Nonprofit Software Selection Made Simple: An 8-Step Guide for EDs

Walking around the expo hall at AFP Icon this year, I was thrilled to see how many new software options there are for nonprofits.

That didn’t used to be the case — for years, there simply were not many choices for nonprofit software.

But I could also see how, if you don’t geek out on nonprofit tech, it could be overwhelming.

The data backs that up. According to a recent Chronicle of Philanthropy tech survey, 9 out of 10 EDs say tech is critical to their growth — yet it only accounts for an average of 3% of nonprofit budgets.

That’s why I believe investing in the right software is the biggest opportunity — and the biggest challenge — nonprofit leaders will face over the next few years.

And it’s why I just interviewed Mike Slaughter of Dataro and Mark Becker of Cathexis Partners on the Proimpact Podcast about how to choose software.

Their insights are woven into an 8-step framework that will make it easier to evaluate your options, get board buy-in, and ultimately invest in tools that move your mission forward.

Step 1: Document and Audit Your Tech Stack

Mark made a fascinating point that one thing a lot of nonprofits overlook is to maintain a document with a bird's-eye view of the tech they already have:

That’s why I recommend creating a Tech Stack Inventory. This is simply a spreadsheet that lists each piece of software, the team that owns it, the cost, and the core functionality.

You’ll be surprised how much clarity it creates.

👉 Download the free Proimpact Tech Stack Inventory template and start filling it in. Even if you stop here, you’ll already have a stronger handle on your technology.

Step 2: Gather Pain Points — and the “Why” Behind Them

Next, it’s time to ask your team what’s not working.

Every staff member who touches software has a different perspective — your fundraising director might be frustrated by donor data entry, while your program team might struggle to run reports.

I like to frame the question as: “If you had a magic wand and could fix one thing about our systems, what would it be?”

Collecting these pain points does two things:

• It surfaces the real issues that software should solve.

• It makes staff feel heard, which is critical for buy-in later.

Don’t just focus on power users — ask occasional users too. Sometimes the part-time volunteer’s frustration reveals a bigger organizational inefficiency.

And as Mike pointed out, don't just ask about the pain point itself — make sure to understand why that pain point is limiting the organization's impact:

Step 3: Tell Your Board Why You Need to Make the Investment — and How You’re Going to Do It

Now that you know what’s broken, it’s time to bring in your board.

But here’s an often overlooked step that comes back to bite EDs — get the board's buy-in that you need to invest in new software... and also on the process you're planning to use to choose the software.

Otherwise, you might come back in a few months with a great recommendation and the board instead starts asking questions and making suggestions about the process you should use to make the choice.

Step 4: Do Research (Before Talking to Vendors)

At this point in the interview, I assumed we were ready to reach out to vendors. Mark said "Not yet."

The truth is, vendors are designed to make their solution sound perfect for you.

And until you know what you’re really looking for, every demo will feel convincing.

So before you schedule a single call, do your own research.

A few places to start:

• Review sites like G2 or Capterra — look for common themes in the pros and cons.

• Peer networks — ask other EDs what they use and, importantly, what they wouldn’t choose again.

• LinkedIn groups or nonprofit forums — these often surface real-world feedback beyond the polished case studies.

This stage isn’t about picking a winner. It’s about narrowing your focus to 2–3 categories of tools that might fit, and going into vendor conversations with sharper questions.

Step 5: Engage with Nonprofit Software Sales Teams

Now you’re ready to talk to vendors. But instead of letting them control the conversation, flip the script.

Share the pain points you gathered and ask each sales team to walk you through how their product addresses them.

Better yet, Mark suggests giving them a checklist of your needs and ask them to score themselves.

Then schedule 3–5 demos. That’s enough to compare, without getting bogged down in endless presentations.

During demos, resist the urge to get dazzled by bells and whistles. Keep steering back to: Does this solve the problems my team raised?

Step 6: How to Decide

After you’ve narrowed the field, check in with some of your other partners in the tech stack to get their opinions on your final options.

As Mike explained, it’s important that new tools integrate well — both technically and relationally.

Then loop back with the people who originally gave you feedback. Share what you’ve learned and ask which options resonate with them.

This step is crucial for two reasons:

• Staff are the ones who will actually use the software day to day.

• Involving them now builds buy-in, so implementation doesn’t feel like something handed down from on high.

You definitely don't want to make tech decisions in a vacuum, only to face resistance later. Collaboration upfront saves you headaches down the road.

Step 7: Negotiate

Here’s where many nonprofits leave money on the table. Don’t just accept the sticker price.

Sales teams have quotas, deadlines, and flexibility you might not realize.

A few things to ask for:

• Discounts for multi-year commitments.

• Waived onboarding or training fees.

• Adjusted pricing if you only need certain modules.

And don’t be shy about asking when their quarter ends. Vendors are often eager to close deals before deadlines, which can give you leverage.

Remember: you negotiate with funders, venues, and contractors all the time (hopefully!). Software is no different.

Step 8: Choose SMEs (Subject Matter Experts)

Buying software is just the beginning. To make it stick, designate Subject Matter Experts (SMEs) on your team — not just one person, but ideally one per department.

These SMEs become the go-to for questions, training, and ensuring the tool is used consistently.

Without them, knowledge bottlenecks with one person (often the ED), which makes adoption fragile.

Think of SMEs as internal champions who keep the system alive long after the launch.

Bonus Step: Give Back With Reviews

Once you’ve been using the tool for a while, share your experience. Post a review on G2, Capterra, or even LinkedIn.

It helps other EDs who are walking the same path — and it contributes to a more transparent, supportive nonprofit tech ecosystem.

Don't let inertia prevent your growth

One of the biggest mistakes an organization can make right now is doing nothing.

Mike explained why we're at such a critical junction and had some words of inspiration for EDs:

If you follow this simple 8-step process, and you’ll be making decisions that serve your team, your board, and ultimately your mission.

👉 Start today by downloading the Proimpact Tech Stack Inventory template. 

It’s the first step toward building a tech foundation that saves time, reduces frustration, and scales your impact.