NTEN Report Finds Nonprofits Accelerating Tech Adoption, but Gaps Persist

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Nonprofits are investing more in technology than they were just a few years ago — but many still struggle with funding, staffing, and long-term digital strategy.

A new analysis from NTEN (Nonprofit Technology Network) highlights how organizations are accelerating technology adoption, including AI tools, while facing structural constraints that limit impact.

The findings suggest a sector in transition: digital transformation is no longer optional, but sustainable execution remains uneven.

What the Analysis Found

NTEN’s review points to a clear trend — nonprofits are increasing their use of technology across operations, fundraising, and program delivery.

Key areas of growth include:

  • Cloud-based CRM systems
  • Digital fundraising tools
  • Data management platforms
  • Collaboration software
  • Early-stage experimentation with AI

However, adoption levels vary significantly depending on organizational size and budget.

Larger nonprofits are more likely to invest in structured digital strategies, while smaller organizations often operate with limited tech support and reactive implementation.

AI Is Entering the Nonprofit Stack

Artificial intelligence is beginning to show up in nonprofit workflows, particularly in:

  • Grant writing assistance
  • Donor communication drafting
  • Data analysis
  • Workflow automation
  • Reporting and impact measurement

While enthusiasm is growing, many organizations remain cautious.

Common concerns include:

  • Data privacy
  • Ethical use of AI
  • Bias in automated systems
  • Staff training gaps

The sector appears interested in AI, but not yet fully confident in governance frameworks.

The Resource Gap Remains

One of the strongest themes in NTEN’s analysis is the ongoing resource imbalance.

Many nonprofits report:

  • Underfunded IT budgets
  • Lack of dedicated technology staff
  • Reliance on external consultants
  • Difficulty maintaining long-term digital roadmaps

Technology often competes with program funding, making strategic investments difficult to sustain.

This creates a cycle where organizations adopt tools without fully integrating them into workflows.

Governance and Digital Maturity

The analysis also emphasizes governance readiness.

Nonprofits that succeed with digital transformation tend to have:

  • Executive-level tech leadership
  • Clear digital roadmaps
  • Cross-team data strategies
  • Defined AI usage policies

Without strong governance, even well-funded tools may fail to deliver measurable impact.

Digital maturity is less about tool count — and more about alignment with mission and operations.

The Bigger Trend: Digital Is Core, Not Optional

Nonprofits are increasingly expected to operate with the same technological sophistication as private-sector organizations.

Donors expect:

  • Transparent reporting
  • Personalized engagement
  • Seamless digital giving experiences

Funders are also asking for better data visibility and outcome tracking.

Technology is no longer a back-office function. It is directly tied to fundraising effectiveness and program scalability.

What’s Next for the Sector?

The NTEN analysis suggests several priorities for nonprofits moving forward:

  • Invest in staff digital literacy
  • Develop AI governance policies
  • Align technology investments with mission goals
  • Secure sustainable funding for IT infrastructure
  • Build cross-functional collaboration between program and tech teams

The coming years may determine whether nonprofits close the digital maturity gap — or widen it.

Conclusion: Acceleration With Constraints

The nonprofit sector is moving faster on technology adoption, including AI experimentation.

But speed alone does not guarantee transformation.

Without sustained funding, governance clarity, and leadership alignment, digital acceleration may stall before delivering long-term impact.

The message from NTEN’s analysis is clear: technology is becoming central to nonprofit effectiveness — but strategy must keep pace with ambition.

Key Takeaways

  • Nonprofits are accelerating technology adoption across operations and fundraising.
  • AI experimentation is growing, especially in communication and reporting tasks.
  • Resource and staffing gaps remain significant barriers.
  • Digital maturity depends on governance and leadership alignment.
  • Sustainable IT funding will shape the sector’s long-term digital success.