Guest: Brian Larsen, Donor II
Host: Sean Bailey, Philanthropy-Journal

Sean Bailey:

Welcome to Nonprofit Web Talk. The following is a discussion I've had with this month's guest, Brian Larsen of Donor II Software. Brian has a lot of important things to say about how nonprofits can better use databases. Please read our discussion and then post your question. Brian will follow-up soon. Thanks.

Sean:

Brian, thanks for agreeing to be a guest. Here we go. What exactly is a database? Are there such things as databases that are not computer-related?

Brian Larsen:

Basically a database is an electronic "file cabinet" containing data that are somehow related. For example a donor database might contain the records for all donors for an organization. The purpose of a database is to provide you with the information necessary to manage development efforts efficiently and effectively. Databases are almost always computer-related. However in its simplest form an organization may have all its donor records maintained on index cards. This form of record keeping inherently presents problems when working with anything but a handful of donors and prospects.

Sean:

What information should a nonprofit begin to record from its beginning and how might this be used for a database?

Brian:

To begin with a nonprofit needs to have the names and addresses of all its donors and prospects so that correspondence may be facilitated for newsletters and other forms of solicitation. Group or constituency codes are then necessary to segment donors and prospects e.g. Individuals, Corporations, Foundations, Board and Volunteers. Information related to gifts made is also essential. The basic gift information consists of date and amount of the gift. Additionally you would want to record what the money was to be used for and why the gift was made i.e. a direct mail appeal or a memorial gift. Pledge information requires recording the pledge amount, frequency, payment amount and their due dates. Another useful but often overlooked piece of information is that of comments related to the donor or prospect. Often times this information is carried in the heads of current staff and is then no longer available once the staff leaves the organization.

Brian:

Once you have information in a database the organization may use the data to segment direct mail efforts for personal solicitations, pledge reminders and other stewardship activities. The organization is also positioned to develop reports and analysis of their fundraising efforts.

Sean:

What are common problems, mistakes or misperceptions that nonprofits have about using database technology to improve their work?

Brian:

I think that the most common mistake or misconception is that a computer system will raise money for the organization. The key to success in the use of technology is the establishment of a development plan first and then determine what technology is needed to implement the plan. Nonprofit organizations in the past have also underestimated the levels of ongoing training and education required to truly benefit from their initial investment in technology.

Sean:

Do I have to know a lot about computers to develop a database for my nonprofit?

Brian:

Not really. It is easy to find assistance from your MIS department, if you are fortunate enough to have one, or from a volunteer who has knowledge of computers. If the system being considered is a large one, you may wish to hire a consultant to assist you with the a needs determination and implementation. The most important thing is for the organization to have a plan for the cultivation and solicitation of donors and prospects. This requires a staff person who is responsible for fundraising and being involved from the beginning in designing a database.

Sean:

If someone on staff is going to be responsible for the database, what should the executive director have in mind regarding training for that person?

Brian:

Interestingly enough, I have found that training in computer languages and databases is not the best training. The best training is on the basics of the operating system of the computer, in most cases that would be MS Windows. Additional training in the areas of word-processing and spreadsheets is essential. Finally, the training provided by the vendor of the database.

Sean:

Is the database largely a fundraising tool or is it a general management tool for nonprofits?

Brian:

Though most databases are largely for fundraising, the information can be used by other departments of the nonprofit such as a volunteer coordinator or public relations officer. Essentially any staff person who is in contact with donors should consider using the database to ensure at least the information related to addresses is entered and maintained in one place. Accounting systems are logical extensions for most databases.

Sean:

Consider this scenario: I'm a small nonprofit organization and we just got our first computer. We have a list of supporters from over the years and we have developed, by hand, a written mailing list of people who receive our quarterly newsletter. What should I do with the computer?

Brian:

The first thing I would recommend doing is to purchase word-processing software. Then enter the names and addresses into its' data table or address book. Once you have the names entered they may be used for personalized mailings and labels for newsletters. As your needs grow you may purchase an off the shelf database package and develop additional capabilities. If your fundraising needs are larger or more comprehensive you should look at software that has been designed specifically for tracking donors and prospects. These systems are more expensive but are designed for the needs of a professional development program.

Sean:

What software applications should I become familiar with first?

Brian:

The first software application I would recommend to learn is your word processor. With this tool you will be able to communicate easily with staff and your donors and prospects. The basic concepts learned are easily transferred to other applications.

Sean:

In your view, as an organization grows, what are the benchmarks where it needs to consider database issues?

Brian:

The first one is when a full time development person is hired. In order for that person to be successful, they need the right tools for the job. If there are plans to segment mailings and target solicitations by past giving, then a basic mailing list program will probably not be adequate . When your list of donors starts to approach one to two thousand or the dollars raised approaches $100,000 or more, your needs will be getting larger. If a capital campaign is in the future or you have plans to offer donors the opportunity to pledge donations over a period of time, you should consider reevaluating your current database requirements.

Sean:

From the other end of the spectrum, what can a full-fledged database system do for a large nonprofit that has many supporters?

Brian:

The most important thing a full-fledged database system can provide is its ability to handle all aspects of a fundraising program. Acquisition of donors, upgrading and renewing of existing donors, special event tracking, prospect research, major gift programs, honor/memorial processing, and planned gifts are some of the areas a comprehensive system will enable you to track. The system will provide for an analysis of fundraising activities which allows an organization to determine how to be efficient with its resources. Finally, a full-fledged system will help position a nonprofit for where it plans on being five years from now.

Sean:

Okay, Brian. Thanks. Let's throw it open to our visitors. If you have a question, post it now. When answers are ready, you can return to this room and then follow a link Answer Room to view Brian's comments.

Bonnie Worth:

Dear Brian, My name is Bonnie Worth, Director of Bristol Township Senior Center in Bristol, PA. I am currently using Microsoft Office Professional 4.3 with the Microsoft Access Database. We are in the process of upgrading to Office 97, Professional edition. I have been using the package for membership, donor and special event needs. I find it easy to use. There are a wealth of inexpensive multimedia tutorials available from beginner to advanced, and lots of free/low-cost support add-ons available . But, I am also considering adding a comprehensive fundraising package. My hesitance in doing this is a lack of knowledge of these programs. I have heard of many names of programs, but have never tested any. Here are my concerns: 1. I am the only full-time employee with the program. Although we have close to 100 dedicated volunteers, most are not computer literate. (We are taking steps to remedy this by creating a Technology Learning Center for Seniors). 2. For the volunteers that are computer literate, I can use inexpensive Multimedia software tutorials to teach them about the database and how it is used with merges, etc. If we add a comprehensive fundraising package, training costs could be very expensive. 3. I also understand that good fundraising software is very expensive, without even taking training into account. Would the improvements be that substantial over Access used within Office 97?, or would it be better to expand on my current Access Databases? 4. Are the fundraising software packages more targeted to larger nonprofits (such as universities and national organizations)? As a smaller nonprofit (with mixed business and social service demands for efficiency), is there an affordable fundraising package that will meet our needs and that is relatively easy to learn, with excellent support products available? In one other question, I have not begun to delve into the full relational capabilities of Access? How would these capabilities make our data more powerful? Thank you for sharing your expertise in your interview. I found the information you gave to be very valuable. And thank you for considering my dilemna. Bonnie Worth wsworth@philly.infi.net

Jamie Kozma:

My name is Jamie Kozma and I am Special Projects Manager for a Planned Parenthood Affiliate. We have had a fundraising database for years and data entry has not always been consistent. The database has many multiple entries for the same people and thousands of old/erroneous entries. The database desperately needs cleaned out--where should we start?

Mark E. Speltz:

Hello. I am a Development Assistant at the Smithsonian Institution. Our division, SITES, is currently going through a period of growth and are capabilities are expanding. We would like EDT

Barb Ferris:

to get a database that is handy for special events and donor information. What systems do you recommend and/or what companies should I look into? Thank you very much for your help.

Mark E. Speltz speltma@scan.si.edu

I am president of a non-profit that facilitates a lot of training workshops. I would like to put the training manuals on CD with an accompanying users guide and sell them to NGOs around the world. Where do I look for a company that will help me publish a CD. Thanks for your help.

Dan:

Do you know the name and addresses of databases that are compatible with Macintosh?

Hilary House:

I am the executive director of a network of community centers that is being funded by our county government until the end of 1998. After that, we will have our charitable status and will be fund raising. Our current budget is at 121,000 a year and will obviously grow. What database recommendations do you have for a non-profit at this stage of the game?

Allen Hancock:

We've been using Filemaker Pro on the Macintosh for several years. We're in the process of creating new layouts to track when we sent each member various pieces of literature. I'm not a database designer, but I think with a little help I can create layouts that will work for us. Do you know of any nonprofit support organiations or internet discussion groups that would help with specific questions I have about our database?

Jeanne McKeithen:

Our office is considering using Windows Office 97 for our development database. What do you think of this for approximately a 30,000 name database? Is it user friendly? Capable of tracking and linking donors? I liked DonorPerfect but we can't afford it at this time.

Rosie Melia:

Brian, I am the general manager of a non-profit performing arts organization. Our current database holds approximately 10,000 records -- names and addresses of donors, ticket holders, board members, etc., as well as mailing lists we send our season brochure to. The database is about 6 years old, and was custom designed to meet our needs years ago. Its use is limited and I need advise on where to go from here. How do I find information on database software specifically designed for fundraising? What are the advantages of using that type of software vs. Microsoft Access? Thanks for any advise you can give me.

Sheila Walker:

I represent a coalition of health, education and social service agencies that want to create a resource directory (or data base of available LOCAL services on the Internet to better serve families and children. I know this is a very general desciption, but I am wondering if you know of any commuities have created a really comprehensive service like this? Our borough (as we are defining our community) is about the size of West Virgina. Perhaps you have visited Palmer or Wasilla Alaska. Can you provide any ideas for where I can look for models? Any help is greatly appreciated. Thank you Sheila Walker Community Resource Coordinator Mat-Su Agency Partnership

Sheila Walker:

Sorry for being so web chat illiterate, but there is no "answer room" to click on at the bottom of my screen to view Brian's answers. How do I view the answers? Thanks.

Sean Bailey:

Hi. Okay, Brian's first round of answers our now available in the Answer Room. The others will come later this week. Thanks for visiting Nonprofit Web Talk.

Sean Bailey:

Hi. Okay, Brian's first round of answers our now available in the Answer Room. The others will come later this week. Thanks for visiting Nonprofit Web Talk.

Brian:

Does anyone know of organizations that donate gifts of computers and equipment for a non-profit?

Esther Sharon:

Hi Brian! Re: Also Access Remember me? 'was Esther Kaplan at YIVO, the one who gave you such pains - but I taught them how powerful Donor II and how to use (nearly) all its features. Now I'm back home in Israel & my old name is back, too. Still in "development" more than ever at Soroka Medical Center of the Negev. Have you and the guys put out your Donor II Windows version yet? Here I am, establishing the Development Office for this huge hospital in Israel, and guess what: no data base. It's making me ill, Brian. Lists are flying, it's unwieldy. I can't get my Donor II. What do you think about my designing Access according to what I remember from Donor II? 'Cause that's what I'm doing. I know I will NOT be able to get customized data base nor do I want to experiment with customized d.b.'s for fund raising in Israel, tho I'm sure they're out there. Actually, what I've found is that many/most companies and organizations have inside geeks who customize build baby data bases with whatever systems they're in, no matter how old. I think everyone's customized to the cazoo and I want to avoid that. I really want to know what you think of Access and also Act,which was recommended to me. I do know that Access can do everything I want, because I had had a corresponding office to mine in the US that I "made" use Access so that I was able to receive from them ALL the reports on lists, events, pledges etc. from them in just the way I wanted injust the time I wanted. Can't wait to hear from you. Give my special regards and love to Camille who is an extremely lovely genius.

Esther:

By the way, Brian, I do have at my service an entire computer department (I call it the Geek department and Imean that in a good way, honest). There is a person assigined to desiging Access according to my specs. Still, I want to know what you think, 'cause they're making it sound complicated and I just don't think it's that complicated. Thanks.

Sean Bailey:

Okay, that does it for this session. Nonprofit Web Talk is now closed. Many thanks to Brian Larsen of Donor II Software. A transcript covering our interview and the Q&A; will be available soon. Watch Philanthropy Journal Alert for news about our next program. Thanks for participating.

Thanks for attending. Please post all your questions and comments in this room. You may view the answers to your questions in the program transcript unfolding in the Answer Room. Click on Answer Room below to get there.

Part Two