Carrying out a digital transformation can have a tremendous impact on improving operational efficiency, cutting costs, and boosting productivity for many organizations. Major digital transformation efforts have generated an additional $100 million or more in annual operating income in the for-profit sector - and nonprofits aren’t exempt from these same benefits. When applied to the nonprofit sector, digital transformation can massively increase an NPO’s profile, leading to more donors and a better ability to serve those in need.
The digital landscape provides opportunities for NPOs to not just better connect with donors through video, media, and other methods but to better connect with the people and communities they serve. Benefits of modernizing include the following:
- Automation of manual tasks, reducing costly human errors
- Greater data security that prevents costly breaches
- Actionable data insights that empower strategically-sound decisions about deploying people and assets to the field, such as during a natural or human-made disaster
- Reduced IT staffing overhead by using cost-effective cloud-based services
- Increased collaboration and productivity due to digitally-connected technologies that make every nonprofit program more efficient and effective
- The ability to build platforms for apps that can help seamlessly integrate data from multiple sources to give a single dashboard reference for effective decision making
Updating your software infrastructure can quickly improve your finances and efficiency — both common areas of struggle for NPOs. This sounds great on paper, but unfortunately, many nonprofits have difficulty transforming due to a high barrier to entry.
Often, lacking a skilled IT staff as well as funding for a digital overhaul prevents these organizations from breaking through and reaping the rewards. NPOs may need to rearrange budget priorities and work with knowledgeable partners for a successful transformation, but in the end, the opportunity costs are well worth the vast landscape of new value drivers available to them.