There are over 1.5 million nonprofits in the United States, including public charities, private foundations, and other types of nonprofit organizations such as chambers of commerce. According to a report by PNP Staffing Group, the nonprofit sector has grown 20% in the last 10 years, compared to the for-profit sector, which had a growth rate of 2-3%. As the nonprofit sector continues to grow in size – organizations face challenges in many areas.
But, rather than being fearful of the challenges that growth may bring, nonprofits should be optimistic. One of the simplest solutions to the challenges that nonprofits are facing is to implement innovative technologies. Below are just seven ways that technology may help your nonprofit grow and overcome challenges.
Technology has allowed nonprofits to gain visibility, both externally and internally. Social media channels allow nonprofit organizations to share their important work with the world and gain external visibility. Additionally, technology such as software-as-service (SaaS) gives nonprofits visibility to internal operations and the financial state of the organization. Visual dashboards have grown in popularity and there’s a good reason for it – they provide the most important metrics to you and your organization.
2. Grant Management
Nonprofits heavily rely on grants to operate; in 2013, public charities reported that 21% of their revenue came from government grants. While all the administrative tasks that are required to manage the grant process doesn’t require you to use software, it certainly helps. SaaS providers now offers specific functionality that allows your nonprofit organization to renew, manage or invoice funders as it relates to grants.
3. Remote Access
A survey released by Gallup earlier this year found that 43% of Americans spend at least some time working remotely. This number was a 4% increase since 2012, and the trend doesn’t seem to be going away. Remote work requires that employees can access the work anytime and anywhere. One of the most common solutions to this is implementing cloud accounting software. Outsourced Accounting Firms now offer a range of different services, such as accounting, expense reporting, analytics, CRM, CPM etc.
According to a report by Charity Dynamics in 2015, 88% of nonprofit professional believe that digital fundraising is going to grow from 7% to 20% in the next decade. Digital solutions can also gather data and summarize in visual dashboards to gain insights for strategic decision making.
Bill.com recently published the results to their survey, which revealed that Millennials (the largest cohort in the US workforce) no longer expects paperless billing – they believe it is the norm. Depending on the size of your organization, you can either team up with providers that specifically focuses on ePayments and billing or incorporate it in a larger Enterprise Resource Planning (ERP) solution.
Technology has disrupted the software business where providers now offer cloud solutions with pay-as-you-go subscription payment models. Thus, nonprofit organizations who are interested in scaling with their demand can easily do so by simply adding or upgrading their software service package without having to pay additional setup costs.
Do you see any other ways that technology would help your nonprofit grow?