Hi,
Microsoft Dynmaics CRM 2011 donation management (http://dynamics.pinpoint.microsoft.com/en-US/applications/donation-management-for-microsoft-dynamics-crm-2011-12884910339)
solution is available free and also Microsoft Dynamics CRM 4.0 Grant Management Solution is available free. As your CRM version is 4.0 so you may try exploring Dynamics CRM 4.0 Grant Management Solution (http://www.microsoft.com/industry/government/solutions/grants_manager/default.aspx)
In your case i would suggest you to try Grant Management solution with some customization and regarding to your question answers i would suggest you to use opportunity entity with few customizations that will also give you the out of the box Sales Piple
Report which can be used as Donation Distribution Pipleline report and dontation distributon may includes approving or rejecting donation funds requests. For funds distribution you may customize a new entity that will contain funds distribution amount,
parties and other relevant information and for Fund Donations you can create a custom entity that will contain information about the funds received form the donors and for donors you can use Accounts and Contacts entities.
I would suggest you to review Microsoft CRM 2011 Donation Management free add-on for further information, you may also reffer to the following links:
http://www.slideshare.net/sarahbar/microsoft-dynamics-crm-for-nonprofits
http://mcgladrey.com/images/media/crmdemo.wmv
Thank You,
Jehanzeb Javeed,
http://worldofdynamics.blogspot.com
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