Every NGO tracks donor information in some form. Some use spreadsheets and manual record-keeping, while others use donor management software to automate donation tracking, communication with donors via email, and reporting.
Both methods have their pros and cons. For smaller organizations, manual tracking can be effective, but for larger NGOs, automation offers time savings and enhances donor engagement and the accuracy of tracking. The problem is when to make the switch.
This article will highlight the differences between manual donor tracking and automation to help NGOs select the right strategy for them.
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Table of Contents
Why Donor Tracking Matters in the First Place
It is important to understand why donor tracking is necessary before comparing spreadsheets and software.
All donations have a story to tell. It shows you who supports your mission, how much they are donating, which campaigns they care about and how active they are with your organization.
With the lack of tracking, NGOs may lose out on important information like:
- Donation history
- Contact details
- Communication preferences
- Recurring donor records
- Event participation
Suppose that a supporter donates to you for 3 years, and each year donates 5 times. Suppose that someone has given you money each of the last 3 years, and they give you five times as much money each year. That donor might get the same generic message as a first-time donor if you have incomplete records.
Good donor tracking benefits NGOs:
- personalize communication,
- improve donor retention,
- measure campaign performance,
- and make informed giving decisions.
Whether donor tracking is significant or not is not the question; it’s how to handle it.
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The Pros and Cons of Manual Donor Tracking
Tracking donors is the first step in a small NGO’s donor tracking system, and it begins with a spreadsheet.
Easy to install, cheap and simple. Manual tracking will usually work fine if the organization has a small number of donors.
Why NGOs Like It
- No software costs
- Easy to start
- Common spreadsheet software such as Excel or Google Sheets
- Complete data management power.
As the number of donors increases, though, the difficulties are apparent.
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Where Problems Begin
Manual systems need to be continually maintained. All donation, email and communication records are to be manually filled out.
In the long term, the following are some of the challenges faced by NGOs:
- Duplicate donor records
- Missing information
- Human errors
- Multiple spreadsheet versions
- Difficulty generating reports
A one-time solution can over time turn into a funding blocker.
Tracking manually is not a dirty word; it just has its limitations.
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What Donor Automation Actually Looks Like
Most people think of a lot of money or complicated systems when they hear the word “automation.
Donor automation isn’t automating the donor; it’s merely letting technology take on the repetitive tasks.
Instead of manually updating records, donor management systems can automatically:
- Record donations
- Update donor profiles
- Generate reports
- Send thank-you emails
- Track recurring donations
- Store communication history
Immediately: when someone gives online, the system can do the following:
- Record the donation.
- Review and update donor profile.
- Write an acknowledgement letter.
- Include donor in future correspondence.
Does not require extra administration.
Fundraising teams are not cut out of the equation when it comes to automation. Eliminates repetitive work and allows staff to concentrate on relationship-building and fundraising.
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Where Manual Systems Start Breaking Down
It’s not like most NGOs run out of time when spreadsheets break.
They change because spreadsheets don’t scale.
Think of an NGO that has:
- 50 donors
- 500 donors
- 5,000 donors
There is a huge shift in workload.
At a certain point, manual processes create problems such as:
- Reporting Delays
- Creating donor reports can take hours, not minutes!
- Missed Follow-Ups
- There may be no timely acknowledgments or updates for donors.
- Inconsistent Data
- Records may be kept by more than one member of staff.
- Limited Insights
It’s difficult to quickly answer questions like:
- What kinds of people are our regular donors?
- What was your best campaign?
- Who are the donors who have not donated in the last few years?
These restrictions are becoming more difficult to overlook as the fundraising process becomes more complex.
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How Automation Improves Donor Relationships
There’s a common misconception that automation leads to less personal fundraising.
In most instances, the reverse is the case.
Automating administrative tasks allows NGOs to dedicate more time to donor relationship.
Automation can help organizations:
- Send out timely thank you notes
- Divide the donor list into groups by their interests
- Track engagement levels
- Personalize communication
- Schedule follow-ups
Now, visualize getting a donation and then a personalized thank you letter.
Consider the wait for a generic email if you wait 3 weeks.
The difference matters.
Automation enables an NGO to communicate in a more consistent manner without losing the personal touch.
The user may not bear any resemblance to the donor, but the user will feel the difference in the software.
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Which option is best for your NGO?
It’s not a matter of which method is superior or better overall; it’s which method is better for your NGO now.
Spreadsheets are still a good choice for smaller organizations with a smaller number of donors. If funds are available, if reporting requirements are minimal and if managing staff records is easily accomplished, manual tracking can suffice.
But when growth intervenes, things get different.
Manual systems can be time-consuming and difficult to manage as the number of donors grows and the frequency of campaigns goes up, and so too do the reporting requirements. That which used to take a few minutes can begin taking hours per week.
The rule of thumb is to:
Stick with manual tracking when it supports your work. Consider automation when it starts slowing your work down.
Most successful non-profit organizations don’t simply jump from spreadsheets to advanced donor management software systems in a flash. Rather, as they expand their fundraising operations, they increasingly automate repetitive tasks like tracking donations, sending donor thank-you notes and reporting, etc.
The result is not to automate every process. The idea is to free up your staff to spend more time interacting with donors, deepening relationships, and furthering your mission.
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Conclusion
There’s a time and place for manual donor tracking and automation in nonprofit fundraising. Spreadsheets and manual systems might be practical and affordable for small NGOs with limited donor activity. As the organization expands, however, the administrative burden, risk of error and reporting issues grow. It’s where automation makes a big difference. Automated systems focus on what matters most: building strong donor relationships and increasing impact by streamlining repetitive tasks, improving data accuracy and allowing for more personalized donor communication. Instead of thinking in terms of manual and automation, NGOs need to consider when and how to leverage automation in their growth path.
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FAQs
1. Is manual donor tracking enough for small NGOs?
Yes. Some smaller NGOs can efficiently manage their donor information through database systems. For instance, there are some NGOs that only use spreadsheets to track their donors’ information, as they have a limited number of donors or are just starting to raise funds.
2. What is donor management automation?
Donor Management Automation is a software system used to assist with key aspects of donor management such as donation tracking, donor communication, reports, and database management.
3. When should an NGO switch from spreadsheets to automation?
Automation is required when an organization has an increasing volume of donor records that are becoming difficult to manage manually, or if the time required for donor reporting and communicating necessitates a significant amount of staff time.
4. Does automation replace fundraising staff?
No. Automated systems manage administrative processes that are time-consuming and repetitive, and enable the fundraising team to spend more time creating and sustaining a positive relationship with their donors.
5. What is the biggest advantage of donor automation?
The greatest benefit is efficiency. Automation saves manual effort, helps to make data more accurate and keeps NGO relationships with donors stronger.
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