As the year winds down, finance teams are looking ahead to determine plans and priorities for next year. Nonprofits in particular are brainstorming ways to do more with less. In the current macroeconomic climate of uncertainty, the following nonprofit trends are likely to impact organizations next year.
Nonprofits see demand for services spike during times of inflation, according to the National Council of Nonprofits. As prices increase, organizations must find ways to make ends meet. Nonprofits feel pressure to create efficiencies and streamline operations to address amplified needs.
Unemployment rates are notably low, which makes it tough to find employees with specific skills. Often, nonprofits can’t offer competitive compensation, which puts them at a hiring disadvantage. Seventy-nine percent of nonprofits told the National Council of Nonprofits that salary competition negatively impacts their ability to fill open positions.
Fundraising Goes Digital
As individuals adopt peer-to-peer payment platforms like Venmo, they’re expecting that same convenience when donating to nonprofits. Organizations are faced with overhauling donation processes and creating new campaigns that make use of digital payment technology.
Nonprofit Trends: Technology Addresses Challenge
Technology has significantly transformed the landscape of nonprofits, offering unprecedented opportunities for innovation, efficiency and impact that boosts their capacity to serve communities and execute on their missions.
Based on data from AvidXchange’s “2024 Finance Forecast,” technology will revolutionize data collection and analysis for nonprofits. Advanced analytics and data management systems allow nonprofits to gather data on their operations and impacts on the communities they serve.
A data-driven approach enhances decision making, enabling nonprofits to tailor their programs to specific needs and measure their effectiveness more accurately. Artificial intelligence (AI) and machine learning have the potential to provide valuable insights and predict trends, aiding nonprofits in creating strategies for long-term sustainability and growth.
Additionally, real-time payment options and online fundraising solutions will modernize fundraising efforts, allowing nonprofits to reach a broad audience, garner support from diverse sources and secure funds faster than ever. Online platforms also enable nonprofits to streamline operations, manage volunteers and coordinate events with ease, optimizing their resources and maximizing impact.
Finance Departments Look Ahead
To gain insights on how finance departments are planning for the new year, AvidXchange conducted a survey of 500 finance executives in September 2023. Our whitepaper, “2024 Finance Forecast,” highlights their responses and predicts 2024 finance trends.
This year, nonprofit finance leaders must be proactive and adapt to the changing landscape. Our free report will help you understand what to expect in 2024 to ensure that your team is on the right track to support your organization’s mission.