We partnered with Sparkrock to host a free product demo – watch the recording! 

In the nonprofit sector, choosing the right technology partner goes far beyond checking boxes for features or cost. The right solution will support your mission, align with your budget, and fit the practical realities of your team’s daily work. Selecting an ERP system requires a careful approach, and the quality of your Request for Proposal (RFP) often determines how useful and relevant vendor responses will be.

Why your RFP matters

A strong RFP does more than outline technical needs. It helps vendors understand how your organization operates, the specific challenges you face, and your definition of success. Providing clear information about your priorities and workflows increases the chances of receiving proposals that truly meet your needs. This clarity also helps you avoid wasted time and unexpected obstacles later in the process.

How to write your RFP (in eight steps)

Step 1: Do the internal pre-work

Getting organized and aligned internally—before you add external perspectives to the mix—is the most important step (which is why it’s #1!). Before drafting your RFP, gather all the right voices:

  • Include HR, payroll, finance, program managers, and administrators.
  • Use a collaborative checklist to define your must-haves, nice-to-haves, and non-requirements.
  • Agree on your main problems and project purpose. Write this down and revisit it regularly.
  • Assign a project owner to keep everything moving—someone who will coordinate drafting, communication, and demo scheduling.
How to do it

Set aside a half-day to complete this exercise (and take more time if you need it). First, map out daily and monthly workflows: on a whiteboard or digital tool, chart every step in key processes (e.g., expense claims, budget approvals, reporting to funders, payroll, program spending, grant tracking).

Then, ask probing questions for each step:

  • What tools or systems are used now?
  • What manual workarounds are in place?
  • Where do delays or bottlenecks occur?
  • What data or reports are hard to access?
  • Who needs to be involved or notified at each step?
  • What’s missing or always “painful” about the process?

As you go through, highlight anything that results in extra work, errors, or staff frustration.

Finally, review for overlooked users or tasks. Double-check with each team: “Is there any step in your role that isn’t captured here? Any reporting or compliance requirement we haven’t discussed?”

Skipping this step can lead to missing key requirements, miscommunication, and last-minute scope changes. All of these small misses can add up to a much larger problem: wasted time evaluating solutions that don’t actually fit how your nonprofit works.

Step 2: Write a clear introduction

Open your RFP with a simple, direct overview:

  • Briefly introduce your organization and mission.
  • Clearly state why you’re seeking a new ERP and what you hope to achieve (e.g., reduce manual work, improve fund tracking, provide better support to staff, etc.).
  • Give enough context so vendors can see if they’re the right fit and tailor their responses.

Example: ABC Community Services is a registered charity focused on housing and family support. We are seeking a modern ERP solution to replace manual spreadsheets, streamline financial workflows, and provide greater transparency for staff and funders. Our goal is to strengthen internal controls, reduce manual work, and support our mission of delivering community programs efficiently.

Without a clear intro, you risk receiving generic proposals from vendors who don’t understand your mission or sector-specific needs.

Step 3: Define project scope and objectives

Outline what you want the ERP to do, with as much detail as possible (your notes from the workshop in Step 1 will be valuable here). Be specific about:

  • Core functions (finance, HR, payroll, grant management, donor relations, etc.).
  • Outcomes you’re seeking, not just technical features.
  • Any constraints or boundaries you may have. This helps vendors design solutions for your real-world needs.

Example: The new ERP system should support finance and grant management, as well as budget planning for multiple programs. We also require tools for board reporting and the ability to track restricted funding. Volunteer management or donor CRM are out of scope for this project.

Vague or open-ended scope invites proposals that miss the mark, add unnecessary features, or ignore nonprofit-specific needs.

Step 4: List technical and functional requirements

Be clear about must-have features:

  • Integration with your existing tools (e.g., payroll, donor management, Microsoft 365).
  • Cloud or on-premises preferences.
  • Data migration and security.
  • User roles, mobile access, and training expectations.
  • Any existing technology limits to avoid incompatible proposals.

Example: Required features include cloud-based access, integration with Microsoft 365, user-friendly dashboards for department managers, secure mobile access, and robust reporting capabilities. The system must import historical financial data from our current platform. Please detail your process for user training and ongoing support.

Review these requirements with all stakeholders to make sure no tasks or users are left out. Missed requirements here can mean paying for add-ons later, or having to work around a system that doesn’t support all of your critical workflows.

Step 5: Set a realistic project timeline

Share your desired schedule, including:

  • RFP release and submission deadlines
  • Vendor Q&A period
  • Demo dates
  • Selection announcement
  • Implementation kickoff

Example: We plan to release the RFP on September 1. The deadline for vendor questions is September 15. Final proposals are due October 6. Demos will be held in late October, with selection finalized by November 15. Implementation is expected to begin in January.

Providing a sample timeline helps vendors allocate the right resources and gives you a baseline for accountability. Without a clear timeline, vendors may overpromise on delivery or fail to staff your project adequately.

Step 6: Outline Budget Parameters

Give an approximate range or maximum budget, including:

  • License costs
  • Implementation fees
  • Support and maintenance

Example: Our total budget for software licensing, implementation, and first-year support is $300,000. Proposals should provide a breakdown of costs for each component and specify any optional or recurring fees.

This keeps proposals grounded in what you can actually afford and ensures transparency from the outset. Skipping budget guidance could invite proposals that aren’t feasible for your organization, costing you time and energy that could be better spent on proposals that work for you.

Step 7: Define vendor qualifications and proposal format

Ask vendors to provide, in a consistent format:

  • Company background and nonprofit experience
  • References from similar organizations
  • Implementation methodology
  • Pricing details
  • Timeline and deliverables

Example: Proposals must include the following sections: (1) Company overview and nonprofit experience; (2) Reference clients of similar size; (3) Implementation methodology; (4) Detailed pricing; and (5) Project timeline. Please submit proposals as a single PDF file with clearly marked sections.

This might seem nitpicky, but it creates a significant advantage for your review team—a standardized format for proposals (e.g., specific sections, file types) makes side-by-side comparison much easier. Unstructured responses make it much harder to compare apples-to-apples and can lead to missed red flags.

Step 8: Explain evaluation and submission processes

State how you’ll review proposals, ideally, weighting criteria such as:

  • Solution fit
  • Vendor experience
  • Cost and value
  • References
  • Implementation plan
  • Post-implementation and ongoing support

Example: We will evaluate proposals based on solution fit (30%), vendor experience (20%), pricing (20%), references (15%), and implementation/support plans (15%). Proposals must be submitted via email to procurement@abc-community.org by October 6 at 5pm. Contact our project owner, Jane Doe, with any questions.

Be transparent about submission deadlines, required formats, and who to contact with questions. Clear instructions help vendors submit their best possible proposals.

Final thoughts

A strong RFP process protects your time and resources, ensures the right questions get answered, and helps you find partners who truly understand nonprofit operations.

The result is a better fit, smoother implementation, and greater overall impact for your mission.

We partnered with Sparkrock to host a free product demo – access the slide deck and resources here!

About Sparkrock

Sparkrock provides purpose-built enterprise software for nonprofits, school boards, and public sector organizations across North America. Founded in 2003 with a simple goal—to help mission-driven teams do more good, with less stress—our roots are in nonprofit finance, and our passion is community impact.

Our ERP solution is built on the Microsoft platform and designed to reduce manual work, improve oversight, and support smarter decision-making. From fund tracking to payroll to procurement, we help organizations gain the clarity and control they need to serve their communities with confidence.

Today, more than 120 Sparkrockers support hundreds of thousands of users, all working toward one thing: stronger communities through stronger operations. We continue to grow with the same heart and focus that started it all.

Floyd Blaikie, LinkedIn

Floyd’s career history spans marketing, manufacturing, broadcasting, software, and strategy development—all united by the common thread of storytelling. She uses stories to help organizations find their unique identity and get excited about change and innovation. Today, she’s passionate about helping nonprofit and K-12 organizations adopt technology that lets them do more good for the communities they serve.

 

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