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Nonprofit Donor CRM

A guide to running your donor relationships like a major-shop pro — even with a team of one.

Contents

Why a donor CRM matters

Most small nonprofits track donors in a spreadsheet that ages out the moment a key staff member or board member leaves. The institutional memory walks out the door — who attended the gala, who pledged five years and is now in year three, who asked about planned giving, why a foundation gave restricted to one program — and it's expensive to rebuild.

A donor CRM is the boring infrastructure that protects all of that. It's not glamorous, but it is the single highest-ROI operational investment a small shop can make. Donor retention rates for the sector hover around 45% — meaning more than half of your donors will not give again next year. The organizations that beat that number do one thing consistently: they remember.

The cardinal rule: Every meaningful interaction gets logged. Not the spam emails — the real conversations. If a board member runs into a donor at the grocery store and learns their daughter just graduated, that goes in here. That's how you build a relationship.

Getting started: first 30 minutes

  1. Set your org info in Settings (EIN, mailing address, signatory) — this is used in every acknowledgment letter.
  2. Import or hand-enter your top 25 donors first. Use the directory's "Add Donor" button. Don't try to migrate everyone at once.
  3. Tag them as you go. Major Donor, Board Member, Monthly Donor — the segmentation tags drive reports and appeal targeting later.
  4. Define your current appeals (the campaigns you're actively running). Each gift is tagged to an appeal; this is what lets you measure campaign performance.
  5. Log this year's gifts from each donor. The gift history is what drives LYBUNT, retention, and tier breakdowns.
  6. Start a stewardship plan for the top 5 donors. Use the "+ Seed standard 7-touch plan" button to get a template.
Keep going. Add 5 donors a day until your full file is in. You'll thank yourself in six months.

Field dictionary

Donor record

FieldWhat it means
Donor TypeIndividual, Couple/Family, Foundation, Corporate, Donor-Advised Fund, Estate/Bequest. Drives reporting cuts.
Pipeline StageIdentification → Qualification → Cultivation → Solicitation → Stewardship → (Paused). Only set this for major donor prospects you're actively managing.
TagsMulti-select segments. You can tag the same donor "Major Donor" and "Board Member" and "Volunteer".
Do Not Solicit (DNS)Honor every DNS flag. Excluded from solicitation lists.
Spouse / PartnerCritical for joint households — affects salutations and recognition.
InterestsFree-text. What programs do they care about? What conversations have you had?

Gift record

FieldWhat it means
DesignationUnrestricted is best. "Restricted - [purpose]" obligates you to spend that money on that purpose. Track carefully.
MethodCheck, Credit Card, Stock, DAF, IRA QCD, etc. Stock and QCD gifts have unique tax handling.
AppealWhich campaign this gift was credited to. Tag every gift; it's how you measure appeal performance.
AcknowledgedMark true once a thank-you letter has gone out. Required for IRS substantiation on gifts $250+.

Pledge vs. Recurring Gift — what's the difference?

PledgeRecurring Gift
A signed commitment to give a defined total over a fixed timeframe (e.g. $50K over 5 years). Multi-installment major gifts and capital campaign commitments live here.An open-ended monthly/quarterly/annual auto-renewing gift (the "sustainer" or "monthly donor" model). Often $10–$100/month with no end date.

Recommended weekly workflow

  1. Monday — Gift log. Enter all gifts received last week. Mark which need acknowledgment.
  2. Monday — Thank-you letters. Go to Tax Acknowledgments. Generate .docx letters for every unacked gift. Mail same day.
  3. Tuesday — Communications. Log any meaningful donor conversations from the week (calls, lunches, emails, hallway chats).
  4. Wednesday — Stewardship review. Look at upcoming touchpoints in the dashboard. Make the calls and write the notes today.
  5. Thursday — Pipeline review. Spend 30 minutes on the kanban board. Who's ready to move to the next stage? Who's stuck?
  6. Friday — Follow-ups. Check "Follow-ups due" on the dashboard. Clear or reschedule each one.
If you do nothing else, do Monday. Acknowledging gifts within a week is the single biggest retention lever in fundraising research.

Major donor pipeline — moves management

The pipeline (kanban) is for prospects you're actively managing toward a major gift ask. It is not for every donor in your file. A donor only belongs here if you (or someone on your team) is making moves to deepen the relationship toward a specific solicitation.

The six stages

StageGoalTypical duration
IdentificationConfirm this prospect has both capacity and connection to your mission.1–3 months
QualificationCapacity and interest confirmed. They've responded to outreach.1–3 months
CultivationBuilding the relationship via meaningful, substantive touchpoints.6–18 months
SolicitationThe ask is being prepared or has been made. Awaiting decision.1–3 months
StewardshipGift received. Now building toward the next gift.Ongoing
PausedStepped back temporarily (e.g. donor going through a life event). Re-engage later.Variable
The 1-2-3 rule: Most experienced fundraisers say it takes 1 great meeting, 2 substantive follow-ups, and 3 months minimum from Qualification to a successful Solicitation. Don't rush.

Stewardship plans & the 7-touchpoint rule

Best practice for any donor giving $1,000+ annually: a formal stewardship plan with at least seven non-solicitation touchpoints per year. The goal is to make the donor feel like a partner, not an ATM.

A balanced 7-touch plan

Use the "Seed standard 7-touch plan" button on a new stewardship plan to generate the template, then customize dates and notes.

Tax acknowledgments & IRS compliance

The IRS requires a "contemporaneous written acknowledgment" for any single contribution of $250 or more. Best practice is to thank every gift, regardless of size.

Required elements (IRS Pub 1771)

The Tax Acknowledgments page generates compliant letters from your boilerplate. You can preview as HTML or download a Word .docx for mail merge. The bulk action generates all pending acknowledgments in one document.

Quid pro quo gifts (gala tickets, auction items, etc.): If you provided goods/services in exchange for the gift, you MUST disclose the fair market value of those goods/services. The deductible portion is the gift amount MINUS the FMV. Update the boilerplate accordingly for gala-type appeals.

Reports: LYBUNT, SYBUNT, retention

LYBUNT — Last Year But Unfortunately Not This year

Donors who gave in the prior year but haven't yet given in the current year. These are your single highest-value reactivation targets. They already know you, gave at least once, and just need a reason to come back. Most can be saved with a personal call from the ED or board chair.

SYBUNT — Some Year But Unfortunately Not This year

Donors who gave in earlier years but neither last year nor this year. Lower hit rate than LYBUNT but still worth a targeted Q1 reactivation campaign each year.

Retention rate

The percentage of last year's donors who gave again this year. Industry benchmark for small organizations is around 45%. Above 60% is excellent. Below 30% means something is broken in your stewardship.

Form 990 Schedule B

Donors over $5,000 in a given year typically must be disclosed (with redacted names for public copies) on Schedule B of Form 990. The Reports page surfaces this list automatically based on YTD giving.

How this connects to your other Build Your Club Academy apps

The Donor CRM is one part of a connected suite. Use these other apps in tandem:

Free vs. Pro

FeatureFreePro
Donor directoryUnlimitedUnlimited
Gift logging & pledgesUnlimitedUnlimited
Tax acknowledgment lettersUnlimitedUnlimited
Reports & annual report builder
Team members3Unlimited
Team analytics & activity log

Privacy & data handling

All donor data lives in your browser's local storage on this device. It is not synced to any server. If you sign in to the same demo on another device, you will see a fresh empty state.

This is a demo. For production donor data with real PII (names, addresses, gift amounts), you'll want a tool that supports cloud sync, encrypted backup, role-based permissions, and audit logging — Bloomerang, Little Green Light, Network for Good, and DonorPerfect are common small-shop choices.

Honor donor preferences strictly: DNS flags must be respected, anonymous donors must be marked anonymous in any external listing, and gift records should be retained for at least 7 years per IRS guidance.

Build Your Club Academy · Donor CRM Guide
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