Report: Tech-Savvy Nonprofits Are More Optimistic and Better Prepared for the Future
Momentive Software announced the release of its annual Nonprofit Trends Report, “Weathering Federal Uncertainty: Nonprofit Operational Trends”. Findings from the latest edition show that nonprofits leveraging technology earlier feel significantly more prepared about their future than their counterparts who are slow to integrate technology into their business strategies. Despite widespread concerns for potential federal budget cuts and funding instability, 63% of nonprofit professionals remain optimistic about their organization's future.
Key takeaways from the report and how nonprofits can further their mission in more effective ways include:
- Technology Adoption Predicts Success
- Nearly one-third of nonprofits consider themselves early adopters of technology, while another third identify as laggards. Nearly half of nonprofits grew revenue last year, but early-tech adopters had more revenue streams than other nonprofits — with an average of 5.14.
- However, the adoption of AI among nonprofits remains in the early stages, with only 21% of organizations currently leveraging AI in their strategies. Despite their slow embrace, nonprofit professionals who are using AI are finding significant value in content generation, marketing, and analytics.
- Donor Retention Fuels Sustainable Growth
- Implementing a strong donor retention strategy is paramount for the health of any nonprofit organization and can lead to quick wins. Momentive’s research shows that 56% of organizations with a donor retention strategy experienced revenue growth and reported donor retention rates of 77% versus 61% for organizations lacking a retention strategy.
- Alternatively, 46% of organizations report having no donor retention strategy at all. This opens the door to competitive differentiation for those who are willing to invest in a proactive approach to retaining individual donors. With the average cost of acquiring a new donor five times greater than retaining an existing one, organizations would be remiss to ignore this key aspect of their strategy.
- Collaboration Leads the Way Forward
- Amid funding ambiguity, many organizations are pivoting their current strategies to prepare for the year ahead. Collaboration has emerged as a key adaptation strategy, with 82% of nonprofits planning to maintain or increase their partnerships with similar-mission organizations, and 46% specifically planning to increase their collaborative efforts.
- While 66% of nonprofits receive grant funding, many of them are anticipating foundation giving to compensate for decreased federal grants. However, private foundations would need to increase their grantmaking by 282% to offset anticipated government funding reductions. Momentive’s data reinforces the importance of strength in numbers when it comes to organizations partnering together to power through uncontrollable change.
“Nonprofits exist to create impact, and that mission doesn’t pause in times of uncertainty,” remarked Tirrah Switzer, VP of Product Marketing at Momentive Software. “What our data shows is that organizations who embrace technology and invest in donor retention and collaboration aren’t just surviving — they're charting a path to sustainable growth. These aren’t just operational strategies; they are mission multipliers that help nonprofits serve their communities more effectively, regardless of the challenges ahead.”
The latest research from Momentive Software makes it clear that embracing technology and AI, prioritizing donor retention, and investing in strategic collaboration are powerful ways nonprofits are weathering uncertainty and positioning themselves for long-term impact. While these highlights are just a few of the most compelling findings, the full report offers a deeper look into the data and emerging trends shaping the sector. For mission-driven organizations navigating a shifting landscape, the insights within provide both guidance and inspiration for the road ahead.
The 2025 Nonprofit Trends Report, commissioned by Momentive Software and conducted by Edge Research, was based on data received from hundreds of nonprofit professionals who were surveyed across the United States between February-March of 2025.
Access the “Weathering Federal Uncertainty: Nonprofit Operational Trends” report here.
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
