The work of global nonprofit organizations is vital to the lives of millions if not billions of people. Yet, as the complexity of the world’s social, economic, and environmental issues grows, so do the requirements for the nonprofits addressing them.
That’s why technology plays such an important part in ensuring the success of nonprofit initiatives. It’s not just through service delivery, but also through establishing transparent mechanisms for donors, employees, and other stakeholders.
ServiceNow recently surveyed 300 nonprofit leaders and used the data to compile a comprehensive report, Impact AI: Nonprofit Digital Transformation Report 2024. In this analysis, we’ll run through its key findings.
Digital Transformation Drives Success
The report found that when nonprofits commit to extensive digital transformation, they see improved efficiency, cost savings, top-line growth, and innovation opportunities. However, while 67% of respondents said they were already implementing an end-to-end technology platform, only 48% had a dedicated budget for innovation.
With that in mind, there is an awareness of the power of technology to drive significant growth, particularly with AI. 67% of CEOs and other C-Suite executives see the potential for AI, especially GenAI, to drive productivity.
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“AI is a powerful ally for nonprofits already, helping optimize the human element of their work and enabling staff to focus more time on building relationships with positive impact within their communities and to continuously innovate for lasting change,” says Anita Whitehead, President and Chair, KPMG US Foundation, Inc.
The Pacesetters
ServiceNow identified several nonprofit organizations (20%) that are forging ahead with digital transformation through AI technologies that it describes as “Pacesetters.”
Pacesetters identified in the report “achieve more impact, faster.” This is manifested in four core areas:
- Improved topline growth
- Higher efficiency and cost savings
- Greater innovation
- Stronger strategic position
Leading organizations have been experiencing AI- and GenAI-driven improvements in a few key areas. Most notably, productivity, frictionless experiences, and personalized engagement have improved for stakeholders. 34% of respondents use GenAI technology to ensure compliance, while 30% use it for planning optimization and resource allocation; these were the top two use cases.
Closing Thoughts
ServiceNow concluded the report with six key takeaways based on the work of leading organizations. These takeaways include steps to provide frictionless experiences to stakeholders, consolidate on a platform, embrace AI, create a digitized workplace, rethink organizational structure, and build resilient, secure IT systems.
While the report primarily focused on the impact of AI, it’s important to recognize how cultural changes can support the introduction and success of AI technologies. AI adoption in every sector, including nonprofit organizations, depends on a cultural shift that embraces organizational and structural change. Business leaders need to work closely with IT departments to introduce these changes and champion the transformative power of the technology.
AI Agent & Copilot Summit is an AI-first event to define opportunities, impact, and outcomes with Microsoft Copilot and agents. Building on its 2025 success, the 2026 event takes place March 17-19 in San Diego. Get more details.
