What Is the Cost of Building a Database for Your Association or Nonprofit?

Tired of your team running in circles, putting in long hours and tonnes of manual effort instead of helping your members? When implemented poorly, technology will create additional frustration instead of saving your association time, money and focusing on your members' growth.

Our guide will break down major costs, both financial and time, when it comes to putting into place a database/CRM which works for your association, instead of creating work for you.

Database and CRM? Since these two words are interchangeable in our context, we will use both terms. We will focus on our Members Village database solution for comparison, however, you can take away the following and apply it to your project with another vendor.

what are database costs for associations?

Detailed Breakdown of Database Investment

The following breakdown will offer an estimate comparison of creating a database from scratch vs an installation on Members Village. We will also include maintenance costs which should be factored in - these software maintenance costs such as updates.

Focus of this breakdown is on associations with a revenue of $1 million or less, and we will use a $125 per hour rate to calculate costs of services (such as database design or consultation).

ImplementationStageI want to be able toSo that I canTimelineCostMaintenance ($ per month)
CustomConsultationFind a database developer I can trustPlan accordingly, including allocating resources such as people, time and money1 hour  Free-
Members Village   ConsultationFind a database developer I can trustPlan accordingly, including allocating resources such as people, time and money1 hour Free - always!-
CustomPlanningDefine the scope of my projectConfirm it will match my goals and expectations2 weeks $8,750-
Members Village   PlanningDefine the scope of my projectConfirm it will match my goals and expectations1 week$2,500-
CustomDesignUnderstand how the database will workHave an idea of how my team will use the database4 weeks $17,500-
Members Village   DesignUnderstand how the database will workHave an idea of how my team will use the database2 weeks$5,000-
CustomDevelopmentInteract with data and dashboardsConfirm that it is working as intended8 weeks $35,000$600
Members Village   DevelopmentInteract with data and dashboardsConfirm that it is working as intended4 weeks$10,000$195+
CustomReport (per report)Generate report with data visualizationsMake decisions and report to my board2 weeks $8,750-
Members Village   Report (per report)Generate report with data visualizationsMake decisions and report to my board2 weeks$5,000-
CustomDatabase ChangesChange my database such as the nomenclatureRespond to my changing needs1 day$875-
Members Village   Database ChangesChange my database such as the nomenclatureRespond to my changing needsImmediate$0-

What Should a CRM Database Do?

A good CRM will enable your team to easily search and manage data. Your members will also have access to self-help tools to manage their own data, a subset which you define. And lastly, we recommend you obtain at least 3 proposals for any database project, these high level questions should be answered clearly:

Will your member data comply with Canadian privacy laws such as PIPEDA?
Storing your data on servers which are located outside of Canada can mean you are not in compliance.

What is the frequency of data backups?
Data backups should be performed daily, at minimum.

Does the CRM comply with CASL?
When it comes to marketing and sales processes (such as membership) you will want to ensure that you comply with CASL as it relates to sending emails.

What is the frequency of data backups?
Data backups should be performed daily, at minimum.

If your association grows, will your CRM grow accordingly?
If the proposed database solution cannot scale then your costs will multiply.

What support comes with the database software?
Once live, it is important to have clarity around who will provide ongoing maintenance and support of your new database.

Any proposal you receive should answer these basic questions and we would consider it a red flag if one of these are not included.

What Additional Database Costs Should We Consider?

While incldued in Members Village, your association should also account for additional costs in your database project, these are:

Hosting for your database
$300/year and up. Please make sure that the hosting servers are located withing Canada.

SSL certificate
Typically $150/year, but can vary depending on vendor.

Domain/DNS
$35/year and up per domain. Most domain registrars include DNS management.

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Published on May 28, 2024 8:00am EDT