By: Erin Williams, Partner Fundraising Auctioneer & Consultant
Let’s be honest: many in nonprofit leadership roles wear multiple hats. You’re focused on programs, fundraising, compliance, board relations—and somewhere in that mix, technology often gets put on the back burner. But according to recent reporting from The Chronicle of Philanthropy, it’s time to move tech from the “later” list to the “urgent” one.
The data is clear: nearly 90% of nonprofit executives agree that technology is essential to fundraising success, yet most are investing less than 3% of their budgets into it (Chronicle, 2025). In a sector where relationships are everything, that’s a disconnect we can’t afford to ignore.
Fundraising Is Being Held Back by Outdated Systems
If your development team is manually pulling donor reports, relying on slow or segmented databases, or struggling to personalize communications, it’s not a staff problem—it’s a systems problem. And it’s likely costing you revenue.
Nonprofits that invest even modestly more in their technology—above that 3% threshold—are twice as likely to be using donor analytics, automated outreach, and even AI tools that help streamline communication and stewardship. These tools don’t replace relationships; they support them.
Your Board May Be a Barrier—Or a Breakthrough
In Old Ways in a New Tech World, Sara Herschander notes that only 29% of nonprofits say their board regularly discusses technology strategy. That’s a missed opportunity. If your board isn’t actively talking about digital infrastructure as part of the organization’s future, it may be time to start that conversation.
Technology decisions should no longer live in the operations corner. They belong in your strategic plan.
Small Wins = Big Progress
This doesn’t mean you need to find an extra six figures in your budget tomorrow. It means looking for where smart tools can free up capacity. One nonprofit leader shared that her team now uses ChatGPT to create onboarding materials for volunteers—a task that used to eat up hours. Others are automating donor thank-you emails, segmenting appeals by giving history, and building dashboards to track giving in real time.
Progress doesn’t require perfection. It requires permission—to think bigger.
Fundraising Sustainability Depends on Capacity
If we want to hit higher goals, steward donors better, retain staff longer, and scale our mission, we need to stop treating tech as overhead and start seeing it as mission-critical infrastructure.
That next CRM upgrade? That board portal? That AI-powered grant research tool? It’s not “nice to have.” It’s part of how we build sustainable organizations that serve our communities well.
What You Can Do Next:
- Start tracking what percentage of your budget is going to tech—then advocate for a gradual increase.
- Invite your board to review your tech strategy annually—alongside your fundraising and program strategy.
- Encourage your development and program teams to identify low-cost tools that could improve workflows or data use.
- Share these findings with leadership peers—this conversation needs to be sector-wide.
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