Charitable giving continued its upward trend in the US in 2017, as an estimated $410.02 billion was given to nonprofits. For the third year in a row, total giving increased exponentially. This increase and the overall size of charitable contributions is a testament to the integral role nonprofits play in our society - a role which continues to grow.
Source: Giving USA 2018 Report
Mission is a nonprofit organization’s legal reason for existence and creating and operating a nonprofit organization that meets the goals and achieves its mission is as challenging as running a for-profit business. This is because frequently changing trends in the economy, demographics, technology and communications all affect the decisions nonprofits make and, ultimately, their fate as effective and sustainable organizations.
This article highlights the emerging trends that are transforming the nonprofit industry
Trend #1: Automation
With new and rapidly developing cloud-based technologies, simplifying the complexities of nonprofit business processes is on the horizon sooner than had been expected. From managing donations to planning educational events, running a nonprofit is a balancing act. Automation helps the outreach processes run more smoothly enabling these nonprofits to fulfill their mission. It also helps in prospect list management as automating the communication with donors, sponsors and volunteers provides them with task-oriented dashboards that help them contribute in their time and at their pace. Finally, it can reduce the stress of transactional and routine tasks such as data entry, bookkeeping and compliance work which allows nonprofit leaders more time to focus on achieving their mission.
Trend #2: Digital Technology is the New Way of Donating:
According to NPR and the Federal Reserve, checks account for only 15 percent of all non-cash payments and with a population composed largely of Millennials, of which 84 percent give to charity, more than a fifth of them have never written a check. As a result, nonprofits must adopt convenient electronic payment methods to remain appealing to a younger audience and maintain a healthy donor base. In addition to this, digitizing the accounting records reduces process time and errors, aids cash flow and improves transparency. Digitizing also gives nonprofit leaders access to data quicker to allow them to make better decisions on how to expand their organization and mission.
Nonprofits will struggle to remain relevant in the coming years if they fail to prioritize the adoption of digital technology and solutions.
Each nonprofit organization has their own takeaways from the above trends based on the demographics of their situation.
What plans or changes do you see your nonprofit organization making over the coming year?
At Quatrro, we help nonprofits to remain focused on achieving their mission by taking the burden of their day-to-day operational tasks such as accounting, IT and payroll, off their shoulders. We possess 25+ years of experience in offering tailored business support services, keeping in mind the needs of our nonprofit clients while ensuring efficiency and utmost quality in all that we do.