion, the most important, grants, organizations must streamline collection and tracking mechanisms to keep their doors open and continue impacting their community.

That's where building the right tech stack comes in. The correct set of software tools can enhance operational efficiency, allowing your team to remain focused on advancing your mission.

From years of experience in philanthropy, we've observed firsthand how organizations disadvantage themselves compared to those around them when they have inefficient software solutions. A software system is meant to work for you, not vice versa. 

In this guide, we will cover the essentials for building out your tech stack from an operational perspective, focusing on grant management for nonprofits and organizations that rely heavily on grant funds. Effective grant management is essential to securing new and recurring funds, ultimately supporting your organization's goals. 

Benefits of Nonprofit Software Solutions

Think of your tech stack as the foundation of your organization's operations. It includes all the software tools you use to manage daily tasks, from handling finances to managing grants. Think of your stack as the "brain" of your organization. While it won't think for you, it will give you the information you need to consider when determining the best action forward. A well-built tech stack can:

• Save time and reduce errors: Automate repetitive tasks like data entry, tracking deadlines, and generating reports so your team can spend more time on strategic activities.

• Boost collaboration and communication: Leverage tools that facilitate information sharing to create a more connected team, whether you're all in the same room or spread out across different locations around the globe.

• Ensure compliance: Stay on top of requirements and financial regulations with tools designed to keep you audit-ready. We generally see this with granting, but compliance within your organization will be standardized, ensuring that no single individual gets "stuck with the bill" and has to be in charge of this.

• Support data-driven decisions: Use insights from your software to make informed decisions, adjust strategies, and better allocate resources to areas that will have the most impact.

Types of Nonprofit Software Solutions

Nonprofit organizations operate in a unique environment, balancing the noble goal of advancing a mission with the practical needs of managing an efficient, effective operation. While Foundant doesn’t offer all the solutions mentioned, it’s important to be aware of the various software options available. Some software solutions specialize in serving specific nonprofit needs—like grant management or event planning—while others offer integrated platforms that bring multiple functionalities together, allowing for a more unified approach to managing a nonprofit’s diverse needs.

Grant Management Software

Grant management software assists nonprofits in managing the lifecycle of grants, from application to closure. It enables tracking of grant applications, reporting on grant usage, and compliance with grant requirements. 

Key benefits 

• Streamlined grant application processes 

• Accurate and timely reports 

• Simplified compliance management 

Thus reducing the administrative burden and enhancing the likelihood of securing and maintaining grants.

Donor Management Software

Donor management software allows nonprofits to track and engage with their donors effectively. This kind of software streamlines the process of managing donor information, recording donations, tracking donor engagement, and facilitating communication. 

Key benefits

• Enhanced donor retention through personalized communication

• Optimized fundraising efforts with targeted campaigns 

• Improved record-keeping for better analytics and reporting

Fundraising Software

Fundraising software provides tools specifically designed to maximize fundraising efforts. These platforms usually include features for creating and managing fundraising campaigns, processing donations, and analyzing campaign performance. 

Key benefits:  

• Increased fundraising reach through diverse campaign tools

• Simplified donation processing

• Actionable insights from fundraising data to guide strategy

Membership Management Software

Membership management software is tailored to organizations that operate on a membership model. It handles member databases, subscription renewals, membership fees, and communication among members. 

Key benefits

• Streamlined member onboarding 

• Automated renewal reminders to increase retention rates 

• Integrated communication tools to engage and activate the membership base.

Volunteer Management Software

Volunteer management software helps to recruit, schedule, and communicate with volunteers. This type of software simplifies managing volunteer databases, tracking volunteer hours, and organizing volunteer events. 

Key benefits

• Improved volunteer retention via effective engagement strategies

• Efficient scheduling and management of volunteer activities 

• Enhanced communication with volunteers to keep them informed and involved

Accounting and Financial Management Software

Accounting and financial management software for nonprofits is designed to cater to the specific financial reporting and management needs of the nonprofit sector. It assists in managing budgets, processing payments, and producing financial reports compliant with nonprofit accounting standards. 

Key benefits

• Improved financial accountability

• Streamlined financial operations 

• Compliance with financial reporting requirements

• Leading to better financial health and integrity

Customer Relationship Management (CRM) Software

CRM software for nonprofits focuses on managing interactions with donors, volunteers, members, and other stakeholders. By consolidating all relationship data into one platform, nonprofits can better understand and engage with their community. 

Key benefits

• 360-degree view of relationships 

• Enhanced segmentation for targeted communication

• Improved outreach and engagement strategies

Event Management Software

Event management software simplifies the planning, execution, and analysis of nonprofit events. Features often include registration management, ticketing, and event promotion tools.

Key benefits

• Streamlined event planning processes

• Enhanced attendee experience through easy registration and communication 

• Actionable insights from event data to improve future events

Communication and Marketing Software

Communication and marketing software helps nonprofits create, distribute, and measure the effectiveness of their messaging. From email marketing to social media management and beyond, these tools are crucial for raising awareness and driving engagement. 

Key benefits

• Increased reach and visibility

• More effective and targeted communication campaigns 

• Insights into marketing performance, enabling more strategic decisions  

By leveraging the right mix of these software solutions, nonprofits can not only enhance their operational effectiveness but also better serve their missions, making a greater impact in their communities.

Popular nonprofit software solutions

Foundant GrantHub Pro

Main features

• Research/pre-award management

• Integration with Funder Search, powered by Candid

• Answer Library

• Grant management

• Tasks/reminders

• Funder relationship management with notes and custom fields

• Email Correspondence

• Custom Reporting

• Post-Award grant management/revenue Expenses/Opportunity Budgets

Pros and cons