Sage’s newly released 2025 Nonprofit Technology Impact Report offers an eye-opening look into the operational and financial challenges facing nonprofit organizations today, and how technology could be key to ensuring their resilience and relevance.
Based on a survey of more than 350 nonprofit leaders across diverse cause areas, the report captures a moment of reckoning for the sector. As nonprofits navigate economic uncertainty, funding competition, and growing societal demands, financial sustainability and technological transformation have emerged as top priorities for 2025.
Key findings
- Staffing is the #1 challenge: 58% of respondents cited hiring and retention as their biggest external barrier—surpassing concerns around funding (55%) and economic instability (49%). Many organizations struggle to compete on salaries and benefits while volunteerism also declines.
- Manual operations are stalling progress:
- 41% cited lack of process automation as a major issue.
- 35% struggle with time-consuming manual reporting.
- 34% lack real-time visibility into key metrics and performance.
- 41% cited lack of process automation as a major issue.
- Data underutilization is widespread:
- Only 9% of nonprofit leaders describe their organizations as “highly data-driven.”
- 34% say they collect data but don’t fully leverage it for strategy or planning.
- Only 9% of nonprofit leaders describe their organizations as “highly data-driven.”
- AI readiness remains low:
- Just 4% of respondents feel very confident in their organization’s ability to leverage AI.
- 45% are uncertain whether their current tools can support it at all.
- Just 4% of respondents feel very confident in their organization’s ability to leverage AI.
- Technology investment is rising slowly but steadily:
- Use of budgeting and planning tools rose from 18% in 2022 to 38% in 2025.
- Finance leaders overwhelmingly prioritize systems that integrate financial reporting, donor tracking, and performance monitoring.
- Use of budgeting and planning tools rose from 18% in 2022 to 38% in 2025.
Why this matters
As the global context becomes more complex, marked by funding constraints, shifting donor expectations, and rising societal demands,nonprofits must modernize how they operate. The report shows that technology adoption isn’t just about efficiency, it’s about survival.
AI is emerging as both a risk and an opportunity. While many organizations feel unprepared, the growing availability of ethical, affordable tools presents a chance to leap forward—especially for civil society groups working in adverse contexts.
For Articulate Foundation and our network of changemakers, this report reaffirms what we see on the ground every day: without urgent investments in capacity, infrastructure, and digital tools, many mission-driven organizations risk being left behind.
Read the full 2025 Nonprofit Technology Impact Report
About Sage
Sage is a global market leader in accounting, financial, HR, and payroll technology for small and medium-sized businesses, including nonprofits. Their nonprofit-focused research aims to support better decision-making and digital acceleration in the sector.
