How to make confident nonprofit tech decisions
The nonprofit sector faces unprecedented challenges. The financial stability of many organizations has been rocked by economic uncertainty, changing donor priorities, and the increasingly volatile US federal funding landscape. Coupled with increased cybersecurity risks, the rise of AI applications, and a new wave of regulatory compliance, the remit of development operations leaders has never been more complex.
As a leader at Heller for more than two decades, I can say with confidence that technology is not just a tool for operational efficiency—it sustains the very missions nonprofits strive to achieve. From streamlining processes and enhancing data management to enabling innovative fundraising strategies and improving donor engagement, the right technology solutions can significantly bolster a nonprofit’s capacity to fulfill its mission. As organizations navigate these turbulent times, making informed and strategic technology decisions is essential for their sustainability and efficacy.
By aligning technology investments with strategic goals, maximizing the use of existing tools, leveraging AI for efficiency, and prioritizing data quality, nonprofits can not only survive but thrive in this challenging environment.
Here are some of the developments I am anticipating this year.
Nonprofit technology trends to watch in 2025
Major platform shifts away from business applications
Salesforce and Microsoft are gradually divesting from traditional business applications across all sectors, including nonprofits. Instead, they are focusing on future-oriented technologies such as AI and data cloud solutions. This shift means that nonprofits relying on these platforms must prepare for changes and explore how to integrate new tools and technologies into their operations.
Blackbaud appears to be entering the space created, ramping up its investments in market-specific business applications after years of minimal development. This presents an opportunity for nonprofits to leverage Blackbaud’s renewed focus on developing robust, sector-specific tools.
Other business application developers are ramping up their investment in the nonprofit space and adapting their tools for the unique needs of fundraisers. Kindsight, Virtuous, and Bonterra are some companies specializing in business applications while the major platforms move away from producing them.
Pilot projects leveraging AI
Artificial Intelligence is becoming a cornerstone of nonprofit technology, offering significant potential for automating processes and enhancing data management. Nonprofits should consider how AI can improve productivity by freeing up staff to focus on high-impact tasks. Additionally, integrating AI with existing systems can streamline operations and provide deeper insights into donor behavior and engagement.
Providers like Blackbaud, Salesforce, and Microsoft are introducing new capabilities on an almost weekly cadence. Most nonprofits we talk to are prioritizing back-office uses of AI to automate repetitive tasks and free up staff time for more impactful work.
Strategic investments and maximize existing tech
Nonprofits understand that achieving organizational goals heavily relies on the right technology. This makes it crucial to be intentional about where and how they allocate their tech budgets.
Many nonprofits have opportunities to better use their current software. By fully leveraging existing tools and integrating them with new applications, organizations can enhance their capabilities without significant additional investments.
Data quality drives engagement, reporting, and AI
High-quality data is essential for personalizing campaigns, generating accurate reports, and implementing AI. Nonprofits are increasingly focusing on data hygiene and governance to ensure their data is clean, complete, and accessible.
Increasing efficiency
Technology investments should aim to streamline processes, save staff time, and increase overall productivity. By focusing on tools that enhance efficiency, nonprofits can achieve more with their existing resources.
Advice for tech leaders
- Align your technology with your strategic goals: Start your technology planning by identifying your organizational goals. Choose solutions that directly support these objectives. Avoid getting distracted by new tools unless they address an immediate need or align with your strategic plan.
- Maximize your current software: Before purchasing new technology, ensure you are fully utilizing your existing stack. Look for additional modules or functionalities that can meet your needs. Integrate current tools with new applications to expand capabilities without a complete overhaul.
- Leverage AI for efficiency: Think of AI as a way to automate repetitive tasks and free up staff time for more impactful work. Focus on how AI can enhance your team’s efficiency rather than replacing human roles.
- Prioritize data quality: Ensure your donor and constituent data is clean, complete, and accessible. High-quality data is crucial for effective marketing, fundraising, and AI implementation. Make data hygiene and governance an ongoing priority.
- Stay informed and adapt: Keep up with the latest trends and best practices in nonprofit technology. Use resources from reputable organizations to make informed decisions.
By following these insights and strategies, development operations and tech leaders can make confident technology decisions that support their nonprofit’s mission and goals. Embracing these changes will help nonprofits thrive in the dynamic tech landscape of 2025.
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