Flexibility in fundraising software: new capabilities make life easier for administrators

Matrix: The Magazine for Leaders in Education, April, 2001 by Robert Moskowitz

"Now it takes about five minutes to work up a proposal to a donor--that's why we love the computer programs."

Software packages from such major vendors as Crescendo, PG Calc, and SunGard BSR can deliver these quick calculations of major gifts. And the output can be seen on screen or in print. It can include both easy-to-understand text and vivid, clarifying graphics that would require dozens of person-hours to develop by hand. "With planned gifts, you're talking about pretty senior donors," explains Frank Robertson, associate director of planned giving for the University of Minnesota Foundation in Minneapolis. "So it's most useful to have graphical illustrations, accompanied by text that's simple and easy to read. Some donors may have difficulty with small print, so large text capabilities are a very desirable feature." Perhaps even more important is the software's ability to vary dates, amounts, and conditions of the planned gift to find the "best" solution for the donor.

Kolda remembers receiving a telephone call from an elderly alumnus who wanted to know whether the university could help him remove a highly appreciated stock from his portfolio. He was hoping a gift to the university could save him some money, and simultaneously provide some benefit to his grandchildren. Kolda happily scheduled a visit. "I sat in his office with my laptop, working to find the right vehicle for his gift," Kolda recalls. "I was able to experiment with a number of `what if' scenarios, to see the impact of various giving strategies. We settled on a UniTrust arrangement that was such a good deal from his point of view that he wound up giving double the amount he was initially considering." Having moved beyond simply tracking a prospective donor's name and address, family members and, past gifts, the new breed of fundraising software focuses on a larger strategy. It allows fundraisers to manage all this information dynamically, and use it "on the fly" to help customize and personalize all the institution's communications with members of its community.

Selecting Software

While fundraising software packages share many features, their differences can be significant. Evaluating each of the functional areas that software packages can address makes sense only in relation to the specific needs of an institution. Choosing the "best," therefore, depends almost entirely on how well it meets the specific requirements of a particular institution. In addition to this fit between requirements and functionality, institutions should consider:

* Cost -- Fundraising software can be generally grouped into three price categories: Applications costing less than $10,000; between $10,000 and $75,000; and all-inclusive packages, costing more than $75K (sometimes running as high as $250,000).

The cost should depend largely on how much you are raising. If your fundraising goal is $1 million a year, it is foolish to spend $250,000 on the software. On the other hand, if you goal is to raise $50 million, a $5,000 system may be inadequate. Once you recognize the proper price range, say the experts, the actual cost of the system generally becomes far less important than such factors as functionality, support, and upward migration.