Tech-Driven Fundraising: 5+ Tools Your Nonprofit Needs
Digital innovation is increasingly influencing the ways in which nonprofits secure donations, connect with donors, and operate efficiently. In a crowded market of fundraising tools with varying capabilities, it can be difficult to discern which tools will be most beneficial in helping your nonprofit meet (and even exceed) its goals.
The good news is that the right technology can transform your entire fundraising strategy, from learning about donors to planning the campaign to officially securing donations. Here are the essential tools every nonprofit should consider integrating into its tech stack.
1. Donor Research Platforms
Donor research platforms help nonprofits identify high-value prospects based on their giving capacity, interests, and recent activities. With these fundraising tools, your team can bypass the process of manually gathering donor information and, instead, have data automatically delivered to your inbox.
There are several different types of platforms that facilitate donor research.
Donor News Alert Services. Donor news alerts are tools that search news outlets and information sources, identify relevant donor intelligence, and automatically deliver it to nonprofits on an intuitive platform. This tool helps nonprofits stay updated on factors that influence a donor’s decision to give, such as:
SEC filings. Financial reports detailing stock sales, business acquisitions, and similar events can reveal opportunities to solicit major gifts or secure a sponsorship for a fundraising event.
Philanthropic activity. Data about recent donations to other causes gives your nonprofit a better sense of prospects’ giving interests, so you can align your fundraising appeals with their values.
Obituaries. Notifications about the passing of a supporter’s loved one allow fundraisers to express their condolences and approach legacy giving conversations with appropriate timing and sensitivity.
With donor research tools, your fundraising team can do more than secure gifts. The data gleaned from this research can also help you learn more about your supporter base and identify timely touchpoints for donor engagement. This way, you can develop deep, genuine donor relationships that last long-term.
Wealth Screening Tools
Wealth screening tools analyze publicly available data to understand a prospective supporter’s financial giving capacity. Using this information, your nonprofit can identify major donors, learn about their philanthropic interests, and create ideal fundraising asks accordingly. Useful wealth data might include:
- Net worth
- Real estate holdings
- Stock transactions
- Philanthropic history
Ideal wealth screening tools consistently fetch new information, so your nonprofit always has updated data to pitch opportunities with. For example, the tool should be able to update your team if your existing donor, James, obtains new wealth. Then, you can change your normal communications with him to develop an ask for a major gift.
Matching Gifts Database
A matching gifts database helps fundraising teams identify existing or potential supporters who are eligible to request a donation match from their employer. This solution can even automate the process when donors submit their employment information to the nonprofit, notifying donors of their eligibility and submitting a match request on their behalf. According to Double the Donation’s statistics, using such a tool increases matching gift revenue for nonprofits by 20% to 60% annually.
2. Artificial Intelligence (AI)
AI is rapidly rising in popularity, not just in the world of fundraising, but in every aspect of daily life. It’s a versatile tool that can be used in many aspects of your fundraising efforts, including:
- Donor communications
- Marketing content creation
- Performance tracking and report generation
- Personalizing ask amounts
While AI can streamline a wide variety of tasks, it’s important to note that this technology isn’t a great fit for every fundraising team. Nonprofits should especially be careful when relying on a tool that uses AI to segment donors, generate communications, or support other fundraising tasks that require a human touch. Many traditional fundraising tools can automate fundraising processes without using AI, offering the same level of efficiency without sacrificing authenticity.
3. Event Management Software
Whether you're hosting an auction, gala, or peer-to-peer campaign, event software helps you manage a fundraising event from start to finish. Some solutions encompass various event features, while others are tailored to manage just one type of event.
These tools typically facilitate:
- Ticketing and guest check-in
- Creating and customizing event websites
- Marketing and communications
- Table assignments and seating charts
- Volunteer scheduling and responsibilities
- Event-specific functions, like mobile bidding for a silent auction
Often, event management platforms summarize key fundraising tasks into an intuitive interface. This makes it easier for your nonprofit to run through its checklist of to-do items while planning, executing, and following up on events. Additionally, these tools streamline collaboration so that your fundraising, marketing, and volunteer teams can easily work together on different aspects of the event.
4. Constituent Relationship Management (CRM) System
A constituent relationship management (CRM) system serves as the central hub for tracking interactions and managing donor data.
Must-have CRM capabilities include:
- Contact and gift history tracking
- Email marketing and automation
- Donor segmentation
- Integration with donation forms and payment processors
This organized repository of everything you know about your donors enables meaningful engagement and campaign personalization that boosts fundraising success. For example, you might learn that most donors prefer participating in silent auction fundraisers rather than live auctions and adjust your event planning accordingly.
5. Online Giving Tools
Online donation platforms offer user-friendly interfaces for submitting and processing donations. This could range from the simple donation form on your nonprofit’s website to the elaborate peer-to-peer fundraising pages that supporters can customize and share.
Depending on the type of campaign you want to host, there are several types of online giving tools your nonprofit might use:
- Text-to-give software. Text fundraising, or text-to-give, software enables supporters to give by texting a keyword to a short number.
- Crowdfunding software. Crowdfunding platforms host time-sensitive fundraising campaigns in which community members donate small amounts to reach a fundraising goal.
- Online store. E-commerce software allows supporters to purchase merchandise (usually branded to your nonprofit), with the proceeds supporting your cause.
Keep in mind that some platforms are “all-in-one,” meaning they encompass all of these features instead of focusing on just one capability. Investing in an all-in-one platform instead of implementing a handful of fundraising tools may save your organization some money, but it can also be overwhelming to teams that don’t want that many features. Weigh these options before deciding what non-negotiable features you’re looking for in a platform.
6. Data Analytics and Reporting Platforms
Analytics tools summarize data surrounding donor behavior, campaign performance, and overall fundraising ROI to help nonprofits monitor their effectiveness. These fundraising tools are essential for navigating change. As donors’ expectations shift, data analytics helps fundraising teams stay agile and improve outcomes.
Insightful Philanthropy’s donor cultivation guide explains it well: Donor preferences will naturally evolve over time, and fundraising teams must track supporters’ responses to determine which strategies are most effective. Analytics tools offer the insights needed to identify shortcomings and pivot when needed.
Key use cases include:
- Campaign performance tracking, which analyzes donation totals and behaviors to inform future fundraising strategies
- Donor segmentation analysis, which helps nonprofits determine which donor segments respond to different appeals
- Board and stakeholder reporting, which enables nonprofits to export polished reports and visualizations that communicate impact
- Predictive analytics, which makes predictions about future donor behaviors to inform proactive decisions and strategy adjustments
With robust analytics platforms in place, your fundraising team can act with confidence.
Final Thoughts on Tech-Driven Fundraising
The most successful nonprofit fundraising programs don’t rely on just one of these tools, but build a comprehensive ecosystem of strategic technology. By incorporating these systems into your workflow, you’ll be equipped to meet donors where they are and turn insights into impact.