How to Make Confident Choices in Today’s Changing Nonprofit Tech Marketplace

Do you want to take your fundraising and marketing to the next level? Do you want your nonprofit to be able to work more efficiently? Do you want to take advantage of some of the latest technological advances in areas like artificial intelligence, process automation and data analytics?

Where do you start when it’s time for new software for your organization when there are so many changes going on in the nonprofit technology marketplace? You can make good, well-informed technology choices. Here are some key considerations and practical tips for making confident software selections in today’s changing nonprofit technology environment.

Don’t Wait to Make Technology Decisions

When things are in flux, it can be tempting to push off technology changes for your organization. But here’s the thing: The pace of changes in technology is not slowing. As you wait, technology is only moving that much further ahead of you. 

And here’s another (perhaps even more important) note: If you think it might be time for new software — whether a customer relationship management (CRM) system, online fundraising software, peer-to-peer fundraising software or another type of software — then the change is probably already overdue. The challenges you’re facing with your current software will only linger or get worse — and those can have a negative impact on everything from staff productivity and constituent engagement to fundraising results.

So, how do you move forward and select the right software for your nonprofit? It can help to first understand some of the changes in the nonprofit technology landscape and the challenges they present. 

Changes and Challenges in the Nonprofit Technology Landscape

There’s no doubt that today’s nonprofit tech marketplace is dynamic. While I can't list them all, here are some of the key changes that may impact your technology decisions.

1. Mergers and Acquisitions

In the past few years alone, the company now known as Bonterra has acquired DonorDrive, EveryAction, Network for Good and Salsa. Bloomerang acquired Kindful and Qgiv, among others. Blackbaud has a long history of acquisitions, including Kilter (now the Good Move app available with TeamRaiser) and EVERFI in 2022.

Mergers and acquisitions aren’t always a bad thing. Sometimes they allow a good product to become part of a larger company that can invest more heavily in the product and make it even better. 

However, the challenge here is that you might buy a solution only to have it scooped up by another company. Then you don't know if the investment you made in a product will be wasted. The purchasing company could have a different vision for the product, decide not to invest further in the product or even end the product.

Another possible challenge is that the purchasing company could rebrand the purchased product, making it seem like it integrates with the company's other products (which is sometimes the vision, but not the reality). Then, you're stuck with a product that doesn't integrate as easily with other products as you thought it might.

2. A Shift to Platform-Based Software

One trend in the nonprofit technology space is a move toward software that is built directly into a platform versus software that is built on top of a platform and installed in the platform’s environment. A good example is the new Nonprofit Cloud from Salesforce. It’s not a product installed on the Salesforce platform like the popular Nonprofit Success Pack (NPSP) is. Instead, it’s part of the platform itself. 

Again, this isn’t necessarily a bad thing. For example, the Nonprofit Cloud gives nonprofits access to powerful tools and functionality that have been available in other Salesforce Industry Clouds for years. However, it does bring up the question of how much do you want to be tied to a single platform? Also, in the case of the Nonprofit Cloud, how much do you want to invest in a relatively new product, versus moving to (or staying on) Nonprofit Success Pack? On the flip side, you might wonder if you’ll be missing out on Salesforce’s latest innovations if you stay on Nonprofit Success Pack. 

3. Investments in Up-and-Coming Technology 

Some software vendors have received private sector investment to help further develop their offerings for nonprofits. For example, earlier this year, Givebutter received a $50 million investment to accelerate the development of the company’s all-in-one fundraising and CRM platform. A few months later, Virtuous received a $100 million investment to accelerate product innovation and enhance services for its nonprofit customers. 

While these investments offer big potential for growth and innovation, it’s reasonable to wonder if the investment will be put toward features and functionality you care about and how long it will take for the innovations to be released.

3 Tips to Make Confident Decisions in Today’s Nonprofit Technology Landscape

While it’s impossible to predict exactly what changes will come with any given software solution, there are some things you can do to mitigate some of the potential challenges in today’s nonprofit technology space and get the most out of the software you choose.

1. Look Ahead

Choose software that can grow with your organization, which can help you to avoid costly and disruptive challenges down the line. As you choose software, opt for solutions that are flexible enough to accommodate your organization’s goals and needs for the next three to five years, including future changes in the number of users, data volume, and integration with other software and apps. Also, no matter what software you choose, ensure your staff is equipped with the ongoing training and documentation they need to perform their roles confidently and efficiently in the software. 

2. Ensure the Software Is a Good Fit for Your Organization

You should have clearly defined goals for your new software. Then, talk with vendors. Ask detailed questions about their software and their product roadmap. Schedule detailed demos, asking the vendors to show you specific features and functionality that align with your goals. These activities will help you to see the strongest and weakest areas of the software and where the vendor is investing time and money in the product.

3. Thoughtfully Plan Your Whole Technology Stack

Making individual software choices within the broader picture of your entire technology ecosystem can help to mitigate any challenges that may come with changes in the tech marketplace down the road. It can be extremely useful to employ the help of a nonprofit technology consultant as you do this. These types of consultants can help you to plan out your entire technology stack (not just one software solution), confirm that each product you choose is a good match for your needs, and identify and mitigate the impact of potential challenges. 

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.