Nonprofit organizations, under pressure to devote more donated dollars to their causes rather than to administration, are beginning to turn to online customer relationship management to make their operations more efficient. Organizations are using the Internet as a low-overhead marketing tool and as a way to analyze and target donors more effectively. But mainstream e-business CRM solutions aren't necessarily suited for nonprofits, in that nonprofits don't simply sell a set of tangible goods at fixed prices, said Vinay Bhagat, founder and CEO of Convio, a developer of specialized CRM software for nonprofits. They sponsor galas and handle ticketing for events, coordinate volunteer opportunities and manage a hierarchy of membership and giving levels.
Retention is perhaps the biggest motivator.
A Web service could let the museum tailor e-mail or online newsletters to donors' interests, helping keep them interested in a cause and also cutting down on internal mail and paper expenses, Stein said. Nonprofits push new data daily or weekly to Convio by visiting their unique administrative pages. With the data all in one place and accessible via the Web, nonprofits can tap into the service's functions, for example, to send reminders for upcoming charity events or accept RSVPs and online payments for events. They can also keep a tally of who will be attending events, track a donor's contributions over time, tailor different types of communications to donors and create e-mail lists. Convio officials wouldn't say how much they will charge for the product but said it will cost less than what nonprofits spend to hire an additional worker.