Nearly 47% of nonprofits cite growing operating costs as their biggest challenge. Nonprofits meet significant needs in their community yet rarely have the amount needed to solve them. Operations are growing in the sector, but nonprofits don't often have the time or resources to figure out how to do something better.
Nonprofits usually start with one legacy software. However, as their needs grow, so do their software needs. They may choose one program, like productivity software, because it's the cheapest option and easiest to implement at the time. Software can be implemented thinking it's just a short-term solution, but a better one is never found.
Siloed software systems like this breed inefficiency. When data is stored in multiple places, it's impossible to see the bigger picture. Additionally, nonprofits end up racking up fees for software when one may offer similar features as another. Nonprofit software integration is the solution, transforming nonprofit operations by improving efficiency, collaboration, and impact.
What Are Software Integrations?
Software integrations are the process of combining unique software systems, applications, or components to function together as one. This integration allows disparate systems to work seamlessly, sharing data and functionalities. These systems typically work: 87% of nonprofits that invest in new technology claim it is impactful.
Types of software that typically integrate include:
- CRM (customer relationship management software)
- Case management software
- Productivity software
- Accounting software
- Communication software
- Fundraising platforms
What Are the Challenges of Separate Software Systems for Nonprofits?
The challenges of separate software for nonprofits are manual data entry, inaccurate tracking of outcomes, data silos that delay decision-making, and reduced communication between teams. 46% of all nonprofits manually integrate their email data with their local database. Any manual data migration can be fraught with inaccuracies, losing opportunities with potential donors.
When planning for the year's goals, assessing inventory, or understanding service plans, your team needs to see all data in one place. Without a unified view of operations, streamlining nonprofit operations to make the most of funding is impossible. Additionally, when nonprofits are applying for grants, grantors may want to see how you've used funds successfully in the past. Separate software systems limit how well you can connect the funds used with the outcomes achieved.
Additional challenges include:
- Limited integration capacity with their current software: If a nonprofit uses older software, it's less likely to integrate with more modern tools.
- Complex IT needs: The more software you combine, the more difficult it is to manage day-to-day from a data and security standpoint. Nonprofits may not have the resources to pay for the IT staff required.
- Increased cost: Many software options are subscription-based, so each additional one drives up monthly operating costs.
What Are the Benefits of Software Integrations for Nonprofits?
The benefits of software integrations for nonprofits are boosted productivity, increased collaboration, decision-making that's backed by data (so it actually works), better engagement with clients and donors, and more opportunities for growth. Leveling up your software to modern, integrated solutions works: the average nonprofit reduces their IT costs by 20-30% when doing so.
Enhanced Efficiency and Productivity
Solutions like case management software are critical for nonprofit efficiency. For example, when a nonprofit does intake via online forms rather than paper ones, the information is automatically connected to their case. Data validation and conditionality features make it so that clients only have to fill out information that's relevant to their needs. This also prevents staff from having to sort through irrelevant information, and they can focus on mission-critical activities like coordinating supporting services or meeting with clients.
In fact, case management software is so popular that the industry is set to grow from $2.37 billion in 2023 to $4.48 billion by 2030.
Improved Data Accuracy and Consistency
Businesses lose $12.9 million every year due to bad data. When planning for services, case managers, doctors, therapists, and other stakeholders need to have the most accurate data available to make the best decision. An integrated software system centralizes data storage across platforms, syncing when changes are made. One of the most important changes an integrated system makes is identifying and merging duplicate records. This keeps a clean, accurate database--critical for service planning.
Better Collaboration and Communication
One of the biggest benefits of unified software systems is how much it elevates communication. Unified software often comes with improved project management features, allowing teams to join forces on tasks, track projects, and meet deadlines more effectively. By going granular with who is in charge of what, there is less repetitive work.
Additionally, integrated software has more different types of communication features, such as instant messaging, commenting, video conferencing, and more. When these are all in one platform, clients, employees, and other stakeholders can choose the one that works best for them. And this all benefits the clients: businesses report a 30% increase in client satisfaction with integrated systems due to faster service implementation and decision making.
Data-Driven Decision Making
Integrated software makes it so much easier to access data that going to data to make decisions becomes second nature for teams. Data-driven nonprofit tools like PlanStreet offer high-quality analytics features, giving teams insights into trends, patterns, and correlations to optimize outcomes for the families they serve.
KPIs (key performance indicators) can be critical for donors. They want to see that the money they're giving is boosting the community around them. Reporting and analytics make it easy to create powerful, easy-to-read reports that prove the value of your nonprofit on paper.
Enhanced Donor and Client Engagement
An integrated system helps you track preferences. When reaching out to a client, you can use personalized communication. The same is true for a donor--with a CRM system, you can keep track of personal preferences and communicate in the way that's most likely to get a response.
Additionally, case management tools in software like PlanStreet streamline service delivery. With robust, easy-to-read case boards, case managers can understand a case in seconds, following up with services, scheduling appointments, and making moves for their clients quickly.
Increased Scalability for Nonprofit Organizations
As nonprofits grow, they need more tools without disrupting existing work. Using integrated systems allows you to add more features without taking away from the work that's already there. Additionally, these systems are designed to be flexible. You can often pay only for the features that you need and add more later as your organization grows.
How Can Integrated Software Systems Improve Fundraising Efforts for Nonprofits?
Fundraising can be a significant hurdle for growth for nonprofits. For every 1,000 fundraising emails sent, nonprofits raised an average of $90. A robust, lengthy email list is key to gaining support from the community. Integrated software systems make it easier to keep in touch with donors via email. Sending emails via software keeps nonprofits top of mind, making it more likely for people to donate.
Additionally, case management software like PlanStreet can help you track funding once you receive it. Whether it's from a grant that you have to track by law or you simply want to track where the money goes from each donor, it can help you keep your finances straight, helping you maximize impact.
How to Approach Software Integration for Nonprofits
When your organization wants to implement a software integration, follow these steps:
- Assess your current systems: Make a list of the gaps and issues that you're having with your current software.
- Define integration goals: Choose a handful of objectives of KPIs for the software integration to achieve. Examples include increased productivity, better communication, and easier fundraising.
- Prioritize needs: Choose the systems that meet the integration goals defined.
- Choose compatible tools: If you have any current software systems you plan on keeping, make sure the new options integrate.
- Ask stakeholders for their opinion: Once you have a plan, ask other organizations, doctors, community members, etc., for their feedback.
- Plan for data migration: Plan for transferring data between systems to ensure success.
- Train staff on new tools: Schedule training days for staff to understand how to use the new system.
- Monitor performance: Use analytics tools to track how performance has improved since the software integration.
- Gather feedback: Ask employees through anonymous surveys to give their honest opinions.
- Improve the system: Tweak your software tools if the new options aren't working as expected.
Integrate Your Nonprofit Technology Solutions With Planstreet
Integrated nonprofit solutions are vital to limiting data silos and expanding reach. When building your nonprofit tech stack, consider PlanStreet's case management software. Our robust system integrates with other highly effective solutions, including:
- Stripe
- PayPal
- Google SSO and Office 365 SSO
- QuickBooks
- Elation Health
- MRI Housing Software
- Spillman Records Management
Schedule a live demo today to learn how PlanStreet's integrations can streamline your nonprofit operations and maximize impact.