Blackbaud vs. Commercial CRM

The sale of a product or service might require a relationship between buyer and seller, but that’s where the similarities between selling and fundraising end. Commercial CRMs are built for a linear sales workflow where prospects are managed through a funnel until a contract is signed and an item is exchanged through a transaction. Successful fundraising requires management of an intricate web of relationships and recognition of the many different roles a donor is likely to play with an organization, ranging from volunteer, to member, to event attendee, to parent of a scholar, to loved one of a patient, to alumna, and more. To manage this complexity, nonprofits using Commercial CRMs often need to heavily customize them to support fundraising, donor engagement, and reporting, which typically increases cost and risk.

Commercial CRMs may appear less expensive up front, thanks to discounted rates for nonprofits. However, most commercial CRMs require specialized implementation by third party service providers, and typically charge additional costs for customization, integrations, and data storage. Once all the costs to get started are totaled, commercial CRMs are often more expensive to start and have less predictable costs over time. , In contrast, nonprofit CRMs are typically, priced transparently with implementation services built-in, no variable storage fees, and fewer customizations and add-ons required.

Raiser’s Edge NXT is purpose-built for fundraising, with donor management, reporting, and engagement tools ready out of the box. Raiser’s Edge NXT also features built-in data intelligence, which provides unique insights about each constituent’s ability and likelihood to make a donation, enhancing a fundraising’s teams strategy and improving the odds that a potential donor will not just give, but give at her full potential. Raiser’s Edge NXT also ensures that donations are managed carefully, with designations honored and required receipting provided, which protects donor relationships and makes future support more likely. This unique combination of tools, data, and built-in workflows contribute to Raiser’s Edge NXT customers raising 44% more and experiencing a highly desirable return-on-investment.

While commercial CRMs may often offer attractive initial pricing, hidden costs can significantly impact the total cost of ownership (TCO) for organizations, especially nonprofits. These may include:

• Implementation and Consulting Fees: Consulting and partner services can be substantial, with examples of first-year total costs reaching around $35,000, including build-out and subscription fees. Consulting fees alone can reach six figures, adding to the overall expense
• Third-Party Add-Ons and Integrations: To achieve full functionality, many organizations find themselves needing multiple third-party applications or managed packages, which increases integration overhead and operational risk. This reliance on additional tools can drive up costs significantly
• Customization and Technical Debt: The level of customization often required for commercial CRMs can require addition of staff with programming skills and can lead to long-term technical debt. Organizations may need to hire expensive outside consultants to set up and maintain the system properly, further increasing costs
• Premium Support and Training: Organizations may find themselves needing to invest in additional resources for hands-on training and consultant expertise to get the most out of a commercial CRM, which are not included in the base pricing
• Ongoing Maintenance and Administration: The need for ongoing maintenance and administration can add to the total cost of ownership with a commercial CRM. Organizations often require dedicated IT or admin resources to manage the platform, which can increase operational overhead