I use Churchinfo (http://churchdb.org/). It’s a LAMP and thus fully web-accessible. It doesn’t have all of the features you might need. But it works for our small church to keep of records and attendence and stuff. And, of course, it’s free.

One client requested feature that we are about to release is Secure Individual Account Access (SIAA). This feature will allow an Individual to access their church’s CMS to input/correct/update contact information specific to their record and review and print their contributions.

I like your record attachment idea and will consider placing it on our features requested list.

I’ve found that there are a number of options in the CRM world. I would suggest CiviCRM as an open-source option that could be customized to church needs. One drawback is that if you’re looking for a hosted solution, the CiviCRM organization is only focused on providing the module that integrates with Drupal and Joomla sites. I think there are a number of hosted CRM solutions that could work if they allow for customizations. Many allow for tags, as you mention.

The main challenge I see is also integrating with a hosted Web 2.0 *fund accounting* solution. There are many hosted Web 2.0 CRM solutions that integrate with hosted Web 2.0 *business accounting* solutions, but just a few feeble attempts at hosted Web 2.0 fund accounting. At least in a large congregation, we need the efficiency of having integration between membership and accounting. Two systems would be too much work and confusion.

I think it will take one of the major CMS companies entering the Web 2.0 world before we have an acceptable solution. Again, it looks like some are headed that way, but not there yet.