Like other organizations, nonprofits try to cut costs and save money, but doing so without compromising operational efficiency and output quality is easier said than done. Investing in fundraising software to automate gift processing and other key steps in your operations is an effective strategy for achieving this goal.
How can fundraising software lower costs for your nonprofit?
Much has been written about how paperless solutions — a category that includes fundraising software — help companies reduce their expenses by decreasing their dependence on paper. However, the money-saving benefits of gift processing automation do not end there.
1. Accomplish more with your existing team
The number and value of gifts nonprofits receive and process vary according to the time of the year. December is an especially busy month, with the greatest volume of donations coming in as the year draws to a close. Having to process gifts within such a short period while tackling crucial end-of-the-year tasks and reports can leave even the best teams swamped. You may even have to hire temporary employees to help manage the extra workload.
Fundraising software eliminates time-consuming and arduous tasks, such as manual data entry, by extracting data straight from gifts, invoices, and other documents. It also automates data validation and storage, allowing your team to process gifts with fewer keystrokes and in less time. As a result, your employees are not strained and you don’t have to recruit temporary staff.
2. Nurture relationships with long-term donors
Repeat donors are likely to donate more than first-time ones, so it pays to establish a lasting relationship with them. Even something as simple as sending them prompt and personalized thank-you notes can make them feel appreciated and more eager to support your organization in the future. You can do this easily and cheaply with fundraising software.
In addition, gift processing automation solutions sync seamlessly with most electronic payment platforms. This means donors can conveniently send their gifts without having to step out of their office or house. You can even make it easier for them to support your cause by setting them up for monthly donations.
It’s much more cost-efficient to keep loyal customers than to attract new ones. By making gift-giving convenient and rewarding for repeat donors, you not only save money but also drive up your nonprofit’s revenue.
3. Reduce guesswork in your campaigns
Launching donation drives cost a lot of money, so focusing on campaign strategies that elicit a positive response from donors is a must. Fundraising software lets you track the volume and amount of gifts you receive following each campaign. This gives you an idea of which approach works and prevents you from wasting time and money on one that’s doomed to get a lukewarm or negative reaction.
4. Lower the risk of errors
Manual data entry is so repetitive, exhausting, and boring that workers easily become distracted and likely to commit mistakes. Erroneous data entries are costly — your organization wastes time and money on labor costs just to correct them — but they are perfectly avoidable.
As mentioned above, fundraising software eliminates the need for data entry by automating data capture. PaperSave, for instance, lets you extract data from a photo of an invoice taken using your smartphone’s camera. All you have to do is install the mobile app on your device. PaperSave’s OCR Engine can recognize and learn different document formats, so capturing data from various gifts and invoices isn’t an issue.
5. Prevent fraud
Trust is a crucial requirement for any nonprofit’s survival and success, so being involved in fraud can be devastating to your organization. Not only will you be subject to steep penalties, but you’ll likely lose revenue as your donors seek other nonprofits they deem to be trustworthy.
A gift processing automation solution can grant you unmatched visibility over every transaction. It creates a digital paper trail that makes it easy to trace where monies come from and where they go, making them unlikely to end up in the wrong hands.
PaperSave is a best-in-class gift processing automation solution that enables nonprofits to save money by streamlining and securing their operations. Learn more by scheduling a free personalized demo today.