Discover how digital transformation for nonprofits can help your organization work smarter and reach more people. We’ll break down practical strategies like online fundraising, digital marketing, and more. Read on!
Did you know that nonprofits that embrace digital tools are 3.5 times more likely (38% vs. 11%) to achieve their mission goals?
If you feel like your nonprofit is still playing catch-up where technology is concerned, you’re not alone! For years, nonprofits have been slower to adopt digital tools compared to for-profit companies.
Why? Budgets are tighter, teams are typically smaller, and tech can feel overwhelming when you don’t have the time to understand it. Even so, digital transformation is no longer a nice bonus – it has become a must-have for any nonprofit that wants to grow and fundraise effectively.
In this guide, we’ll take you through what digital transformation really means for your nonprofit, why it’s worth your time, and how to get started with tools and ideas you can actually use.
Quite simply, digital transformation is about using technology to work more efficiently and serve your mission better.
For your nonprofit, this might mean:
Obviously, it’s not about adding every flashy app or tool you see to your portfolio. The goal is to use a few genuinely helpful tools to help streamline tasks so your team has the time to focus on more important work.
If you – like most – are wondering where to even begin, it helps to break digital transformation into four key areas:
Your team is always the starting point. After all, they’re the heart of your organization! Digital transformation doesn’t work unless your staff, volunteers, and board members are receptive to change and open to trying new tools.
This might mean offering some basic tech training, bringing in a few more tech-savvy team members, or even just creating space for your staff to experiment with digital tools without fear of “breaking” something. The goal here is creating confidence!
And don’t forget clear communication. Make sure everyone understands why you’re introducing new systems, how they’ll help, and who can provide support if something goes wrong.
Next, look at your daily operations. Where are the bottlenecks? What tasks feel clunky or repetitive?
For example, maybe you’re still manually sending out donation receipts, or spending hours updating spreadsheets documenting your supporters. These monotonous (and time-consuming) tasks are what digital tools were made for!
Automating simple tasks can save your organization a lot of time, letting your team focus on programs, fundraising efforts, or building relationships with donors.
Shifting to online fundraising platforms or donor portals can also simplify things for your supporters, making it easier for them to give and stay involved.
This pillar focuses on choosing and implementing the right digital tools, systems, and platforms. This is often where people get stuck – but don’t worry, you don’t need to become a tech savant overnight to do it right.
The key is choosing the right tools that fit your nonprofit’s needs. Start with the basics:
Did you know that you can get all of these basics in one robust tool?
For example, platforms like Donorbox handle everything from online donations to donor management to event registrations – all in one place. Naturally, this means fewer logins and systems to juggle, and more useful data for you to base your future decisions on.
Pro tip: There may be technology grants available to support your nonprofit digital transformation. These can be very helpful if you’re struggling to fund your transition.
Finally, data is what ties it all together. Every time someone donates, signs up for your newsletter, or attends an event, you’re collecting valuable information.
But collecting that data isn’t enough – you need to actually use it! 90% of nonprofits report that they are collecting data, but only 40% say they use data very often.
Looking at patterns in your donation history, event attendance, or volunteer engagement can help you:
Of course, it’s also important to keep your data safe and be transparent with your supporters about how their information is being used.
Now, let’s talk about the real benefits – the kind you’ll actually feel day-to-day.
The right tools help you automate repetitive tasks and free up your team’s time. Instead of spending hours processing donations manually, you can focus on brainstorming new social media ideas or planning your next event.
Digital platforms make it easier to reach donors, volunteers, and the community you serve. How, exactly? Well, when your donation systems, emails, and donor records all work together, it’s easier to build strong relationships with your supporters.
Think automated receipts, personalized thank-you emails, and more. This kind of communication means your donors will hear from you at the right times, without your team having to manually send every message.
By moving some of your fundraising and outreach efforts online, you’re no longer limited to your immediate area. Virtual events, online donation pages, and social media campaigns allow you to connect with supporters across the country – or even the world!
Data can empower you to spot trends, measure what’s working, and plan ahead. For example, if your CRM shows you that your monthly donors tend to give larger gifts over time, you might decide to invest more in your monthly giving program.
As your nonprofit grows, digital systems can grow with you. You probably won’t need to hire extra staff just to keep up with admin, for example, because your systems can handle most of the heavy lifting.
We know the idea of digital transformation can feel daunting – overwhelming, even – but it doesn’t have to. Here are some simple, actionable steps your nonprofit can start with:
Understanding what you need to transform is impossible without knowing where you’re coming from. A nonprofit technology audit assesses your people, processes, and tools to target what’s working – and what needs to be updated.
Your goal should be to make giving as easy as possible, and customizable online donation forms that work on any device can make a big difference here. When donors can give quickly and securely, they’re more likely to follow through.
For example, take a look at how The Ark effectively uses Donorbox’s customizable online donation form to share their mission and streamline donations:
Having robust tools at your disposal is one thing. Knowing how to use them is something else entirely.
Provide your staff with the training they need to effectively use any new tools you bring on board. This will ensure efficient, effective working hours and empowered staff.
Any donor management system worth its salt keeps track of giving history, preferences, and engagement. Using one enables you to personalize your communications and build stronger relationships over time.
Donorbox, for example, offers built-in donor management tools that were designed specifically with nonprofits like yours in mind. With all of your data in one secure place, there’s no arduous data management tasks or possibly incomplete data to deal with.
There’s no need to go through the sometimes arduous process of digital transformation alone. There are consultants and experts available to guide you through this process every step of the way.
While some consultants may charge a hefty fee, investing in some expert advice – especially if you get stuck on anything – is worth it in the long haul.
If you’re hosting events in person, adding tools like Donorbox Live™ Kiosk lets people donate right on the spot using a tablet or smartphone. It’s quick, intuitive, and takes the pressure off staff and volunteers to handle physical cash.
And here’s the great part – you don’t even need to be there for it to work. A kiosk can be set up at your facility, event venue, or even a front desk so that supporters can give when it’s most convenient for them.
Looking for some inspiration? The St. Nicholas Orthodox Church and Shrine wisely placed a kiosk at the entrance to their building, where visitors can make a contribution quietly and easily as they enter or leave:
Don’t let your valuable data sit unused! Look at your fundraising reports, donor trends, and campaign results. Are there patterns? Opportunities? Learning to spot these will equip you to make better decisions and, over time, get better results with your campaigns.
Digital transformation doesn’t happen over night. Remember that this will be an ongoing process, and if things don’t work perfectly right away, it doesn’t mean you’ve done something wrong!
Give yourself, your team, and your processes time to adjust.
Here are a few examples that illustrate how integrating technology and modern digital tools can support the growth of nonprofit organizations:
1. A Museum Simplified Membership Management
A museum used to manage memberships on spreadsheets, manually entering membership information that was submitted through an online form. Then, every year they would run another membership drive to recapture all of those members, since they didn’t have the capability to provide recurring memberships.
To transform their processes, they first sought out a membership tool like Donorbox that provided both an easy and effective way to sell memberships online, along with backend donor management tools that automatically update with new member orders. No more spreadsheets! This saved their team a significant amount of time on admin-related tasks.
Plus, their membership platform offered recurring giving, so donors could choose to give on a monthly or annual basis.
2. An Animal Shelter Improved Volunteer Communication
Reaching out to volunteers manually every time was becoming a big headache for this animal shelter. To solve this, they evolved their communication processes by setting up a volunteer management system that allowed volunteers to access the information they needed when they needed it.
It was easy for this organization to manage volunteer communication straight from their platform by publishing updates that went directly to volunteers’ email inboxes.
This new system also eliminated their old, hard-copy method for tracking volunteer hours, leading to more accurate hour reporting and streamlined processes.
3. Project Street Vet Used Donorbox to Grow Monthly Giving
Project Street Vet, an organization providing veterinary care to the pets of people experiencing homelessness, was outgrowing their current donation platform, GoFundMe. They wanted a way to collect donations without sending people away from their website – and they wanted to have better access to their donor data.
They partnered with Donorbox to solve these challenges and have since raised a whopping $1.7 million. They’ve grown their monthly giving program from zero participants to 700, relying on Donorbox’s streamlined recurring donation management tools.
This allows them to raise more, build better relationships, and power their mission, with an all-in-one solution.
Check out this podcast episode to hear Dr. Kwane Stewart, co-founder of Project Street Vet, talk about how storytelling transformed their mission.
At the end of the day, digital transformation for nonprofits isn’t just about fancy software. It’s about helping your organization do what you already do – but better!
By going digital, your nonprofit can efficiently tackle common challenges (such as budget constraints and clunky operations), achieve your development goals, and take bigger strides towards fulfilling your mission.
Why not take action now? Donorbox offers all the necessary tools and resources you need to start your digital transformation process, starting with a modern, seamless donation process.
Sign up for Donorbox today and take the first steps towards your digital transformation!
Ilma is a content writer with over eight years of experience, specializing in nonprofits and social impact, marketing, language, and psychology. She draws on years of volunteering in the nonprofit sector to craft thoughtful, research-informed pieces. Ilma is also a therapist passionate about mental health and often weaves this perspective into her writing.
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Ilma Ibrisevic