Sage’s 2024 Nonprofit Technology report offers a deep dive into technology use in the nonprofit sector

In a time of rapidly changing technology advancements and growing reliance on digital solutions, the nonprofit sector is leveraging technology solutions to maximise impact and efficiency at a faster pace. 

With valuable insights from nonprofit finance leaders from across North America, this report not only sheds light on current technology trends but also provides strategic foresight into the changing landscape of nonprofit operations. 

As stewards of financial integrity within their organisations, nonprofit finance leaders play a critical role in guiding the adoption of technologies that align with mission-driven goals. As nonprofits face a complex landscape, the ability to track outcome metrics, strengthen financial planning, and enhance operational efficiency are crucial for long-term sustainability and impact. With critical challenges such as economic uncertainty, inflation, and competition for funding at the forefront of the nonprofit sector, the need to leverage modern technology solutions is greater than ever. 

The survey conducted for this report captures the perspectives of these leaders, exploring the challenges faced, the opportunities seized, and the technologies that are shaping the nonprofit sector in 2024. Findings emphasise the critical role of nonprofit finance leaders in leading their organisations through change with transparency, accountability, and strategy. 

Demographics

This year, nearly 300 nonprofit leaders responded to our survey. The majority (90%) of these leaders represent small to mid-size nonprofit organisations in the United States with revenue of less than $24M annually. The demographics are in line with our survey respondents from previous years, allowing us to compare year-over-year results.

What’s the approximate annual revenue for your organisation?

The respondents represent a variety of nonprofit cause areas, including human services (21%), education (17%), community improvement (16%), arts and culture (14%), and healthcare (13%).

The most frequent titles of respondents were executive director, chief financial officer, and chief executive officer. More than half (56%) of respondents represented the C-suite at their organisation, up from 49% of respondents last year. Other survey participants identified themselves as controller, director of finance, accounting manager, and VP of finance and administration.

Revenue

44% of respondents reported an increase in revenue in 2023, with an additional 29% reporting flat revenue. We saw a larger percentage report an increase last year, but in totality, a higher number of organisations are reporting either increased or flat revenue – meaning the post-pandemic bounce back was higher in 2022, but fewer organisations reported a decrease in 2023. 

Human services, arts and culture, and education organisations more frequently reported an increase in revenue over other nonprofit categories. Arts and culture organisations are new to that list this year, indicating a recovery in an area that was hard-hit during the pandemic. 

What changes have you experienced in your revenue in the past 12 months?

When we examine the last five years in greater detail, we see a clear positive trend in revenue versus the decrease we saw during the height of the pandemic in 2021. Our 2024 survey results reflect the lowest percentage of survey respondents reporting a decrease in revenue since pre-pandemic times. Of those who reported a decrease in funding, 65% say their funding decreased by a small margin of less than 25%. Of those that reported an increase in funding, more than a quarter experienced an increase of greater than 25%.

Good news for 2024:  86% of organisations are predicting increased or flat revenue, with 63% forecasting an increase. Of those forecasting an increase, 41% of those organisations expect an increase of greater than 25%. That number is up from 26% last year, meaning many more organisations are forecasting larger increases.

Funders

29% of nonprofit finance leaders reported that the biggest increase in funding this year came from government funding, followed by foundation grants. Our survey respondents reported that the most significant decrease in funding came from individual donors. 

In what funding areas have you seen a change in the last 12 months?

When we look at year-over-year trends, funding from foundations has remained the steadiest, while individual, corporate, and government funding has had more variability, trending up or down given the economic climate.  This year, we saw every area drop slightly in the percentage who have seen an increase, except corporate giving. For the first time in our survey, we’ve seen corporate giving back to prepandemic levels. 

Overall, we’ve seen government funding remain fairly high when compared to 2020 numbers, but it did dip slightly this year as the availability and accessibility of government funding has changed post-pandemic.

Sage’s full survey report is available for download by clicking on the blue button below.

Akuna’s Sage Intacct non-profit customers have experienced efficiency gains of up to 75% and dedicate more time to strategic decision-making. We help you to spend less time on administrative tasks and more time on what really matters – advancing your mission. Read here some of the ways in which Sage Intacct and Akuna can help transform the way you work.

AKUNA is an Aboriginal word that means the way forward. We have the expertise and experience to help you find your way forward and successfully deploy a business software solution to maximise your potential. Contact us

Photo by Dayne Topkin on Unsplash