How to Adapt to the Digital Future for the Not-For-Profit Sector
Nonprofit organizations are under increasing pressure to innovate to generate better outcomes for their customers, clients, and the communities they support. Throughout the unprecedented times of the pandemic, the nonprofit sector has realized the need to innovate their fundraising activities and management, admitting they are now forced into harnessing the power of digital technology and social media in todays digital age.
Operating in an ever-changing market requires constant vigilance, but at the same time, nonprofit organizations need to stay true to the vision and values of organizations providing social good outcomes.
The nonprofit sector operates on tight budgets, so the cost of the latest technologies for social change management can be prohibitive. However, effective use of digital technology can improve efficiency and impact the mission and future outcomes of the nonprofit sector.
Create a Digital Technology Platform for Growth
Going beyond back-office functionality, a strong digital technology platform goes hand in hand with integration. An integrated platform that allows the whole nonprofit organization and nonprofit boards to view operations as a single version of the truth.
In NetChange’s survey of technology use by nonprofit organizations, only 11% view their approach to their digital future as highly effective. If done correctly, digital technology adoption isn’t just chasing the latest future trends software. It is strategically selecting digital tools that empower staff and stakeholders to deliver on the mission of their charitable organizations.
Nonprofit organizations are not often associated with competition, and they don’t think they have the potential to fall behind. However, nonprofits are continually competing in fundraising efforts, for volunteers, and passionate staff. By using technology (from a Netsuite partner for example), to create a platform for growth and societal impact, a nonprofit organization can become a strong charity competitor.
Establish Efficient Volunteer & Fundraising Management
Having an efficient volunteer and fundraising management plan in place can help nonprofit organizations speed up the progress of their operations, achieve objectives, and attract the most talented volunteers and nonprofit professionals. Volunteer management is the process of creating systems for volunteer recruitment, training, engagement, and coordination. Due to the diversity of how nonprofit organizations are managed, volunteer management strategies can vary between organizations.
A volunteer management process that relies heavily on spreadsheets can be counterproductive to nonprofits. Manual processes are prone to error and will waste the valuable time of your volunteers and employees. Valuable time is better spent improving relationships internally and externally that support philanthropy and the objectives of the nonprofit.
Nonprofit organizations need to invest in solutions that will streamline the recruitment, communication, and data collection and analysis to reduce the manual management of volunteers. Investing in technology can save precious time by removing manual volunteer management processes, time that can go towards achieving the vision of the organization.
It’s Time to Get Out of Survival Mode
When nonprofit organizations get stuck with an old way of operating, they become unwilling or unable to seek out innovation and positive change. Nonprofit organizations with a ‘survival mode’ culture focused on purely getting donations in the door often lack the capacity to invest in sustainable growth and innovation. Lack of growth and innovation in an organization can lead to complacency with inefficient or outdated technology, overworked volunteers, and low digital education amongst employees.
Nonprofit leaders need to place fundraising at the centre of every business decision, who are the donors and how do they prefer their charitable giving. To create a fundraising experience that has a true impact, Not-For-Profits should foster digital talent and education, become active on social media, set aside resources for digital planning, strategy and online giving, and understand their audience and how to reach them.
Adopting a data driven approach powered by digital technology into a nonprofit organization will allow them to continually optimize their fundraising activities in a digital world. With easy access to information on donors, the types of donations people are making, and the effectiveness of programs, the nonprofit industry can deliver value for the communities they support with virtual events or online fundraising as examples.
Digital Technology Transformation
NGO’s need a nonprofit digital transformation to have better business functions that allows the social sector to become more efficient and profitable. Banks are a great example where digital skills and cloud computing have resulted in an improvement in customer service and productivity. However, digital transformation can be confusing, as there is no defined path. Nonprofits need to adopt innovative technology to challenge their traditional way of operating.
There are many benefits for a nonprofit that undertake a digital technology transformation of their organization:
- A framework for improved engagement to better understand where the position of their supporters on specific issues (on social media for example)
- the right collaboration tools are available for internal teams and departments, removing information silos
- volunteers and employees can more freely and effectively work with one another to achieve the vision and values of the organization.
The pandemic delivered a long-lasting impact on fundraising revenue for the nonprofit sector that will be felt for many years. The biggest consideration for the sector when building its digital transformation strategy is process streamlining, digital fundraising and data analysis. Therefore, nonprofits need to seek outside expertise on what areas of their organization they should focus on first.
Technology can be an amazing digital strategy tool, transforming the way a nonprofit organization achieves its mission and creates a lasting impact in its community.