The work of global non-profit organizations is vital to the lives of millions, if not billions, of people. But as the complexity of the world’s social, economic and environmental issues increases, so do the demands on the non-profit organizations that address them.
This is why technology plays such an important role in ensuring the success of nonprofit initiatives. It is not only through service delivery, but also through establishing transparent mechanisms for donors, employees and other stakeholders.
ServiceNow recently surveyed 300 nonprofit leaders and used the data to compile a comprehensive report, Impact AI: Nonprofit Digital Transformation Report 2024. In this analysis, we will review the most important results.
Digital transformation drives success
The report found that when nonprofits engage in comprehensive digital transformation, they see improved efficiency, cost savings, revenue growth and innovation opportunities. But while 67% of respondents said they already implemented a comprehensive technology platform, only 48% had a dedicated budget for innovation.
With that in mind, there is an awareness of the power of technology to drive significant growth, especially with AI. 67% of CEOs and other C-Suite executives see the potential for AI, especially GenAI, to drive productivity.
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“AI is already a powerful ally for nonprofits, helping to optimize the human side of their work and enabling staff to focus more time on building relationships with positive impact within their communities and to continuously innovate for lasting change” , says Anita Whitehead, CEO and Chairman, KPMG US Foundation, Inc.
The pacesetters
ServiceNow identified several nonprofits (20%) that are advancing digital transformation through AI technology that it describes as “Pacesetters.”
Pacemakers identified in the report “achieve more impact, faster.” This is manifested in four core areas:
- Improved top line growth
- Higher efficiency and cost savings
- Greater innovation
- Stronger strategic location
Leading organizations have experienced AI and GenAI-driven improvements in a few key areas. Above all, productivity, frictionless experiences and personal engagement have improved for stakeholders. 34% of respondents use GenAI technology to ensure compliance, while 30% use it to plan optimization and resource allocation; these were the two main use cases.
Final thoughts
ServiceNow concluded the report with six key takeaways based on the work of leading organizations. These takeaways include steps to provide frictionless experiences to stakeholders, consolidate on one platform, embrace AI, create a digitized workplace, rethink organizational structure, and build resilient, secure IT systems.
Although the report focused primarily on the impact of AI, it is important to recognize how cultural changes can support the adoption and success of AI technology. The adoption of AI in all sectors, including non-profit organizations, is dependent on a cultural shift that includes organizational and structural changes. Business leaders must work closely with IT departments to implement these changes and champion the transformative power of technology.
The AI ​​Copilot Summit NA is an AI-first event to define the capabilities, impacts and outcomes possible with Microsoft Copilot for mid-sized and enterprise businesses. Register now to attend the AI ​​Copilot Summit in San Diego, CA from March 17-19, 2025.
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