Even with this urgency, many charities still fall behind in using digital technology. Throughout the industry, structural, financial and cultural obstacles remain. Salesforce's 2023 Nonprofit Trends Report claims just 12% of charities see themselves as digitally mature: almost half battle with antiquated technologies and low IT support. The difficulties are even more apparent for small and mid-sized companies: conventional finance policies can prioritize program delivery over infrastructure, and leadership teams may lack the technical knowledge required to support digital innovation.

The COVID-19 epidemic highlighted these difficulties acutely. Nonprofits had to switch to virtual involvement, digital fundraising, and remote programming from one day to the next. Those with robust digital infrastructure responded fast. Some people found it difficult to keep running. The epidemic underlined a necessary lesson: for organizational resilience, financial sustainability, and long-term mission influence, digital transformation is crucial.

Leadership at the Spiva Center for the Arts in Joplin, Missouri, saw the need to adopt technology early in the epidemic. Spiva changed fast to virtual art exhibitions, online class registrations, and digital fundraising campaigns as in-person gallery visits and classes stopped. Executive Director Rachel Brown said this change was about serving their community meaningfully rather than merely surviving. Spiva maintained donor relationships and increased its reach far beyond the local area by investing in a cloud-based donor management system and growing its web presence. Their example shows how even small, mission-aligned digital expenditures may improve operational efficiency and increase community ties.

Successful digital transformation depends on strategic leadership. Nonprofit leaders and boards should prioritize digital capacity as part of their strategic organizational objectives; it should not be an afterthought. Digital tools are guaranteed to be properly incorporated and maintained by building internal skills through staff training, peer learning, and recruiting tech-savvy board members. Fundraising tactics also must change to support unrestricted funding and donor awareness of the need for infrastructure investment, not only for programs.

Nonprofits that act today to match their goals with contemporary tools will be the most successful ones in the future. While technology can and should improve a nonprofit's capacity to efficiently, openly, and sustainably fulfill its primary goal, it should never take the place of that goal. Digital solutions, from donor management systems to virtual service platforms, allow charities to operate smarter, not harder.

Nonprofits that change with purpose and innovation in an ever-digital society will not only survive but also flourish. Those who invest in digital transformation now will guide their communities toward a more equitable, powerful, and resilient future.

A Ph.D. student in Arizona State University’s Community Resources and Development department, Alana Henry also holds a Master’s in Nonprofit Leadership and Management. As the National President and CEO of Delta Sigma Inc., an online sorority committed to increasing visibility for invisible disabilities, her approach emphasizes enabling nonprofit organizations to use digital tools to improve operational efficiency and extend influence driven by their goals.

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