By Christopher Brewer
The year 2024 was yet another challenging time for nonprofits, marked by global crises and economic shifts. Now, many nonprofits work in a state of perpetual crisis, forced to pivot resources and attention as emergencies arise.
For these organizations dedicated to aiding others amid crises, balancing mission-driven work with operational demands often leaves little time to reflect and adapt.
Now in 2025, it’s essential for nonprofit leaders to assess what worked, what didn’t and how to improve for their communities.
However, nonprofit managers are beginning to recognize that agility is not only helpful but necessary for facing new challenges head on. Adopting an agile business mindset can help manage crises more effectively and, ultimately, serve their communities better.
Technology is key to supporting this shift, helping to reorganize operations and to make adjustments on the go. From streamlining processes to enhancing communications and fundraising, revamping an organization’s technology stack can make a dramatic difference to its success.
Embracing AI for Personalized
Donor Communications & Program Design
Artificial intelligence (AI) and cloud technology have significant potential to reduce the administrative burdens of nonprofit work so employees can focus on what matters most — the people and communities they serve. The biggest use cases for AI in nonprofits during 2025 will be creating more personalized donor communications and refining program design.
For example, if a women’s health program in Egypt tries to replicate a successful project 50 miles away and fails, AI could help identify what unique attributes (such as cultural differences) influenced the project outcomes.
Fear and uncertainty prevent many nonprofit managers from adopting these tools. Historical relationships with vendors and concerns about cost or complexity create hesitation. Nonetheless, staff members must explore tools and platforms now to help change their mindset and allow them to see how technology can enable better outcomes.
Here are several ways nonprofit managers can prepare their organizations and their people for the benefits of AI and cloud technology.
Improving Data Governance
Data will play an even larger role in nonprofit operations during 2025. Donors are increasingly asking for more transparency and personalized updates, while governments are setting new restrictions on how personal data is used. Creating a secure data structure and transparent communication around the topic will be a primary focus in the year ahead, as you work to manage and protect the sensitive data they collect.
AI can support these efforts by standardizing reporting and organizing data more effectively. By implementing strong data governance practices, managers can meet donor expectations and reduce the time, burden and mistakes of human reporting. Prioritizing robust data practices will not only give you an edge in building trust and credibility with donors and regulators, but will also optimize the results of AI and cloud tools.
Upskilling For Data Literacy
You’ll need to invest in training to equip teams with the essential skills needed to navigate new technology, including data literacy and critical thinking. They’ll also need to align with the expectations of a workforce composed of Gen Z, millennials and digital natives so no one feels left behind or threatened by the new tech.
By leveraging employees’ technological insights and encouraging innovative approaches, such as app development or mobile solutions, you can modernize outdated processes and address evolving privacy and security concerns.
Integrating Accounting, Fundraising & DMS
Nonprofits often operate with disconnected systems for accounting, fundraising and donor management, which leads to inefficiencies and lost opportunities for insight since much of the data collected is siloed. In the year ahead, more organizations will adopt an integrated platform model, where financial, operational and donor-related data converge in a single system.
This will enable you to streamline operations as employees don’t have to search for data across different platforms or departments and can operate based on one single truth from the combined data. The integration will allow you to reduce administrative costs and gain real-time financial insights by analyzing spending patterns and predicting the costs of goods or services, so nonprofits can make better decisions about sourcing, budgeting and resource prioritization, especially in times of crisis.
Universal Financial Reporting Standard
As nonprofits continue to expand globally, the demand for universal financial reporting standards is rising. The United States and Europe operate under different systems (GAAP in the U.S. and IFRS in Europe), which creates complications for nonprofits working internationally on both the financial reporting and government regulation fronts. There will likely be increased efforts to secure more global standards from organizations like the United Nations and the World Bank in the future.
These standards could simplify reporting and provide consistent frameworks across countries. Until then, these organizations need cloud technology that can operate across borders and take into account the different standards and regulations of each government.
Focusing On Observability
To make the most of new AI and cloud technology, nonprofit managers need to implement observable systems that allow staff to quickly access information applicable to their roles. Each role in a nonprofit requires specific information to make decisions, so for example, the details needed by a boots-on-the-ground volunteer is different than what’s needed by an accounting team member. This means nonprofits should prioritize tech solutions that deliver personalized, actionable insights to employees based on their roles.
Newer technologies, such as robotic process automation (RPA), can eliminate repetitive tasks, freeing up time for staff to focus on strategic decisions. This technology will improve workflows and ensure the right data is available at the right time for the right person, helping nonprofits make more accurate decisions faster.
Making A Lasting Impact
Nonprofit managers need to look to leverage new tools and strategies to enhance their operations, increase transparency and deepen their impact. Nonprofit leaders must reflect on what worked in 2024 and what didn’t, while being open to new technologies that can help them navigate the challenges they face. By investing in data governance, adopting agile practices and implementing the right tech for their operations, nonprofits can set themselves up for success in the coming year and be better equipped to fulfill their mission and make a lasting impact.
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Christopher Brewer is growth director nonprofit at Unit4.
