Database Management Systems in Charities

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Introduction

Background information

The modern world has become smaller and people are becoming more responsible. This trend is manifested through appearance of numerous non-profit organisations that help underprivileged people or simply people in need. At the same time, not-for-profit organisations often fail to achieve their goals and operate ineffectively due to the use of inefficient database management systems.

Modern organisations have to handle significant amount of information including data on operations, accounting, human resources, customer support and so on.

It is noteworthy that churches are now seen as organisations that also need proper information management (Carlson & Lueken 2013; Hegstad 2013). Clearly, numerous database management systems have been utilised by for-profit companies and there are quite many efficient systems.

However, not all of them can be used by charities. For instance, these organisations need specific software for such operations as donation management. Notably, IT companies provide numerous products to meet these organisations’ needs (Kensington Temple manages donations n.d.; Church management software 2014).

IT companies are developing database management systems for nonprofit organisations that address other issues as well.

It is possible to identify most widespread systems employed by charities. Top three systems are Blackbaud, Network for Good and FirstGiving (Top non-profit software 2014). It is noteworthy that 81% of reporting non-profit organisations accept online donations and this increases the need in a comprehensive and reliable data management system (2014 state of the not-for-profit industry 2014).

UK nonprofit organisations as well as churches have already acknowledged benefits of the use of efficient database management systems and utilisation of such a system is seen as an advantage and a sign of effectiveness as well as transparency of the organisation (The Methodist Church in Britain 2014).

There are numerous guidelines on the use of these systems for charities and churches (Kuschewsky 2014; Protecting data, protecting people 2013; Keep or bin? 2009). This also suggests that increased attention towards the issue exists in the society and among non-profit organisations.

Purpose of the Study

This research aims at identifying major issues not-for-profit organisations and churches in UK face when using database management systems and effective solutions to handle the problems. The research will cover such major areas as donations management, volunteer management, HR management, safety, transparency and compliance with standards. Such issue as employee training will also be touched upon.

The present study will explore latest advances in this field through analysis of resources available on the matter. It is also important to understand how charities’ employees see database management systems. It is necessary to learn whether they find these systems helpful, efficient and easy to use.

Furthermore, it is important to understand whether employees can utilise the systems and whether there is sufficient training. Finally, the study will also cover strategies used by employees to handle issues they face while using data management systems. All this information will provide insights into advantages and shortcomings of database management systems used and will help outline areas of improvement.

Literature Review

Researchers stress that effective information management enables companies to remain competitive (Botten 2007; Light 2004). When it comes to charities, these organisations often face more issues as some of tools employed by for-profit companies is inapplicable.

Hackler and Saxton (2007) explore issues non-profit organisations face by analysing literature existing on the matter and they conclude that charities have to enhance their capacities in such spheres of IT planning as budgeting, support, staffing, Internet capabilities, training and so on.

Researchers stress that charities have to invest into efficient database management systems to be able to manage information effectively (Campbell 2009; Dutton 2013). Poister (2008) believes that performance of non-profit organisations depends on the choice of the database management system (which also has to be assessed in terms of its performance).

Not-for-profit organisations tend to utilise systems employed by other (for-profit) companies as well as systems developed for charities. Calabrese (2011) provides a brief account of existing database management systems that are often used in not-for-profit organisations. It has been acknowledged that some database systems are not appropriate for charities (The non-profit marketplace 2008).

Thus, Voida, Harmon and Al-Ani (2011) focus on challenges non-profit organisations face when it comes to volunteer management and coordination. It has been acknowledged that churches are also organisations that need effective information management and specific needs of these organisations have been addressed (Cappel 2002; Wrenn 2013).

Pynes (2009) reveals peculiarities of human resources management in organisations (including charities) and provides helpful insights into the use of database management systems addressing this part of any organisation’s operations.

It is noteworthy that there is significant bulk of literature on different types of database management system. For instance, Buttle (2008) provides a detailed account of different types of database management systems that can be used in numerous settings.

It is noteworthy that researchers focus on flexibility that is important for charities. For instance, Kumar et al. (2012) develop a system that is flexible and able to address the needs of a charity organisation. DeBrabant et al. (2013) introduce a new approach to database management systems and a new architecture.

Clearly, data safety is another concern of any organisation and charities are no exception. Thus, all stakeholders (non-profits’ employees, donators, and so on) have to be protected and this is one of central factors to pay attention to when choosing the right database management system (Parsons & Oja 2008; Hingarh & Ahmed 2013; Stair & Reynolds 2013).

Hasan (2009) reveals effective solutions for protecting data in regulatory-compliant and provenance databases.

Apart from this, researchers note that there is need in transparency and efficient database management systems can enable charities and churches address this need (Study on recent public and self-regulatory initiative 2009; Chasteen & Lampkin 2012).

Hence, Behn, DeVries and Lin (2010) research determinants of transparency in charities and note that the organisation’s size, contribution ratio and compensation expense ratio are factors that affect charities’ readiness to share information. Brody (2012) stresses that donators, officials, volunteers and the rest of the society expect more transparency on the part of non-profit organisations.

Another important issue addressed by researchers is these organisations’ compliance with certain standards. Sloan (2008) stresses that these organisations’ compliance with standards is meaningful for donators and it may shape the way donators see nonprofits. Moutchnik (2008) analyses the recent trend associated with the use of ISO standards by churches and argues that it enhances these organisations’ accountability.

Methodology

Qualitative Method

As has been mentioned above, the purpose of this research is to identify issues related to the use of database management systems non-profit organisations face and ways they try to handle the problems. Therefore, it is important to identify systems used, problems that occur, strategies employed to handle the issues and success stories.

Neergaard and Ulhoi (2007) note that it is beneficial to use combined research methods in entrepreneurship. The present paper will be based on qualitative research method. Alvesson and Skoldberg (2009) note that phenomenological approach can be used to determine existing knowledge on a phenomenon.

Since the present study aims at identifying certain phenomenon, it is possible to use this approach. The phenomenological research implies analysis of existing literature on certain phenomenon and developing ties between the existing literature and particular processes taking place in the society.

Data collection and analysis: literature analysis

Therefore, the present study will involve analysis of literature available on the matter and a survey including a number of interviews. Literature review will include analysis of articles from peer reviewed journals, books, newspaper articles. Websites and reports of certain charities will also be examined.

These reports will help determine attention paid by the organisation to the data management system (The church of Scotland 2013; Charitylog 2013). Forty resources will be included in the analysis.

Grounded theory will be used to analyse the literature available. Maxwell (2012) stresses that this is the most appropriate approach for literature analysis as it enables to explain and extend the scope of the field. Major areas of concern will be identified.

As has been mentioned above specific attention will be paid to donations, human resources, volunteer management, data protection and transparency. This analysis will affect development of questionnaires for the survey and interviews. Major concerns revealed in the literature will be included in the questionnaires.

Data collection and analysis: survey and interviews

The survey will be held with the help of the Internet. Questionnaires developed on the basis of the literature analysis will be sent via emails to employees of noprofit organisations (including local churches). Participants will be managers (of different levels) working in charity organisations for more than a month.

They will be selected randomly. Prior to this heads of non-profit organisations will be addressed to obtain their consent. Since this is a qualitative research, major attention will be paid to participants answers though the questionnaires will include participants’ personal data (which can be used for further research)

It is planned to process around forty questionnaires containing questions on database management systems used, issues occurring and approaches to handle problems. The questionnaires will include close as well as open questions and participants will be able to provide detailed answers. Grounded theory will be employed to analyse questionnaires as well as data obtained during the interviews.

Again, major attention will be paid to areas mentioned above. At that, specific attention will be paid to strategies employees exploit to handle issues that occur. The questionnaire will include 25 questions and participants will be given sufficient time to complete them. They will send completed questionnaires via email.

The final stage of the research will include interviews with ten managers. The interviewees will be chosen based on the answers in their questionnaires. Apart from revealing issues employees face, the research aims at identifying effective solutions used to address these issues. Therefore, the most effective (or unusual strategies) reported by employees in their questionnaires will get most attention.

Participants generating such solutions will be invited to the interview. The interviews will be held in quasi-relaxed setting: either in the workplace (for example, meeting room) or in the park. The interviews will be recorded. The questions asked at the interview will be developed on the basis of the survey results.

The major aim of the interviews is to elicit interviewees’ attitude towards database management system and the way they handle issues. Grounded theory will be used to analyse the data collected during the interviews. Clearly, written consent will be obtained from all participants who will be notified about the purpose of the research.

Conclusion

In conclusion, the research will identify issues associated with the use of database management systems in charities as well as churches and effective ways to handle these problems. The study is based on qualitative research method and the data obtained will help elicit employees’ attitude towards the use of a data management system.

Apart from qualitative analysis of data, some recommendations to managers of not-for-profit organisations will be provided. This study will expand the scope of knowledge on the matter. It will also reveal issues existing in the field.

Admittedly, the present research has a number of limitations. For instance, the number of participants is quite limited. More so, organisations and churches located in the UK are researched. Hence, the study will be limited geographically.

Though the research may be statistically insignificant, it will unveil major issues existing in the field. It is possible to assume that the present study is the first step in the process of identification of issues associated with the use of database management systems. Further research may cover larger territories and more participants.

Reference List

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Brody, E. 2012, ‘Sunshine and shadows on charity governance: public disclosure as a regulatory tool’, Florida Tax Review, vol. 12, no. 4, pp. 175-206.

Buttle, F. 2008, Customer relationship management: concepts and technologies, Routledge, Oxford.

Carlson, K. & Lueken, M. 2013, Renovation of the church: what happens when a seeker church discovers spiritual formation, InterVarsity Press, Downers Grove, IL.

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