Donor Management System (DMS) is not-for-profit’s customer relationship management (CRM) system and is a means to compile, organise, analyse and strategically implement communication strategy so as to maintain and grow the relationship with the donor.
In other words, it’s a tool to maintain all the donor-related information so that the same could be used for the fundraising strategy.
For a not-for-profit, the donor is the key as the organisation is dependent on his/ her support for its activities. For a very small organisation or those dependent only on a grant for their activities, it can be managed through software like excel offered by MS Office or similar programs.
But in an average size organisation which also accepts donations, about 30 per cent of funds are through donation. And thus, it becomes extremely important for such an organisation to use a professional DMS or CRM.