How Tech Investments Future-Proof Nonprofits And Higher Ed Amid Funding Uncertainty

Forbes

a day ago

Tal Frankfurt is the Founder and CEO of Cloud for Good, a Salesforce partner that creates transformational value with technology.
In April 1970, what began as NASA's third mission to land on the moon turned into a desperate fight for survival. An onboard explosion incapacitated the spacecraft, and mission control faced a daunting challenge: bring the crew home safely with limited oxygen and no path forward. They knew that failure was not an option, so NASA's engineers began reimagining everything—repurposing existing tools, rewriting protocols in real time and solving complex problems with ingenuity under pressure. Against the odds, they brought the crew home safely.
Today, nonprofits and higher education institutions find themselves in their own high-stakes moment. With federal funding disruptions and uncertainty, organizations that have long depended on grants and government support must navigate shrinking budgets, reduced staff and rising demand.
Failure is not an option, and like NASA, these organizations must rethink how they operate, engage and deliver impact. Successful organizations are doing so with one critical lever: investing in technology. Rather than viewing technology as a luxury, forward-thinking leaders are leveraging it as a necessity—a tool to enhance resilience, diversify funding and amplify impact, even in the face of financial constraints.
Here's how savvy nonprofits and educational institutions are using technology to navigate the current funding turbulence.
1. Creating Efficiency In The Face Of Staff Reductions
With staff reductions mounting—over 20,000 nonprofit jobs were cut between January and May this year alone, according to the Chronicle of Philanthropy—organizations are being forced to operate leaner as demand for services increases.
Automation is proving essential. Tasks that were once manual and time-intensive can now be streamlined, freeing up limited staff time for higher-value work.
Unity Environmental University offers a compelling example. The university implemented an AI-powered service agent, 'Una,' to provide prospective students real-time insights and personalized services 24/7 and automate administrative assistance for faculty and staff, allowing them to focus on more strategic activities like helping students make better-informed decisions about coursework and career direction.
The result? Students now have access to personalized support and quick answers to their questions, exactly when they need them. University staff members are also reporting that Una is helping enrich their roles and make them more fulfilling—a direct result of the AI taking on administrative burden and routine tasks, reducing burnout and driving increased efficiency. Unity hopes that Una will reduce advisor workload by about 25% and registration for courses to under 20 seconds, which is 12 times faster than before.
2. Diversifying Revenue Sources With Digital Tools
Relying too heavily on federal grants leaves organizations vulnerable when those funds are cut or disappear. Smart institutions are tapping into new fundraising channels—and technology is making that possible.
One of our clients, Ronald McDonald House Charities (RMHC), exemplifies this approach. In 2023, RMHC utilized digital platforms to enhance donor engagement and streamline donation processes. Notably, its "Round-Up for RMHC" initiative, which allows customers to round up their purchases to the nearest dollar, raised over $53 million across participating restaurants, including more than $39 million in the U.S.
We've seen how making it easy to give works powerfully in crises. The CDC Foundation raised nearly $173 million for the Covid-19 response in fiscal year 2020, leveraging its Salesforce platform to run multichannel campaigns, including a crowdfunding effort that engaged over 41,000 donors and 500 teams.
This funding diversification strategy not only expanded RMHC's and the CDC Foundation's revenue streams but also deepened donor engagement by providing convenient and accessible options. By embracing digital tools, organizations can ensure sustained support for those in need, even amid broader funding uncertainties.
3. Using AI To Personalize Outreach
In an era where personalized communication is a differentiator, organizations are turning to AI to enhance donor engagement and streamline fundraising efforts.
CARE, a global humanitarian organization and another one of our clients, implemented AI-powered chatbots to interact with donors, providing real-time responses to inquiries and facilitating the donation process. While specific metrics from CARE's implementation are proprietary, industry data underscores the efficacy of such tools. For instance, nonprofits utilizing AI chatbots have reported increases of up to 35% in donor engagement and a 25% improvement in fundraising outcomes, according to recent studies.
These AI-driven solutions not only handle routine interactions but also analyze donor behavior, enabling organizations to tailor their outreach strategies effectively. By automating these processes, nonprofits like CARE can focus more on strategic initiatives, ensuring sustained donor relationships and optimized fundraising campaigns.
4. Making Smarter Decisions With Data
In a resource-constrained environment, data isn't just helpful—it's essential. Investing in technology empowers organizations to make informed, strategic decisions based on real-time insights rather than assumptions.
For nonprofits, cloud-based customer relationship management (CRM) systems (e.g., Salesforce Nonprofit Cloud, HubSpot, Zoho CRM) consolidate donor data, campaign performance and engagement metrics in one place. This enables teams to track trends, measure return on investment (ROI) and forecast fundraising outcomes with far greater precision—helping leaders focus efforts where they'll have the most impact.
In higher education, the University of Connecticut offers a compelling example. The university implemented an analytics platform that monitors student engagement and behavior across digital platforms to flag early signs of academic risk. These insights inform targeted interventions, contributing to improved retention and graduation rates.
When the stakes are high and budgets are tight, real-time data is a powerful competitive advantage—enabling organizations to adapt quickly, allocate resources more effectively and, ultimately, drive greater mission impact.
The Bottom Line: Innovate Or Fall Behind
The loss of federal funding is undeniably challenging, but it's also a catalyst for innovation. By investing strategically in technology, nonprofits and higher education institutions can strengthen operations, deepen constituent relationships and future-proof their missions.
Just like NASA's engineers during Apollo 13, today's nonprofit and educational leaders must harness creativity, resilience and the right tools to navigate uncertainty. Failure is not an option—and with the right technology, success is not only possible but also scalable.
More than a stopgap, technology is becoming a cornerstone of long-term sustainability. Organizations that embrace it are not just weathering the storm—they're reimagining what's possible, expanding access, increasing equity and delivering greater impact to the communities they serve.
In times of change, the boldest step forward is often the smartest investment.
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