Most CRM applications available today are frequently sold to for-profit organizations who have the cash and the bandwidth to make vendor selection mistakes. This is not the case with the NPO. And while NPOs have very unique needs in terms of accounting, targeting and tracking donors, the method for selecting a vendor is the same as with a for-profit corporation.

Here are five points that NPOs should keep in mind when selecting a CRM vendor:

1. Keep an eye on the prize. Business objectives quit often end up taking seats behind technology criteria. This happens when IT folks become the primary decision makers. Don’t get too caught up in your NPO’s IT strategy until you have clear business goals. Your IT check list can then be more effectively mapped out within the context clear business objectives.
2. Hosted vs. Client side. If part of your business objectives includes a strategy to integrate applications across the organization, you might consider an in-house solution. This may also be a good choice for organizations that Internet connections. However, you will need sufficient internal IT support in order to maintain all of these systems. Hosted solutions, on the other hand, offer a “software as service” model that are quick to deploy, requires little internal support and are less expensive to maintain than a pile of CDs and manuals. Additionally, SAS solutions are perfect for NPOs that have many locations or remote employees.
3. How much is this thing? Near-term costs should not be the only factor when considering solutions because that typically represents only 30 percent of the total cost of ownership (TCO). The remaining 70 percent goes to:
   • Customizations
   • Internal IT Resources
   • Outyear license fees
   • Training
   • Additional modules

   Unless these costs are accounted for in advance, your organization could be setting itself up to a failed implementation when the well runs dry. Look at all the costs you’ll occur over a five-year period.

4. We’re gonna need a bigger boat! Some organizations don’t consider the many ways their needs will change over time when looking at vendor. Make a list of features you’ll need over the next 3 years. Ask for the vendor’s road-map and have them tell you how the application can be configured to meet anticipated growth. A well-defined, well-documented and proven road-map to accommodate growth should be a minimum requirement for vendors to make your “top three list”. A good vendor will have case studies that demonstrate the flexibility and scalability of their solution in actually situations.
5. What are all these levers for? If the CRM solution is too complicated or is deployed without proper training, users tend to not use the solution. Ask the vendor for a custom demo or trial that you and your staff can play with. This helps you see first hand if your organization will actually adopt the use of a new system.

Lastly, don’t purchase a solution so complicated that only one person understands how to use it.

What if they quit? Then you are at least 10 steps backwards from where you started!

In short, map out a clear business plan for the solution that includes:

• Business Objectives
• IT Resources Allocation
• Total Costs Over 5 Years
• Future Growth Needs
• Ease of Use

With these five points in mind, you’ll be able to make the most cost-effective choice for your organization.

Do you have an example where you saved money by keeping business objectives at the center of a project?