Do nonprofits see donor management software as helpful for fundraising?

For nonprofits that raise money from individual donors, it’s essential to have a system that tracks and acknowledges those gifts. Many organizations invest in purpose-built donor management software (DMS). Used well, DMS helps fundraisers determine which fundraising tactics are most effective for different groups or individuals so they can tailor their approaches.

A DMS is a sizable ongoing expense. A recent market scan for a midsize organization found license fees in the $5,000-30,000 per year range, plus substantial upfront costs for configuration and data migration. So, is the benefit of a DMS worth the cost?

In conducting a biannual DMS use and satisfaction survey, which examines the DMS market and what drives nonprofits’ purchase decisions, I’m seeing an intriguing data trend: Donor management software loyalty is high, but perception of effectiveness is tepid.

Fundraisers express strong loyalty to current donor management software

With about 200 responses so far, mostly from development staff and leaders, we’re seeing that:

• Customers are generally happy with their DMS. Respondents express fairly strong satisfaction with their DMS, averaging above 6 on a scale of 1 to 10. When asked “How likely are you to recommend this product or service to a friend or colleague?” around two thirds chose 7 or higher on a scale of 1 to 10.
• Fewer switched providers at their last decision point. More than half of the most recent DMS purchase decisions were to renew with the current provider. Only one in five of those who renewed with the current provider actively considered switching to a different product.
• After implementing new products, almost three-quarters indicated they would be somewhat or very likely to make the same purchase decision today, given their recent implementation experience, product performance, and provider relationship.

Together, these data points suggest a high level of satisfaction with and loyalty to organizations’ current DMS. This is true across products and organization size.

Perceptions of whether donor management software helped them raise money is mixed

One might assume that high satisfaction and loyalty would correspond to a high level of perceived efficacy of the software. Yet, when asked, “To what extent has your Donor Management System impacted your fundraising success?” only a little over half said it helped.

Reconciling this apparent conflict: 2 theories

To understand this apparent disconnect between fairly high satisfaction ratings and lower perception of fundraising efficacy, I spoke with several fundraising consultants and four of the DMS market leaders. Two theories emerged:

Theory A: Fundraisers see DMS as a repository, not a fundraising tool. Respondents don’t really expect their DMS to drive fundraising success. They see it simply as a place to store donor data and as a productivity tool. The study data suggests that when they do switch products, it’s often motivated by general ease of use and maintaining donor information, not usefulness for fundraising.

Theory B: They don’t have staff capacity to leverage the DMS’s potential. Respondents imagine a future when they will finally transcend burnout and have time to learn the software, work on their fundraising strategy, clean their data, and optimize their processes. They recognize their current DMS has the right capabilities to support that; the staff just haven’t arrived yet at the place where it will help them raise money. Data from 2026 and 2024 indicates that full implementation is a heavy lift. Respondents renewed to avoid the disruption of switching to a new product. The most often cited barrier to purchase is staff capacity to implement.

Getting more value from DMS investments

But there must be something we can do if we are unwilling to accept that donor management software will merely “somewhat help” us raise money. To use the software’s features to their full potential and secure a strong return on investment, nonprofits should:

1. Make a plan: Develop a fundraising strategy and tactics.
2. Pick the right tool: Select software that’s a good fit for their needs.
3. Get everyone using it: Tend to change management and user adoption.
4. Fully deploy the tool: Put the software’s full fundraising capabilities to use.

The place to start is reframing donor management software’s purpose and expecting it to drive results. Then, invest beyond the software license. When organizations invest in software knowledge, skills, fundraising strategy, and process improvement, they get more out of the software—and closer to a state in which most nonprofits say their DMS is substantially helping them raise money.

How nonprofits can contribute to the survey

The 2026 donor management software use and satisfaction survey is currently open, and its authors are gathering additional data to confirm these trends and perform deeper analysis. The free report on findings of interest to users and buyers of donor management software will be available later this year via Karen Graham Consulting, NTEN, and Consultants for Good.

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