As many as one-third of nonprofit organizations in the US could close in the coming years due to the effects of the pandemic, according to a study released in 2021 by the philanthropy research group Candid and the Center for Disaster Philanthropy. At highest risk are those that cannot take advantage of technology, typically small and resource-constrained organizations.
The private sector is able to improve their overhead efficiency rates by leveraging new technologies, which until recently have been out of reach for most nonprofit organizations. This leaves nonprofits with the dilemma between adopting time and cost intensive platforms or ignoring the benefits of technology altogether. The delay in innovating becomes costly for nonprofits as they continuously miss out on the significant potential of new technologies.
This dilemma can turn into an existential risk to nonprofits, as exemplified by the COVID-19 pandemic. Additional strain on technological systems caused by the pandemic exposed gaps in the digital infrastructure throughout both the private and public sectors, forcing organizations across the board to digitize at an unprecedented and accelerated rate. However, in the same way that larger corporations were able to adapt their services and absorb costs at a higher rate than smaller businesses, larger nonprofits have been able to recover and transform their digital systems faster than smaller nonprofits.
Nonprofit thought leaders argue that the lack of digital infrastructure investment continues to be a critical vulnerability of nonprofits that must be solved to successfully operate in the digitized world. The case for nonprofits to catch up to the development curve is backed by the core benefits that result from a robust digital strategy, such as:
CASE STUDIES
In recent years, a growing number of nonprofit organizations have sought to mirror the successes of private sector digital transformation. The pioneers of these new technologies in the nonprofit sector are typically established and well-funded organizations, including Save the Children and Feeding America, as described below. The results of their technology adoptions have been widely publicized and lauded for their real-world impacts.
International NGO Case Study: Save the Children
Save the Children is a global nonprofit organization that works to improve the lives of millions of children in need. Founded in 1919, the organization operates in over 100 countries, providing life-saving assistance, education, and protection to children affected by poverty, conflict, and natural disasters. Save the Children's programs focus on health, nutrition, education, child protection, and emergency response, with a goal of creating lasting change for children in need. The organization has a pioneering legacy in advocating for children’s rights since the original human rights conventions of the United Nations and continues to be a leader in the nonprofit sector today.
The organization’s investment in its digital transformation prior to the COVID-19 pandemic enabled 1200 of its employees to immediately transition to remote work as the rest of the world scrambled to adjust to lockdown. The success of the digital transformation was due to the timeliness of the decision to begin (prior to the pandemic) and the application of a strategy centered around the need to create a single source of truth about the organization’s constituents, integrate core systems, and automate time-consuming manual processes. The strategy was implemented by:
Save the Children’s strategy to invest in their own digital infrastructure was fully validated when its workforce and internal systems were technically and operationally successful in adapting to the suddenly remote landscape imposed by the pandemic. Because of their successful transformation, they were able to continue providing life-saving services to vulnerable communities at a time where other organizations were still adjusting and had limited ability to contribute.
The digital transformation of Save the Children continues to produce positive results from:
Save the Children’s example demonstrates the importance of significant and timely investing in digital infrastructure for nonprofits. By improving their digital tools and presence, nonprofits can reach a wider audience, increase their impact, and better serve their beneficiaries.
National NGO Case Study: Feeding America
Feeding America is the largest hunger relief organization in the US, operating through a network of 200 food banks and 60,000 food pantries, soup kitchens, and shelters. The nonprofit provides food assistance to millions of people in need every year, including families, children, seniors, and veterans. Feeding America also works to address the root causes of hunger by advocating for policy changes and conducting research to better understand and solve the issue of food insecurity.
In 2019, the organization hired its first Chief Information Officer (CIO), Maryann Byrdak, who had previously served as a CIO in the private sector. Bydark’s digital innovation road-map sought to implement technology that improved the efficiency of its food distribution processes, increased donor engagement, and enhanced its overall operations. Some specific initiatives included:
These digital implementations have increased the efficiency and impact of its operations across Feeding America’s national network of food banks. The new produce feature of the MealPlatform was launched in August 2021 and by September 2021, MealConnect had helped move more than 10 million pounds of produce through the national network, totaling a 53% increase over the previous month and a 28% increase compared to the previous year. That equated to an additional 1,647,058 meals donated, according to the organization.
By investing in its digital infrastructure, Feeding America generated impactful, real-world change by providing food banks the tools necessary to better serve their communities, thereby combating food insecurity on a national scale.
Going Forward
These and other recent cases of tech adoption spreading beyond Silicon Valley and the private sector to nonprofits have shown promising outcomes. Investing in a strong digital infrastructure and creating an experience-based digital transformation strategy is essential for nonprofits to stay relevant and successful.
Endnotes
