thedatabank is always striving to help nonprofits achieve their mission through technology, so when we heard that Software Advice, a resource for potential software buyers, recently conducted a study on which factors influence nonprofits’ software buying decisions, we were excited to hear and share their findings.

Software Advice analyzed the interactions of over 2,000 nonprofit buyers (the majority from organizations with under 10 employees and an operating budget under $1 million), half of which were currently using manual methods to track donations and constituents. Here were their key findings:

  • The top reason (51%) that nonprofits look for new/different software is to increase overall efficiency. The next most common reason (15%) is needing more robust features.
  • Half of all buyers had no preference on web-based vs. on-premise software, but of those who did, 96% preferred web-based.
  • The most requested application among buyers was fundraising/donation management, followed by CRM.

Software Advice also spoke with Dave Forrester, a nonprofit technology consultant at 501 Commons, to get his take on the nonprofit technology market. In his experience working with nonprofits, he has found that although many nonprofits (especially small ones) are still using manual methods to manage and communicate with their constituents, they are experiencing inefficiency with their current methods and are looking to improve, often by investing in technology.

Do Software Advice’s findings ring true for you? What were the most important criteria when shopping for software for your organization?

View the entire Nonprofit Software BuyerView 2014