As nonprofit organizations navigate the complexities of managing donor relationships, a significant decision looms every three to four years: Should we stay with our current donor management system (DMS), or is it time to switch? According to the 2024 Donor Management Systems Use and Satisfaction study, over the past five years, more than half of nonprofits opted to stay put, primarily due to familiarity with their current system and the desire to avoid the disruptions that come with switching. However, this decision is far from straightforward, and understanding the key factors can help organizations make an informed choice.
The case for staying put
One of the most compelling reasons to stick with your current DMS is product familiarity. In the study, 60% of respondents cited this as a top reason for staying with their existing provider. Familiarity with the software translates to productivity. In my experience, DMS users have enjoyed the feeling of confidence they have when using a familiar tool–and they even feel some pride in the workarounds they devise for situations in which the current tool is not a perfect fit.
Another consideration is the desire to avoid disruption. 53% of respondents cited this as a reason to stay with their current provider. Some fear that switching systems would introduce a level of disruption that could hinder their operations, and this fear is not unfounded. Implementing a new DMS requires a significant investment of time—not just in the direct management of the process, but also in the indirect time lost as staff learn and adjust to new workflows. Additionally, the opportunity cost of focusing resources on a DMS transition rather than other critical initiatives can be substantial.
DMS users have enjoyed the feeling of confidence they have when using a familiar tool.
It’s no surprise that many people who chose to keep their current provider at the most recent decision point said that general satisfaction with the solution was a factor. Satisfaction with existing DMS solutions is relatively high, with an average rating of 6.2 out of 10 across various features and attributes.
While new product risks were only a top concern for 17% of respondents, they are worth considering. Even with a thorough selection process, there’s always a chance that some critical feature does not perform as expected. Added to that are the possibilities that a provider new to the market is unsuccessful or that the chosen product is acquired by another company.
The case for switching
Source: Donor Management Systems Use and Satisfaction study
Despite all this, many thousands of nonprofits switch to a new DMS every year, and there are compelling reasons to consider doing so.
More than half of the respondents who switched did so to gain additional capabilities that their current system lacked. Nonprofits often find that their needs evolve over time, and waiting for an existing provider to develop new features can be a gamble. Switching to a provider that already offers the needed features could be prudent. An even more strategic move is to look at the provider’s pattern of product development and responsiveness to customer needs and emerging fundraising practices over time, and partner with a vendor you can trust to anticipate needs you haven’t even thought of yet.
Ease of use is another critical factor, and it was the second most commonly cited reason for switching. This presents a dilemma, since ease of use often decreases as system capabilities increase, forcing organizations to prioritize one or the other. Ease of use is tricky, too, because it can be a people or strategy problem masquerading as a technology problem. It’s tempting to pin your hopes on an intuitive user interface, but without well-trained and committed users and a solid fundraising plan, the easiest system in the world won’t help you reach your fundraising goals.
Increased integration options were the third most commonly cited reason for switching. Because integration satisfaction tends to hover around the overall average, with relatively little variation across products, I suspect that organization-specific integration needs rather than general integration capabilities are driving this. For example, if your DMS has an array of strong third-party integrations, but that list does not include the one event ticketing system you wish to use, it might provide enough motivation to switch to a DMS that does integrate with the tool.
Ease of use often decreases as system capabilities increase, forcing organizations to prioritize one or the other.
Some respondents reported switching due to general dissatisfaction with their former DMS. As with ease of use, general dissatisfaction can be as much about internal practices and user adoption as it is about the system’s capabilities or customer service. What I’ve found is that even if the software itself is a minor factor, in certain cases, a complete reset on a new DMS can offer a fresh start, provided it comes with a renewed commitment to change management and strategy.
What to expect during software selection and implementation
As you think through the pros and cons of switching, it’s helpful to consider the steps involved. The process typically begins with a needs assessment, where key stakeholders – perhaps working with a consultant – identify the features and capabilities required to support the organization’s goals. Next, you will research and evaluate potential solutions, considering factors such as scalability, integration options, and user experience. Once you’ve created a shortlist of vendors, engage in detailed demonstrations, request proposals, and check references to ensure the solution's reliability and fit.
After selecting a provider, the implementation phase begins. This includes planning, system configuration, data migration, and integration with existing tools. You may need an internal project manager and a cross-functional steering team. Throughout the process, invest in staff training to ensure users are comfortable with the new system, as well as communication to set expectations and foster enthusiasm for the change. Finally, conduct testing before going live, and establish ongoing support mechanisms to address any issues that arise post-implementation.
Maximizing ROI, whether you stay or switch
What if this sounds like too much effort, expense, and risk, and you decide to stay with your current DMS? Then let’s focus on strategies to maximize your return on investment over the next three to four years. Regularly meet with your account representative, stay updated on product releases, join user groups, and systematically optimize your processes. Enhancing your data through standardization, deduplication, and enrichment with wealth data or other data can also yield significant benefits. Most importantly, ensure all users are thoroughly trained to maximize the system’s capabilities.
If you switch, a comprehensive change management plan is crucial for minimizing disruption and capitalizing on new features.
If this all sounds like it’s well worth it, best wishes! But don’t just trust your luck – if you decide to switch, a comprehensive change management plan is crucial for minimizing disruption and capitalizing on new features. Designate an internal project manager for the implementation and make sure that person has the skills and resources to make the project a success. Conduct a risk analysis and discuss how to avoid or mitigate potential problems. Instead of a “lift and shift”, examine your business processes and consider what you could redesign to take advantage of the new product’s capabilities. As with staying put, thorough user training is key to a successful transition.
In conclusion
Whether you stay with your current DMS or switch to a new one, key themes to consider are minimizing disruption, optimizing processes, and training the software users. A well-considered decision, supported by effective change management and a commitment to user adoption, will position your nonprofit to leverage your DMS – current or new – for fundraising success.
Karen Graham
She/her
Speaker, Writer, Consultant, Coach,
Karen Graham is a speaker, trainer, writer, executive coach, and consultant with expertise in technology leadership and innovation, nonprofit software, and digital strategy. She has been an author and contributor for numerous research publications about technology strategy, digital maturity, return on technology investments, and technology skills for the nonprofit sector. Her experience includes serving as ED of Idealware and other leadership roles in capacity building, arts, and human service organizations as well as a software startup. She holds an MBA in Nonprofit Management.
