Unlocking value: Research unveils six opportunities for nonprofits in the era of digital transformation

The COVID-19 pandemic acted as a major catalyst for digital transformation, forcing many organizations to move away from legacy processes and toward the long-overdue adoption of crucial digital tools, systems, and software. However, while some nonprofit organizations made initial strides, the majority still lag in digital maturity. This raises concerns about their longevity in a world where digitalization is the future of work.

“The momentum digital transformation previously had at the height of the pandemic has largely tailed off and lost its urgency in the nonprofit industry, yet there remains much work to be done,” said Monica Pagtalunan, research analyst at Info-Tech Research Group. “Nonprofits are risk-averse when they need to be risk-takers. Digitally mature organizations recognize how deeply technology empowers people and processes. Those are the nonprofits that thrive.”

Navigating Digital Transformation

Info-Tech Research Group’s new resource advocates for a comprehensive digital maturity assessment to guide nonprofit leaders. This assessment helps them navigate the complexities of digital transformation and provides a roadmap to focus their efforts on organizational strategy, culture, and technologies.

“Many nonprofit organizations believe they are digitally mature without interrogating this assumption,” explains Pagtalunan. “An assessment is crucial in determining whether they’re on the right track.”

Six Opportunities for Digitally Aware Nonprofits

The resource identifies six leading opportunities that digitally aware nonprofits can leverage to create value:

Conversational Care: Utilizing artificial intelligence (AI) for efficient and personalized constituent engagement through natural language interactions.

Intangible Fundraising Assets: Exploring cryptocurrency and non-fungible tokens (NFTs) as avenues for creating new fundraising streams.

Digital Fundraising: Employing digital tools, alternative payment methods, and online spaces to enhance the digital donor experience in a fast-paced consumer landscape.

Fundraising Intelligence: Leveraging data and AI to optimize fundraising strategies, identify patterns, predict behaviors, and personalize donor experiences.

Cybernated Supply Chain: Optimizing technology to streamline resource and service sourcing, distribution, and delivery to beneficiaries.

Virtual Collaboration: Removing physical barriers through technology to facilitate external and internal stakeholder activities, events, and meetings.

The Benefits of Digital Maturity

Info-Tech’s resource underscores the importance of digital maturity in enabling nonprofit organizations to adapt and thrive in an ever-changing environment. It highlights key drivers such as organizational growth, operational excellence, constituent experience, program innovation, and fostering the right people and culture.

As nonprofit organizations continue to navigate challenges and opportunities in an increasingly digital world, assessing digital maturity becomes crucial to ensure they remain effective and impactful in their mission-driven work.

WRITTEN BY

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