Cultivation & Stewardship

4 Reasons That Nonprofit Technology Is a Good Investment

The right nonprofit technology is an investment that will pay for itself, as well as offer several other benefits to your organization.

Only 11 percent of nonprofits believe they are “highly effective” at managing digital resources. Another 75 percent say they don’t consistently track engagement metrics. Nonprofits operate in an increasingly digital world that relies on good data to inform growth. Yet, tight budgets, a lack of grant funding for operations, and a desire to apply funding directly toward mission-critical work cause nonprofits to shy away from investing in technology. 

The right nonprofit technology, however, is an investment that will pay for itself, as well as offer several other benefits to your organization.

If you’re looking to update your nonprofit technology but are wondering whether now is the best time, you’ve come to the right place. Below, we’ll cover four reasons why making the move to better software systems is a good investment. You can use these tips to get your full team and board aligned with your vision. 

1. Technology Can Make Fundraising a More Personal Experience

The more you’re able to connect with your donors on a personal level, the more likely they are to develop an emotional bond with your nonprofit that encourages their continued support. Since you have multiple donors to steward, nonprofit technology can help you keep track of each without missing a beat on important touchpoints in the relationship. 

Nonprofit technology can automate some of the tasks needed to keep donors engaged, such as sending newsletter updates targeted toward their specific interests. You can group supporters into donor cohorts based on their preferred forms of outreach. Nonprofit software can also remind you of important dates and opportunities to check-in with your donors, such as birthdays or anniversaries.

Overall, nonprofit technology allows you to track holistic donor data to better integrate supporters into your community, while also tapping into theirs. This makes fundraising feel less like constantly asking for money and more like communicating with a good friend who wants to see your work grow.

2. Intuitive Tools Can Improve Employee Morale

Many nonprofits, especially those that are smaller or just getting started, have staff who wear multiple hats. It can feel overwhelming trying to keep up with everything that needs to get done, and if you’re not careful, this can lead to employee burnout.

Investing in nonprofit technology is an investment in your staff’s well-being. Your team doesn’t waste time and feel frustrated trying to navigate clunky, outdated systems. You’re able to automate simple tasks and set up integrations between different software tools to free up time for overworked staff. 

Using a donor management solution like Instil centralizes all the information your staff needs and keeps it organized. With this improved workflow, your team can stress less and keep their focus on being champions for your mission.

3. Modern Technology Can Increase Donor Trust

Have you ever gone to a company’s website that was awkward to navigate and looked like it hadn’t been updated since the start of the internet? Typically, those kinds of sites give us pause. We wonder if our data is safe with them and whether the company is reputable. Alternatively, user-friendly, modern-looking sites build our confidence in that company. We view them as staying on the cutting-edge of the latest advances.

Supporters view your nonprofit through these lenses too. Being a tech-savvy nonprofit helps your donors see that you keep up with the latest advances in data security, mobile optimization, and user experience. This leads to increased donor trust. An investment in nonprofit technology shows that you’re forward-thinking and innovative, not tied to making the same old solutions work.

4. Technology Allows You to Leverage Data to Drive Your Mission

Grantmakers often want to see the impact of their gifts. They want to know how many people were served and in what timeframe. They want to know what your year-over-year growth was. Nonprofit technology can help you collect the data you need to show your impact and secure additional funding for your mission.

Additionally, collecting data on your donors can help you better engage them with your mission. You’ll be able to know which advocacy areas interest them most, invite them to their favorite types of events, and make meaningful requests for support that align with their values.

Finally, using nonprofit technology to gather data for your mission lets you track the impact of your various projects and initiatives. By doing so, you can gauge which are working best and which are facing challenges. With this information, you can shift your focus areas accordingly to where you can make the biggest difference. Your supporters and grant funders will appreciate seeing how you meaningfully evaluate your work to be as efficient and effective as possible.

Invest in Nonprofit Technology to Keep Your Organization Forward-Thinking

Nonprofit technology comes with upfront costs, but your investment pays for itself in time through increased staff morale, better relationships with donors, and data-driven decision-making to inform your mission.

Reach out to nonprofit technology experts at Instil to get the conversation started on how improved nonprofit technology can support your work. You can
contact the Instil team for questions, demos, or educational materials any time through our web

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