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The nonprofit sector has been actively helping to shape the world for the better for hundreds of years. In 2023, this is only more so the case, with billions of USD being donated to charitable causes each year. Over time, the total donated each year has continued to rise, increasing by 4%, 23.8%, and 3.4% across the general public, corporate, and foundation spheres, respectively, from 2020 to 2021.
One of the leading causes of this positive increase over time has been the introduction and proliferation of technology across this industry. While nonprofits were once constrained by geographical limitations, this is now no longer the case. Let’s explore just how extensive technology’s impact on the nonprofit sector has been.
The Traditional Nonprofit Approach
Before the arrival of technology, nonprofits were geographically constrained. Often only working in small communities, the causes that were at the heart of most nonprofits reflected this. For example, a nonprofit may establish itself in a small town to help with the repairs of the town center or hall.
It was only when technology allowed for geographical limitations to be removed that nonprofits began to focus on much more extensive and often global causes. Technology has radically shaped this industry, increasing its impact, scope, and level of international participation.
According to a study published by the State University of New York, there is a strong correlation between the uptake and strategic use of technology within nonprofits and their overall performance. Across almost all measurable metrics (donations, volunteers, general public sentiment), effective use of technology is beneficial to nonprofits.
It’s not hard to see why. Even going beyond the increased visibility that the digital sphere brings, the ability to remove the largest barrier – geography – to growth through technology is a vital part of ensuring continual growth.
Section exploring how nonprofits have traditionally been run. While successful in their respective communities, the lack of technological connection posed a few main barriers to expansion.
The Arrival and Proliferation of Technology
Technology has acted as a key force, actively shaping the world of nonprofits and allowing them to exceed all limits that were once placed upon them. While this has developed over time, the current state of modern technology is now a central part of every successful nonprofit. Across the board, from total donations to awareness, technology helps increase the impact that nonprofits can achieve.
As technology has become a central pillar of the nonprofit sector, we’ve seen a number of benefits start to materialize:
- Heightened Exposure – Using tools like social media and community management, nonprofits are able to put their mission in front of many more people than what was possible with traditional marketing. The digital age and the extent to which we can now create and distribute messages and information across the globe allow nonprofits to generate more attention, awareness, and recognition for their causes.
- Increase in Donations – As nonprofits can now gain international exposure, their donation pools are not only limited to one geographic area. With this expansion comes a whole new world to gather donations and support from, radically increasing the total collected by nonprofits each year.
- Boosted Participation –With awareness, recognition, and a clear demonstration of how nonprofits are doing good in the world, it has become easier to gain new volunteers for a cause. Demonstrating the end result of donations via technology allows people to empathize with a nonprofit’s objectives, increasing community participation.
These changes were even more prominent during the pandemic, when people had the inability to connect in person. Technology acted as a force for connection, allowing people from all over the world to come together in a virtual space and continue to support their chosen nonprofit.
How Does Technology Bring Modern Nonprofits and Donors Together
Modern nonprofits have a variety of tools available to them on their tech stack. These technological systems, platforms, and devices allow them to reach more donors than ever before, even with a fraction of the effort. There are a number of core technologies that the vast majority of nonprofits will find themselves using.
Here’s a small segment of all the available technologies that increase the impact of nonprofits:
- Customer Relationship Management Platforms – CRM software for nonprofits is by far one of the most useful technologies that have become essential to this industry. CRM platforms allow nonprofits to segment their audience, launching personalized campaigns that directly relate to each customer on an individual level. Equally, the overview of each donor allows nonprofits to treat their collaborators with a higher level of individuality, which makes donors feel much more appreciated.
- Email Software –Long gone are the days of personalized hand-written letters. With the arrival of email and email automation software, nonprofits can get in contact with their entire organization with the click of a button. This allows for better communication streams, more impactful messaging, and A/B email testing to streamline how nonprofits engage their audiences.
- Virtual Town Hall Software –Another technological tool that became popular during the pandemic is virtual town hall and meeting software. While unable to meet in person, these virtual spaces allowed nonprofits to continue their high level of person-to-person contact. From launching virtual update meetings to hosting virtual community events, these allow nonprofits to bring their members together, no matter where they are physically located in the world.
These three examples represent a fraction of all the technological platforms and systems that nonprofits have at their disposal. Yet, even with this small glimpse, the worth that they bring to modern nonprofit organizations is almost incomparable.
Final Thoughts
Technology has shaped, and will continue to impact, the world of nonprofits to an extreme degree. From geographical expansion to the ability to connect with people around the world with the click of a button, technology has been vital in increasing the impact of modern nonprofits.
As we move further into this digital age, it’s likely that new technologies will arise that further push this industry to do more good on a global scale. We can’t wait to see what’s on the horizon.
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