Successful Fundraisers Rely on Modern Technology

Recent studies indicate that successful fundraisers rely on modern technology to support both short and long-term fundraising goals. This study, “The Future of Fundraising in the AI Era,” published by the Blackbaud Institute, surveyed 559 nonprofits on their fundraising efforts. The results indicate that organizations with digital maturity and a long-term fundraising perspective are most successful in meeting their goals. Here’s a look at their findings and the implications for nonprofits of all sizes.

Most Fundraisers Meet or Exceed Their Targets

One of the most exciting findings from the study is that most of the fundraisers who responded met or exceeded their targets, with 53% experiencing growth and 24% indicating steady numbers.

How did they do it? Without a doubt, digital maturity plays an important role in fundraising success. Digital maturity may be defined as a mindset that incorporates technology across all aspects of work. Technology isn’t seen as a separate platform but rather as an integral part of the workflow.

For fundraisers, this means using technology to solicit donations now but also to cultivate long-term relationships that lead to future gifts. Technology provides an important service, automating marketing and outreach, enabling highly specific targeting, and helping fundraisers maximize limited time and budgets.

Revenue Streams and Missed Opportunities

Another aspect of the study examined revenue streams. Non-education nonprofits focused on four revenue streams: government grants, major donations, individual donations, and foundation grants. What’s missing from this list is peer-to-peer fundraising. Although 61% of survey respondents reported using peer-to-peer fundraising, the remaining 39% did not, representing a potential missed opportunity.

Digital Maturity Stages and Fundraising Success Are Linked

One of the most important findings from the study is the link between an organization’s digital maturity and its fundraising success. The greater an organization’s digital maturity, the more likely it is to meet or exceed its fundraising targets. There is also a compelling link between digital maturity and year-over-year revenue growth.

Many organizations have embraced nonprofit accounting software. Nonprofit accounting and financial management, fundraising and donor management software, and grant and contract management platforms enabled fundraisers to use powerful automation and reporting features to improve their targeting and reach. This software, some of it AI-enabled, allows nonprofits to do more with the same team as before.

Sage Intacct, for example, offers Sage Intacct Fundraising powered by DonorPerfect to automate, modernize, and accelerate fundraising with personalized donor communications. The Intelligent GL feature uses AI to continuously monitor accounting. It can pick up anomalies in transactions. These features, when taken together, help build transparency and trust with constituents. That transparency and trust support fundraising activities.

Technology Opportunities

Given the clear link between digitally mature organizations and fundraising success, nonprofits should seek to maximize technology opportunities. But how can you do this with limited time and budget?

A few tips:

  • Maximize the use of existing technology. Many nonprofits have great resources already at their disposal, but they aren’t using them to their full advantage. Explore your existing software platforms. Are you using all the available features?
  • Set aside training time. Training goes hand-in-hand with technology use. Employees will only use technology that they feel comfortable using. You can help them overcome any barriers to adoption and use by including more training in your schedule. Consider surveying your staff to find out what they want to learn, then planning training around users’ wants and needs.
  • Explore integrations. Integration means systems that work together. They share information seamlessly, allowing you to do more with less work. Integrating accounting, finance, fundraising, and donor management platforms can provide better reports and personalization to improve fundraising activities.
  • Work with external vendors and consultants. If you already work with a technology vendor, don’t hesitate to call upon them for training and advice. Finding and working with a nonprofit consultant is a good idea too. They can help you pinpoint weaknesses in your current systems and find ways to improve them so that your organization can make the most of its existing technology resources and invest wisely in new ones.

It’s become clear that thriving organizations are those that use technology effectively. It’s not that they’ve invested the most money in the latest and greatest software packages. It’s that they have found useful ways to include technology in their daily workflows. They make the most of what they have, and they aren’t afraid to explore new ways to use technology, such as AI, in their fundraising efforts.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.