New Study Reveals Challenges, Opportunities and Insurance Buying Trends in the Nonprofit Industry in 2021
NonProfit PRO, the go-to source for nonprofit management and strategy, alongside NAPCO Research, announce a research report and subsequent webinar on insurance trends in the nonprofit industry, both titled “Challenges, Opportunities, and Insurance Buying Trends in the Nonprofit Industry – 2021.”
The research report analyzes top priorities and insurance buying behaviors of nonprofits. Survey respondents identified increased competition for fundraising dollars, resuming in-person events/activities due to the pandemic, and donor acquisition as the top three significant challenges of 2021.
“The survey revealed the impacts of COVID-19 on the industry, the trends influencing nonprofits’ growth plans, the actions and investments nonprofit organizations are taking to expand services, and critical factors determining insurance requirements and provider preference,” commented Nathan Safran, director of research at NAPCO Media, said.
COVID-19 has, unsurprisingly, taken a significant toll on the nonprofit sector, with in-person fundraising opportunities and events all but disappearing, making the development of donor and volunteer relationship more challenging. The reduction in volunteer engagement was the leading impact of the pandemic (cited by 55% of respondents), followed by challenges engaging with donors (54%).
The leading strategy for addressing charitable giving among respondents is to shift more fundraising activities to digital platforms, such as those online and on social media channels (cited by 51% of respondents), followed by investing in the development of a donor base (48%), and emerging technologies, such as mobile and digital communications (47%).
Adopting technology to manage a range of actions — including online fundraising, donor relationship management, data security, case management, and marketing — remains strong; however, the percentage of nonprofits using or exploring these technologies is marginally down compared with 2019 figures. As nonprofit organizations continue to face widespread disruption brought on by the pandemic, it is perhaps to be expected that longer-term strategy investments, such as technology platforms, are a reduced priority in times of crisis.
Price makes an expected appearance at the top of the list of insurance purchasing challenges, with 47% of respondents noting it as a significant barrier, and 31% citing it as a moderate challenge. This is consistent with the findings of 2019’s report; however, the gap between it being a price issue and other challenges has diminished, suggesting other factors are gaining in importance. Most notably, 21% of respondents report that excessive complexity of the application process is a significant challenge — up from 13% in 2019 — while 20% find understanding the difference between insurance policies and responsiveness of sales reps/brokers —up from 15% and 8% in 2019, respectively — to be significant challenges too.
The research report is available for a free download now here.
The webinar will take place on Thursday, Sept 23, at 2 p.m.ET. Registration is free and available here.
Philadelphia Insurance Companies (PHLY) has provided industry leading expertise and unsurpassed customer service for more than 55 years. Headquartered in Bala Cynwyd, PA, we provide value-added coverages and services for over 120 niche markets across the United States including protection for nonprofits. We help ensure that our Human Services customers continue to gain positive feedback from the millions of people they serve. We offer customizable package policies, along with superior customer service and a free risk management plan toolkit to help meet the ever growing needs of nonprofits. Rated A++ (Superior) by AM Best; Rated A+ by Standard and Poor's; 96% overall customer satisfaction; 50 local offices across the country; Specializing in over 120 niche markets; visit www.PHLY.com to learn more!
NonProfit PRO is the go-to source for nonprofit management and strategy. Developed for thought leaders and innovators, we cover an array of topics focused on leadership management, development, fundraising strategy, technology and much more. We offer a magazine, website and daily e-newsletter, NonProfit PRO Today, with a fresh look and quick, hard-hitting content as the go-to source for modern nonprofit professionals. NonProfit PRO also offers a wide range of tools, including a live, multi-day conference, a bi-weekly podcast, a weekly video series, webinars, custom publishing, research and more. For more information visit nonprofitpro.com.
Led by a former Forrester Research analyst, the NAPCO Research team crafts custom data-centric solutions that leverage our highly engaged audiences across the markets in which we operate, our industry subject matter experts and in-house research expertise. We partner with our clients to identify their unique business problem and create solutions that enable deeply informed decision-making.
NAPCO Media, NonProfitPRO’s parent company, is a leading B-to-B media company specializing in creating community through content via integrated media programs, video services, marketing services, events and event management, custom content, eLearning and market research. NAPCO Media has rapidly expanded its portfolio to include NAPCO Video Services, NAPCO Events, NAPCO Marketing Services and NAPCO Research.