Sage research reveals positive signs in nonprofit sector despite COVID-19 disruptions

Nonprofit finance leaders lean on technology to improve efficiencies, save money, and ultimately drive greater mission impact amidst the pandemic

ATLANTA, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Sage (FTSE: SGE), the market leader in cloud business management solutions, today released its 2021 Nonprofit Technology Trends Report. The report highlights how finance leaders within the nonprofit sector leveraged technology innovations to stabilize finances, adapt to new remote-work conditions, and position themselves for continued mission success amidst the global pandemic.

It is no surprise that nonprofit organizations have faced unprecedented challenges since March 2020. The survey found that program disruptions (70%) and the challenges of shifting to a remote workforce (50%) were the biggest challenges faced in the past year. In addition, 58% of survey respondents noted that their nonprofit organization experienced a decrease in revenue in the past year, and 40% saw a decrease in funding as one of the biggest impacts to their organization. However, on a more positive note, 76% of organizations surveyed were still able to increase or maintain their donor base during the year.

The survey, conducted in Q4 of 2020 with more than 500 U.S.-based nonprofit finance leaders, notes there is optimism for brighter days ahead, as nonprofits continue to adapt and find unique ways to connect with constituents. In fact, findings from the report echo this sentiment and include the following:

• 46% of survey respondents reported they experienced innovations coming out of the pandemic they would not have otherwise realized.
• In the coming 12 months, 50% of respondents forecast either flat or an increase in revenue – with 29% expecting a significant increase of 25 to 50%.
• 82% of survey respondents reported using financial management and accounting software to support operations and growth.
• 70% of survey respondents reported a change to their social media strategy due to the pandemic; and the results are impressive, with 62% seeing an increase in engagement.

Making the case for cloud financial management
For the second year in a row, the survey showed that the inability to automate financial reporting is the top internal frustration for nonprofit finance leaders. Every nonprofit has been forced to make difficult decisions this year and nonprofits need more timely, insightful financial reporting to make data-driven decisions. Respondents also noted that the second most important functionality for their accounting and financial management system was its ability to integrate with other systems – further highlighting the shifting of technology needs due to the pandemic.