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How Technology is Changing Future of Nonprofit Fundraising?

How Technology is Changing Future of Nonprofit Fundraising?

Posted on May 12, 2021
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2020 has been a tough year for most businesses globally. The non-profit sector has also suffered its wrath. Fundraising was way below the expected goals. Almost 38% of nonprofits had to close down in the last year.

Fundraising post-COVID is likely to become more challenging for nonprofits for several reasons:

  1. Unemployment and financial losses: COVID 19 has taken a toll on the global economy. Many businesses have had to close down, people across the globe have lost jobs, there have been massive pay cuts, etc. All these have impacted fundraising. People who were donating funds to charities before COVID are finding it difficult to do so currently. Under, the circumstances the future of fundraising does not look very bright.
  2. Lack of in-person events: One of the most effective ways for non-profits to raise awareness about their brands and market them was through in-person events. Events offered an opportunity for donors, etc. to interact with the members of the non-profit and this helped build trust. Besides, hosting nonprofit events also involved contributions by sponsors. Sponsors also helped market the brand. But physical distancing and other restrictions have put a halt on events like 5km runs, etc.

The good news for nonprofits is that although monetary donations were not much, that the pandemic did not deter people from giving in kind. A report by Women’s Philanthropy Institute shows that 56% of US households indulged in charitable giving in 2020. (Source: Philanthropy)

This goes on to show that the willingness is there among the donors although they may lack the means. The onus is entirely on the nonprofits to think of ways of spreading the word about their organization, connect with donors, engage them and motivate them to donate.

Technology emerges as the ray of hope that can completely transform the nonprofit sector. Technological innovations have been around and many nonprofit organizations had been leveraging them even before COVID. But many nonprofits shied away from using technology for fundraising and other activities either because of the costs associated or because they felt it was too complicated to implement.

However, today we can safely say that the future of nonprofit fundraising will depend on how well it uses technology. In other words, technology is no longer a choice but a Must for nonprofit fundraising!

Let us delve into how technology can help a nonprofit organization

Since in-person interactions have been restricted, the only way for nonprofits to connect with their audience is virtual. Besides nonprofits need to offer online methods for donations. Also, nonprofits need to engage the tech-savvy Millennials and Gen Z donors.

These are technological tools that nonprofits require and how they can benefit from them:


Nonprofits will need a strong online presence with the help of websites that clearly communicate to the audience what the brand is about. Websites should explain the mission of the nonprofit. Websites should also include donor forms and offer the provision to donate. It is also essential that the website is mobile-friendly.

Benefit: A website helps raise awareness about your brand. It can also help you inform your visitors about any upcoming events, etc. It is easy to keep your visitors coming back to your site by refreshing the site with new content. Your website helps you establish authority in your field when you share relevant content about your niche.

Digital Marketing

The internet is full of a variety of websites. Then how do you attract your audience to your site?

Digital marketing is necessary for you to ensure that your brand stands out in the digital marketplace. Different digital marketing strategies like social media marketing, search engine optimization, email marketing, etc. are used to increase the visibility of the site.

Benefits: Digital marketing strategies help enhance the ranking of your website on search engines. When your website ranks high, it will attract more visitors. Strategies like email marketing enable you to offer a personalized marketing approach. This helps build trust and loyalty. Social media marketing is one of the most effective ways to connect with a wide audience.

Online Fundraising

Nonprofits need to ensure that they offer simple online fundraising methods to their audience. They can provide donation facilities through their website or even social channels.

Benefits: Online fundraising tools help attract more donations as donors find it easy to donate.

Virtual Event Platforms

Events are most effective to connect with the audience. Since physical events do not seem likely in the near future, virtual events are the only alternative. Virtual events have become popular during the past year.

Virtual events are hosted using software platforms. Nonprofits must familiarize themselves with different platforms and use them for hosting events.

Benefits: Virtual event platforms include a myriad of features to simplify the process of organizing events. They include online registrations, breakout rooms, feedback forms, and many more to help the hosts. Platforms like are customized for hosting nonprofit events. They include all the features required to organize a successful nonprofit event.

These are some of the technological innovations and their benefits to nonprofits. Many nonprofits are a little skeptical about using technology because of the costs. However, technology cannot be ignored in the current times and even in the post-COVID times.

Nonprofits need to invest in technology because of the benefits it offers in the long run. Besides in the current pandemic situation, technology is a survival technique!

There is no denying that technology is expensive compared to the conventional techniques used. However, how much a nonprofit spends on technology is something that can be controlled. It is recommended that a nonprofit budgets its expenses and allocates fixed sums to different technological tools it uses.

The nonprofit organization can determine the blend of technological tools it requires and invest specific funds for each. You can assess the effectiveness of the technologies leveraged by analyzing the returns they provide.

It is beneficial to work within the budget so that the expenses incurred are well in control.


The pandemic has driven home the important point that the future is highly unpredictable! And, since we cannot control or predict the future, we need to have the ability to adapt to it. While the future of nonprofits also cannot be predicted, one thing that has become apparent is that adopting technology is a must for nonprofits. Technology offers several benefits that justify the funds invested. While the initial investment of funds, time, and efforts might seem tedious and expensive, it is worthwhile in the long run. One of the best technologies that are tailored to managing all aspects of running a nonprofit in the future is iConnectX!

Connect with iConnectX for better fundraising!