Transforming operations to overcome challenges
In partnership with Leger, a Canadian research firm, Sage found that 9 in 10 nonprofits consider their digital transformation efforts a top priority to update business processes and gain efficiencies:
- 27% have already gone through the process and are digital-first
- 47% are in the process of digitizing key processes
- 16% have plans to digitize key processes
The pressure on nonprofits to transform their operations is driven by both external and internal challenges. The pandemic has inflicted the following top five common external challenges on nonprofits:
- Program disruptions (43%)
- Staffing shortages (39%)
- Decreases in funding (36%)
- Uncertainty related to service delivery mechanisms due to the pandemic (36%)
- Increased demand for services (32%)
Furthermore, two-thirds of nonprofits believe these external barriers will persist in 2022. As such, the need to accelerate or continue digital transformation initiatives is pressing to help overcome these acute challenges.
In addition, four in five Canadian nonprofits said they are experiencing the following internal challenges, which are causing operational friction within their organization:
- Lack of staff with the right skill set to manage the digital transformation journey (25%)
- Inefficiencies and delays due to multiple, disparate systems (23%)
- Manual, time-consuming reporting (23%)
Making strategic choices
Supporting digital transformation has been difficult for nonprofits when resources, financial or otherwise, have been stretched to their limit during the pandemic. In fact, 28% of Canadian nonprofits experienced a decrease in 2021 revenue, with four in ten experiencing more than 25% decrease in revenue. One-third of nonprofits saw a decrease in funding from both foundations and corporations over the last twelve months.
Facing both resource constraints and the need to overcome operational challenges, management of nonprofits are changing their approach to utilizing new technologies.
“The very interesting mindset change that really occurred for us with COVID-19 is technology was not seen as a cost centre, but technology was seen as an enabler – we invested money to make money,” said
Nonprofit organizations that have begun their digital transformation are beginning to reap the benefits with clear efficiencies, including:
- Clearer data and reporting mechanisms
- Stronger tools to stay organized across the business
- Easier transition to working remotely
- Time saved on administrative duties
The nonprofit sector believes that technology is vital for both the immediate well-being of their teams as well as their long-term success.
“As a result of implementing these technologies, stress will go down – we’re investing in less stress,” said
Planning ahead
Looking ahead into 2022, nonprofits are beginning to express some optimism:
- 4 in 10 are forecasting a revenue increase for 2022, with 44% expecting an increase of 25% or higher
- 35% expect year-over-year revenue to remain flat
- 15% expect a decrease in revenue
- 8% are uncertain of their revenue projections
Growth is top-of-mind for these nonprofit organizations. Four in ten are planning to prioritize the expansion of their donor base, build their digital presence on social media and increase brand awareness. To achieve these priorities, their top investments will include the increased use of digital/automated platforms, increased marketing budget, and hiring skilled staff.
“We continue to admire the resilience of our nonprofit customers,” said
To learn more, please download the full Grow Together: How digital transformation empowers Canadian nonprofit organizations to embrace change report.
Media contact
Sage
monique.daniel@sage.com
(905) 781-0758
Methodology
Sage partnered with Leger, national research and analytics firm, to survey 75 non-profit financial directors across Canada between
About Sage
Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.
About Leger
Leger is the largest Canadian-owned market research and analytics company, with more than 600 employees in eight Canadian and US offices. Recently, Leger presented the most accurate polling results for the 2021 Canadian federal election (including the most accurate results in
Source: Sage
2022 GlobeNewswire, Inc., source