How Technology is Fostering Growth in the Nonprofit Sector

In a more decentralised and digital-first economy, efficient and productive nonprofits are more effective at delivering impact. Digitally mature nonprofits exceed their organisational goals.

FREMONT, CA: Nonprofits that are technologically advanced surpass their organisational objectives, with mission objectives being 4X more likely to have been met. Relationships are vital to nonprofits. According to the Salesforce Nonprofit Trends report, fulfilling a nonprofit's objective requires good relationships with stakeholders, including staff, donors, volunteers, program participants, and more.

Now in its fifth edition, the report explains how organisations embracing technology have the strongest relationships and the highest rates of goal achievement regardless of size, revenue, or location.

An increase in organisational performance and efficiency across all areas of operations is closely related to the strategic use of technology. High-level, digitally mature nonprofits are more likely to surpass their objectives and build deeper bonds with all stakeholder groups.

The culture and personnel of nonprofits can benefit from technology. Digitally advanced nonprofits note higher employee motivation and optimism, a more favourable work environment, and reduced levels of staff burnout. Additionally, these organisations are progressing in achieving their objectives for diversity, equity, inclusion, and climate action (DEI).

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Nonprofits struggle to fully utilise technology despite realising its importance to achieving their objectives. Only 12 per cent of NGOs score highly on the Salesforce for Nonprofits Digital Maturity Index, despite nearly three-quarters (74 per cent) of them saying that digital transformation is a need-to-have or must-have.

Budgetary and resource limitations and competing agendas might be obstacles to digital maturity. To combat internal issues, including rising staff turnover and staff burnout, nonprofits focus even more on employee retention and health. To diversify and reestablish relationships with its supporters, NGOs are concentrating on fundraising and awareness campaigns on the outside. Nonprofits feel robust and equipped to confront the future as a whole.

Although the 58-page NGOs Trends Report contains some amazing insights, they would want to concentrate on digital transformation and technology use in nonprofits in this post.

The Situation of Nonprofits

Most NGOs accomplished or exceeded their overall goals over the past 12 months, particularly their program, financial, and mission goals. Nonprofits encounter many difficulties, from public awareness to staff retention to effect measurement and beyond, notwithstanding high goal achievement rates. Organisations' top four issues are public awareness, staff retention, live events, and cost  control[1]  .

Nonprofits anticipate difficulties with staffing, the economy, technology, finances, and fundraising in the coming year. This is demonstrated by the fact that 48 per cent of NGOs will place more emphasis on fundraising, 46 per cent on staff retention, and 44 per cent on employee wellbeing in the upcoming year.