Technology isn’t merely an overhead expense like rent or utilities. It is a mission enabler that facilitates nonprofits’ ability to achieve greater impact, generate efficiencies, and deepen engagement with their constituents.
From data-driven decision-making that helps food banks better meet the needs of their constituents and reduce food waste or an AI-powered chatbot that expands opportunities for underserved communities, funding technology empowers organizations to do more with limited resources. These innovations demonstrate that when leveraged effectively, technology isn’t just an operational tool—it’s a force multiplier for social good.
Encouraging progress meets concerning trends
The 2024 State of Philanthropy Tech Survey from the Technology Association of Grantmakers reveals a mixed landscape regarding funder support for nonprofit technology. The survey, released biennially, includes responses from more than 350 private, community and family grantmaking organizations on their technology practices, applications and strategies.
While the survey showed strides have been made in some areas, ongoing challenges risk undermining nonprofits’ ability to deliver on their missions without adequate investments in technology.
The good news is that a majority of funders are committed to streamlining grant applications (67%) and reporting processes (56%). Additionally, the transition to paperless payments is gaining traction, with 72% of funders adopting digital payment practices.
However, troubling trends have emerged:
Only 20% of funders are providing technology tools and resources to nonprofits, down from 23% in 2022.
The percentage of funders that provide unlimited funding has also decreased, from 34% in 2022 to 30% today. According to Salesforce’s Nonprofit Trends Report, digitally mature nonprofits are four times more likely to achieve their mission goals than their less-equipped peers. While these declines may reflect a return to pre-pandemic norms, in an era defined by AI, increasing cybersecurity threats, and evolving nonprofit needs, technology funding is more critical than ever.
The equity implications of technology funding
Why should grantmakers take notice? Technology is not just an operational need — it’s a driver of equity and enabler of mission.
According to NTEN’s Nonprofit Digital Investment Report, nearly half of nonprofits (45%) say they aren’t spending enough on technology. The top barriers include lack of budget (77%), funder support (47%), and donor support (38%). Small organizations, which make up 92% of nonprofits, often lack the resources to prioritize technology. Without intervention, this disparity risks deepening inequities for grassroots organizations serving underserved communities.
When nonprofits can invest in technology, the impact is undeniable:
96% report improved program and service delivery.
89% experience increased organizational capacity and growth.
82% achieve better fundraising and financial stability.
Whether it’s engaging constituents, securing funding, or delivering services efficiently, technology is the backbone of nonprofit operations. Nonprofits are able to expand their reach and provide assistance to communities in need when they have adequate funding. Grantmakers have an obligation to ensure that their grantees can deliver on their promise. By removing barriers, offering unrestricted funding, or supporting specific technology needs, funders are supporting organizations ability to increase their capacity, be more impactful and efficient, and achieve shared goals more effectively.
Advice for nonprofits applying for funding for technology Securing technology funding requires nonprofits to articulate their needs clearly and strategically.
Here are three tips:
Articulate impact: Frame technology as an enabler of mission outcomes, not just a tool. For example, highlight how improved systems will enhance program delivery or constituent engagement.
Connect technology investments to your strategic plan to demonstrate a need. Use data to illustrate gaps or risks that technology funding will address.
Tailor requests: Understand funders’ priorities and align your proposals. Show how your technology needs directly support their goals and values.
By leveraging these strategies, nonprofits can strengthen their applications and advocate effectively for the technology resources they need to thrive.
Funders also need to recognize that funding for tech is not arbitrary overhead; it is a mission-critical investment. Closing the technology gap doesn’t just lead to stronger organizations, it contributes to healthier and more vibrant communities, better outcomes, and a more equitable world.
