Digitally mature nonprofits are positioned for success
Thoughts on the Digital Maturity Index by Salesforce and nonprofits adopting digital transformation during the pandemic
Considering your outlook for the next 6 months to one year, how optimistic are you that your organization will be able to do the following?
Leading nonprofits were the most likely (55% agree) to say that they are able to help strengthen relationships with supporters, use less paper and spreadsheets (58%), gather/ analyze data from online events (56%), and grow online giving.
The above question was asked by Salesforce for its Nonprofit Trends Report(3rd Editon). A total of 867 nonprofit professionals across six countries (Canada, US, Germany, UK, France, and the Netherlands) - during July and August 2020.
It goes without saying that the pandemic forced the nonprofits to look at digital seriously.
When asked how nonprofits tackled the pandemic, moving to digital and investing more in technology were the top two changes that nonprofits made, with 56% of nonprofits reporting they accelerated their move to digital programs. Nearly half of nonprofits reported they invested more in technology during this time.
The survey conducted during the ongoing pandemic tried to understand digital maturity, how the nonprofits are facing the pandemic, and the road ahead.
Digital Maturity Index
Salesforce defines digital maturity as an organization's ability to leverage data to inform decision-making, reach new audiences, personalize communications, and forecast fundraising income.
In order to evaluate how advanced nonprofits are when it comes to using data for their work, the Digital Maturity Index was created, asking nonprofits to self-assess the extent to which data guides their operations.
As a nonprofit, you can also access your digital maturity. Download the report and go to page/slide 12. You will have five questions, read them, and provide your score between 1 and 5. The total will determine your organization’s digital maturity.
Here is how the organizations fared on average:
The majority of nonprofits were medium digital maturity(71%), but about 16% of respondents were leaders, with a high level of digital maturity. (I am assuming that they were honest in their responses)
Digital maturity begins with intent and being comfortable using technology.
When asked: which individuals or teams in your organization do you think need to become more comfortable using technology? Senior management and board members are the top people that nonprofits we surveyed said need to be more comfortable with technology.
Interestingly, frontline staff seemed to be the most comfortable with technology. Although the frontline staff was some of the most comfortable with technology, they were also the most dissatisfied with the technology available.
The above image also provides an ample hint: Why Digital Transformation fails in the majority of industries.
The decision-makers such as the Senior Management, Program Staff, and Board are the ones who need to be more comfortable with the technology. It is the classic old case where the decision-makers are not comfortable with technology and hence the real digital maturity never happens.
As a result, the people who need exposure to more technology such as the Frontline Staff, Program Staff, and Marketing Staff are the ones dissatisfied.
Digital maturity and fundraising
Digital maturity is also directly related to digital fundraising. Not only seeking effective online donations but also creating relationships with donors. Nearly half (48%) of high digital maturity nonprofits said they were “Likely” to gain support for their cause over the next six months, versus nearly one in five low digital maturity organizations.
A similarly stark gap exists between high and low digital maturity nonprofits when it comes to confidence in nurturing relationships with supporters digitally: 55% of high digital maturity nonprofits said they were likely to be able to nurture and strengthen relationships with supporters digitally, versus 31% of low digital maturity nonprofits.
When asked to describe their level of optimism for the next 6-12 months, 39% of leading nonprofits said it was likely that they could grow planned giving over that time period, compared to just 13% of low digital maturity nonprofits.
And the road ahead
Globally nonprofits moving forward with the pandemic are looking to stabilize, reopen, and evolve. Digital matured organizations will have a faster and confident move towards the future.
According to the report, 30% of leading nonprofits were much more confident that they will be better able to handle fluctuations in revenue, versus 24% of nonprofits overall.
High digitally matured nonprofits noted that going forward they would give more priority to remote work for their staff (72%) and use technology for better services(69%).
But the biggest differentiator between a digital mature nonprofit and overall nonprofits are the activities such as engaging with the audience through digital channels, personalization, and engaging with volunteers. Digital mature nonprofits are going to give more weightage to all three.
Answering 5 questions won’t determine your nonprofits organization’s digital maturity but it is a good starting point. I have worked with some of the for-profit models and this looks really minuscule.
Nonetheless, please keep in mind that digital maturity shouldn’t be considered as the road to digital fundraising. It is having intent and believing in the medium to talk to your audience, build a relationship with donors, and also enabling your staff to work in a better way.