Choosing donation management software: A guide for grantmaking organizations

In 2023, charitable giving and donations hit $557.16 billion. While this was an impressive number to reach, the overall volume actually declined by 2.1% when adjusted for inflation. That same year, online donations reduced by 1%, even though monthly giving increased by 6%.

This highlights the need for grantmakers to boost donations and build long-term relationships with donors. However, this demands all hands on deck and efficient internal processes and systems, something that outdated and manual solutions fail to deliver.

The good news? Donation management software is designed to offer a powerful solution and empower grantmaking organizations to improve the effectiveness of their mission. These platforms support donor teams to ensure seamless donation tracking, reporting, and stewardship.

That said, not all software solutions can work for a given organization. So, here’s a guide to choosing donation management software that best suits yours.

Donor management is evolving your software should too

Donation management software isn’t just about tracking gifts, it’s about deepening relationships with stakeholders, proving impact, and streamlining donation activities.

Yet, some organizations still cling to outdated and manual solutions to manage their donations and constituents.

The problem with outdated spreadsheets or fragmented systems is that they slow down teams and create opportunities for errors. When teams juggle multiple tools, information gets siloed, updates fall through the cracks, and communication suffers. No one wants such headaches; worse, they erode donor confidence. 

Modern, integrated solutions like Foundant’s CommunitySuite shine by consolidating processes into a single, intuitive platform. This keeps everything, from donor records to fund management, in one application window, saving time, reducing risk, and simplifying collaboration.

In comparison, there’s no reason to hang on to outdated, manual, and disjointed systems. Your software should evolve to tackle modern challenges and support impactful programs.

What donation management software should actually do

At its core, donation management software should simplify and strengthen your entire grantmaking workflow and gift processing. It should automate routine tasks and manual workflows to enhance accuracy and productivity.

Key capabilities to look for include:

• Event management: Robust functionality greatly assists with coordinating event logistics, boosting engagement, integrating with secure payment functionality, and monitoring performance.

• Donation tracking: Track contributions accurately across campaigns and donor types, including date, amount, and method.

• Reporting and analytics: Generate detailed reports to keep stakeholders informed and track key metrics and trends to identify areas for improvement.

• Fund accounting: Clearly manage donor-advised funds (DAFs) and restricted gifts while providing actionable information to fund advisors.

• Integrations: To centralize operations, integrate your donor management software seamlessly with accounting systems, customer relationship management (CRM) solutions, and email marketing platforms.

• Real-time insights: Easy access to real-time information for affiliates, parishes, donors, and other organizations.

Just as important, the software should be user-friendly and foster transparency across teams and stakeholders. Whether it’s finance, donor services, or leadership, everyone should access clear, up-to-date insights and reports to support the organization’s goals and drive desired outcomes.

Empower donor services teams with better tools

Donation teams are on the front lines of communication, and they need tools to help them respond to donor inquiries quickly and confidently.

Modern software automates routine tasks like receipting and sending acknowledgment letters, while real-time data ensures staff can provide accurate updates on fund activity. With automation and proactive notifications, teams can shift from reactive communication to meaningful engagement.

Donor management software improves their access to different tools and information, including:

• CRM systems to track interactions and facilitate communication with donors

• Donor information and profiles for personalized experiences and outreach

• Communication templates to streamline processes and ensure consistency

• Training resources for continuous learning and engagement

Integrations with tools like Candid, Warkato, and Outlook create a cohesive system that empowers teams to stay productive. This centralizes operations and brings teams together on a single platform, eliminating siloed workflows and boosting collaboration. Teams can also access data easily, keeping everyone on the same page.

Give fund managers a clearer picture

Managing donor-advised funds (DAFs) and restricted funds requires precision and transparency. Organizations must adhere to these funds' specific protocols and accounting practices for effective fund management.

That’s possible by equipping managers with powerful tools that simplify their work and improve access to important data. 

The right donation management software offers:

• Centralized donation records and donor databases for a comprehensive view of all funds

• Dashboards and reporting tools that simplify oversight and tracking

• Better data for conversations with donors and board members, ensuring everyone stays aligned

• Events management capabilities for giving campaigns and tracking results

• A CRM tool for managing constituents and nurturing meaningful relationships

Your chosen solution must give fund managers clear visibility into fund activity, enabling them to confidently support their grantmaking goals and build stronger relationships with their donors. Plus, with automated workflows, managers can free up time to focus on strategic work and impactful programs.

A brief review of 3 donation management software

Here are three software solutions to consider when searching for the right solution for your organization.

1. CommunitySuite by Foundant

CommunitySuite is a fully integrated, cloud-based donor management software designed for philanthropic organizations with fund accounting, CRM, endowment, and fee management capabilities. 

It supports integrations with:

• Candid for essential nonprofit data and tools for seamless donor management

• Stripe for secure online payments from donors

• Workato to connect data to other applications

• Outlook for streamlined email communications, which inspire 30% of donations compared to other channels

Additionally, funders get report and communication templates, which they can customize to avoid creating documents from scratch. It offers custom fields for specific reporting to keep teams up-to-date on all activities.

2. Bloomerang

Bloomerang is a community-focused nonprofit donor management software built to streamline donor management, grant tracking, and fundraising. It suits nonprofits and smaller foundations looking to improve grantee retention, engagement, and donor relationships to ensure successful outcomes.

Some of its features include an interactive dashboard, constituent timelines, wealth screening, engagement meter, data segmentation, and software integrations like DonorSearch, Constant Contact, MailChimp, and QuickBooks. Organizations can use it for projects like event fundraising, gift fundraising, and volunteer management.

3. Bonterra

Bonterra offers strong grant management and marketing automation features to minimize manual processes, build stronger charitable partnerships, and measure real-time program outcomes. For instance, it offers a marketplace of over 160,000 vetted nonprofits.

This software is ideal for grantmaking organizations that want integrated advocacy and risk management tools alongside their donor database. It supports dynamic proposal routing and integrated analytics for seamless decision-making on grantee applications.

What to look for when choosing a platform

Donation management software solutions promise different benefits and boast powerful features, but they’re not made the same. 

As you evaluate options, keep these priorities in mind to pick a suitable solution:

• Fund-level reporting: Ensure the software offers detailed insights into individual funds and grantee performance. This is immensely helpful when gauging the real impact of awarded funds.

• Scalability: Choose a system that can grow with your organization and adapt to changing needs. It should be able to accommodate more users and handle multiple grant programs if needed.

• Integration with existing tools: Look for platforms that connect with systems like Foundant’s GLM and other tools like QuickBooks, Stripe, Candid, and Workato. This helps streamline your full grantmaking process and centralize operations.

• Reliable support and onboarding: Smooth implementation and responsive support can make all the difference in long-term success. Your team should be able to deploy the solution easily without an extensive workflow overhaul.

• Features: Review and compare the features offered by different solutions to identify one that suits your unique needs and processes. A good tool must offer fund accounting, donor management, collaboration, and CRM features.

As part of the selection process, define your organization's needs and understand your workflows. For instance, you might need specific features for recurring giving, event registration, or reporting. Consider online user reviews on platforms like G2 and TrustPilot and request demos to understand how a solution works.

Remember to involve key stakeholders in the decision-making processes. Securing buy-in from all parties is crucial for a successful software deployment.

Strengthen donor relationships with the right system

At the end of the day, your donation management software isn’t just about technology—it’s about empowering the people behind the process. With the right platform, your team can deliver exceptional donor experiences, simplify operations, and focus on what matters most: driving meaningful impact.

You don’t need to struggle to find the ideal option: Foundant’s donation management software perfectly fits your organization.

Our CommunitySuite product delivers integrations and functionality that enable long-term success, support sustainability, and drive operational efficiency. It supports every aspect with robust features for reporting, online donations, fund accounting, donor management, CRM, and grant processing.

Want to make donor management easier? 

Deploy Foundant’s tools to help your team deliver meaningful donor experiences—without the stress.