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The Advancement Office of 2015

Most of the hundreds of institutions we work with utilize one or two core systems to manage advancement operations and communications. Over the last couple of decades, vendors have built broad platforms that offer a “comprehensive suite of solutions.” They might be represented visually like this:

Traditional Fundraising Systems

It’s likely that you use the same system to send emails, create events, build online communities, track donor interactions, conduct prospect research, accept gifts, and complete core fundraising operations.

 

The Comprehensive Approach vs. the Integrated Approach

The tradeoff with the comprehensive approach is that you lose the ability to offer your coworkers and constituents access to best-in-class solutions.

For example, many of our customers have expressed a desire to use Eventbrite for event management. We think that makes a lot of sense. But because many legacy databases don’t have strong application programming interfaces (APIs), it’s a challenge to use a system like Eventbrite without significant manual work.

Similarly, many advancement professionals have shown interest in HubSpot‘s inbound marketing software to better understand how constituents are engaging with their content. Others have expressed an interest in replacing clunky donation forms with clean, streamlined PayPal giving forms. And some Blackbaud customers have specifically asked for the company to “make the e-mail editor more like MailChimp.”

But is that the right request to make? Should you really be asking for your vendors to replicate best-in-class services? There are over 100 employees at MailChimp who focus almost exclusively on building an intuitive, affordable category-leading email platform. How can your advancement vendor compete with that?

In the for-profit world, comprehensive CRM and ERP systems have been replaced by integrated, industry-leading point solutions. For example, it’s common for a business to use Salesforce as its CRM, MailChimp for email marketing, and Eventbrite for event management.

 

Why is the integrated approach so rare in the nonprofit world?

As more of you and your peers continue to “think outside your database,” we predict legacy systems will either take a more open approach in the future or lower-cost, higher quality solutions will slowly chip away at them. APIs are enabling companies like ours to integrate a variety of data sources.

There is no reason you shouldn’t be able to segment your audience and accept gifts, send emails, or create events through whichever platform you choose.

There is no reason that the integrated advancement office of the future can’t look something like the image below.

What do you think? Would you be interested in a suite of best-in-class platforms? Or am I underestimating the benefits of having a comprehensive system?

Endowment Spending & Growth Calculator

Enter your fund's current value and adjust the return, spending, and inflation sliders to see how its value in today's dollars changes over time.

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6.0%
0%12%
4.0%
2%7%
3.0%
0%8%
10
5 yrs25 yrs

Value in 10 years

$0

In today's dollars

$0

4. Continue to Steward Donors

Your relationship with the donors who give to your endowment doesn’t end when you secure their gifts. Because your endowment exists to make a difference in the long term, your supporters will want you to keep in touch about its progress. Ongoing stewardship means keeping donors updated about your endowment’s performance and impact. A report that strengthens your relationship with donors should cover:
  • The fund’s balance at the start and end of the year
  • Spending amounts and allocations
  • How the fund’s returns compare to your investment targets
  • A short narrative detailing the specific impacts the endowment achieved
Create a report for each endowment rather than sending an identical document to everyone. A donor who endowed a scholarship wants to hear about the students it supported, while a donor who endowed a building fund wants updates on construction projects.

5. Upgrade Your Endowment Management Tools

Your endowment management tools should make applying your spending policy across every fund easy. Investing in dedicated software is especially useful as your endowment grows. Handling unitization in spreadsheets might work for a few funds, but as you begin to manage dozens or hundreds of gifts, dedicated software can save your team time spent manually calculating gains and losses for each one.

Why Nonprofits Need Dedicated Endowment Management Software

Dedicated endowment software brings accuracy and consistency to every part of the management process, from tracking individual funds to improving security. See how these solutions compare to a spreadsheet-based approach: nfographic table outlining the information below.

How These Methods Compare:

In managing your endowment with traditional spreadsheets, you may see:
  • High administrative burden: Manual entry across disconnected systems
  • Limited security and audit footprints: Reduced version control and audit trail visibility
  • Difficulty with donor transparency: Spreadsheets provide only static data that is difficult to turn into custom results.
By using dedicated software, you are likely to find the following improvements:
  • Lower administrative burden: Automated fund tracking and calculated allocations
  • Enhanced security and audit footprint: Audit-ready reconciliation with clear tracking
  • Greater donor transparency: Connects with reporting platforms
Dedicated endowment management software keeps your organization compliant while freeing up the time your team once spent manually managing spreadsheets.

Secure Your Endowment with Balance by EverTrue

Effective endowment management begins with excellent accounting. Balance by EverTrue handles unitization, applies spending rules, and produces audit-ready reports, so your team can spend more time on the donor relationships that built the fund in the first place.
  • Turn your data into a clear picture of long-term impact. Combine accurate fund accounting with donor reporting that showcases impact.
  • Connect with the tools you already use. Pair Balance with Impact by EverTrue and ODDER by EverTrue to create and deliver compelling digital endowment reports that you can send to donors with ease.
  • Know where every fund stands in real time. Check market values, gift history, and available spending for any fund. Then, share view-only versions with your team, so everyone stays informed.
With Balance, your team can stop spending all your time on manual management and instead add balance to your endowment workflow.

Additional Resources

To learn more about managing your endowment and other ways that technology can help your organization, check out these additional resources: Less stress, higher endowment funds. Discover how Balance provides the organization, security, and accuracy your endowment needs. Request a demo.
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