Donor Database to CRM

A business model based on Raiser's Edge that evolved from a basic donor database into a comprehensive CRM system for charities and foundations. The company demonstrates how to build value by starting with data and expanding into workflow tools.

Key Components:

• Initial Product:

  • Database of high net worth donors
  • Sold to charities, foundations, and universities
  • Ground and pound method to capture initial data

• Evolution into Data Cooperative:

  • When clients upload donor lists, company cleans and organizes data
  • All clients benefit from the pooled, clean data
  • Creates network effects as more organizations contribute

• Expansion into Workflow:

  • Built CRM functionality on top of donor database
  • Helps manage outbound communication
  • Handles entire relationship management process

• Business Model Success:

  • Progression from data → data cooperative → workflow tool
  • Revenue reported at over $1B (2024 guidance)
  • 33% EBITDA
  • ~$250M in free cash flow

• Key Learning:

  • Getting into people's workflow is crucial for long-term success
  • Data alone isn't enough - need to build tools around it
  • Network effects from shared data create lasting value