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Why Credential Security is Critical for All Organizations

By Sponsor Insight

In the world of non-profit and non-governmental organizations, your mission is everything. Every dollar raised, every program executed, and every service provided works toward creating meaningful and lasting impact. But behind the scenes, a strong foundation of operational resilience is critical to protect your mission—and safeguarding your usernames, passwords, and pin codes, or credentials, is a cornerstone of that foundation. Ensuring that your organization maintains proper credential management and security protects your data, strengthens trust with stakeholders, maintains the operational integrity, and ultimately enhances your programming and service delivery.

Here’s why credential security matters and how implementing best practice solutions and policies can elevate your employee experience, protect your donors and beneficiaries, and support your executive leadership and board.

1. Credentials: The Keys to Your Organization

Every solution or service you use—whether it’s for fundraising, donor management, payroll, communications, etc.—requires secure credentials to function effectively. These credentials grant access to sensitive data and critical functions, but they also pose significant risks if mishandled or mismanaged.

The Risk of Neglect:

  • Shared logins can lead to poor accountability.
  • Using weak or undocumented credentials can expose your organization to cyberattacks.
  • Poor credential management disrupts workflows, creating inefficiencies. Remember that time the social media manager forgot the only login to the Facebook account and how long it took to recover it!

2. Why Credential Security is Non-Negotiable

For Employees:

  • Avoid Shared Logins: When team members share logins, accountability vanishes. If sensitive data is mishandled, it becomes nearly impossible to trace back the action. By assigning unique credentials to each user, you empower employees with the autonomy to do their jobs while ensuring clear accountability.
  • Ease with Single Sign-On (SSO): Implementing SSO reduces password and Multifactor Authentication (MFA) fatigue by allowing employees to log into multiple platforms with one set of secure credentials. This improves productivity and reduces the likelihood of insecure practices, like reusing weak passwords.

For Beneficiaries and Donors:

  • Trust and Confidentiality: Your beneficiaries and donors entrust you with their data—be it personal details, financial contributions, or sensitive case information. A breach in credential security can lead to a breach in trust, damaging your reputation and jeopardizing future funding and support.
  • Data Protection: Proper credential security ensures their data is safeguarded from unauthorized access, giving them confidence in your organization’s ability to protect their information.

For the Executive Director:

  • Operational Continuity: When credentials are properly documented and secured, your organization avoids disruptions caused by lost or inaccessible logins. This is critical during staff transitions or emergencies.
  • Strategic Oversight: Credential security provides the Executive Director with the assurance that the organization is operating efficiently and securely, enabling them to focus on advancing the mission.

For the Board:

  • Governance and Compliance: A well-documented credential management process demonstrates to the board that the organization is minimizing risks, aligning with best practices, and adhering to compliance requirements.
  • Mission Assurance: The board has a fiduciary duty to safeguard the organization’s assets, and credential security is an integral part of protecting those assets.

For the Mission and Programming:

  • Efficiency: Securely managing credentials reduces downtime and inefficiencies caused by password resets or security breaches, allowing staff to focus on what truly matters—delivering impactful programs.
  • Resilience: A secure credential management system ensures continuity even during unexpected events, such as turnover or cyber incidents, so that programming remains uninterrupted.

3. Best Practices for Credential Security in Non-Profits

  1. Document All Credentials

Credential security begins with documentation. This means keeping a record of logins for every technical solution and service—not just IT tools. For example:

  • Grant management software
  • Fundraising platforms
  • Event registration systems
  • Volunteer management tools

Documenting credentials ensures no access is lost during transitions or emergencies.

2. Avoid Shared Logins

While shared logins may seem convenient, they are a major security risk. Every user should have their own unique credentials. This improves accountability and ensures that permissions are properly aligned with each individual’s role.

3. Implement Single Sign-On (SSO)

SSO simplifies the login process by allowing employees to access multiple systems with one secure set of credentials. This reduces password fatigue, streamlines workflows, and minimizes the risk of weak passwords being used across multiple platforms.

4. Use a Credential Management System

Invest in a credential management system to securely store, manage, and share credentials as needed. Features like encryption, role-based access, and auditing capabilities provide peace of mind and protect against unauthorized access. Popular solutions like Keeper or Bitwarden for Business can be scaled to meet non-profit needs.

4. The Ripple Effect of Strong Credential Security

When your organization adopts credential security best practices, the benefits cascade throughout the organization and beyond:

  • Empowered Employees: Staff can focus on their work without the frustration of lost or inaccessible credentials.
  • Protected Beneficiaries: Sensitive beneficiary data remains confidential, maintaining trust and ethical responsibility.
  • Confident Leadership: Executive directors and board members can focus on strategy and growth, knowing that operational risks are managed.
  • Mission-Driven Impact: Secure, efficient systems free up resources and time to invest in programs that drive your mission forward.

5. A Call to Action

Credential security isn’t just an IT concern—it’s a mission-critical responsibility. By documenting credentials, avoiding shared logins, implementing SSO, and leveraging a credential management system, your non-profit can build a foundation of trust, accountability, and resilience. Ultimately, this enables your organization to focus on what truly matters: serving your community and achieving your mission.

Let’s safeguard your operations so your impact can reach new heights. Start securing your credentials today.

Technology’s impact on work culture

By Sponsor Insight

Support your employees with the tools needed to success

by Cody Lents, partner, COVI, Inc.

An ideal philosophy on information technology can be broken down into three primary focuses:

Cybersecurity. Ensuring that you stay operational and survive crises.
Culture. Empowering your people to succeed daily.
Impact. Ensuring that daily activities lead to fulfilling your mission and delivering the best experience to your customers and communities.

Our focus, for now, will be on culture.

According to Microsoft CEO Satya Nadella, “Culture is the leading indicator of our future success.” Considering this, it is important to track and understand how IT solutions and operations impact your teams and individuals. A good IT partner will strategize around elevating your culture and maximizing your impact, just as they would budget for tech and security against hackers.

The most impactful areas to focus on include:

Hardware. Don’t spend a dollar to save a penny; invest in business-class quality and up-to-date (current generation) components.
Software. Ensure that they are configured to be intuitive and scalable.
Standardization. Standardize specific manufacturers, specs, and channels to provide emergency backup equipment and streamline IT operations, such as procurement and deployment procedures.

The following focuses on three areas, along with the top five positive attributes for each one.

Hardware

Having up-to-date computers can bring numerous benefits to employees, such as:

Increased productivity. Up-to-date computers are faster, more efficient, and equipped with the latest software and hardware capabilities, which enables employees to perform tasks more smoothly, ultimately reducing wait times and improving overall productivity. Faster processing speeds and improved multitasking abilities can help employees complete their work faster and more effectively.

Enhanced collaboration. Modern computers often come with advanced collaboration tools and software, such as cloud-based platforms and communication applications. These enable employees to collaborate seamlessly with colleagues, regardless of their physical location. Features like real-time document editing, video conferencing, and instant messaging facilitate better communication, teamwork, and information sharing among employees.

Improved security. Outdated computers are more susceptible to security threats due to the lack of essential software updates and security patches. Up-to-date computers, on the other hand, benefit from the latest security measures and protocols, protecting sensitive data and minimizing the risk of cyberattacks. Regular updates help ensure that employees can work in a secure digital environment, safeguarding both personal and company information.

Access to advanced software. Contemporary computers often have the capability to run resource-intensive applications and software. With up-to-date hardware specifications, employees can take advantage of the latest software tools, such as advanced design software, data analysis tools, and virtual reality applications. This empowers employees to perform complex tasks efficiently and unlocks new possibilities for innovation and creativity.

Better user experience. Updated computers offer improved user experiences through user-friendly interfaces, streamlined workflows, and enhanced performance. Employees can benefit from the latest features and functionalities that simplify their work processes, reducing frustration and increasing job satisfaction. A smooth and enjoyable user experience can have a positive impact on employee morale and overall job performance.

By keeping computers up to date, employers can provide their employees with the necessary tools and technology to thrive in their roles, leading to increased productivity, collaboration, security, and job satisfaction.

Software

Provision of exceptional software for employees can lead to several positive outcomes, such as:

Increased efficiency and productivity. Excellent software is designed to streamline workflows and automate repetitive tasks, leading to increased efficiency and productivity. It eliminates manual processes, reduces human errors, and allows employees to focus on higher-value activities. Customizable dashboards, intuitive interfaces, and efficient data management features contribute to a smoother workflow.

Enhanced collaboration and communication. Quality software often includes robust features that streamline employee communication. Shared document repositories, real-time editing capabilities, project management tools, and integrated messaging systems facilitate effective collaboration, even when team members are geographically dispersed. Improved communication leads to better teamwork, knowledge sharing, and decision-making.

Access to comprehensive data and insights. Excellent software often integrates data analytics and reporting functionalities, providing employees with access to comprehensive insights. This enables them to make data-driven decisions, identify trends, and monitor key performance indicators. Access to accurate and real-time data empowers employees to analyze information effectively, improve processes, and drive business growth.

Simplified and streamlined processes. High-quality software simplifies complex processes, eliminating unnecessary steps, reducing manual effort, and improving efficiency. By automating routine tasks, employees can better manage their workload through complex processes. This streamlining of processes not only saves time, but also minimizes errors, and enhances the overall user experience.

Scalability and adaptability. Excellent software is designed to scale with the organization’s growth and adapt to evolving business needs. It accommodates increasing workloads, supports additional users, and integrates with other systems. Scalable software ensures that employees can continue to perform their tasks efficiently without encountering limitations as the company expands or undergoes changes.

By providing employees with excellent software, organizations empower their workforce to work more efficiently, collaborate effectively, access critical data, simplify processes, and adapt to changing business requirements, contributing to improved productivity, streamlined operations, and a better employee experience.

Standardization

Standardizing computer hardware and IT processes Can result in a variety of positive for employees, such as:

Consistent user experience. Standardizing computer hardware and IT processes ensures that all employees have a consistent user experience across the organization. Regardless of their location or department, employees can expect a familiar interface, software configurations, and hardware capabilities. This consistency reduces confusion, minimizes the learning curve when transitioning between devices, and enables employees to focus on their work rather than adapting to different systems.

Improved technical support. Standardization simplifies technical support and troubleshooting processes. When hardware and IT processes are standardized, the IT team becomes well-versed in the specific configurations and issues related to the standardized setup. This allows for faster problem resolution and more efficient technical support for employees. It also enables the IT team to develop standardized solutions and documentation that can be easily accessed by employees.

Enhanced compatibility and integration. Standardizing computer hardware and IT processes ensures compatibility and seamless integration between different systems and software. When employees use standardized hardware and software configurations, it becomes easier to share files, collaborate, and integrate various tools.

Streamlined IT procurement and maintenance. Standardization simplifies the IT procurement and maintenance processes. By having a standardized set of hardware and IT processes, organizations can negotiate better deals with vendors, benefit from volume discounts, and reduce the time spent on selecting and configuring individual devices. Additionally, standardization makes it easier to manage software updates, security patches, and system maintenance, ensuring employees have access to reliable technology.

Increased security and data protection. Standardizing computer hardware and IT processes helps enhance security and data protection. With a standardized setup, security measures and protocols can be uniformly applied to all devices and systems, reducing the risk of vulnerabilities due to inconsistent security configurations. Further, standardized processes simplify enforcing data protection policies, implement backup and recovery procedures, and ensure compliance with regulatory requirements, safeguarding sensitive information.

All in all, the standardization of computer hardware and IT processes creates a more reliable and productive work environment for employees while enabling the IT team to operate more efficiently.

I’ll leave you with a brief note of caution as you pursue a better IT culture. A 2021 Gartner survey found that “60% of employees experience frustration with new software.” This translates to tech solutions beyond software, as well. So, expert evaluation is of the utmost importance before implementing anything new, and investing in high-touch professional services is worth the price tag when it comes to implementing them.

What is the Dark Web and is it safe?

By Sponsor Insight

by Cody Lents, partner and customer steward, COVI, Inc.

Merriam-Webster defines the “Dark Web” as “The set of web pages on the World Wide Web that cannot be indexed by search engines, are not viewable in a standard web browser, require specific means (i.e., specialized software or network configuration) to access, and use encryption to provide anonymity and privacy for users.”

The Dark Web provides people with a level of privacy and anonymity that the internet we’re all used to does not. That may sound appealing. However, many risks are associated with using the Dark Web. It can be a hazardous environment unless you’re well prepared for the potential online dangers.

For nonprofit organizations, public trust is essential. It requires little to no skill or expertise for inexperienced hackers — often called “script kiddies” — to deface nonprofit websites, steal data, or leak confidential information, harming an organization’s overall credibility. As a result, nonprofit organizations must remain vigilant and take proactive steps to prevent cyber-attacks and protect their sensitive data.

Script kiddies are individuals who carry out cyber-attacks using pre-existing tools and scripts, often without a comprehensive understanding of the underlying technology. Some script kiddies obtain hacking tools by accessing the Dark Web, where they can find forums and marketplaces to exchange information or purchase services related to cybercrime. These tools can give them unauthorized access to nonprofit organizations’ servers and lead to the exposure of sensitive data, such as donor information.

It’s worth noting that not all script kiddies use the Dark Web. Many of them rely on more conventional methods to access the software they need to launch DDoS attacks or plant malware. Nevertheless, they remain a significant threat to non-profit organizations.

Distributed denial-of-service (DDoS) attacks are a common tactic used by script kiddies to disrupt the normal traffic of a targeted website. In a DDoS attack, a flood of internet traffic overwhelms the website, much like an unexpected traffic jam on a highway, preventing regular traffic from arriving at its destination. These attacks can cause websites to crash, resulting in a loss of donations, reduced visibility, and negative publicity.

The Dark Web comes with advantages and disadvantages, but using the space is never recommended.

Only about 4 percent percent of information can be accessed using search engines available on the conventional internet, also referred to as the Surface Web (what we’re all used to using all day, every day). The rest, which is not searchable on Google or Bing, is called the Deep Web.

The Dark Web is part of the Deep Web. The Deep Web consists of pages that are not indexed and can be accessed directly, while the Dark Web consists of pages and files that have been intentionally hidden and require specific software and protocols, such as the Tor network or the Freenet peer-to-peer platform, to access.

Anonymity is the main reason why people use the Dark Web. When you use the Dark Web, your information is protected from surface web spies, allowing you to browse without the worry of being traced or censored by authorities. Additionally, content found on the Dark Web cannot be found on the Surface Web, opening up a whole new world of content consumption for users.

You’ll likely hear a lot about Dark Web Monitoring around the holidays and commerce events such as Prime Day, Black Friday, and Cyber Monday. These are services that survey your information on the Dark Web and alert you when it is found. While there is value in knowing what has been leaked to the cybercriminal playground, these alerts often offer few, if any, actionable tasks to help you protect yourself.

For example, “Dear Mr. Covi, we’ve found your social security number on the Dark Web at example.org. Your information may have been released without your knowledge and is likely the result of a company’s data being hacked or breached.” – There is no actionable next step for you.

When the service or company you use for Dark Web Monitoring adds recommendations to your alerts, their value increases.

For example, “Dear Mr. Covi, there was a breach at www.thenexthackedcompany.com and your covi@gocovi.com email address was stored for that site. The breach included email addresses, passwords, and usernames. We recommend that you change your password for this site immediately and, if you use this password for other sites, change them as well.” – There are actions to be taken, but will you know how to take them and ensure that all necessary ones have been taken?

When the service or company you use for Dark Web Monitoring utilizes a layered approach to protecting your credentials and personal identifying information (PII), the alerts carry a similar value in and of themselves, but the management of the alerts elevates that value to protect your organization and your people by maintaining your cybersecurity risk posture and allowing everyone to stay focused on daily tasks and the meaningful work that aligns with your company’s mission and vision.

For example, “Dear Mr. Covi, there was a breach at www.thenexthackedcompany.com and your covi@gocovi.com email address was stored on the site. The breach included email addresses, passwords, and usernames. Our security team has sent links and instructions to the affected user(s) to reset their password(s) and has reviewed other known accounts for any repeated use, so that those can be reset, too.”

A layered approach to Dark Web Monitoring could look like this:

  • Credential Management
  • Dark Web Monitoring
  • Credit Monitoring
  • Fraud Protection
  • Complex Password Policy Management & Enforcement
  • Multi-factor Authentication (MFA) Enforcement with Single Sign-on (SSO)

Innovative ways to tackle today’s top work challenges

By Sponsor Insight

by Ian McManis, marketing manager, Barnes Dennig

With today’s not-for-profit professionals juggling more priorities than ever, time is at a premium. That’s why Barnes Dennig has hosted a series of concise workshops designed to answer key questions to challenges not-for-profits are facing across a broad range of topics. The following include recaps of the sessions as well as links to access the full recordings:

Cybersecurity: How NFPs protect themselves and their donors

Everyone is at risk to falling prey to ransomware, whether it’s their home office computer or a major oil pipeline company. But the more prepared you are for an attack, the more likely you are to avoid it. In this session, Robert Ramsay, Barnes Dennig director and cybersecurity specialist, shares how to best protect yourself and your organization. Highlights include:

  • Ways to protect against ransomware attacks
  • PCI DSS standards: How to make sure your organization is compliant when soliciting donations online
  • How to keep donor secure and private
  • What you need to know about the California Consumer Privacy Act (CCPA) and how to be compliant

Download the presentation and watch the full recording here.

The new lease standard: Why NFPs need to start planning now

Maybe you’re ready to implement the new lease accounting standard today. Maybe it’s still at the bottom of your never-ending to-do list. No matter where you fall on the spectrum, Brad Sack, Barnes Dennig senior manager and NFP assurance specialist, covers the basics, using real-life examples and experiences from his clients to provide insights. Here is an overview of the session:

  • What do the updates to the lease accounting standard mean for my organization? When do they go into effect?
  • What changes should I need to make today to make sure I’m in compliance?
  • How can I build and manage a process to keep my team and me on track?

Download the presentation and watch the full recording here.

NFP Tax & Accounting Lightning Rounds – 990s, ERC, QBO for NFPs

Join NFP Tax team leader Paula Hume, CPA; COVID-19 team leader Cheryl Ganim, CPA; and QuickBooks specialist Kathleen Haney, MBA as they break down some of the most common accounting and tax issues NFPs face. The 15-minute segments include:

  • It’s just a 990: How hard could it be? Turns out there’s a bit of strategy involved.
  • Wait, did you say we could be eligible for the Employee Retention Credit in 2021 even if we weren’t for 2020? Take the ERC Quick Test and come prepared to discuss how to determine eligibility and calculate the amount.
  • A lot of NFPs use QuickBooks Online (QBO): How can I use it to help my organization grow smart?

Download the presentation and watch the full recording here.

Virtual Auditing 101: How NFPs avoid common issues

Every organization needs audits run for them, but not all have had a virtual audit. Our world is moving more towards virtual every day. While virtual work has a wide list of benefits, there are some downsides as well. Join Senior Manager Kara Wysinski, CPA, and Senior Associate Tricia Hart, CPA in going over the pros and cons of virtual auditing. Here are a few of the highlights:

  • Changes to audit approach
  • New audit risks
  • Changes in internal controls
  • Best practices for a remote audit

Download the presentation and watch the full recording here.

Additional resources and upcoming events

Our nonprofit team works hard to bring the best and most relevant resources to our communities. Barnes Dennig is hosting Measurement Resources Company and SureImpact, Inc. founder and CEO Sheri Chaney Jones as she leads two full workshops in one virtual event:

  • Data-driven strategic planning for fundraising success
  • How to turn data into dollars: Demonstrate your social impact

Learn more and register here.

Every other year, we collect responses from regional non-profits on compensation, benefits, retirement plans, governance and other metrics and release the findings in a free virtual event.

Each attendee will receive a copy of the 2021 Not-for-Profit Compensation & Benefits Benchmarking Study, which will help them compare their organization to others in the region. A well-thought-out compensation and benefits package helps not-for-profits better fulfill their mission.

Learn more and register here.

Donor engagement and retention techniques: Invest time now to solidify donor relationships

By Sponsor Insight

by Andy Canada, senior consultant, director of data analytics, Johnson, Grossnickle and Associate

While we need to work to engage all of our donors, many nonprofits have experienced the benefit of an influx of new donors in response to the pandemic’s challenges. What can you do to engage and retain these new donors as well as deepen your relationships with your existing donor pool?

Donor Engagement

While we are operating in unusual times, you do not want to throw out your tried-and-true ways of engaging and stewarding your donors. But, you might consider adding the following strategies as well.

Personal connections: Think creatively about how to create personal connections with donors, such as engaging with donors via FaceTime to capture a specific meaningful moment at your organization. Engage board members, leadership team members, volunteers, and other donors in thank you calls. Hearing from someone new will expand donors’ connections and engagement with your organization.

Technology techniques: Using technology to your advantage has hopefully become easier than ever over the past year. There are multiple platforms that can be very effective with donors who are now more familiar with different means of communicating. Tell your story from the perspective of those you serve — send short video messages telling the story of how lives have been changed by gifts from generous donors. You might also share short “day in the life” videos from the heart of your organization — such as the teacher, direct care staff, curator, cook — to give a glimpse into real-world impact.

Peer engagement: Encourage peer-to-peer fundraising or use third-party events to deepen engagement and spread your reach. Personal referrals will never go out of style. Identify donors who can advocate on your behalf to reach out and engage new donors. This will create an additional touchpoint and provide a way to ask for additional support from a peer or for a specific program.

Donor Retention

Research from the Fundraising Effectiveness Project indicates first time donors only donate again about 20 percent of the time. However, if a donor makes a second donation, the chance of them continuing to contribute is 60 percent. Invest in new donors now, because retaining a donor for multiple years will more than make up for the initial investment.

Welcome them: Work quickly to welcome and engage new donors as soon as they make their first donation. Create a welcome plan for new donors, that goes beyond a welcome packet. Within 48 hours of their gift, send sending a thank-you card or a handwritten note from a leadership staff or volunteer. Then, continue to reach out with special touches throughout the year — maybe a personal email with a picture or short personal video clip.

Create a connection: Create high levels of buy-in from your donors by building their sense of investment in the organization. Follow up to promote opportunities for them to get involved in a non-monetary way, such as volunteering. Volunteers are among the most motivated donors. Develop ways to engage volunteers remotely during the pandemic, if possible, but also just make sure you stay in touch with your volunteers now so that when it is safe to return to in-person volunteer activities, your donors are still engaged and committed.

One way to stay in touch is by offering them opportunities to give feedback. Ask for their advice via an electronic survey, email exchange, or phone call. Allow donors to openly share what motivates them to give and use that information to identify potential gaps in your program. One caution though, be prepared if you ask for feedback, to act on it and implement changes as needed.

Plan for their next gift: Create a “second gift” strategy for new donors before the one-year anniversary of the first gift. Many organizations mistakenly wait until the first-year anniversary of a gift before reaching out and asking for another gift. While acknowledging the anniversary of a gift is a great strategy, don’t let that be the first-time new donors hear from you again.

To help retain donors, it is also important to make giving easy. First and foremost, you need to make sure your online donation page is mobile responsive and user-friendly. Then, make sure you offer donors a recurring gift option and tell them how a consistent gift can benefit those you serve. You can also promote low dollar amount gifts ($5 to $15) to re-engage first-time donors and encourage them to give regularly.

Matching gifts are not just for major gift programs or capital campaigns, they can also be very effective in retaining new donors. Secure a challenge gift from one of your long-time supporters to encourage new donors to give a renewal gift or enter a monthly giving society.

Finally, think through how you can identify those new donors who may have the potential to make a major gift if cultivated and engaged properly. Make sure you conduct electronic screening on new donors you may have gained over the past year. Determine if any should be assigned to a major gift officer for more personal engagement.

If you put in the work early on to retain new donors and stay engaged with your existing donors, they will stick with you when it counts.


Andy Canada is senior consultant and director of data analytics at Johnson, Grossnickle and Associates, a strategic consulting firm located in Indiana that focuses on higher education.

For nonprofits, moving forward requires looking back

By Sponsor Insight

Research reveals top concerns among nonprofits as they work on recovering from pandemic

by Leslie Wells, assistant director of communications, Paul H. O’Neill School of Public and Environmental Affairs at IUPUI

New research on COVID-19’s impact on the nonprofit sector finds that organization leaders who want to find a way forward must first look back at how they have weathered the pandemic thus far. While the past 15 months have been a challenge for every sector, associate professor/researcher Marlene Walk is optimistic about the future of nonprofits.

“It’s very interesting how nonprofits rose to the challenge while still serving those in need,” says Walk, who teaches at the Paul H. O’Neill School of Public and Environmental at IUPUI. “For many smaller nonprofits, this was a survival situation for both their clients and them as well.”

After analyzing data and examining trends, Walk has three pieces of advice for nonprofits as they navigate the return to work and the future of their organizations:

  • Ask employees for their opinions, including about remote work and whether it can/should continue.
  • Determine which organizational practices can be improved upon.
  • Evaluate which new technologies adopted during the pandemic should be institutionalized.

Walk and O’Neill student Abby Klippel recently worked with Mandi Stewart, an associate professor at North Carolina State University, and Kerry Kuenzi, assistant professor at the University of Wisconsin-Green Bay, to analyze 77 COVID-19 impact reports collected through the National Council of Nonprofits. These reports detail how nonprofits have operated since March 2020. The data analysis covers more than 23,000 nonprofit organizations across 43 states.

The team released its updated report on May 5, 2021, focusing on three areas of impact: financial indicators, human resources and employees, and the most common COVID-19 concerns.

Survey results: Common COVID-19 concerns

Organizations in 13 states answered questions about their most pressing issues. Among them, finances were the most common COVID-19-related worry for organizations in nine of those states.

Nonprofits in eight other states ranked “struggling with how to safely offer services during a global pandemic” as their top concern.

Lastly, nonprofits in six states were primarily worried about their own organization’s human resource considerations, including their employees’ job status, salaries, and overall well-being.

The human toll

That third area is Walk’s primary research focus — the employee side of the equation.

Previous studies from Johns Hopkins University showed the nonprofit sector lost about 13% of its workforce from March 2020 to February 2021.

“That mirrors what we see in our research,” Walk says. “It will take years for that workforce to recover that number of lost workers.”

She says while large organizations will likely be fine, how smaller organizations handled the pandemic will have a big impact on their future.

“We’re really interested in the employee perspective,” Walk explains. “How do they perceive their organization’s changes? If a nonprofit laid off 20% of its workforce, how does that impact those who are still there?”

Their research found that many nonprofit workers saw their hours reduced, their pay cut, and, in some cases, their jobs put on hold or eliminated. Much like in other sectors, many also saw a shift to predominately remote work.

“These organizations need to look at what worked well from an employee perspective, not just a financial perspective,” Walk says. “Our fear is that employees may feel this pandemic was such a critical incident, and that their employer didn’t handle it well, that they will choose to leave.”

Another report Walk is working on, due out later this year, seems to also show the other side of the spectrum.

“Our initial research is showing that some employees have doubled down on their commitment to the nonprofit sector,” she says. “It really depends on how they were personally affected by COVID and how they think their organization handled it. Was their psychological contract, those unwritten expectations of their organization, violated? That has a big impact.”

Financial stressors

When it came to the financial impact of COVID-19, Walk admits the team wasn’t surprised by the findings. Many organizations reported individual donations and membership fees were down. In fact, 90% of responding organizations in Nevada saw individual donations plummet and 68% of nonprofits in Texas saw a decline in earned income.

Grant revenues were down as well. Nearly 35% of respondents in Texas reported a delay in grant processing, which can affect cash flow. About 16% of those in Connecticut saw a reduction in state grant funds.

But one of the hardest hit areas were arts-related nonprofits.

“It’s important to keep in mind that nonprofits are really diverse,” Walk says. “How an organization was impacted really depends on what types of nonprofits we’re looking at. The arts sector was hit very hard because they often have outward-facing events as a main source of revenue. Having concerts virtually is just not the same.”

In fact, 90% of West Virginia’s responding nonprofits reported cancelling events due to pandemic precautions, while the same was true of 25% of nonprofits in Alabama and Georgia. Reports like these indicate that the arts sector is the slowest sector to recover, with studies projecting it will take at least 18 months for it to bounce back.

Walk stresses that it’s important to focus on more than earned income, though. She uses social services as an example of organizations that were hit from both sides.

“Social service organizations had to adjust to drops in volunteers, increases in demand and expenses to provide for clients, and shifts in procedures due to distancing and cleaning requirements,” she explains.

Respondents in Missouri indicated an average expense increase of $302,417 per nonprofit during the study period, while Pennsylvania respondents indicated a total estimated $95.3 million in additional operating costs.

Looking ahead

Between the numbers, Walk sees signs of hope and further proof that the nonprofit sector is resilient and capable of adapting to change.

She points to the increase in collaboration, resource sharing and partnership development during the pandemic that helped nonprofits survive and serve their clients. Some smaller nonprofits even added health care to their employment packages, which would be a positive trend — if it sticks around.

“There will be collateral damage, unfortunately, but I tend to be more positive than negative,” Walk admits. “I think the sector as a whole will recover and continue its mission to serve.”

To read the full article and access the data tables, visit States of COVID-19: Synthesis of State-level Nonprofit Reports on the Impact of the COVID-19 Pandemic.

Build resiliency into your nonprofit strategic planning

By Sponsor Insight, Uncategorized

by Angela E. White, CRFE, Johnson Grossnickle and Associates

Life is full of opportunities and challenges, and we certainly faced our share in 2020. However, not everything we’ve gone through in the last year is negative. There are some lessons learned we may want to keep — opportunities to capitalize on in the future. It is important to learn from each challenge so you can prepare, mitigate, and more easily turn the next challenge into an opportunity. That’s called resiliency. It sounds easy — but let’s be honest, it isn’t.

Resiliency is the ability to recover from a setback, adapt to new challenges, and keep going in the face of adversity. In a nonprofit, as a staff or volunteer leader, one of the best tools to foster resiliency no matter what is thrown at your organization — internally or externally— is a strategic plan, which:

  • Provides a road map to lead your organization from where you are now to where you would like to be in the future;
  • Sets priorities and focuses your organization’s resources; and
  • Establishes measurable goals and a template to evaluate progress and adapt to a changing environment.

During a recent JGA webinar, I shared six tips to help you create a resilient organization by building resiliency into your strategic planning:

  1. Prepare for the unexpected. Include learning sessions at the beginning of your strategic planning process to provide the knowledge you need to make your organization more resilient.
    a. Acknowledge internal and external threats,
    b. Consider different scenarios and plans,
    c. Stay informed about trends, and
    d. Identify lessons learned.
  2. Concentrate on the customer experience: For nonprofits to be resilient, it is important to think about who your core “customers” are and who your potential “customers” might be as you think about implementing your mission and opportunities for growth.
    a. Provide excellent customer service,
    b. Help your customers (constituents, donors, etc.) make their lives easier,
    c. And anticipate their needs.
  3. Find a niche: Finding your niche doesn’t mean staying stagnant — or just doing what you’ve always done. This is where your mission statement is key. Let it serve as your anchor in this process.
    a. Establish what is unique about your organization and bolster your special traits,
    b. Strengthen and create partnerships, and
    c. Continue to strengthen financial sustainability.
  4. Invest in good tech: Put technology in place to implement a business continuity plan to make your organization resilient and to best position yourself to implement your strategic plan.
    a. Put the right technology in place,
    b. Ensure technology helps you, and
    c. Don’t spend time doing tasks that take you away from your constituents.
  5. Cultivate a productive work culture: The values section of your strategic plan is key to strengthening your work culture and helping you build resiliency. Keep those values central to your future planning and invest in your people as they are the ones who are going to make your strategic plan a reality.
    a. Build a resilient culture through open communications and trusting relationships,
    b. Prioritize learning opportunities, and
    c. Foster team building.
  6. Give back to the community: In your strategic plan, make certain you have embedded opportunities for staff and volunteers to touch and feel your mission, so they understand their role in giving back to the community and supporting the important work you do.
    a. Provide opportunities for staff and volunteers to engage with the mission,
    b. Serve the community, and
    c. Be transparent to foster trust in your organization by stakeholders and the public.

You can learn more about weaving resiliency into your organization’s plans by listening to the complete Nonprofit Resiliency and Strategic Planning webinar recording. If you’d like to discuss undertaking a strategic planning process, creating a short-term plan tailored to your changing environment, or gathering strategic intelligence to inform decision making, we’ve put together a list of special fast-track packages to help you in 2021.

Angela E. White, CFRE, serves as Senior Consultant and CEO of Johnson, Grossnickle and Associates. She previously served as Executive Director for Institutional Advancement at the University of Indianapolis and Vice President of Institutional Advancement at Saint Mary-of-the-Woods College. Angela is a faculty member at The Fundraising School at the IU Lilly Family School of Philanthropy, presents on behalf of the Women’s Philanthropy Institute, and serves on the Committee on Directorship for CFRE International.

Nonprofit tech leader and executive Jay Love outlines 7 trends and lessons to embrace in 2021

By Feature

Bloomerang CRO and co-founder encourages nonprofits to engage in out-of-the-box thinking to prepare for the coming year

With 2021 quickly approaching, there’s little doubt that nonprofits will continue to navigate the challenges caused by the unprecedented combination of a pandemic, social unrest, food insecurity and high unemployment rates. Yet, the year can represent a period of significant and, in some cases, much needed growth for small- to medium-sized nonprofits, according to Jay B. Love, Bloomerang’s Chief Relationship Officer and co-founder.

In sharing his insights on the best path forward in 2021, Love highlighted ways for nonprofits to better engage with corporate partners, supporters and volunteers, and explore more effective and cost-efficient ways to leverage technology. He also predicted that nonprofits will increasingly use artificial intelligence to develop meaningful relationships with supporters, and that two-factor authentication to enhance data security will become commonplace.

Here are Love’s insights:

1. Lean into the virtual lessons taught by COVID-19. “2021 is a time for thinking outside the box, as the old saying goes,” Love said. “We can still fulfill our mission without doing things the old-fashioned way.”

While the shift to a virtual work setting may have been initially painful for some nonprofits, the benefits of doing so can be long lasting, according to Love. “Every nonprofit has had to learn how to embrace technology in a greater fashion because of the need for so many of them to work from home,” Love said. “It caused a lot of systems to be revolutionized.”

As a result of the increasing reliance on web applications, nonprofits are now able to realize some of the advantages they bring, including streamlined processes, and more frequent touchpoints with supporters, volunteers and the community.

Now that a significant portion of the population has become accustomed to functioning in a virtual world, Love said, there will be an increasing acceptance of virtual connections. “I don’t think business travel is ever coming back,” he said. “People have realized that you can do business remotely and easily talk to people this way. For a lot of nonprofits, 50 percent or more of their workforce will continue to work from home. It’s not just the future. We all have lived with this pandemic and realized it works very, very well.”

For nonprofits, virtual connections can represent a bonus. It allows them to broaden their reach, as well as hire talent anywhere in the country. “You can live in Florida and work for a nonprofit in Indianapolis and do it very, very well.”

Meeting with a supporter or a board member can be as simple as finding a 30-minute slot on your calendars, without the need for travel.

2. Recruit tech-savvy board members. In 2021, as nonprofits increasingly leverage technology, some nonprofit teams may feel at a disadvantage because they don’t have the funds to hire a full- or part-time digital marketing professional. Love recommended analyzing your board composition to determine if there’s room for growth. “It’s very important to have board members who not only have the capability to help you embrace technology but who fully enjoy doing it,” Love said. “If every small nonprofit had one or two board members with those capabilities, it would help them bridge the gap.”

3. Seek partnerships with local tech companies. In addition to recruiting assistance from board members, Love recommended developing partnerships with local tech companies to recruit tech-savvy volunteers. “There are about 150 tech companies in Indianapolis. If someone were to contact them, they would love to do volunteer work in some way, even if it is remotely,” Love said. “It would make employees feel better about their employer as well the nonprofit. You probably will end up having lifelong volunteers and donors.”

4. Be more strategic about using volunteers. Love also pointed out that many nonprofits appear to be missing out on critical opportunities to use volunteers in more effective ways. Every quarter, Bloomerang’s team offers one of its nonprofit clients the opportunity to use as many as 50 of its employees to help with volunteer work. In one instance, a nonprofit responded that they had no idea how they would use the volunteers. In other cases, the Bloomerang volunteers have been assigned to tasks like yard work, Love observed.

“I’ve got network geniuses … people who know everything about technology and they have them moving mulch and painting walls,” Love said. “Those young men and women would love to go there and help them set up apps and would enjoy it more than moving mulch around.”

During one of their volunteer projects, Bloomerang employees were unable to complete their outdoor project because of inclement weather. “It was storming so we had 25 people who went inside the building and, during the course of the morning. All they did was enjoy doughnuts and coffee, and write handwritten thank you notes,” Love recalled. “They came back and said it was the most rewarding volunteer experience they ever had. However, if we hadn’t raised our hand and said, ‘Hey, why don’t we help you do this?’ they would have never thought of it.”

5. Embrace relationship building via artificial intelligence and other technology. Instead of waiting for things to get back to “normal,” strategically create a new normal when it comes to relationship building virtually, Love recommended. “COVID is not going away in 2021. It’s going to be here,” he said. “Nonprofits that are embracing web-based technology to build relationships with their supporters, volunteers and vendors are seeing unbelievable results.”

Love said that artificial intelligence (AI is continually evolving, opening the door to more personalized connections with supporters. “We are already seeing that artificial intelligence can take a look at what’s in a database and create a rough draft of an email or letter, never missing anything that needs to be communicated with a volunteer or a supporter,” he said. “It will issue prompts of when you’re supposed to be communicating with donors, supporters and volunteers. If it’s buried deep in your database that my anniversary of supporting your organization is coming up or that my dog’s birthday is coming up, it will issue a prompt for the ideal time to send a message.” Love said that it’s the equivalent of being a best friend to your supporters. “You may be able to do that with four or five of your friends, but if you have a database of 1,000, 5,000 or 20,000 constituents, you need AI to issue those prompts.”

Bloomerang’s platform already is operating with a significant amount of AI to help clients build relationships with their constituents, Love noted. “If you have a first-time donor, for instance, we will prompt you three or four times in the first several months on how to follow up with that person,” he said. “When someone is about ready to lapse and not being retained, without donating again, we also set up a series of prompts.”

The platform also scans communications, such as emails, to ensure that there is more focus on talking about the person instead of the organization.

Love also said that nonprofits can encourage their supporters to use technology as part of their digital outreach. “Volunteers and supporters are able to reach out to their own personal network on behalf of your organization,” he said. “Now it’s not uncommon for an avid supporter of your organization to open up their email address book on #GivingTuesday and help you get an additional 10 to 20 donors very easily.” He also said that supporters are increasingly asking Facebook friends to support their favorite charity on their birthdays.

He predicted that more apps, similar to Twitter and Facebook, will become more commonplace to elevate communications on behalf of nonprofits.

6. Enhance your messaging to reflect current events. Love also recommended nonprofits revisit their messaging to ensure that they are elevating their mission during this time of crisis. For example, he said, an organization that must move job training online can highlight the increased need for those type of services and the expenses required to deliver them.  He also said that it’s important to include details about the anticipated results. “Any time you’re reaching out to gain support for your mission, you should talk about the results you’re achieving,” he said.

7. Anticipate stricter data security measures becoming the norm. Lastly, the population will start embracing stricter security measures that are tied to their financial records. “It used to be that people would complain about having to enter a password,” he said. “In the near future, they’re going to embrace a deeper level of authentication, including two-factor authentication, to make donations or to access information.”

NFPN Perspectives: 20 Years of Supporting Central Indiana’s Nonprofit Community

By Feature, Uncategorized

By Shari Finnell, writer/editor Charitable Advisors

When Bryan Orander launched Not-for-Profit News in 2001, the internet had not yet reached its saturation point; only 52 percent of American adults reported using it at the time, according to the Pew Research Center. And Orander considered the e-newsletter as nothing more than a project to keep him busy while starting his consulting business, perhaps a tool that would help a few people find jobs, he recently said.

As NFPN celebrates its 20th anniversary year as an online weekly publication with more than 14,000 subscribers, Orander reflected on how the nonprofit sector of Central Indiana has navigated various changes during that period, including internet saturation, the economic recession of 2008, technology advances, evolving giving patterns, and, currently, the impact of a global pandemic and unprecedented racial equity protests.

Orander, founder and President of Charitable Advisors, a consulting firm, said no other period in the past 20 years fully matches the challenges faced by nonprofits today, but there were similarities during the economic downturn of 2008.

“From our vantage point — from 2008 to 2010, we saw job ads drop off, donations being directed to basic needs and away from the arts and the environment,” he said. “We’re now seeing a lot of the same things. Right now, at least, COVID-19 relief funds are being directed to human services and basic needs. That makes sense.”

Studies reveal that many nonprofits weathered the 2008 recession fairly well, Orander said, which gives him reason to hope that many of them will survive the current turbulent period. Here are some of Orander’s perspectives on the trends that continue to shape the nonprofit sector in Central Indiana.

Increasing dominance of the larger nonprofit: Orander said some of the same patterns that have dominated the B2B sector, including the decline of small businesses, seem to be playing out in the nonprofit sector.

“Looking at the bigger picture over the past 20 years, it appears that the nonprofit sector has evolved with more clearly defined, substantial nonprofits. It’s almost a case of the-haves and the have-nots,” he said. “The organizations that are able to hire the best people, invest in advanced technology and implement the best techniques are getting better and better at raising money and attracting donors. Meanwhile, a lot of other nonprofits are being left behind. And that gap is getting bigger.”

Changing profile of donors: Citing a 2019 report published by the Indiana University Lilly Family School of Philanthropy at IUPUI, Orander noted that the number of people donating has decreased from two-thirds of U.S. households in 2000 to slightly over half in 2016. “While overall charitable donations continue to slowly increase, the number of people donating is decreasing. We have a donating class and the rest,” he said. “People with less means are giving less, while people of means are taking over a bigger share of the giving.”

While overall giving hasn’t declined, Orander said, nonprofits need to be more strategic about how to target wealthier donors. “You have to be sophisticated at soliciting donations, and that seems to leave smaller nonprofits in a tough position because most have not developed major donors.”

Models of charitable giving are evolving: During the past 20 years, Orander also has noticed changes in the giving model — with some donors moving from a focus on organizations that align with their values to a model that generally focuses on a donor’s loyalty to a cause. “There are continuing studies on this, but it appears that charity and cause in terms of giving are viewed differently among different generations,” Orander said.

For example, he said, younger people are more likely to be loyal to a cause, such as environmental concerns, while older people tend to support nonprofit organizations that align with their passions and beliefs. Since younger generations may be more passionate about a specific cause, they may decide to give through an engaging online campaign or work for a for-profit employer that is dedicated to their cause.

Crowdfunding also has changed the charitable giving model, Orander said. “There are so many ways that people can give online; there’s now a fuzziness between charity and giving. A lot of people don’t discern the difference between giving to a food bank or to a worthy person through an on-line crowdfunding platform.”

Businesses competing with nonprofits for new hires: As a professional recruiter, Orander also has some perspectives about how hiring trends are impacting nonprofits’ ability to compete for talent.

“A positive trend is that the younger generation wants to be involved in a worthy cause. They want to make a difference, so they would traditionally be more likely attracted to nonprofits,” Orander said. “However, for-profit businesses have realized that their prospective employees want to be part of a making a difference, so they often affiliate themselves with a cause.”

Socially responsible companies have become so mainstream, that “the lines are kind of blurry between working at a nonprofit with a cause or a for-profit that has a cause,” Orander said. “Employees may determine that, either way, it’s possible for you to make a positive difference. But with some employers, you can make more money and still make a difference.”

Impact of starting a new nonprofit: While it’s not impossible, it is much more difficult to start a nonprofit with real impact than it was 20 years — even without the challenges presented by the COVID-19 pandemic, Orander said. “It may not be difficult to create one, but it’s harder and harder to rally the people and the resources to do anything with it,” he said. Many new nonprofits are created in response to a personal or family tragedy or loss and not because the community doesn’t already offer those services, Orander has observed.

The Future: As Orander looks forward to continuing NFPN’s role in the Central Indiana nonprofit sector, he foresees developing more opportunities to connect people, organizations and resources, with a focus on informing and inspiring through the news and stories it delivers.

“When we first surpassed 10,000 subscribers, I knew we were really helping to connect and inform people in the local nonprofit community. We had become the go-to place for jobs and news,” Orander said. “It felt like we were making a difference. I feel the same way now. It’s been an interesting and humbling experience.”

Reliable online auction platforms geared toward nonprofit needs

By Feature, Fundraising

Laura S. Quinn, executive director Idealware for Tech Soup |

What tools can help you raise money and rally support for your cause through an online auction? We take a look at the software tools that are widely used in the nonprofit sector.

An online charity auction can be a good way to raise money, rally support for your cause, and hopefully, to have some fun. Like any special event, an online auction requires solid planning and a fair amount of staff time. What it won’t require, however, is substantial technical expertise. Several good online platforms will host and help you manage your online auction.

What should you be thinking about as you consider an online auction? What tools might work well? We asked a number of nonprofit professionals with experience in auctions for their software recommendations and condensed their advice here.

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