Sage Survey: Economic Uncertainty and Technology Challenges for Nonprofits

A new 2024 Nonprofit Technology Trends Survey indicates that nonprofit organizations in the U.S. are grappling with considerable economic uncertainty and outdated technological systems. Despite 73% of organizations reporting either growing or flat revenues, economic uncertainty emerged as the primary external challenge, followed closely by inflation and funding competition.

The survey included over 300 nonprofit leaders, with more than half from the C-suite. The majority represented small to medium-sized organizations, with annual revenues under $24 million. Beyond external pressures, the research points to a significant need for improved technology. Many organizations cited manual processes in areas like reporting and budgeting, alongside a desire for enhanced real-time visibility and automation.

Key technology adoption rates show financial management and accounting software as the most utilized (85%), followed by donor management or CRM solutions (64%). Notably, the use of budgeting and planning tools has seen a substantial increase, rising from 18% in 2022 to 28% currently. Automation of financial reporting remains a top priority for accounting software functionality.

The report suggests that entry-level accounting software is insufficient for the growing and complex needs of nonprofits, particularly amid economic instability. Modern, cloud-based solutions are presented as a means to simplify reporting and automate intricate tasks, allowing finance teams to better navigate operational challenges.