Welcome to the ultimate glossary of CRM terms for nonprofits! This extensive glossary is designed to help nonprofit professionals, volunteers, and board members navigate the often-confusing world of CRM (Customer Relationship Management) systems. Whether you’re grappling with donor management or trying to understand fundraising software, this guide has got you covered.
In the nonprofit sector, effective CRM use can mean the difference between thriving and merely surviving. Understanding these terms can empower your organization to build stronger relationships, increase donations, and ultimately further your mission.
Spoiler alert: this glossary of CRM terms for nonprofits includes both terms that you will encounter in your CRM’s dashboard but also terms that are connected to those. Our goal is to equip you to understand the marketing and sales world of nonprofits, starting with the CRM and going all the way to “business talk” in general.
Let’s dive right in!
An acquisition strategy outlines the methods a nonprofit will use to attract new donors. This may include online advertising, community outreach, or partnerships with local businesses. A solid acquisition strategy is essential for growing a donor base and ensuring the long-term sustainability of the organization.
Analytics refers to the systematic computational analysis of data or, in simpler terms, discovering, interpreting, and communicating insightful patterns through data. For nonprofits, it helps assess the effectiveness of fundraising efforts and donor engagement strategies by providing insights into trends and performance metrics. By understanding analytics, nonprofits can measure their impact, refine their strategies, and make data-driven decisions.
Google Analytics is an example here. The platform helps you understand where your traffic is coming from and what drives conversions on your website.
Automated workflows are sequences of tasks that are triggered automatically based on specific criteria. For example, if a donor contributes above a specific amount, an automated thank-you email can be sent without manual input. Automation reduces administrative burdens, allowing nonprofit staff to focus on mission-critical activities.
Back-end integration involves connecting the CRM to other internal systems (like financial software, marketing automation platform, or donor databases) to streamline operations and ensure data consistency across platforms. This integration is crucial for tracking donations and ensuring accurate reporting.
The Salesforce NPSP to Constant Contact integration is a good example here.
Benchmarking is the process of comparing your organization’s performance metrics to industry standards or best practices. This helps nonprofits identify areas for improvement and track progress over time.
B2B refers to transactions or relationships between two businesses. In the nonprofit sector, this might involve partnerships or sponsorships with corporate entities for funding or resources.
Campaign management refers to the planning, execution, and analysis of fundraising campaigns. A robust CRM system helps nonprofits organize and evaluate their efforts to maximize donor engagement and contributions.
Churn rate is the percentage of donors who stop supporting the organization over a specific period. Monitoring churn rate is essential for identifying retention issues and developing strategies to keep donors engaged.
Cloud computing allows nonprofits to store and access data over the internet rather than on local servers. This provides flexibility, scalability, and access to data from anywhere with an internet connection.
CRM is a system for managing a nonprofit’s interactions with donors and other stakeholders. It helps track donations, manage relationships, and analyze data to improve fundraising efforts.
CRM integration is the process of connecting the CRM system with other software applications to ensure seamless data flow and efficient operations. This allows nonprofits to maintain up-to-date donor information across platforms and break down data silos.
For example, Salesforce NPSP/NPC to Mailchimp is the most in-demand CRM integration on SyncApps.
Customer lifetime value is the total amount of money a donor is expected to contribute over the entire duration of their relationship with the nonprofit. Understanding CLV helps organizations prioritize their engagement strategies. For instance, your recurring donors and those with the highest CLV should always be your priority.
Data cleaning involves reviewing and correcting inaccurate or incomplete data in the CRM. This process is essential for ensuring that the information used for reporting and analysis is reliable and accurate.
Data migration is the process of transferring data from one system to another. This often occurs when implementing a new CRM, requiring careful planning to ensure all relevant donor information is preserved.
Donor engagement refers to the strategies and practices used to interact with and retain donors. Effective engagement increases the likelihood of recurring donations and strengthens relationships.
Donor management involves tracking and nurturing relationships with donors. This includes documenting donations, preferences, and communication history to create personalized experiences.
Donor recognition refers to the ways an organization acknowledges and thanks its supporters. This can include public acknowledgments, personalized notes, and exclusive events.
Email marketing is a communication strategy used to engage donors through targeted email campaigns. The most popular email marketing platforms for nonprofits are Mailchimp and Constant Contact.
Event management is the planning and execution of fundraising events. A CRM helps nonprofits manage registrations, ticketing, and communication with attendees.
Fundraising software encompasses tools and applications designed to assist nonprofits in raising money. It often includes features for online donations, event management, and donor tracking.
Follow-up refers to the actions taken to reconnect with donors after an initial engagement, such as after a donation or event. Consistent follow-up is essential for maintaining relationships and encouraging further support.
Goal tracking refers to setting and monitoring specific objectives within fundraising campaigns. CRMs allow nonprofits to visualize progress and adjust strategies accordingly.
Grant management involves tracking and overseeing the application, awarding, and reporting processes associated with grants received by the nonprofit. A CRM can help manage these details efficiently.
Gifting programs refer to structured donation campaigns where donors can contribute gifts, usually in kind or specific items, to support the nonprofit’s mission.
A hot lead is a potential donor who has shown strong interest in contributing to the organization. Identifying hot leads allows nonprofits to prioritize their outreach efforts.
Impact measurement is the process of evaluating the effectiveness of programs and initiatives. Nonprofits can use CRMs to track outcomes and demonstrate their impact to donors and stakeholders.
Integration refers to connecting different software systems (like CRMs, accounting software, and marketing platforms) to allow for seamless data flow and improved operational efficiency.
Journey mapping is a technique used to visualize the experience of donors as they interact with the organization. It helps nonprofits understand the touchpoints that influence donor engagement and satisfaction.
KPIs are measurable values that demonstrate how effectively an organization is achieving its key business objectives. Nonprofits use KPIs to track performance in various areas, including fundraising, donor engagement, and program effectiveness.
Lead generation is the process of attracting potential donors or supporters. Nonprofits use various strategies, including social media campaigns, email marketing, and events, to generate leads that can be nurtured into lasting relationships.
Lifetime value is the predicted revenue a donor will generate throughout their engagement with the organization. This metric helps nonprofits determine how much to invest in donor acquisition and retention. This metric is used interchangeably with Customer Lifetime Value (see above).
Mobile optimization ensures that online donation forms and communication are accessible and user-friendly on mobile devices. As more users access the web through smartphones, optimizing for mobile is crucial for maximizing donations.
Multi-channel fundraising refers to the practice of raising money through various channels, including online, direct mail, events, and social media. Utilizing multiple channels helps nonprofits reach a wider audience.
Monthly giving programs allow donors to make recurring contributions to a nonprofit organization on a monthly basis. This provides a steady stream of income, making financial planning more predictable for nonprofits.
A nonprofit CRM is specifically designed to meet the unique needs of charitable organizations, providing features tailored for fundraising, donor management, and program tracking.
Salesforce NPSP is a good example here.
Online fundraising refers to the use of the internet and digital platforms to raise money for a nonprofit. This can include crowdfunding, peer-to-peer fundraising, and online donation forms.
Peer-to-peer fundraising involves empowering supporters to raise money on behalf of the nonprofit, often through social networks. This approach leverages personal connections to broaden the donor base.
Planned giving refers to contributions made by donors as part of their estate planning. These can include bequests, charitable remainder trusts, and other long-term gifts.
Reporting is the process of generating insights from data within the CRM. Nonprofits use reports to analyze donor behavior, campaign performance, and overall fundraising success.
Retention rate measures the percentage of donors who continue to give over time. A high retention rate indicates effective donor engagement and satisfaction.
Social media engagement refers to the interactions and connections made through social media platforms. Nonprofits can use social media to raise awareness, connect with supporters, and drive fundraising efforts.
Segmentation is dividing your donor base into smaller, more targeted groups based on demographics, behaviors, or preferences. This allows for tailored communications that resonate better with specific audiences.
Stewardship is the practice of managing and nurturing relationships with donors after they have made a contribution. This includes providing updates on how donations are used, inviting them to events, and maintaining ongoing communication. Strong stewardship practices are essential for donor retention and long-term relationships.
Sustainability in a nonprofit context refers to the ability of the organization to maintain its operations and mission over the long term. This includes having reliable funding sources, effective management practices, and the ability to adapt to changing circumstances. A sustainable nonprofit can continue to provide services and support its community without constant financial worry.
Thank-you letters are personalized communications sent to donors to express gratitude for their contributions. These letters are crucial for building relationships and encouraging future donations. A heartfelt thank-you can make a significant difference in donor retention and overall satisfaction.
Transaction history is a record of all donations made by a donor, including amounts, dates, and purposes. This information is vital for tracking donor engagement and tailoring communication. Understanding a donor’s transaction history allows nonprofits to personalize their outreach and recognize patterns that can inform future fundraising strategies.
Training involves educating staff and volunteers on how to use the CRM effectively. Proper training is essential for ensuring high levels of user adoption and overall efficiency. A well-trained team can leverage the full potential of the CRM, leading to improved processes and enhanced donor relationships.
User adoption refers to how well staff and volunteers embrace the use of the CRM system. A shiny new CRM is useless if nobody uses it. Ensuring user adoption often requires effective training, ongoing support, and a culture that encourages the use of technology to enhance operations.
Volunteer management involves tracking and coordinating volunteers’ activities, schedules, and contributions. A CRM can help streamline these processes and enhance volunteer engagement. By effectively managing volunteers, nonprofits can increase their capacity to deliver services and achieve their mission.
A vision statement articulates the long-term goals and aspirations of a nonprofit organization. It serves as a guiding principle that informs decisions and strategies. A clear vision helps motivate staff, engage donors, and align efforts toward a common purpose.
Web forms are online forms used to collect donor information, registrations, or feedback. Integrating these forms with the CRM ensures that data is captured accurately and efficiently. User-friendly web forms can significantly increase online donations and engagement by making the process simple and accessible.
Workflows refer to the sequence of processes involved in completing a task within the CRM. They can be automated to streamline operations and ensure that all necessary steps are followed. Efficient workflows help nonprofits save time and improve consistency in their processes, enhancing overall effectiveness.
Zero-based budgeting is a budgeting method where all expenses must be justified for each new period. Instead of adjusting previous budgets, each budget starts from a “zero base,” ensuring that all expenditures align with current organizational goals. For nonprofits, this approach can enhance financial accountability and ensure resources are allocated efficiently.
On top of the CRM terms above, you’re very likely to also encounter the acronyms below. I know, at first glance, they look cryptic and unnecessary. But they can be useful shorthands, which is why we added them to our glossary of CRM terms for nonprofits.
Refers to transactions or relationships between two businesses, including partnerships that nonprofits might establish with corporate sponsors or service providers.
This term describes transactions where businesses sell directly to consumers. Nonprofits may engage in B2C through fundraising campaigns targeting individual donors.
A performance measure used to evaluate the efficiency or profitability of an investment, such as a fundraising campaign or a new CRM system.
A software distribution model where applications are hosted in the cloud and accessed via the internet. Instead of paying for a license (as you do for other types of software), in SaaS you typically pay a monthly or yearly fee to access the cloud platform. Many CRMs operate on a SaaS model, providing flexibility and scalability for nonprofits.
The practice of optimizing web content to increase visibility and ranking on search engines. Nonprofits can use SEO to attract more visitors to their fundraising pages and awareness campaigns.
The phase in software development where end-users test the CRM to ensure it meets their needs and requirements before it goes live. This is essential for ensuring user adoption and satisfaction.
And there you have it — the ultimate glossary of CRM terms for nonprofits! With this glossary, you can navigate the complex world of CRM systems and enhance your nonprofit’s operations. Remember, a solid understanding of these terms will empower you to manage donor relationships effectively and ultimately achieve your organization’s mission.
