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How Digital Technology Has Impacted the Nonprofit Sector

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The nonprofit sector may not be at the forefront of adopting technology. Indeed, many lack digital maturity. They lag behind in the use of the latest innovations.
How Digital Technology Has Impacted the Nonprofit Sector

Tech Problems for Nonprofits and Why They Need Digital Changes

The nonprofit digital transformation sector may not be at the forefront of adopting technology. Indeed, many lack digital maturity. They lag behind in the use of the latest innovations.

Various reasons could explain why. The first is that nonprofits do not have the spending capacity or financial might. This is not like in the case of profit-making businesses. Dependence on donations can limit spending on areas outside of charitable causes. That means even existing technologies need some updating.

Lack of funds also means inadequate IT infrastructure and support. It is not uncommon to find manual processes still very much in place.

But the reality is digital transformation is sweeping the world. And, nonprofits must catch up or lose touch with modern audiences. There is also a call for greater transparency and accountability from donors. The organizations must show the effectiveness of their processes.

The charities also need to communicate well and show growth potential. Indeed, all the demands of normal companies are becoming the same for nonprofits. And yes, it includes the adoption of technology.

There is some good news though. Charities realizing that digital technologies can increase performance. And, they don’t have to spend tons of cash to adopt the trends. There are free platforms that are available online. For those who have adopted technology, there has been a massive impact, as we will show below.

1. Martech for Nonprofit Digital Marketing

You may have stumbled across the word Martech, and wondered what it is. The word is a portmanteau of marketing and technology. So, it is the use of technologies for nonprofit marketing activities. Such include increasing visibility and communicating with stakeholders.

There are tons of technologies to help with digital marketing for nonprofits. They include:-

Customer relationship management (CRM) tools for stakeholder management. Other roles are audience segmentation, leads tracking, and so much more.
Artificial intelligence for data-driven insights, thus better decision making.
Chatbots that help with conversation marketing and stakeholder support.
Content Management Systems for high-performing, functional websites.
Analytics tools that provide performance insights on nonprofit marketing activities.

An NYC web designer feels the journey to digitalization doesn’t need huge spending. It can be as simple as starting with a website. Nonprofits can use them for their marketing activities. There is flexibility and tons of avenues to reach audiences.

Effective marketing strategies for nonprofits include content creation, videos, link building, and storytelling. And, best of all, building and maintaining a website is not expensive. It will not take a huge chunk out of the nonprofit’s marketing or advertising budget.

2.Better Fundraising and Accountability with Technology

As we stated above, donors are becoming more demanding of accountability and transparency. They want to know that the nonprofit is putting their money to good use. And, some will not wait for the annual reports. They need constant updates anytime they ask for it. Digital platforms can provide easy access to donors.

Take the example of cloud-based platforms. All the nonprofit needs to do is permit the relevant people. The stakeholders get real-time information on projects, costs, and operations.

The accounting teams can also use the software to manage their books. It will help with adhering to legal and regulatory compliance.

Blockchain technology is making a significant contribution to fundraising efforts. And that’s not all, donors get to see where their money is going, thus greater transparency. Some noteworthy blockchain fundraising platforms include Alice, Bithope, Cleanwater, and GiveTrack.

Take the example of Alice. The fundraising startup will free contributions pending proof of achievement of fundraising goals. Bithope allows for receiving funds from global donors using Cryptocurrency. GiveTrack allows for real-time tracking of donations while accepting bitcoins from donors.

And that’s not all. Other technologies helping with fundraising include mobile apps, social media, and Crowdfunding technologies.

Many payment options ensure the organization does not limit the contribution of collections. Technologies like Apple Pay, PayPal, and Google Wallet provide convenience to donors.

Artificial intelligence helps the team with smarter targeting using data-generated insights. The nonprofit digital marketing team and fundraisers can personalize messaging for better engagement. Chances of receiving donations increase this way.

3.Digital Technology Enhancing Nonprofit Cybersecurity

You would think cybercriminals have some scruples and will not target a nonprofit right? Well, the answer is no, everyone is fair game in the hacker world. So what makes nonprofits such a viable target?

Well, such organizations collect and store large amounts of very valuable data. These include personal information, social security, and credit card numbers.

Digital Technology Enhancing Nonprofit Cybersecurity

In 2019, the American Cancer Society fell victim to a malware attack. The hackers’ aim was to steal credit card information. It is unclear how many people the breach affected.

Many charities still depend on legacy systems. It means they may not have the best cybersecurity measures in place. Measures that can compete with the sophistication levels of hackers.

Few have security policies and cybersecurity awareness training. Proper data storage and management facilities are also lacking. This leaves them exposed to cyber-attacks.

Cybersecurity technologies are a vital component for nonprofits. Password managers, multi-factor authentication, cloud storage, and other security measures keep data safe.

It is also reassuring for the stakeholders who share sensitive information. The organizations are also training personnel on the detection and prevention of cyber threats.

Secure cloud storage systems are also game-changers. Remote nonprofit workers can access information wherever they are. All they need is internet connectivity and admin permission. Quick access to data improves efficiency and streamlining of workflows.

Final Thoughts

The rate of technology adoption amongst nonprofits is on the rise. The organizations have realized the need to shrug off the label of late adopters.

The innovations help with the automation of tasks. There is higher efficiency, and streamlining of workflows. It frees up the teams from spending hours on mundane repetitive tasks.

For nonprofit digital marketing, the benefits are many. The digital technologies enhance the strategies aimed at getting visibility for the organization. The teams can also make better decisions from AI data-driven insights.

Technology is also transforming fundraising and accountability. Different platforms make it easy to reach a wider pool of potential donors. Managing and collecting donations is easy on one centralized platform. And contributors can track how the charity is spending their money.

Finally, cybersecurity technologies help keep sensitive stakeholder information safe. Secure cloud storage facilities give teams quick access to information.

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Prior to joining Altimetrik, Anguraj has served in various positions and roles at Globant, GlobalLogic, Wipro and TechMahindra. Over his 25 years career, he has led many strategic and large-scale digital engineering and transformation programs for some of world’s best-known brands. His clients represent a range of industry sectors including Automotive, Technology and Software Platforms. Anguraj has built and guided all-star teams throughout his tenure, bringing together the best of the techno-functional capabilities to address critical client challenges and deliver value.

Anguraj holds a bachelor’s degree in mechanical engineering from Anna University and a master’s degree in software systems from Birla Institute of Technology, Pilani.

In his spare time, he enjoys long walks, hiking, gardening, and listening to music.

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Vik is a seasoned executive and brings over 25 years of global experience in Financial Services, Digital, Management Consulting, Pre- and Post-deal services and large/ strategic transformational programmes, gained in a variety of senior global leadership roles at firms such as Globant, HCL, Wipro, Logica and EDS and started his career within Investment Banking. He has developed significant cross industry experience across a wide variety of verticals, with a particular focus on working with and advising the C-Suite of Financial Institutions, Private Equity firms and FinTech’s on strategy and growth, operational excellence, performance improvement and digital adoption.

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