Salesforce 2023 Nonprofit Trends Report
Salesforce 2023 Nonprofit Trends Report
Nonprofit
Trends
Report
How nonprofits around the world are
embracing change, overcoming challenges,
and harnessing opportunities
Nonprofit Trends Report, 6th Edition
Hello,
Welcome to the 6th annual Nonprofit Trends Report
by Salesforce.
Let’s begin with a moment of gratitude for your dedication to the nonprofit
sector. And now, how about a moment of reflection?
Think of a key challenge you've faced over the last year in your organization.
Many nonprofits
Jot it down and keep it in mind as you go through this trends report.
You'll likely see something similar noted here — because you’re not alone.
are charting their
This report covers the shared experiences of nonprofits navigating
course with a
change while driving impact. The terrain is rough with economic
instability, rising costs, and acceleration of technological changes.
clear sense of
Yet, organizations small and large are finding their ways. Many nonprofits
are charting their course with a clear sense of mission, resolve, and
mission, resolve,
optimism. They are embracing change, overcoming challenges,
harnessing opportunities, and exploring what’s next — including AI.
and optimism.
More than ever, nonprofits continue to rise to meet today's challenges.
Salesforce is here to help. No matter the cause, geography, or size,
we’re all together on the same team. Team Earth. Team Humanity.
Team Equality. Let’s go.
In service,
Salesforce
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Overview Nonprofit Trends Report, 6th Edition
Primary causes
Animals Health Rescue
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Executive Summary Nonprofit Trends Report, 6th Edition
Executive Summary
The nonprofit sector is navigating a complex landscape of changes,
challenges, and opportunities. Nonprofits continue embracing technology
to support critical work, with a cautious yet growing curiosity about AI.
Key Takeaways
1 Global shifts
Persisting economic instability, rising costs of living, faster speed of
technological changes, and recognizing the dawn of AI.
2 Overall sentiments
The sector is determined, resilient, and optimistic, but smaller
organizations feel more concerned about their future. Nonprofits
with supportive governments tend to feel more confident and
prepared than those lacking government support.
3 Top challenges
Managing workload has become the most pressing issue,
surpassing fundraising and staffing concerns, even more so in larger
organizations. For small nonprofits, raising enough funds remains
the hardest.
4 Organizational changes
Some organizations saw decreases in staff, volunteers, and donations,
while most others managed to maintain a stable footing in these key
areas. A significant number of nonprofits have become more agile and
flexible in responding to changing environments. Almost a third have
increased their ability to plan strategically. The biggest change in the
sector is the increased use of digital channels for internal communication.
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Executive Summary Nonprofit Trends Report, 6th Edition
5 Fundraising changes
Through higher and wider uses of digital channels, fundraising
continues evolving to attract new generations of donors and deliver
better donor experiences. There are also changes in channel
strategies, partnerships with other nonprofits, and more collaboration
across teams to address fundraising challenges together.
6 Ongoing limitations
A lack of training in digital engagement and delivery holds nonprofits
back from making the most of their digital strategies and tools.
Some organizations have seen a higher service demand without the
capacity to increase service delivery.
7 Major risks
The broader use of digital channels for fundraising can expose some
nonprofits to critical data risks without adequate measures in place
for cybersecurity and data handling. There is an urgent need to
improve data management and security practices.
8 AI perceptions
AI is on the nonprofit radar. The sector is cautiously optimistic
and curious about AI’s potential benefits in content creation and
organizational efficiency. The majority of nonprofits want to learn
more about AI and how it could help them.
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Navigating
Changes and
Challenges
Navigating Changes and Challenges Nonprofit Trends Report, 6th Edition
The rising cost of living has had varying Agility and flexibility to respond
33% 12%
to changing situations and crises
impacts on future outlook, fundraising,
Focus and investment in
staffing, volunteering, service delivery, employee wellbeing
30% 16%
While some nonprofits dealt with reductions in staff, The number of staff 27% 27%
volunteers, and donations, the majority managed
Agree Disagree
to maintain a relatively stable footing in these
crucial areas, and some saw growth.
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Navigating Changes and Challenges Nonprofit Trends Report, 6th Edition
41 %
nonprofits increased
use of digital channels The biggest organizational change has
for internal
communications been the adoption of digital tools for
internal communications. More than half
also reported increased investments in
driving creativity and innovation.
54 %
replace inefficient working habits, and address
workload difficulties.
nonprofits increased
investments in
N driving innovation
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Navigating Changes and Challenges Nonprofit Trends Report, 6th Edition
Top Challenges
29
USA than in other regions.
%
with fundraising
concerns
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Harnessing
Opportunities with
Technology
Harnessing Opportunities with Technology Nonprofit Trends Report, 6th Edition
2022 saw a clear trend among nonprofits “More than half (55%) of nonprofits say their organization
needs to invest in technology in order to increase
— the prioritization of investments in
fundraising, and 60% say their donors expect a better
technology to tackle challenges and experience than their current technology provides.”
seize opportunities. Following through
on this intent, nonprofits showed strong
increases in digital adoption in 2023.
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Harnessing Opportunities with Technology Nonprofit Trends Report, 6th Edition
avv
Crowdfunding 11%
compared to
86 used
% TV advertising
Radio advertising
9%
9%
digital channels
Chatbot 2%
68 used
% Others
10%
traditional channels
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Harnessing Opportunities with Technology Nonprofit Trends Report, 6th Edition
74 % changed their
fundraising strategies.
24
donors and capture more fundraising opportunities that
were previously unavailable or untapped.
% added mobile payments.
Social media, websites, emails, and video calls have become the
primary platforms for audience engagement. Focus on online and
mobile payment is on the rise.
38 % added more
fundraising channels.
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Addressing
Risks and
Limitations
Addressing Risks and Limitations Nonprofit Trends Report, 6th Edition
35
Top Fundraising Cybersecurity %
Measures
have a data
handling policy
A data handling policy 35%
Cybersecurity training
According to “The State of Identity Security”,1
34%
for all staff
there has been a +667% increase in phishing
Measure to handle sensitive
31% attacks since 2020. Data management and
personal information
protection have become a key issue for
Software tools that are
GDPR compliant
27%
organizations across all sectors to undertake
Investment in cybersecurity in their adoption of more digital technologies
25%
training, planning and software
to support the most vital work.
A response plan in case of
24%
a cybersecurity breach
Many nonprofit organizations have recognized the
Software tools to effectively
safeguard and monitor data, such 23% need to invest in cybersecurity and fortify their online
as data privacy and security tools
data handling practices against potential data risks
and breaches. Shockingly, only a third of surveyed
nonprofits have adequate measures in place. Only
one quarter have a response plan in case of a breach.
34 %
provide cybersecurity
When many nonprofits hold highly sensitive personal
data of vulnerable populations such as children,
training for all staff
elders, and refugees, safe data management and
Salesforce | 14
Addressing Risks and Limitations Nonprofit Trends Report, 6th Edition
15
result. While most are not increasing their
service delivery — likely due to a lack of %
capacity and funds — some are exploring
faced inability to deliver
new service delivery methods. services and meet
beneficiary needs
2
2022 Nonprofit Pulse in Europe
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Addressing Risks and Limitations Nonprofit Trends Report, 6th Edition
The global findings from the survey tell us that government support for fundraising has broad impacts
on addressing limitations for nonprofits.
Interestingly, those with less support are more likely to express concerns about
their future, report decreased donations, and experience direct staff impact from
organizational challenges. Nonprofits with supportive governments demonstrate
confidence, preparedness, and proactive investment in technology and innovation.
Although over one-third of nonprofits have received government support and grants to fund their
services, it’s not the case for all. The UK shows the highest level of dissatisfaction with government
support and lack thereof.
32% 26%
Note: 10% of respondents answered ‘Don’t know’
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Exploring AI:
Perceptions and
Sentiments
Exploring AI: Perceptions and Sentiments Nonprofit Trends Report, 6th Edition
Many believe AI technology will be deeply woven into the Did you know…
fabric of human societies and economies, similar to how
creates new things based on what it has
essential and integral web and mobile technologies have Generative AI
learned from existing data.
become in supporting modern work and everyday life.
makes predictions based on what it has
Predictive AI
seen in existing data and recommends
In the most recent global nonprofit survey, we the next best actions.
Salesforce | 18
Exploring AI: Perceptions and Sentiments Nonprofit Trends Report, 6th Edition
65 %
are open to AI and Nonprofits — traditionally rooted in human-centric
need to learn more values, practices, and relationships — are now peeking
into the world of AI with a mix of optimism, curiosity,
and a healthy dose of reservation.
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Exploring AI: Perceptions and Sentiments Nonprofit Trends Report, 6th Edition
Top 3 AI opportunities
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Exploring AI: Perceptions and Sentiments Nonprofit Trends Report, 6th Edition
AI is a thrilling new frontier, where technology and humanity 2 Practical training and workshops
Being cautiously optimistic about AI, nonprofits 5 Integration with current systems
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Exploring AI: Perceptions and Sentiments Nonprofit Trends Report, 6th Edition
As AI drives big societal changes, nonprofits are While you and your nonprofit navigate these new waters: jot
playing an important role in what is to come. down what excites you about AI, what may be holding you
They want the ability to harness the biggest back, and how you envision the role of AI in amplifying your
mission without compromising your core values.
benefits while mitigating the highest risks.
Diving deeper
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Recommendations Nonprofit Trends Report, 6th Edition
Recommendations
Workload management has become Raising enough funds continues to be Stronger donor relationships yield
the top challenge. a key challenge. greater levels of giving.
Help your teams achieve more with Audit your fundraising channels Make your content and
less manual work. and experiences. communication personal.
Consider investing in digital tools to automate If you haven’t done this recently, it’s a good Because giving is highly personal, personalized
manual repetitive work and enhance time to critically evaluate your channel mix and content is a great way to show your donors that
cross-functional collaboration. When teams stakeholder experiences. Are you engaging you care. Personalization helps build stronger
can break out of silos to work collaboratively, donors and supporters on the channels where relationships, which significantly impacts donor
it minimizes duplication of efforts and they love spending time and feel more open engagement and retention. Personalizing can
inefficiencies across the board. Resources to act? Next, assess the ease of use of your be as simple as using the recipient’s name in
being stretched thin is a sign to invest in donation pages and volunteer signups, as well an email subject line. When it comes to the
modernizing operations. Such investments will as how easy it is for your audiences to find message itself, make it more personable by
improve resource allocation and utilization answers to their questions. Audit insights will speaking from a shared emotional level and
while enhancing the way your organization help guide your optimization efforts to achieve avoiding marketing words. Generative AI can
delivers impactful results. greater fundraising outcomes. help personalization on a larger scale.
1 2 3
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Recommendations Nonprofit Trends Report, 6th Edition
Action Action
3
Nonprofit Trends Report, 5th Edition
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Nonprofit Trends Report, 6th Edition
Regional
Snapshots
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Regional Snapshots Nonprofit Trends Report, 6th Edition
US Snapshot
76 % The majority made changes to Most US nonprofits are in an exploratory and
All numbers below represent fundraising strategies learning phase with AI but see a future for AI
percentage of nonprofits within their org.
26% Diversified channel mix in fundraising strategy
facilitate innovation
50% Social Media Don't see using 21%
43% Face-to-face
Don't trust 4%
Biggest challenges in 2023 42% Website
38% Managing workload
40% Email
34% Retaining workforce
38% Social Media Ads Top Generative AI Concerns
34% Supporting staff 50% Data Security
v
21% Raising sufficient funds 49% Data Privacy
Government support for
charitable fundraising 39% Loss of human expertise/jobs
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AUS n=136
Regional Snapshots Nonprofit Trends Report, 6th Edition
EMEA Snapshot
76 % The majority made changes to Most EMEA nonprofits are in an exploratory
All numbers below represent fundraising strategies and learning phase with AI but see a future
percentage of nonprofits for AI within their org. EMEA as a whole has
23% Diversified channel mix in fundraising strategy the highest rates of already using AI in their
Changes & Challenges 23% Increased focus on digital channels org. France has highest rates of not trusting
AI (11%).
23% Increased focus on supporter retention
Positive changes
22% Work collaboratively with other nonprofits
32% Increased agility Excited & using 14%
20% Increased focus on regular giving
30% Increased strategic planning
Exploring 21%
29% Increased investments invested in
employee wellbeing
Digital fundraising channels continue Optimistic but
22%
to increase cautious
24% Increased investments in marketing/comms
51% Social Media Need to learn more 22%
Negative changes
48% Website
28% Decreased donations Don't see using 15%
46% Email
26% Decreased supporters Don't trust 4%
39% Face-to-Face