For many nonprofits, the prospect of digital transformation – the adoption of digital technologies in place of manual processes – seems downright daunting.
Organizations resist change when their members lack the skills and know-how to use new technologies. But use them they must.
In a post-COVID world, the digital revolution is here to stay. Legacy organizations must adapt to survive – and survival in the digital landscape is far from certain. A whopping 84% of organizations fail at completing their digital transformation – three out of every four.
A successful digital transformation for nonprofits – just like for businesses – requires realistic goals, clear strategies, calculated risk, and enough resources for implementation and people training.
In this article, we take a closer look at nonprofits in the context of digitization – the challenges, the trends, and how to navigate those waters confidently.
What digital transformation means for nonprofits
The concept of “digital transformation” is best understood by example.
Imagine a nonprofit that manages its donor base in a legacy CRM that does not integrate well with its email platform – a common story. Donors have to be added to email lists via Excel spreadsheets, and donations are processed through a third-party website that has to be synced manually with the legacy CRM. A recent study from Yale shows that 89% of nonprofits still rely on outdated legacy CRMs that require manual integration with email lists.
Even though all of this is happening within the digital world, nothing is connected. Digital transformation isn’t just about using computers – it’s about connectivity.
This kind of siloed, legacy system can be replaced with a cloud-based CRM such as GiveLife365 that manages every aspect of the donor relationship – tracking who donated, when, how much, and whether they’re subscribed for recurring gifts.
Has COVID-19 accelerated the need for digitization in nonprofits?
Since the start of the pandemic, the COVID-19 crisis has had a significant impact on nonprofit demand, capacity, and revenue, and continues to influence staffing decisions and volunteer contributions.
It has made the business of sustaining a nonprofit – with its reliance on volunteers and charitable events – far more challenging than in previous years. In Canada alone, nonprofits have faced billions in lost revenue because of interruptions to their services. With a critical lack of federal funding, organizations need to think outside the box.
The digital revolution has taught us that critical decisions should always be data-driven. Never has this been more important than today, with so many organizations on the ropes.
Tools like GiveLife365 offer analytical insights into donor, volunteer, membership, campaign, and sponsorship management – keeping a close eye on the inner workings of the organization. The best way to prevent a disaster is to see it coming.
How to start a digital transformation in your nonprofit
The first step toward a successful digital transformation for nonprofits is to conduct an audit of how your organization is currently operating. Ask yourself:
- What are your current processes for operational categories like donor or volunteer management?
- How are you tracking funding opportunities, whether through grants or sponsorships?
- What tools are you using to oversee your campaigns?
- Which systems – digital or otherwise – are currently connected?
From there, you and your team can map the answers to your organization’s biggest challenges: funding cuts, reduced donations, interruptions to operations, and the other challenges exacerbated by the pandemic.
Success in charitable organizations – just like in businesses – depends upon connectivity. The more connected your systems are, the more efficient your operations will be.
For more on aligning the right systems with your mission, see our guide on how to develop a tech strategy for your nonprofit and how to choose CRM software for your nonprofit.
To learn more about how to incite a digital transformation within your organization, reach out to one of our technology experts today.
