Why Nonprofits Are Turning to Technology to Boost Philanthropic Giving

Nonprofits have always been at the forefront of making a difference in the world, but the landscape of giving has changed dramatically over the past decade. With a growing emphasis on data-driven strategies and the need to engage donors through various digital channels, nonprofits are increasingly adopting innovative technologies to enhance their philanthropic efforts. By leveraging these tools, nonprofits can reach a broader audience, increase donor retention, and streamline their operations—ultimately leading to more effective fundraising and impactful community initiatives.

The Rise of Digital Fundraising Platforms

One of the most significant changes in the nonprofit world has been the widespread adoption of digital fundraising platforms. These tools are designed to help organizations manage everything from online donations and recurring gifts to donor data and fundraising campaigns. Platforms like Funraise, GoFundMe, and Give Lively are among the most popular options for nonprofits looking to modernize their giving strategies.

·        Funraise—Provides an integrated suite of donor management and digital fundraising tools. Its platform is built to create seamless giving experiences, automate administrative tasks, and offer advanced data analytics, helping nonprofits to track and predict donor behavior. In fact, organizations using Funraise reported a 77% increase in online revenue and 53% growth in recurring donations​.

·        Give Lively—Focuses on mobile-first fundraising, making it easier for nonprofits to accept donations through text-to-donate campaigns and embedded donation pages. With no setup or subscription fees, it’s an appealing option for smaller nonprofits that want to experiment with digital fundraising without a significant financial investment​.

·        GoFundMe—Traditionally known for individual crowdfunding, this has also become a valuable resource for nonprofit fundraising by enabling supporters to create personal campaigns that connect back to the organization. This peer-to-peer model allows nonprofits to leverage their community’s networks, making it easier to reach new donors​.

Leveraging Technology to Enhance Donor Engagement

One of the primary benefits of using technology in philanthropy is its ability to enhance donor engagement. Nonprofits can no longer rely on only one or two annual campaigns; they need to cultivate ongoing relationships with supporters. This is where platforms like ThankView and Double the Donation come in.

·        ThankView—Allows nonprofits to send personalized video messages to donors, making thank you messages and updates more engaging than a standard email. Personalization is becoming increasingly important in today’s digital world, and ThankView makes it easy to connect with donors personally by using videos tailored to supporters​.

·        Double the Donation—Focuses on increasing corporate giving by making it easier for donors to take advantage of company matching programs. Many people are unaware that their employers offer to match donations, and tools like this can help nonprofits increase contributions without asking donors to give more out-of-pocket​.

Why Nonprofits Are Turning to Tech Solutions

Nonprofits face unique challenges when it comes to fundraising, such as limited budgets, a small staff, and the need to prove their impact to both donors and grantors. Technology can help to solve these problems by making it easier to analyze data, automate repetitive tasks, and engage with donors in meaningful ways.

·       Streamlined Operations and Lower Costs—Technology can drastically reduce the time and costs associated with running a nonprofit. From automating email campaigns with tools like Mailchimp to simplifying event registration and ticketing with platforms like Give Lively, these tools free up time for nonprofit staff to focus on their mission rather than administrative work​.

·       Reaching Younger Donors—Today’s younger generations expect seamless, digital-first experiences. According to Giving USA, 81% of Millennials and 76% of Gen Z only donate online or through mobile devices. Nonprofits that integrate mobile-friendly options like text-to-donate and live-streaming donation tools are better positioned to attract these demographics​.

·       Data-Driven Decision Making—With more data at their disposal, nonprofits can better understand donor behavior and create targeted campaigns. For example, platforms like Funraise offer detailed reporting and custom dashboards, helping nonprofits to track which campaigns perform well and adjust their strategies accordingly.

The Future of Technology in Philanthropy

Looking ahead, technology is poised to continue transforming the nonprofit sector. Artificial intelligence (AI) and machine learning are already being used to analyze donor trends and automate processes like grant writing. Virtual reality (VR) and augmented reality (AR) are starting to be used for immersive storytelling, allowing nonprofits to show supporters firsthand the impact of their donations. Additionally, the rise of blockchain technology could enable more transparent and secure giving processes.

Ultimately, adopting the right technology can empower nonprofits to make smarter decisions, engage with donors more deeply, and achieve their mission more efficiently. As new tools continue to emerge, nonprofits that stay ahead of the curve will be better positioned to navigate the evolving landscape of philanthropy.

As our world shifts toward digital engagement and new philanthropists skew younger, nonprofits must adopt new technology to stay relevant and effective. The key is to choose tools that align with the organizations’ unique needs and goals. By leveraging these technologies, nonprofits can increase giving, deepen their relationships, and focus more on what matters most—making a positive impact in their communities.