5 key findings from nonprofit technology survey

This spring, the Chronicle of Philanthropy commissioned an exclusive survey, conducted by Clarion Research, asking over 350 nonprofit leaders about their approaches to technology, the challenges they face implementing it, and the promise they see it holds. 

The findings reveal a sector at a crossroads, where organizations that can afford to modernize are pulling ahead, while those that can’t fear being left behind entirely. (You can read our in-depth story about the survey results here.) 

Here are five key takeaways: 

Nonprofits spend a fraction of what businesses do on tech 

Nearly 9 in 10 nonprofit leaders say technology is vital to their fundraising success, yet most spend less than 3% of their budgets on it. In contrast, for-profit companies spent nearly 6% of their budgets on technology last year. 

That investment gap has made it difficult for organizations to adapt to a rapidly digitized world: Where AI is already disrupting industries, many nonprofits still struggle with basic email management or cybersecurity protections. 

The tech gap is creating winners and losers 

Not all nonprofits face the same struggles. Those spending more than 3% of their budgets on technology are twice as likely to report using it in advanced ways, according to the survey. 

Experts say this creates a reinforcing cycle, where the most digitally savvy groups are able to attract more funding for, say, a flashy new AI-driven tool, while their less technologically sophisticated peers fall further behind. 

Leaders know what’s wrong — they just can’t afford to fix it 

Two-thirds of leaders think technology deficits are hampering their organization’s growth, with manual processes eating up staff time or complicating their ability to communicate with donors. Yet most say they lack the time or money to tackle critical but often overlooked improvements. 

Nearly 9 in 10 nonprofit leaders cited budget constraints as their primary obstacle to improving their tech strategy, while 64% point to a lack of in-house expertise and 62% say they don’t have time to properly vet and implement new tools. 

Small changes can make big differences 

Even so, a single tech-savvy staff member or board volunteer can drive dramatic changes for smaller organizations by acting as an advocate and early adopter for new software and workflows. 

The stakes have never been higher 

As federal funding cuts and financial pressures pulsate through the sector, some experts say that technology could increasingly help determine which nonprofits thrive and which struggle to survive in a world where AI is already rapidly transforming everyday life. 

Despite the stakes, only 29% of nonprofit boards actively discuss tech strategy. And while 77% of organizations expect to use AI within five years — up from 46% today — only 19% feel confident that they’re currently using technology in advanced ways. 

In other words, many leaders know what’s coming but feel ill-prepared to navigate it well. If nonprofits can’t find a way to bridge that gap soon, experts warn that essential organizations — and the communities they serve — may be left behind. 

Source: Philanthropy.com