To stay ahead of their competition and remain successful, companies must ensure they are continually up-to-date with the most recent advancements and trends in technology, integrating it into various aspects of their operations, according to research undertaken by PwC. That said, what about nonprofits? These organizations often have tight budgets and may lack the resources to access and use technological advancements, meaning they can easily be left behind.
Frugal innovation can help nonprofits improve their services while minimizing the amount of time and ... [+]
Resource dependency theory proposes that organizations rely on external sources, for instance, financial resources and technology, to reach their ambitions. Nonprofits are particularly reliant upon outside aid to realize their purpose—making any fluctuations in the environment around them considerably influence how they achieve their objectives. And currently, technology is at the core of most business operations, meaning nonprofits must also adapt to keep up.
But how can nonprofits go about achieving this, given that the sector is often limited in budget and, increasingly, personnel?
Last year, the National Council of Nonprofits investigated how profound workforce shortages were for nonprofit organizations and their effect on their operational goals. This study, which gathered responses from over 1,000 nonprofits in all 50 US states, provided a comprehensive overview of the severe workforce shortage. For example, 79% of nonprofits revealed that salary competition has adversely impacted their hiring capacity. Consequently, many nonprofits reported that their mission was compromised as a result.
The challenge is clear: nonprofits must find a way to bridge the gap between their current resources and capabilities and the technological solutions that can help them deliver their mission faster and more efficiently.
Frugal innovation is one approach that can be adopted. It involves finding solutions for resource-constrained environments, which facilitates the adoption of existing technologies in a more affordable manner. This can include upcycling or repurposing older technology, such as reusing a laptop with an outdated operating system or using smartphones to conduct video interviews.
Not only can this approach provide nonprofits with the tools they need to stay competitive, but it can also enable them to cut costs—freeing up resources to focus on their core mission. Organizations employing this approach have seen notable successes, reported the World Economic Forum (WEF), “Frugal tech can make innovation affordable.”
And so, by doing following WEF advice, nonprofits can bridge the gap between their limited resources and the ever-changing digital landscape, helping them to deliver high-quality services to those who need it most, according to Kate Dobson, head of strategic academic partnerships and employer-led education at London’s University of Roehampton. “By embracing technology, nonprofits can better meet their mission goals, save time and money, attract new donors and volunteers, and open up new ways to engage with the community,” she said in an interview.
This view is echoed by Jack Fanous, co-founder and CEO of JobPaths, a platform used by nonprofits and governments to support veterans and people with disabilities. “Big tech has spent a lot of its time on software that helps people take selfies, find a date, or hail a cab—but virtually nothing to help them with their needs,” said Fanous in an interview. “It’s led to grassroots nonprofits being stuck using extremely dated tech like excel spreadsheets for decades, which is problematic as it can lead to data inaccuracies, errors in calculations, and a lack of access to the information they need quickly”, he added. “This is why we have built Mission+ as a solution for these nonprofits to deliver their services online.”
After all, although many organizations have a website, they often overlook the potential of leveraging digital technologies to their advantage. And in the context of nonprofits, this could mean a significant difference in terms of their ability to reach and serve beneficiaries.
Fanous, who also founded GI Go Fund in 2006, believes that the most significant impediment for small to midsized charities is the lack of technology many are dealing with due to limited resources. This view is congruent with research that suggests a decline in philanthropic giving and an increase in the need for services is placing a strain on nonprofits, highlighting how essential it is for them to gain access to technology investments that can help bridge the gap.
“Nonprofits, ask yourselves: How can we be more efficient? How can we give our clients what they need in a more seamless way that improves and builds upon the efforts of our staff?” Fanous continued. “You don’t need to become a software company overnight, but you need to start thinking differently about the tech tools and digital solutions that can help build your mission.”
That said, how can nonprofits get started? The key is to focus on the technology that can best meet their needs and do their research. This includes looking into available options, assessing each option’s pros and cons, considering budget constraints, and understanding the potential challenges associated with implementing a specific technology. “Once they have done this, nonprofits should ensure they have the necessary resources and training to ensure successful adoption and use of the technology,” said Aaron Ahali, a post-doctoral fellow in leadership at Henley Business School, in an interview.
Speaking of budget constraints, there is an increasing trend towards public-private partnerships that can help support technology investments for nonprofits. Such programs are often designed to bridge the funding gap and provide access to resources nonprofits may not otherwise have access to. Additionally, tech companies are increasingly offering free or discounted services specifically for nonprofit organizations, which can further reduce costs and make it easier for nonprofits to start leveraging technology.
But is that enough?
Fanous concluded that technology should be seen as a tool to help nonprofits remain sustainable and achieve their mission. “Nonprofits shouldn’t focus on simply having a website, but instead consider how they can use technology to create positive social change and improve the lives of the people they serve,” he said.
Ultimately, it is critical for nonprofits to understand the value of technology and make investments in digital solutions that can support their mission. With the right tools, training, and partnerships in place, nonprofits can use technology to better serve their beneficiaries and create a more effective and efficient organization. This sentiment is echoed by Helmi Norman, an associate professor of digital and futuristic education at the National University of Malaysia, who said in an interview, “Technology is an essential part of any nonprofit’s success, and it needs to be embraced if the organization wants to remain relevant in today’s world.” With that in mind, nonprofits should take proactive steps to understand the various technologies available and invest in solutions to help them achieve their goals.
Overall, it is clear that the right technology adoption can be immensely beneficial for nonprofits. After all, technology can help them to enhance efficiency, better serve their beneficiaries, and collaborate with partners—all while reducing costs.
Disclosure: One source mentioned in this article—Aaron Ahali—is employed by the same University as this article’s author, though both reside on different campuses and have consequently never worked together in any regard
