First, decide what you are looking for. It is hard to comparison shop until you know what you are looking for. Start by identifying the key features that you are seeking in a new database. Include both what is missing from your current system as well as what it does well. For instance, is the new database primarily going to support any particular type of fundraising, such as membership, major gifts, special events or capital campaign management? Does it need to support special events, prospect research or moves management?
You also need to be specific about any special features or interfaces you need, such as a Web front end, support for Macintoshes or the ability to record gifts in multiple currencies. The sophistication of the software should support the sophistication of your fundraising operations, but must also fit within your budget and staff resources.
Next, decide what matters most. Now that you have documented your requirements, you need to decide which are mandatory. If a vendor cannot meet your mandatory requirements, you should not look at their system - even if it is free. Next, prioritize the 'nice to have' features. Since every system you look at will have to meet your mandatory requirements, the nice-to-haves might be the deciding factors.
Involve stakeholders in the decision. If you get buy-in during the selection process, staff members will be likely to support you during the implementation. This will be critical when the conversion encounters the snags that are inevitable in such a complex project. This is not to say that software selection is a consensus decision. But stakeholders need to understand how the system was selected and that their interests were taken into account. If you do not get buy-in from the start, all subsequent decisions are likely to be questioned.
Set up software demonstrations so you can compare 'apples to apples.' In a 'scripted demo,' all vendors are asked to demonstrate the same scenarios in addition to providing an overview of the system. For instance, they might show you how to enter a variety of gifts that match different situations you encounter (hard and soft credits, matching gifts, multi-year pledges, crediting gifts toward campaign priorities, and so on).
Vendors will need to show that they can meet your mandatory requirements as well as the top nice-to-haves. One caveat: your ability to get this level of detail will depend upon which vendors are bidding. Some vendors will do extended on-site demos; others only do web-based demos.
Make sure you understand all the costs. The price of the software is just one piece, and often the smallest part, of the 'total cost of ownership.' You might need to upgrade your server, desktop computers or network. You might need consulting help to implement the software, develop special interfaces or write custom reports. You might need to invest in additional training or add technical support personnel. Some of these will be one-time capital expenses, but many will become ongoing operating costs.
Do your homework. Check references, try to visit organizations that are using the software and ask lots of questions. Look for comparable organizations with similar fundraising operations. The questions to ask include: How long did it take them to 'go live' on the software? Were they happy with the vendor's support during the conversion? What would they do differently if they had it to do over? This is where you test whether your impressions of each product match reality.
On the other hand, it is important to distinguish software and vendor problems from problems caused by the client. The organization might have implemented the software incorrectly, failed to offer adequate training or support or have purchased the wrong software to begin with.
Remember, there is no perfect database. But there might be one that is perfect for you.
Robert Weiner, President of Robert L. Weiner Consulting, is an independent technology consultant based in San Francisco. He specializes in helping nonprofits make informed, strategic decisions about the selection, use, and management of information technology. He has consulted for a wide variety of organizations including the Susan G. Komen Breast Cancer Foundation, Earthjustice, EMILY's List, the California Hospice Foundation, Mothers Against Drunk Driving, the Trust for Public Land, UC Berkeley, Yerba Buena Center for the Arts, Pomona College, the San Francisco AIDS Foundation, Reed College, the Natural History Museum of Los Angeles County, the American Red Cross of the Bay Area, and the San Francisco Ballet. Contact him at robert@rlweiner.com.