Technology for nonprofits: Building trust and increasing impact

Sivil toplum kuruluşları için teknoloji: güven oluşturmak ve etkiyi artırmak

Nonprofits employ 12.3 million people and spend almost $2 trillion a year in the U.S. — from billions in payroll costs to everyday expenses like food and rent. But inflation, interest rate hikes, and market uncertainty have pushed organizations to make the most of limited resources. With prices on the rise, nonprofits are fighting to meet the needs of those they serve while losing volunteers to high gas prices and scrambling to recruit and retain staff.

Without enough staff to meet their needs, some nonprofits are struggling to deliver on their promises. If nonprofits can’t put donations to good use — or prove they’re using their resources effectively — they’ll lose the trust that keeps them operational.

“The public wants to see nonprofits consistently deliver on their promises. This is the most important trust variable across current and likely nonprofit donors as well as across generations.”

That’s why nonprofits need to leverage the right technology to fill the gaps and help reach their potential. From donation management platforms to online payment processing tools, nonprofits can use no-code online software to prioritize innovation and community-building.

Over the next few chapters, we’ll discuss why digital transformation for nonprofits is essential to control costs, deepen engagement, and prove impact, plus how to create a successful digitization strategy.

How nonprofit technology solutions help control operating costs

Compared to for-profit companies, one of the biggest challenges nonprofits face is a lack of operating funds. According to the Nonprofit Finance Fund, less than 25 percent of nonprofits have more than six months of cash in reserve — and 10 percent have less than a month’s worth. Without consistent, adequate funding, nonprofits may not be able to pay employees fairly or host fundraisers, let alone keep their doors open long enough to impact their community and cultivate donor trust.

Less than 25 percent of nonprofits have more than six months of cash in reserve.

10 percent have less than a month’s worth.