To thrive in an increasingly competitive landscape, nonprofits must embrace emerging technologies and innovation.
That is the message from Moez Kassam, a Toronto-based philanthropist and hedge fund manager who sees challenges ahead for nonprofits that fail to adapt to today's rapidly evolving marketplace.
"Yes, the pandemic was particularly hard on nonprofits, as it was also hard on most industries," said Kassam, who founded the Moez and Marissa Kassam Foundation in 2016 with his wife. "What this period showed us is that the ability to pivot and adapt to changes in how people give and volunteer will be the key to success for nonprofits".
Here are some important steps that nonprofits can take to embrace innovation and thrive in the coming years.
Offer Remote Work Options
Several factors, such as the availability of cloud technology to workers desiring more flexibility, have supported the rise of remote work.
Another large factor is accessing talent. The hybrid workplace is here to stay, and nonprofits which embrace a similar model will find many advantages to it.
With the help of remote work, nonprofits can access a broader pool of talented workers from all over the world. Some of the other incentives for these organizations include:
- Improve productivity by allowing staff to work from anywhere
- Find more talented employees by increasing the search pool
- Retain employees longer by offering work-life balance
"Remote work doesn't have to be the only approach to work going forward, but it should be a component of any forward-thinking nonprofit's plans," Kassam said. "The work environment is changing, and nonprofits need to change with it."
Innovative Donation Methods
Nonprofits only accepting donations by either cash or cheque need to adapt to emerging payment technologies.
Few things are more important to struggling nonprofits than their financial bottom line, yet many nonprofit leaders remain attached to old ideas about what is considered successful and reliable fundraising.
"The younger generation has adopted many new and convenient ways to transfer money, including in the context of philanthropic contributions, Kassam said. "Nonprofits need to adapt to these new approaches or they risk alienating a critical demographic. Frankly, many nonprofits who are slow to adapt are leaving money on the table, in this comes at the expense of their wonderful causes."
Those methods can be as complex as enabling donations via cryptocurrency, or as straightforward as setting up mobile payments that donors can do with a few clicks on their cell phone. Examples include:
- Smartphone apps like Venmo, CashApp, Google Wallet and Zelle
- Accepting donations of crypto currencies or other non-traditional forms of payment
- A proprietary platform that allows existing donors easy, streamlined options for paying online
Younger generations, especially, eschew old forms of payment. It all happens on their phones, and nonprofits need to meet them halfway to attract the next generation of donors.
Level Up Cybersecurity
Cybersecurity concerns have plagued a range of organizations and nonprofits have proven susceptible to online attacks.
In fact, the number of attacks on nonprofits and charitable organizations has increased dramatically in the last five years, according to Nonprofits Decoded.
"Many nonprofits lack the necessary resources and expertise to protect themselves," the organization wrote. "They also lack the budget to hire outside security experts."
While there are costs associated with embracing these technologies, the protection they provide is priceless. Given the valuable personal information donors entrust in the organizations they give to, investing in cybersecurity is a must for modern nonprofits. Cyber-attacks on donor accounts have the potential to jeopardize both the new and long-standing relationships which support these organizations and the causes they stand for.
"Whether it's increased cybersecurity, remote work options or online fundraising, nonprofit leaders can feel optimistic about the future because the technology exists to help them survive and thrive - they just need to embrace it," Kassam said.
"There's both more competition but also more tools for competing successfully," he said. "I encourage any nonprofit worried about the future to embrace the opportunities it enables. What's possible today, in terms of fundraising, in terms of monitoring and evaluation, and most importantly in terms of impact, is just incredibly exciting. Most importantly, we now have more tools to help make a difference."
