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  • Writer's pictureNatalie Calhoun

Industry Transition Calls for Nonprofit Digital Transformation

A Changing Industry

In recent years, the nonprofit industry has vastly transformed to become more data-driven and impact-focused. Nonprofit human services organizations function in a highly regulated industry due to the complex needs of the clients they are serving. More and more, funders want to see the data that shows the impact of the program and services that they are putting money towards.

Henry Timms, leading global expert in organization transformation, said, "how we manage and harness technology for the good of mankind is the key issue of our time." Nonprofit success stories now need to show the social return on investment (SROI), which is the measurable way they contribute to the community.

Using the Right Tools for the Change

To address this change, organizations need the right tools to help them demonstrate their impact. According to the study, The State of Data in the Nonprofit Sector, 2/3 of nonprofit organizations struggle when it comes time to demonstrate their impact. Nonprofit leaders often lack a technology solution or have little confidence in the technology they do have due to it being outdated and fragmented.

Lacking Adequate Technology Leads to Other Problems

Organizations that don’t have the technology they need to thrive as the industry continues to develop will likely face corresponding challenges associated with the push for more data.

It's becoming increasingly important to find a software system that helps your organization address the industry challenge as well as the micro challenges such as fragmented client care, difficulty securing funding, and high employee turnover.

Person-Centered Care

Outdated methods of tracking client data, such as paper records, spreadsheets, or multiple databases, can often lead to duplicated efforts or even incorrect data. Having all of your client data in a single advanced system can provide high-quality insights about all of your clients’ needs, goals, and progress. It allows your organization the ability to know which programs and services are making the most impact so that you can focus on their expansion.

Reimbursement and Funding

Data-driven evidence is critical to being successful in today’s value-based environment whether it be new reimbursement models, philanthropy, or grants. Further expand philanthropic funding opportunities from donors by providing them with success stories backed by data to clearly show the impact of their donor investment. Data will be the underpinning to competitive advantage when pursuing enhanced reimbursement and other funding sources.

Employee Retention and Satisfaction

According to a study conducted in 2020, 45% of responding nonprofit employees indicated that they will be seeking different employment in the next five years. For nonprofit organizations to have a competitive advantage when retaining employees, it’s important to provide them with the right tools that will help make their job easier.

An innovative technology solution can also yield compelling career development opportunities that include gaining expertise in data, technology, and innovation.

In Summary

Nonprofit organizations care for those with complex needs and health disparities, and in recent years, the funding environment has changed to focus on data-based outcomes.

Organizations must now move away from fragmented and outdated methods of client management and instead shift to a software system that provides them with a 360° view of clients through assessments, dashboards, and analytics. This advanced client view can lead to greater funding opportunities due to the gained competitive advantage from showing proof of the social return on investment.

imPowr by Continual Care Solutions is a software solution designed specifically for nonprofit human and social services organizations. The imPowr platform provides organizations with financial growth, improved efficiencies, and risk mitigation so that they can focus on advancing their mission and serving the community with excellence.

Learn more about how to begin your digital transformation by requesting a demo today.

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