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The Basics of Microsoft Cloud for Nonprofit

Table of Contents

Introduction

A global leader in technology innovation, Microsoft offers a strong and steady rollout of products and functionality for the nonprofit sector. For organizations looking to move to a cloud platform, Microsoft Cloud for Nonprofit is a compelling option.
 
Microsoft’s vision for nonprofits
 
Microsoft has a team called Technology for Social Impact (TSI), which focuses on delivering relevant, affordable, and innovative cloud solutions to help nonprofits tackle the world’s biggest challenges. Microsoft Cloud for Nonprofit was developed by this team to help nonprofits realize the true value of their data through a cross-cloud suite of applications that uses the Nonprofit Common Data Model (We’ll explain more about the Nonprofit Common Data Model later in this guide).
 
Microsoft Cloud for Nonprofit incorporates nonprofit sector best practices and supports the most common organizational scenarios, including:
  • Helping organizations to understand their donors and other supporters to drive fundraising and engagement
  • Improving how organizations deliver programs, including mobilizing volunteers
  • Helping organizations to accelerate mission outcomes by realizing the full value of their data
  • Building data security into every activity
 
So, how do you know if Microsoft Cloud for Nonprofit is right for your organization? This guide was written to help you to decide.

Answering basic questions about Microsoft Cloud for Nonprofit

What is Microsoft Cloud for Nonprofit?

Microsoft Cloud for Nonprofit is a set of solutions for nonprofits that supports fundraising, marketing, programs, volunteer management, and more. It brings together Microsoft Dynamics, Power Platform, Teams, SharePoint, Azure, and LinkedIn to address common nonprofit scenarios. All of it is based on the Nonprofit Common Data Model to unite data sources. Please note: Microsoft Cloud for Nonprofit is not its own SKU.
 
In some organizations, marketing and fundraising teams compete for budget. Others have “shadow CRM” systems to hoard their best donors. The result is inefficiency, inconsistency, lost opportunities, and poor constituent experiences.

What is the Nonprofit Common Data Model?

The Nonprofit Common Data Model is a set of standard data definitions. It was built by Microsoft TSI in partnership with many of the world’s leading nonprofits, institutional donors, private foundations, and industry consultants like Heller Consulting.
 
The open-source data model interrelates and standardizes data across a nonprofit’s fundraising, constituent management, program delivery, operations, finance, and impact reporting functions. It also makes it easier for Microsoft and their partners to develop solutions for nonprofits that easily work with other Microsoft products.
 
Shared definitions of data – including accounts, contacts, households, transactions, beneficiaries, program delivery, and key performance indicators – across systems means more understandable, accurate, and actionable reporting and insights.

Where should nonprofits start with Microsoft Cloud for Nonprofit?

Microsoft has designed nonprofit solutions to be adaptable – to meet you where you are right now – with the possibility to build and scale as you grow.

So, for example, if volunteer management is the most critical technology that you need today, then start with that. You can add fundraising functionality later. We recommend that you work with a partner like Heller Consulting to determine how to best confirm your nonprofit eligibility, which license types are best for your organization, and a plan for implementing.

What are some benefits of moving to Microsoft Cloud for Nonprofit?

Microsoft Cloud for Nonprofit is built on Microsoft’s foundation of security and compliance, empowering nonprofit organizations to stay in control of their data, navigate their risk and compliance, and leverage best-in-class security to manage sensitive constituent data and meet the most stringent privacy and security requirements worldwide.
 
Microsoft Cloud for Nonprofit is also interoperable with the Microsoft technology stack. That means it works with other Microsoft solutions, including:
  • Efficiency and collaboration tools – These include systems that support internal work, such as Microsoft 365 tools (Outlook, SharePoint, and Teams), and finance and operations tools for things like accounting, human resources, inventory, and supply chain management.
  • Azure tools – These include Microsoft Azure for Cloud Services, Security and Authentication, and Enterprise Mobility Management to provide the infrastructure needed to share and access applications and data securely from any device.
  • Intelligence and impact solutions – These include tools for business intelligence, artificial intelligence, and machine learning.

4 Considerations When Thinking About Moving to Microsoft Cloud for Nonprofit

Integrations

Microsoft Cloud for Nonprofit integrates with the full range of Microsoft products, including (but not limited to) the entire Microsoft Office suite, Microsoft Copilot, Power Automate, and Power BI. And since it uses a common data model, third-party integrations are relatively painless. 

You can find an enormous range of these products on Microsoft AppSource or use PowerApps or Microsoft Power Automate to develop in-house custom solutions with low code requirements. Having the ability to instantly connect the platform to nearly every other tool in the Microsoft universe can be incredibly useful. 

Dynamics 365 Customer Insights is a Microsoft-native solution that offers email marketing automation, event management, survey design, LinkedIn integration, and more. For integration with other marketing tools (such as Mailchimp and Constant Contact) and event registration tools (such as Eventbrite), Dynamics 365 Customer Insights can connect using third-party connectors, such as Zapier or Codeless Platforms.
 

Staffing and User Experience

With an abundance of features and customizable implementation solutions available, Microsoft Cloud for Nonprofit requires time to configure. And as with any platform, there will be a learning curve to administer it. With a standard license, there is advanced support available. However, we suggest that your IT team be involved in the process of standing up the solution, running updates, and administering your Microsoft solutions. For staffing considerations, keep in mind that either your staff or a vendor will need to monitor, run, test, and roll out updates. 
 
For end users, there could be a certain level of inherent familiarity for staff who are accustomed to working in other Microsoft tools due to the similar look-and-feel, layout, and way of navigating the user interface of Microsoft Cloud for Nonprofit. The interface is also highly customizable based on role so that users are not faced with an excess of information they do not need to see. 
 
Microsoft Cloud for Nonprofit also has several search and query tools that allow users to easily, quickly, and securely find key information stored in the database, without needing to navigate to a new app or page.

The Unknown

If you are comparing Microsoft solutions for nonprofits directly with those from Salesforce, you will likely notice that Microsoft Cloud for Nonprofit hasn’t been in the market as long. Therefore, there are not as many real-world examples of nonprofits using it. But keep in mind that while Microsoft Cloud for Nonprofit is relatively new, the Microsoft company and its underlying technology are proven and trusted.
 
Microsoft has demonstrated a commitment to continued innovation and listening to feedback from the nonprofit sector. The company also has a compelling vision for the future of their solutions for the nonprofit sector. And with AI now at the forefront of conversations across industries, Microsoft is not only at the cutting edge of innovating in this space but also is translating those developments into use cases for nonprofits.

Steps to Advancement Success

Unify donor engagement

The antidote to inconsistent communications and oversolicitation is to design a unified donor engagement journey. Especially important in large universities where different departments and colleges have their own systems, this will allow for the personalized approaches and reporting that donors now expect.
 
Donor personalization best practices
Leveraging data to build automated, personalized engagement strategies is key to maintaining connections with donors. Marketing automation tools can scale these efforts, making it possible to engage with a larger number of donors without sacrificing personalization.
 
Aligning donor engagement with specific giving opportunities maximizes impact. Automating recommendations based on donor engagement history and surfacing donation impact can build donor trust and loyalty—both are enabled by an efficient tech stack.

Align your team on shared goals

The first step towards integration is understanding each other’s roles and departmental goals. This involves regular meetings where team members share their primary data points, key performance indicators, challenges, and successes.
 
Using shared metrics quantify the institution’s standing and provide a clear picture of overall performance, identify fundraising priorities and allow better tracking of progress. A unified vision and story across the organization ensures everyone is working toward the same objective as well as producing a consistent experience for constituents.
 
Use visual tools like relationship maps to illustrate areas of overlap and mutual dependence. This helps in clarifying how different roles support the entire team

Integrate your school's advancement office

An integrated advancement team can significantly enhance the success of an institution by improving coordination, aligning workloads, and achieving greater outcomes across teams like marketing, fundraising, and IT. By working together, team members can ensure that their efforts are well-coordinated, leading to more efficient and effective operations. This integration allows for better alignment of tasks and responsibilities, ultimately resulting in improved performance and outcomes.

Streamline and bolster your tech stack

Every organization wants to grow its donor base in a cost-effective way but understanding how that is done is more than just a CRM conversation. Technology and advancement leaders should take a broad view of your ecosystem and determine what can stay, what can go, and what can be enhanced. You should develop a Technology Roadmap that identifies the technologies beyond your CRM that bring efficiencies, optimize your return on investment, support your current needs, and have the capacity to grow with you.

Heller Consulting logo with a colorful, abstract four-cornered design on the left and HELLER CONSULTING in blue and gray text on the right, representing experts in Salesforce solutions for nonprofits guide.
As Microsoft continues to provide new and enhanced solutions for the nonprofit sector, Microsoft Cloud for Nonprofit is a strong option for nonprofits.
 
Here at Heller Consulting, our partnership with Microsoft gives us extensive knowledge of Microsoft products for the sector. We can help you determine which products are right for your organization and help you implement and support the solutions.
 
But we don’t work exclusively with Microsoft. We also have deep expertise with other nonprofit technology, such as products from Salesforce and Blackbaud. So, we’re uniquely positioned to help if you need a:
  • Sounding board to talk about your technology approach
  • Comparative analysis or fit assessment to confirm your technology direction
  • Full technology roadmap to take your nonprofit into the future
  • Partner to help with the technology implementation and support
 
For nearly three decades, Heller Consulting has focused on helping organizations to plan and implement technology strategies. With thousands of projects and engagements under our belts, our team of experts helps nonprofit organizations and higher education institutions advance their missions and meet their business objectives.
 
No matter where our clients are in their journey, we help them make the most of technology.
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