The power of partnerships that deliver tech benefits to the nonprofit sector
Founder and CEO of Aspirational Futures, Sally Eaves, recently got together with Chris Brewer, Global Nonprofit Lead at Unit4, to discuss what nonprofit organizations are looking for in technology partnerships and how companies like Unit4 can help them achieve their digital transformation goals.
In this blog, we have collated some of the main discussion points.
The state of digitization in the nonprofit sector
Nonprofit organizations are steadily acknowledging the power of technology, using it to simplify operations, engage stakeholders more effectively, and enhance efficiency. Nevertheless, compared to other sectors, the pace of adoption in the nonprofit sphere has been rather measured.
This is primarily attributed to certain constraints, such as limited funds and a scarcity of technical proficiency. The emphasis right now is on leveraging ERP systems, fundraising software, and donor management platforms to heighten efficiency and fortify service delivery.
Despite the challenges, this gradual transition toward digitization is a promising step toward harnessing the power of technology for mission-driven work.
Nonprofit sector versus other industries
Corporate entities have secured a leading position in the race to achieve digitization, fueled by substantial resources and a well-defined return-on-investment framework.
Nonprofits, while increasingly aware of the potential of digital transformation, often grapple with budgetary restrictions and a murky understanding of the direct payoffs from technology investments.
However, this hasn't deterred some trailblazing nonprofits from making significant strides in the digital sphere. By forming strategic alliances with tech companies or securing funding for targeted technology initiatives, these nonprofits have managed to bridge the digital gap that separates them from their corporate counterparts.
This exemplifies that while the path to digital transformation may be more challenging for nonprofits, it is by no means unattainable.
The role of ERP in nonprofit digital transformation
By knitting together diverse business processes into a unified platform, ERP systems equip nonprofits with the tools they need to streamline everything from financial operations and human resources to donor management and fundraising efforts.
The deployment of these systems can usher in operational efficiency, transparency, and enriched decision-making - fundamental ingredients for sustainable growth and success.
The potent combination of streamlined operations and efficient resource management offered by ERP systems not only helps nonprofits navigate their daily operational challenges but also lays the groundwork for a successful digital transformation journey.
Hence, nonprofit leaders should see ERP systems not merely as a tool for managing their resources but as a catalyst for their broader digital evolution.
Click to read Helping nonprofits deliver on their mission with FP&A and HCM Gated
A look at the year ahead
As they prepare to embrace the coming year, nonprofit leaders have the opportunity to chart a strategic course toward digital transformation. This journey begins by setting tangible and clear digital objectives that align with the organization's mission and goals. The next step? Investing in the right technology that serves these goals.
The implementation of ERP systems should be given high priority. These systems have the potential to revolutionize the way nonprofits interact with their donors and other stakeholders. It's critical, though, to choose an ERP system that suits the organization's unique requirements.
However, technology alone won't drive transformation. It's the people who use it that make the difference. This means training staff to use new technologies proficiently and creating a nurturing environment that embraces change. The coming year may also require addressing any organizational resistance to technological change.
Forming strategic partnerships
Building robust relationships with technology and ERP providers can supercharge a nonprofit's digital transformation. These partnerships offer an invaluable gateway to expertise and resources otherwise out of reach.
Tech partners can provide tailored advice on how best to implement digital strategies, train staff effectively, and navigate any technical complexities. This level of support can fast-track the realization of digital goals while reducing common stumbling blocks like technical glitches or staff resistance.
Even more compelling, this collaboration could pave the way for cost-effective solutions and discounted rates, making technology more accessible despite budgetary limitations. Whether it's a simplified ERP system or a complex data analytics tool, a technology partner can be a guiding light in the digital landscape.
The key is to foster a relationship that emphasizes mutual growth and shared vision. Ultimately, strategic tech partnerships aren't just about acquiring tools but about gaining a trusted ally in your digital journey.
Leveraging technology to create better mission-driven outcomes
Embracing the right technology can empower nonprofits to serve their stakeholders more effectively and efficiently. ERP systems can revamp donor engagement by facilitating a more personalized, seamless interaction. They can free up staff time by automating administrative tasks, enabling teams to focus on strategic, mission-driven activities.
Data analytics allow nonprofits to delve deep into donor behavior patterns. These insights can illuminate effective strategies, guiding nonprofits toward data-informed decision-making that resonates with their donors.
Imagine being able to predict what causes your donors are likely to support in the future or understanding which engagement strategies yield the highest donor satisfaction. That's the power of technology at work.
Technology can amplify the reach of organizational efforts. When used effectively, social media platforms and digital marketing tools can increase visibility, attract more supporters, and spur online donations.
The digital world also opens up opportunities for online volunteering, enabling nonprofits to engage with supporters who cannot contribute in traditional ways. This can dramatically expand the pool of potential volunteers and make an organization more accessible to those who share their mission.
How Unit4 is helping nonprofits on their digital transformation journeys
As we traverse the digital transformation road in the nonprofit sector, it’s essential to remember that this is not a finite process but an ongoing journey. Much like technology itself, the strategies and systems nonprofits use need to be dynamic and adaptive.
The rewards of digitization - enhanced operational efficiency, strengthened stakeholder engagement, and the potential to make a broader impact - make this digital expedition well worth the effort.
At Unit4, we no longer think about individual solutions; the next generation of software is Platforms as a Service (PaaS), which gives the ability to launch projects and programs quickly to bring data in seamlessly. We can quickly add on individual applications that will benefit a particular program.
As Chris Brewer says,
Our one voice is that technology should eliminate barriers to success for people… using tech in a way that's transparent, effective and not cumbersome, so that they can deliver on not only their organizational mission but their personal drive to participate too. I think that's the one voice that Unit4 has.
You can watch the whole discussion in this on-demand video here, and to find out more about how Unit4 can help your nonprofit organization with digitization, you can read more about our suite of solutions here.
