Why It’s Time for Nonprofits to Embrace Fintech
Updated: Jun 3, 2022
So often, nonprofits are asked to do more with less.
Historically, that concept has been a badge of honor within the industry. Many nonprofits and their nonprofit leaders maintain a level of pride in their ability to deliver results despite such restrictions, especially when viewed against the seemingly endless resources afforded their for-profit counterparts.
By nature, a nonprofit’s business model requires the organization to drive social good on top of everything else it takes to maintain and grow a company. As a result, the nonprofit workforce routinely finds a way to deliver, despite not having the newest, most efficient, or innovative tools that their for-profit counterparts use.
This work ethic is remarkable, however, it’s not sustainable. In today’s high-pressure world, 70% of routine managerial tasks will be fully automated by 2024.
Technology and innovation are forcing all of us to be quicker, faster and better at seemingly every turn. And it’s time for nonprofits - especially the revenue-generating philanthropic work they do - to answer the call when it comes to financial technology (fintech) in particular.
How Fintech Can Drive Results for Nonprofit Fundraising
Fintech as an industry is one that looks to utilize technology to improve and automate finance services. While it’s already influenced organizations and individuals across the globe, it’s an area ripe with opportunities, especially in terms of the potential for automation-driven artificial intelligence techniques to improve fundraising processes.
It’s a shift to which nonprofit fundraisers need to quickly grab ahold.
Just think how much time and energy nonprofits put into fundraising from mass marketing spends to nurturing prospects and further developing affinity with donors, there’s thoughtful and personalized communication sequences. Extravagant events. Individual visits, phone calls and more.
So much time is spent to emphasize the “why” for giving, but what about the “how”? If after all that effort, nonprofits still place barriers in front of donors when it comes to the ease of actually making a financial donation, the ramifications can be immense. The more hoops, the less likely the transaction will actually occur. Fintech has a unique opportunity to answer the “how” in a way that brings donors closer to an organization’s cause than ever before.
Consider timing. Imagine that you’ve done the work to inspire a donor to give to your cause, but the timing just isn’t right for them financially to make the gift they’d like to make. That dead end is a lost gift, and lost resources for the organization. Where fintech shines is that it can change how the donors makes their gift, perhaps saving the opportunity.
These are just a few examples of where fintech can influence results. Solutions that make it quick and easy for donors to give via their mobile devices. Give now, pay later options empower donors to give full gifts to worthy organizations upfront while easing the cash burden by spreading payments over time. Platforms powered by artificial intelligence can remind donors of upcoming gift payments that simplify the process for consistent, continuous donations in the future.
It adds up to greater outcomes for all parties involved. And is powered by putting innovation in the driver’s seat.
In other words, so long to the concept of doing more with less.
Interested in offering your donor's the simple, flexible and transparent donation solution they deserve?