How FinTech Is Helping Non-Profit Organizations
Research shows that approximately 90% of non-profits use digital platforms for fundraising and communication. With the rise of financial technology, many non-profit organizations are now turning to other digital innovations to streamline their fundraising, manage donations, and enhance financial management. Here are a few ways FinTech is helping non-profit organizations.
1. A consumer-centric approach to operations
The world is changing rapidly, as are consumer expectations regarding donating to charity. Non-profit organizations are now turning to FinTech for solutions to help them stay competitive and meet the needs of their donors. And this has created a more consumer-centric approach to operations. For example, many organizations are taking advantage of cryptocurrency and various digital platforms to help make the donation process easier and more appealing to potential donors. FinTech also helps non-profit organizations manage their finances and identify innovative ways to raise more funds.
2. Attracting a greater number of small-dollar donors
Fundraising is no longer about appealing to large businesses and investors, as small-dollar donors are shaping the future of fundraising. Of course, wealthy philanthropists and big businesses are still important sources of funds, but thanks to FinTech, small-dollar donors are now playing a bigger role when raising funds. As mentioned, online platforms and cryptocurrency have helped create a consumer-friendly approach to operations. But it has also made it easier for small contributors to donate. And thanks to several online payment platforms like PayPal and other payment apps, anyone can contribute, regardless of how small it is.
3. Streamlined fundraising efforts
One of the primary benefits of fintech for non-profit organizations is the ability to streamline fundraising efforts. Thanks to various fintech solutions, non-profit organizations can accept online donations, set up recurring payments, and even leverage mobile payment solutions to collect donations from their supporters. That makes it easier for supporters to donate and enables non-profits to reach a broader audience.
But beyond that, fintech is also helping non-profits manage their donor data more efficiently. With the help of tools like customer relationship management (CRM) software, a non-profit organization can track its donor interaction. Doing this allows them to personalize communication, building stronger relationships with them as a result.
4. Improved financial management
Fintech solutions can also improve a non-profit organization’s financial management. With the right fintech tools, a non-profit establishment can track its expenses, manage its budgets, and gain better insights into its financial performance. Of course, other financial and accounting responsibilities, such as 990 tax filing, will need more expert hands. But FinTech’s improved financial management has enabled non-profits to make more informed financial decisions, allowing them to allocate their resources more effectively. Fintech solutions have also promoted the automation of financial processes, reducing the time and effort an organization spends on manual tasks like bookkeeping and accounting. That frees up time to focus on other important areas of the organization, like fundraising.
Indeed, FinTech benefits non-profit organizations in various ways. And if you are still doubtful, you can consider the advantages discussed above for a more informed decision.