Without a doubt, over 1.5 million U.S. nonprofits have shown impressive leadership and strength during this unprecedented time. The COVID-19 pandemic has challenged the nonprofit industry in more ways than one. From decreases in funding to canceled events and programs, nonprofits have continued to provide a great need in such a desperate time of uncertainty. Nonprofits are gifting vulnerable communities with education, resources, and support when they need it most.
As an IT company that supports many incredible nonprofits, we couldn’t thank them enough for their work and sacrifice. That’s why we wanted to take the time to reflect, look ahead at what’s to come, and provide key resources to help nonprofits further their impact as we move forward, together.
Top Challenges
IBDO’s Nonprofit’s Industry Overview is a wonderful resource that we encourage every nonprofit to review. It surveys a variety of nonprofits — from health and human services organizations to education organizations and public charities. This report helps industry leaders with unique goals make data-backed decisions that support and enhance their organizations’ missions.
According to the report, the top three challenges nonprofits experienced were canceled fundraising events, decreased morale, and decreased revenue or funding. These pitfalls were attributed to the pandemic when many organizations were forced to balance an increase in demand for their services with a decrease in funding.
Now, we see organizations that made the difficult decision to pause hiring or let go of employees struggle to hire again. The national labor shortage has made recruitment and retention more competitive than ever before.
Top Opportunities
Although the pandemic brought many difficult challenges, it also created positive opportunities for some nonprofits. The top positive developments included accelerated investments in technology, new service or program offerings, faster decision-making, and increased awareness of mission.
With the accelerated investments in technology and the need for “out of the box” service or program offerings, virtual events became the norm. This also spurred the need for virtual volunteers. Organizations, volunteers, and the community can all benefit from virtual volunteering, which is outlined in Galaxy Digital’s recent blog on virtual volunteer recruitment. Even if your organization has welcomed back volunteers in-person, you can still leverage virtual volunteers for those that wish to stay engaged at a reduced risk.
Technology’s Role
In IBDO’s survey, more than half of the organizations surveyed in 2021 report they accelerated their investments in technology due to COVID-19, and many are planning to continue moving in this direction.
A major reason for this is the increase in cyberattacks. As cybercrimes continue to become more sophisticated, organizations need to have a strong defense to stay ahead of hackers. Here at Varsity, we can help you do just that. We offer three levels of managed security services that build on each other as your needs scale up. We know security needs are constantly changing, so we will always work with you to meet your immediate needs while planning for the future. Learn more about our managed security services.
Automation is another reason for the rise in technology use. In fact, IBDO’s survey found that 40% of organizations are planning to automate operations. In the nonprofit sector, software can automate everything from accounting and reporting to events and fundraising. We wrote all about the benefits of automation in one of our previous blog posts, which can save time, reduce costs, increase efficiency, and more. If your organization needs assistance in strategic planning or help implementing automation services, look no further than Varsity.
Looking Ahead
The future is bright for nonprofits! With the help of technology, we believe that nonprofits can better serve their communities and increase their mission impact. With more than 22 years of experience in the nonprofit technology sector, we believe that technology should help drive your organizational success — not hinder it. Reach out to us today to see how we can serve you after these challenging times. We look forward to working with you!
