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Why Traditional Nonprofit CRM RFPs Fail | Nonprofit Tech Shop

Written by Karen Senette | Nov 7, 2025 12:51:00 AM

Why Your Next Enterprise Nonprofit CRM Evaluation Shouldn’t Be Just Another RFP

(…and how blending discovery + RFP + implementation planning keeps your tech decision clear)

You’ve outgrown your current system, your teams are living in spreadsheets, and your data lives in too many places. So your organization is ready for a new CRM! You’re excited for this change and eager to find the best fit solution. And what is your first directive?

“You need to run an RFP.”

That usually means long feature matrices, scoring spreadsheets, and demos where vendors check boxes instead of solving problems. Before long, the process starts feeling less like choosing a system that will be the backbone of your organization and more like speed dating.

This is where I see many nonprofits get off track: they issue RFPs for software that ask for a complete implementation plan, all before any discovery happens! Before you know it, you have an evaluation call with fifteen people from every department, all trying to give input in one 60-minute demo. The result? Broad guesses on up front and ongoing costs, surface-level demos, and a decision that satisfies no one.

What I’ve learned over years of helping enterprise nonprofits through this process is that evaluating a CRM, procuring it, and implementing it are three distinct steps. When you try to do them all at once, you blur the purpose of each phase, making them less impactful and valuable. In the end, I see this cause confusion, misalignment, and frustration.

Nonprofits that are looking for the CRM that will be the centerpiece of their digital transformation need to rethink their decision making process.

Loosen the grip your RFP template has on you and instead get invested in what a decision of this magnitude will require from your team.

Yes, it will require more time. But, in my experience, this investment brings shared goals, buy-in from key departments and stakeholders, and eventually, successful implementations.

These are the steps I recommend in order to find the best fit CRM solution accompanied by a well thought out and planned implementation:

1. Start Broad: Search + Informal Demos

Before you issue a formal RFP, do the work to narrow the field. Ask things like:

  • Who are we? What kind of operations do we actually have? (fundraising, donor stewardship, membership, advocacy, programs, multiple locations).

    Get all of this outlined so that you know what processes need to be managed in the new system.

  • What are our real pain points? (Is it data fragmentation? Adoption? Reporting? Integration?)

  • Who will use the system? Who will support it? Who will govern it?

Then bring in a few CRM vendors for introductory discovery conversations or short demos. Hold on to your checklist, we aren’t there yet!

This step is meant to see how the vendors listen and understand your organization's database needs. Any good sales person will be able to play back your pain points and outline how their CRM either addresses them or not. They will also be able to point out things to consider based on their discovery questions, which will help your team get a more realistic sense of what you need.

In this stage, you should be able to cross out some options. Casting a wide net is great, but burying yourself with vendors who are not a great fit (but would love to have your business) is going to waste time.

2. Issue a Focused RFP for the CRM Software First

Once you’ve done the groundwork in step one, you’re ready for the structured part: an RFP or evaluation matrix.

But here’s the key: this should be about software fit, not full implementation.

This is important because at this stage, the things you should be trying to answer are:

  • Does this system map to our must-haves and nice-to-haves?

  • Will it scale with us?

  • Will it integrate with the systems we already use (or plan to use)?

  • Is the vendor credible, stable, and able to support our nonprofit landscape?

Keep the scope tight. Yes, include features (reporting, workflows, integrations, licensing model) and vendor background, but don’t force vendors to fully price or scope implementation yet. Stay focused on finding the CRM fit first without muddying the waters too much. Trust me, it’ll be worth it to do so!

When you’ve received your RFP submissions, narrow down the list. This is where the fun begins.

3. Deep Dives + Demos with Real Scenarios

Now that you’ve shortlisted a few platforms, it’s time to bring in the serious demos. Here is how these demos are different from the first round of demos you had:

  • Use real business scenarios. Your first round of demos was software focused - more “show me all your features” than “walk me through specifically how a new donor moves from first contact → stewardship → major gift.”

  • This means you will need to be open to deeper discovery calls with your software vendor. As much as I wish this weren’t the case, enterprise CRM demos take customization and tailoring for your unique needs.

    Out of the box demos might get on the books faster, but that’s not what you should be going for here. Your goal should be to see features demoed that align with your processes. The software sales team will need your team’s time to do discovery in order to deliver that demo environment you are looking for.

  • Include internal stakeholders from fundraising, marketing, IT, operations, etc. Make sure you have explained the importance of holding these demos with your stakeholders…you’re asking for their time and they need to be bought into the larger goal of picking the right system.

  • Don’t try to cram 16 committee members into one demo and expect alignment. One demonstration for 16 people = chaos. Alternatively, consider two sessions with smaller stakeholder groups for a better experience (ex: a development team demo and a separate marketing team demo).

4. Post-Software Selection: Implementation & Partner Evaluation

Here’s where many nonprofits fall into the trap: they pick the software and vendor in one go, mixing “which system” and “which services partner” in the same decision. That blurs responsibilities and adds risk you may not have considered. I have seen it happen numerous times:

You might pick the “wrong partner” because you were overwhelmed by feature checklists.

Or you might pick the “wrong system” because you were excited by the low cost of the services that an implementation partner provided.

Instead: after you’ve picked the software, then shift into the implementation evaluation.

Once you’ve made your software selection, ask that software provider for a list of vendors who have completed nonprofit-specific implementations at the same scale as your needs. With these potential implementation partners, you will then start to define and scope the project using the following steps:

  • Workshops & discovery: map your actual workflows, data migrations, integrations.
  • Define what tools must stay, what tools can change, what you’ll phase in.
  • Look at change management, training, onboarding, governance.
  • Provide a detailed scope of work that aligns with your process needs, team structure, budget, and timeline

Once you start looking at implementation plans and vendors, the focus will start to shift away from just considering the CRM. Make sure you are considering your full tech stack, all of your processes, and how data needs to flow once you get to this phase of your evaluation.

If your implementation partner isn’t leading you into these discussions, then they might not have a grasp on the complexity of your project or the nuances of your processes. It is your job to share this information and test to see whether or not you are being heard.

Quick Hits - Why This Sequence Matters:

  • Clarity of Decision: You’re making separate but connected decisions (software vs. services) rather than trying to bundle everything in one.

  • Lower Risk: By separating discovery, evaluation, and implementation you reduce the chance of picking a system you regret or paying vendor upgrade fees you didn’t anticipate.

  • Buy-in & Alignment: Each stage gives time for stakeholders to be engaged appropriately. That’s right, we are not expecting everyone to decide in a single demo.

  • Future-Proofing: Especially for enterprise nonprofits, you want a CRM that can grow, integrate, change. Rushing into implementation before discovery often means you’re stuck later.

In my experience, this kind of evaluation breeds better outcomes because of the fact that more was required from your team prior to moving into a project with a new CRM. People have been invested in the process, so now they want to see it be a success! They are also connected to the process, which will make adoption and change management easier for you.

Does this take more time and collaboration from your organization? You bet it does. That checklist deciding your next CRM might sound sexy, but it is not going to give you the whole story to make an informed decision.

So if you’re kicking off a CRM evaluation for your enterprise nonprofit, do yourself a favor and take it one step at a time: start with discovery, move into software evaluation through RFPs and demos, then choose your implementation partner. Keeping those stages separate makes drives better outcomes than the speed dating so many organizations insist on running through.