Despite 63% of donors preferring to give online using credit or debit cards (Double the Donation, 2024), digital fundraising remains an elusive challenge for nonprofits of all sizes. According to a 2025 Nonprofit Fundraising Study, only 19% of nonprofits raised more than half of their revenue digitally, while 11% raised nothing online at all (NonProfit PRO, 2025).
This discrepancy between donor preferences and nonprofit outcomes calls into question whether the tools themselves are the issue, if organizations' digital fundraising strategy is misaligned to the software they've adopted, or if they simply have yet to fully leverage the functionality these platforms offer.
While some CRMs include fundraising features such as online donation pages, event management tools, and peer-to-peer campaign options, these features are often third-party applications integrated to provide more dynamic or robust solutions to fully support nonprofit fundraising goals. The same can frequently be said for volunteer management functionalities embedded in CRMs.
Here is what we do know: fundraising software doesn't raise funds; fundraisers do. What good fundraising software does is remove barriers for donors: making it as easy as possible to give, helping them understand the impact of their gift, and allowing them to manage their preferences, whether that's their giving intent, payment options, or how they want to be communicated with.
This guide breaks down the best fundraising software for nonprofits in 2026, covering essential features, honest comparisons, and what to look for, enabling organizations to choose tools that truly fit their needs and capacity.
First, it's essential to clarify what we mean by nonprofit fundraising infrastructure. This includes your staff structure, data governance practices, operational priorities, and donor management strategy. Together, these elements determine not only how you evaluate and select software but also how effectively you can use it once implemented.
On the other hand, nonprofit fundraising software solutions can amplify strategy and focus fundraisers' execution. At its best, fundraising software supports nonprofit development teams in collecting, processing and tracking donations.
The main challenge many nonprofits face is misunderstanding what fundraising software is actually designed to do. Often, organizations buy software for the wrong reasons, expecting it to fix underlying infrastructure problems they haven't yet addressed. This mismatch leads to underutilized features and missed opportunities.
For example, some nonprofits select a transaction-oriented payment processor thinking it will automate everything from gift acknowledgment to flexible recurring donation management. But such tools may only handle basic receipts, lacking the flexibility and relational capabilities required for effective donor retention and growth.
Once you understand software's actual role, as a tool to support and amplify your existing infrastructure and strategy, you can evaluate options more clearly and realistically.
Fundraising software is the platform through which donations are pledged, processed, and, in some cases, replicated at regular intervals. These solutions are designed to allow nonprofits to capture dollars, donor information, and fund designation without a staff member manually processing the transaction.
"What features does nonprofit fundraising software need?"
I once worked with an organization that selected a new event tool specifically because it came bundled with a peer-to-peer module, but unfortunately, the two features did not share a common data structure nor a correlated user interface. As a result, donors were required to create and maintain two separate profiles and the team spent twice as long supporting donors in their usage of either feature. Underestimating data complexity or the cost of customization can derail a software implementation budget, upend the ROI of the solution and exponentially impact the Total Cost of Ownership.
Many times when nonprofits switch tools there is only one "owner" or "power user" who uses the tool. This institutional knowledge is lost in staff turnover or is ignored when the organization pivots their strategy. Fundraising software, CRMs included, have the ability to elevate your development teams' execution but only if you have the staff capacity to dedicate and the strategy to direct their efforts. Data that is not actionable, whether by format or accessibility, is irrelevant until addressed.
I frequently see organizations gravitating towards tools with name recognition and high complexity data models but fail to truly assess their data for alignment or pragmatically evaluate if the features they seek will serve their execution. Spending more on the latest, most advanced tool will not ensure success if it is not well matched with your existing operational capacity or proclivity to evolve.
A supporter moves from prospect to contributor with their first donation, so making sure the information they provide in conjunction with their money makes it into your nonprofit data management software is the first step toward making it actionable. The donation pathways and custom fields offered by the nonprofit fundraising software your organization selects should be matched to previously mapped donor journeys to ensure the functionality syncs with your revenue strategy.
Recurring donations are not just repetitive transactions; they are an operationalized commitment. Fundraisers stewarding these donations as one large commitment, and need tools to track, acknowledge and manage them as such. Practically this means that the fundraising software should be capable of sending a tax acknowledgment for each processed payment, in addition to the recurring gift total at key tax reporting deadlines. Relationally the impact of this gift should be acknowledged not just for the total dollars contributed, but for what consistent revenue means to the organization. To keep these donations happening seamlessly, donor portals that allow contributors to manage their payment methods, transaction amounts and communication preference alleviate staff time and give donors personalized control.
When donors open up more than just their wallets, going so far as to share their contact lists and promote the work of your organization with their networks, the mission gains more than just a revenue boost. The increased exposure builds awareness from new audiences, and adds new prospects to the organization's database. Often associated with endurance events or dedicated giving days, the donor-turned-fundraiser typically is awarded ascending prize levels for their fundraising efforts. This requires soft credit attribution and unique threshold tracking for recognition and fulfillment. Even more information can be gleaned from the fundraising pages that are created, where stories of connection and mission alignment are frequently shared to inspire their networks' donations. This outreach data and resulting support is an opportunity for relationship mapping, either within the fundraising software or a connected CRM, requiring an organization to have an intentional attribution model so they can recognize the original donors fundraising success, as well as documenting the connections and contacts.
When donors purchase tickets to nonprofit events or sponsor, they usually aren't coming alone. At a minimum in addition to the contact information and payment details event support create an opportunity to document guest names and ideally contact information. Moreover, donor preferences for event types and mission focus areas can be key details to document in a CRM and utilize in future relationship development.
Similarly, auction, bidding behavior and raffle participation, not only gives donors another way to support the organization, but also can be used by that organization as engagement behavior, indicators, and data points to optimize future auction and raffle offerings. I've seen organizations take top prizes and create duplicate packages for secondary winners in increasing revenue and engagement.
Financial reconciliation is a detail that typically is not considered until after the contract is signed. Payment processing or accounting software integration can required consistent data manipulation, adding significant time or additional tools to adapt to existing processes. Native proprietary tools can save time and avoid integration costs but can also come with limitations. Rigid fee structures, limited reporting and batch payment models can all require additional resources to navigate. Flexibility is key, so platforms that offer options when it comes to merchant service providers will allow your organization to select the payment gateway, security and compliance features that match your needs.
With so many tools and solutions on the market, one of the biggest challenges is misalignment between strategy and features. Nonprofit organizations often choose fundraising software based on immediate need (ex: an upcoming peer-to-peer campaign or a new event structure) without evaluating their full tech stack and considering long-term goals. These decisions are frequently driven by budget and overlook the ongoing cost of a tool they don't use fully. One hard truth organizations often avoid is that the issue is not with the software they have, but rather with their strategic execution.
One of the biggest tradeoffs nonprofits face when selecting software is balancing the user experience between donors and nonprofit staff. Donors need simple, seamless giving experiences, while staff need powerful, flexible tools to manage campaigns, track data, and generate insights. Finding the right balance is essential for maximizing fundraising effectiveness and operational efficiency.
When choosing the best fundraising software for your nonprofit, it's important to start with your annual revenue strategy to best align tool selection with the features that will optimize fundraising success. Once you've outlined the fundraising methods and rhythm for the year, a critical but frequently overlooked step is to map that execution strategy to the donor journey that will make it a reality. This allows your organization to not only select the right features but also anticipate the donor user experience, ensuring the tools facilitate rather than hinder the completion rate.
After you have identified the tool(s) you plan to adopt, it's important to identify how they fit into existing systems and software. Here, donor journey mapping plays a key role, so data captured by the fundraising software is fully incorporated into datasets, communication streams, analytics, and reconciliation processes.
Nonprofit organizations are, by definition, cost-averse but willing to invest in fundraising software that facilitates revenue. It can be tempting to rank solutions based on price point, yet free isn't always without cost. Many factors affect the total cost of ownership for new nonprofit software, including subscription terms, licensing charges, processing fees, implementation expenses, and support costs. Careful tabulation of these costs over a three to five-year period can help ensure full-cost budgeting.
Finally, as your organization settles on a selection, remember that automation and data unification save staff time and preserve those resources for relationship management.
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BetterUnite's all-in-one fundraising platform combines donor management, event ticketing, moves management, and stewardship automation in a single system — purpose-built to help nonprofits retain more supporters and raise more money.
Stephanie Paz Townsend - NPO Consultant
Founder & Strategic Consultant | Paz Principles Consulting
Stephanie Paz Townsend is a strategic leader dedicated to accelerating social impact by blending relationship-driven engagement with data-driven decisions. A nonprofit strategy consultant with 2 decades of experience in development, marketing, and brand strategy, she combines behavioral analytics and personalized communication to deliver tactical insights that translate into sustainable growth.
As the founder of Paz Principles Consulting, she empowers mission-based organizations to deliver results through dynamic engagement plans, optimized data systems, and ethical storytelling. Known for her analytical approach and people-centered solutions, she specializes in cultivating strategic relationships and driving cross-sector partnerships with innovative, integrated marketing and fundraising strategies. Through each collaboration, Stephanie invites partners to turn shared intent into meaningful results, moving purpose into practice with compassion and decisive action.