Picture this: Thanks to your nonprofit’s recent marketing efforts, you receive an influx of donated goods to support your operations and programs. While your team is incredibly grateful to your donors, you find it challenging to keep track of all the items. As a result, you overstock some products and run out of others. You even let some perishable goods slip through the cracks until their expiration dates are long past.

Accepting non-monetary (or in-kind) donations can significantly free up your nonprofit’s budget and provide your organization with the resources to expand its community impact. Without tools and procedures for managing these donated goods, however, you dilute their impact and risk letting the generosity of your donors go to waste.

Organizing, tracking, and using in-kind donations doesn’t have to be complicated or intensive. Let’s explore what inventory management software is and how it can help your nonprofit seamlessly incorporate donated goods into your mission-critical activities.

What is inventory management software?

Typically included as part of a point of sale (POS) system, inventory management tools provide a clear and accurate bird’s eye view of your nonprofit’s inventory. According to ThriftCart, a cloud-based inventory solution allows your team to monitor stock levels from anywhere in real time, so you’re always updated on what’s coming in and out.

Why do nonprofits need inventory management tools?

Nonprofits typically accept and use donated goods for various purposes, from stocking a thrift store to providing high-quality items at an auction. You may have a highly organized team, but without the right tools, managing your organization’s inventory can cut into your already limited time and energy.

State-of-the-art inventory management software allows you to:

Enhance efficiency. Inventory tools provide an easy and consistent workflow for your whole team — even volunteers — to follow, with minimal training required. Barcode and labeling systems enable you to sort and process items quickly, reducing human error.
Minimize waste. With precise tools for tracking donated goods as they come in, you avoid misplacing or completely losing track of them in your inventory. As a result, you can put all contributions to their best use, whether you’re distributing food items well before they expire or providing winter clothing to constituents.
Improve donor engagement. While donors don’t expect anything in return when they contribute items to your nonprofit, they deserve a “thank you” at the very least. Reliable tools for generating receipts and monitoring inventory allow you to follow up with the right donors at the right time and communicate the specific impact of their generosity.

Plus, if your nonprofit runs a social enterprise or thrift store to generate more funds, you probably stock your inventory with donated goods. Inventory management software makes it easy to log various items, their conditions, and repeat donations all in one place. These centralized capabilities keep your entire team on the same page when optimizing inventory, managing finances, and interacting with donors and customers.

No matter what you’re doing, using inventory management software enables you to focus less on manual administrative tasks and more on furthering your mission.

What inventory management features do nonprofits need?

At their most basic, inventory management solutions facilitate the process of monitoring and updating your nonprofit’s inventory. However, the top software solutions on the market come equipped with additional features for streamlining your donation tracking, such as:

1. Donation pickup

To secure more in-kind donations from both individuals and companies with a strong focus on corporate social responsibility (CSR), your nonprofit might offer scheduled pickup services. Look for inventory management software that gives you the ability to:

Set pickup zones.
Optimize pickup routes to conserve fuel.
Make pickup reminder calls.
Request item photos from donors.

At the same time, it should be effortless for donors to schedule a dropoff or pickup time with your organization online.

2. Real-time inventory syncing

For nonprofits that run physical and online storefronts, it can be challenging to synchronize new items and purchases promptly and precisely. A comprehensive inventory management solution provides real-time tracking that instantly updates your inventory so your team can avoid the stress of accidentally selling an item that is no longer in stock.

Plus, your system should automatically log online orders so you can remove items from your physical shelves if necessary.

3. Donor management

Inventory management is about more than the donated goods your organization receives. Some solutions come with tools for creating a convenient and rewarding experience for donors, allowing you to:

Track donor information and interactions.
Monitor repeat donations and thank these donors accordingly.
Automate personalized emails and text messages.
Give donors the option to choose between printed receipts or eReceipts.

By investing in donor retention and recognition, you build lasting relationships that you can rely on and boost your reputation in the community.

4. Reporting

A well-designed inventory management system streamlines your processes and helps you unlock new insights for future improvement. Your solution should have a built-in reporting hub that displays real-time data such as:

Types of items donated
Donation frequency
Times of year with the highest donation volume
Items sold

Your nonprofit can use this information to adjust marketing, staffing, and pricing strategies as needed. For example, if you notice a certain type of item selling well, you might increase the price to generate more revenue to power your mission. If another product appears to be falling out of favor with customers, you might temporarily stop accepting these goods as donations to avoid overstocking.

Inventory management tools can revolutionize how your nonprofit handles and follows up on donated goods. However, you must first find the right solution for your needs. As with any fundraising software, Double the Donation recommends creating a list of must-have features, consulting online reviews, and booking demos to hone in on the right choice for your organization.

Once you’ve made your selection, take the time to train your team and create a simple guidebook for using the software. With a strong foundation in place, you’ll be well on your way to making your inventory management processes more accurate and efficient than ever before.