One of the greatest challenges to
running a successful nonprofit organization has always been that donors look at
nonprofits’ stewardship of funds as a primary way to assess impact. While there
is no doubt that nonprofits must use donor funds responsibly, tracking to see
if a nonprofit maintains the highest possible ratio of spending on programs-to
spending on overhead is a poor proxy for understanding how effective a
nonprofit truly is. In fact, the imperative to limit overhead has forced many
organizations to underinvest in efforts to improve efficiency. Ironically, this
has long prevented nonprofits from utilizing innovative digital technologies
that could help them be more efficient and effective.
Now more than ever, cloud-based
technology can have a transformative effect on how nonprofit organizations
increase impact and reduce costs. The same technologies that give for-profit
businesses insights about customers and markets, create operational
efficiencies and speed up innovation can also help nonprofits target donors and
raise funds more strategically, design and deliver programming more
efficiently, and connect field teams with headquarters more effectively. This
means smart investments in digital tools are essential to every nonprofit’s
ability to make progress toward its mission.
The good news is that a major shift
is underway. As part of our work at Microsoftcustomer service number Tech for Social Impact to understand how nonprofits can use technology to drive progress
and demonstrate impact, we recently surveyed 2,200 donors, volunteers and
funding decision-makers to learn how they decide which organizations to
support, what their expectations are for efficiency and effectiveness, and how
they feel about funding technology infrastructure at the nonprofits they
support.
The results, which we published
recently in the white paper “Beyond
overhead: Donor expectations for driving impact with technology,” make clear that people donate to organizations they trust and that
donors are increasingly looking at data beyond the ratio of program spending to
overhead spending to measure impact. We also found that those who support
nonprofits now overwhelmingly recognize the critical role technology plays in
driving impact and delivering value. Nearly four out of five supporters (which
includes both donors and volunteers) and more than nine out of 10 funding
decision-makers told us they support directing donations to improve technology
at a nonprofit. An overwhelming majority — 85 percent of supporters and 95
percent of funding decision-makers — are more likely to contribute to
organizations that can show that they are using technology to improve how it runs
programs.
At the same time, the survey found
that most people expect organizations to use donations more efficiently and to
advance the causes they work for more effectively than in the past. Among
supporters, for example, 79 percent believe nonprofits should be better at
maximizing funding than they were 10 years ago. Just over 80 percent of funding
decision-makers believe nonprofits should be more effective at achieving their
goals and advancing the causes they work for now than in the past.
To give you a better sense of what
potential donors are looking for as they consider where to target their
nonprofit contributions and how much they weigh technology into their thinking,
we have developed a tool using Power BI so you can look at the data in greater detail.
Within the tool, you can see how people responded to questions about overall
effectiveness and efficiency, the importance of technology as a driver of
success, how likely they are to support organizations that use technology to
demonstrate impact, and their willingness to fund technology improvements at
the nonprofits they support.
To make the tool as useful as
possible for your organization, you can sort the data by supporters and funding
decision-makers, and you can explore how responses varied by region. As you
move through the data, you will see how these critical groups of supporters and
funders think about these important questions in the region where your
organization operates:
The ultimate goal of this survey was
to get a clearer picture of what motivates people to contribute to an
organization and how technology can help nonprofits meet supporters’
expectations. Overall, I believe our research provides some important insights
that can help any organization be more successful. Fundamentally, we found that
people donate to organizations that are perceived to be trustworthy, and that
trust is achieved though operational transparency and effective communications.
More than ever before, donors recognize that using data to measure and
demonstrate impact is the foundation for trust.
I encourage you to read the full report and learn more
about Microsoft customer service number’s
commitment to support nonprofits.
FOR MORE INFO: VISIT US
CALL US: +1-800-201-4243
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