Software Advice speaks to thousands of nonprofit software buyers each year. We recently analyzed 2,313 interactions with nonprofits evaluating new software that occurred between January 1 and December 31, 2013. Here are the most important findings. 1. Most buyers (51 percent) are evaluating nonprofit software to improve efficiency. 2. Among buyers with a preference, the majority (96 percent) prefer Web-based systems. 3. Fundraising and donor management is the most requested application by buyers.

1. Nonprofit Software
BuyerView Report | 2014
Insight into today’s software buyer

2. In 2013, we talked to a number of nonprofit organizations considering a software
purchase. We analyzed 2,313 of those interactions to find out what criteria
nonprofits use to evaluate software. Here are our key findings:
• Fifty-one percent of nonprofits are considering a software purchase to improve
the efficiency of organizational processes.
• A significant majority of buyers (96 percent) preferred Web-based systems.
• Fundraising and donor management were the most frequently requested
applications.
Abstract

3. Most Buyers Want to Improve Efficiency
Most buyers evaluating nonprofit software want to purchase applications that
improve their workflow efficiency.
4%4%
5%
7%
5%
10%
15%
51%
Improve efficiency
More features
Better integration
Unhappy with system
Time to upgrade
Company growth
Reduce costs
Other

4. Many Buyers Use Manual Processes
Nearly half of nonprofit buyers currently rely on manual methods, such as
spreadsheets and paper and pen, to manage organizational processes.
10%
2%
16%
23%
49%
Manual methods
Nonprofit software
Accounting software
Custom-built solution
No system

5. Web-based Applications are Preferred to On-Premise
Many buyers have no deployment model preference. Of those who do, however, a
significant majority (96 percent) desire Web-based solutions.
49%
2%
49%
Cloud-based
On-premise
No preference

6. Buyers Show No Strong Preference for Integration Model
Buyers were closely divided on integration requirements, but best-of-breed
applications were preferred slightly more often than integrated software suites.
48%
52%
Best-of-breed
Integrated suite

7. Buyers Request Fundraising Management Most Often
Over three-fourths of buyers requested to evaluate fundraising and donor
management (52 percent) or CRM (24 percent) solutions.
1%7%
7%
9%
24%
52%
Fundraising management
Nonprofit CRM
Marketing & outreach
Fund accounting
Charity & event planning
Company growth

8. Most Companies In Sample Are Small Organizations
Fifty-six percent of buyers included in our analysis were small, with fewer than 10
employees. Only 9 percent had 51 or more employees.
1%4%
4%
11%
16%
21%
34%
10%
1 employee
2 to 5 employees
6 to 10 employees
11 to 20 employees
21 to 50 employees
51 to 100 employees
101 to 500 employees
Over 500 employees

9. Most Buyers Report Less Than $5 Million in Annual
Ninety-one percent of nonprofit software buyers included in our analysis reported
an annual revenue of less than $5 million.
1%7%
22%
69%
Less than $1 million
$1-5 million
$6-25 million
$26-50 million
$51-100 million
Over $100 million

10. Human services
Faith-based
Arts & cultural
Education
Healthcare
Environmental
Philanthropic
Associations
Animal welfare
International
Other
0 25 50
Human Services Is the Most Active Buyer Segment
Percentage of buyers
Thirty-seven percent of buyers work in the human services sector. Faith-based and
arts & cultural were the next most active at 15 and 13 percent, respectively.

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