In our experience, the relationship between technology and nonprofits can be tricky. We've observed that many nonprofits and associations have been hesitant to embrace new technologies and digital accounting software as they emerge. These organizations are often well-established, and change can seem risky, particularly when it involves managing long-standing donors, grants, and other essential processes with traditional methods firmly in place. Plus, restrictive budgets pose a challenge, making the adoption and organization-wide rollout of new technology, like cloud-based accounting software, a costly endeavor.
However, enhancing technology can often lead to significant long-term savings while providing the tools and data needed to support nonprofit missions better. We frequently begin our client conversations with a crucial question: How well does your technology support your mission? More often than not, we discover critical gaps that are hindering progress toward their goals. It all started with understanding the value of technology and how it supports your mission.
Let's explore how upgrading technology can not only fill these gaps but also empower nonprofits to thrive.
Embracing Digital Accounting Software is Essential for Growth
While many areas within a nonprofit can benefit from updated technology, your accounting and financial processes should be the priority. Everything ultimately ties back to how you manage your accounting and finances. Outdated technology or manual processes likely create bottlenecks for all areas of your organization. These inefficiencies slow access to critical data and information needed for impactful decision-making.
Cloud-based digital accounting software is becoming the industry standard and offers numerous benefits, including:
- Centralizing financial data and donor information
- Expanding data accessibility across your teams
- Improving the accuracy of data collection
- Streamlining operational processes
- Better managing donations
- Simplifying performance measurement
- Generating reports quickly and efficiently
When you have better access to financial data, you can make decisions that drive growth and better support your organization’s mission long term.
Technology and Nonprofits: Other Areas of Improvements to Consider
Accounting technology is where we recommend starting, but it isn’t the only space where technology improvements can help nonprofits. In fact, improving your accounting technology can make it easier to implement other technology advancements like those below.
- Customer Relationship Management (CRM) Systems: Centralizes donor information, improves relationship management, and supports targeted communication efforts.
- Data Analytics and Reporting Tools: Provides insights into fundraising performance, program impact, and operational efficiency. These tools are often already accessible in digital accounting software.
- Digital Fundraising Platforms: Expands online giving options, integrates with social media, and tracks donor engagement.
- Cybersecurity Measures: Protects sensitive donor data, ensures compliance with data protection regulations, and secures organizational assets.
- Project Management Software: Enhances collaboration, tracks progress on initiatives and ensures alignment with strategic goals.
- Marketing Automation Tools: Streamlines outreach efforts, personalizes communication, and tracks engagement metrics.
- Volunteer Management Systems: Organizes volunteer data, schedules shifts, and improves engagement and retention.
- Collaboration and Communication Platforms: Facilitates team coordination, remote work, and cross-functional collaboration.
- E-Learning and Training Platforms: Provides ongoing staff and volunteer education, ensuring they have the necessary skills and knowledge.
Avoiding the Threat of Technology Debt
On the opposite end of the technology and nonprofit spectrum lies the risk of neglecting system upgrades for years. Each time leaders postpone or avoid these upgrades, the organization not only falls behind its competitors but also accrues what’s known as “technology debt.” While a single upgrade may seem costly now, delaying it until it becomes unavoidable will likely be even more expensive.
This is why we strongly recommend staying up-to-date with new technology developments, especially when your current systems roll out updates or enhanced software.
How to Overcome the Challenges of Adopting New Technology
Nonprofits face numerous challenges when trying to adopt new technology or digital accounting software, but with the right strategic planning, your organization can avoid being left behind.
How to Work Through Common Technology and Nonprofit Challenges
- Limited Budget and Resources: With so many competing priorities, setting aside funds for a significant technology shift can be tough. Consider seeking grants, forming partnerships with providers, or even leveraging donor crowdfunding to finance improved technologies.
- Staff Capacity for New Skills: Nonprofit teams are often stretched thin across various priorities. Make sure to allocate proper time for your team to learn, and consider leading training programs with the support of a technology partner.
- Resistance to Change: Change can be intimidating, especially when it involves altering long-standing processes. Fostering an environment of experimentation and innovation, along with educating your team on the benefits of new technology, can make a significant difference.
Ready to Enhance Your Nonprofit Technology to Support Your Mission? Start with Our Tech Quiz
We all know that your mission should be driving the day-to-day tasks of your organization. But do you know if it drives the selection or maintenance of your technology solutions? See if your current tech stack supports the work you’re trying to accomplish by taking our free tech assessment.
