Microsoft’s Latest Update to Its Nonprofit Solutions: What You Need to Know for 2025 Planning
At Heller Consulting, we continue to stay current on the latest developments impacting the world of nonprofit technology. We also take pride in being technology-agnostic and transparent with our clients and our readers. With that in mind, we’re sharing a recent update regarding Microsoft’s offerings for nonprofit organizations, as you build your 2025 fundraising plan.
Microsoft is moving toward the retirement of the Fundraising and Engagement solution for nonprofits. Launched in 2020, Fundraising and Engagement is a solution built on top of the Nonprofit Common Data Model and Microsoft Dynamics 365 Sales.
As a Microsoft partner, we know that many nonprofits will want to understand what this change means for the sector – especially for organizations currently using or considering investing in Microsoft solutions built for nonprofits.
Here are some questions and answers to help you understand more about this recent change and how we recommend moving forward as you make technology decisions for your nonprofit.
Is Microsoft still a good technology choice for nonprofits?
It is. Keep in mind that Microsoft is a world-class, highly secure technology option that provides significant discounts for nonprofits, remains invested in the nonprofit sector, and is a leader in artificial intelligence (AI) innovation. We often recommend that nonprofits build their technology stacks on Microsoft when it is the right fit, and the change with Fundraising and Engagement does not change the fundamentals that make Microsoft a strong technology choice for many nonprofits.
Microsoft’s investments in solutions for the nonprofit sector include making strategic updates to their suite of solutions for nonprofits. At the same time, AI is fundamentally changing the way Microsoft develops their platform, which is the foundation for Microsoft solutions across all industries. Retiring Fundraising and Engagement is part of these strategic updates.
How does the retirement of Fundraising and Engagement impact the sector?
We understand that the retirement of this product will directly impact some organizations in the near term, and we are working directly with our affected clients. While change can be unsettling, we also see that this change will set up Microsoft to better serve nonprofits in the long term.
We see the decision to retire Fundraising and Engagement as similar to the shift Salesforce made in rolling out the new Nonprofit Cloud. It’s an industry trend away from platform providers creating their own managed packages (like NPSP), or products, for specific industries that are built on top of the core platform. Instead, there is a focus on the core platform technology itself, with accelerators and/or templates that help independent software vendors (ISVs) and other solution providers to quickly build industry-specific solutions that include all of the innovations the platform offers.
In this case the good news is that, unlike with the Salesforce Nonprofit Cloud, the data model at Microsoft is not changing for nonprofits. The Nonprofit Common Data Model (NCDM) remains. We know that while the change will impact some specific functionalities available, if you are considering Microsoft solutions or if you’re already building a technology ecosystem around Microsoft, this news should not stop you from investing in technology innovation at your nonprofit.
The shift from Microsoft will allow nonprofits to benefit from enhancements to Microsoft’s core platform including innovative AI capabilities. So, while on the surface it might seem like a reduction in investment in solutions for the sector, it’s really a strategic move that will help industries, including nonprofits, adopt new technologies, like AI, more quickly.
What do we do if our nonprofit is currently using Fundraising and Engagement?
Between July 15, 2024 and December 31, 2026, you can continue to use Fundraising and Engagement, apply security updates as they are made available from Microsoft, and receive technical support from Microsoft. After December 31, 2026, Microsoft will no longer implement security updates for Fundraising and Engagement, and there will be no further technical support for the solution.
To ensure you have a successful path forward, Heller Consulting is ready to help you identify the future configuration of Dynamics 365 Sales needed to meet your specific requirements.
What if our nonprofit is considering a move to Microsoft solutions for nonprofits?
The pace of technology innovation continues to accelerate, making nonprofit technology decisions more complex. In this environment, it can be tempting to delay technology decisions so that you can wait for the market to stabilize.
But if you wait, technology will only continue to evolve. If your nonprofit has a strategic business objective that needs the support of a technology solution, it’s in your best interest to move forward.
In short, we don’t believe the news from Microsoft should stop you from making a change if your current technology is not meeting your needs. There are still many paths forward on the Microsoft platform that will help nonprofits grow and scale their fundraising and operations.
Our team here at Heller Consulting is ready to help you determine what mix of solutions is the right fit for your needs. We can also help you to develop a business case and roadmap as well as implement and support the solutions. Contact us to find out more and get started.
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