How can nonprofits standardize, visualize, and leverage their data to unlock the full potential of their systems and drive greater impact?
To effectively transform, standardize, and visualize data into actionable insights, nonprofits can adopt three key enterprise technologies:
- Cloud-Native ERP (Enterprise Resource Planning) Systems: ERP systems serve as an organization’s operational “backbone,” automating, integrating, and streamlining data. Cloud-native ERPs store data across key functions (such as finance, inventory, and HR) in a centralized, cloud-based platform, making accessing, managing, and analyzing information easier.
- ETL (Extract, Transform, Load) Processes: ETL processes consolidate data from legacy systems by extracting raw data, cleaning and transforming it into a usable format, and loading it into a central repository such as a data warehouse.
- Private AI Environments: With a robust data infrastructure, organizations can develop private AI environments that organize and automate tasks, enhance data-driven decision-making, and personalize stakeholder experiences.
What to Expect When Selecting An ERP
Selecting an ERP system typically takes three to four months and involves needs assessment, solution demos, stakeholder alignment, and pricing negotiations. When choosing an ERP, organizations should take a “people-first” approach by evaluating their current workflows, securing stakeholder buy-in, and creating alignment early in the process.
While evaluating ERP options, nonprofits should focus on narrowing down systems that align with their business needs while taking a “configuration over customization” approach. It is recommended to avoid over-customizing (which can lead to unnecessary complexity), cleanse data thoroughly before deployment, and plan for rigorous user testing.
Streamlining Data Post-ERP
Modern data management is about having the correct data available to the right people at the proper times. After ERP implementation, organizations should focus on building a robust data pipeline that accurately exports and integrates legacy data into the new system.
Different types of data to leverage include:
- Descriptive Data: Analyzes historical trends, like donor giving or event participation, to uncover patterns and trends.
- Diagnostic Data: Identifies patterns and root causes through techniques like data mining and correlations.
- Predictive & Prescriptive: Forecasts predictions, like future donor behavior, and recommends actions through algorithms and machine learning capabilities.
AI in Nonprofits: Not “If” Or “When” but “How”
Many organizations recognize the significant potential of AI tools, and the growing question becomes how they can be utilized as a competitive advantage.
These AI capabilities are already delivering measurable value across multiple nonprofit functions, including:
- Fundraising: Machine learning can segment donor lists and strengthen databases to identify gifting opportunities and help customize communications to strengthen relationships and prevent donor churn.
- Outreach: AI can analyze vast amounts of data to understand community preferences and reduce time spent on communications by personalizing messages to match individual interests and behavior.
- Public Sentiment: AI tools can monitor online discussions, allowing organizations to respond faster and fine-tune their messaging.
Protecting What Matters Most
Organizations should expect the future threat landscape to be filled with frequent, highly individualized attacks. AI-generated phishing emails, deepfake impersonations, and the growing use of personal AI tools in the workplace (the “Bring Your Own AI” trend) create vulnerabilities for nonprofits with limited technical infrastructure.
Organizations should consider the following to protect themselves from breaches:
- Implement layered security practices, such as multi-factor authentication, biometric features, and real-time system alerts.
- Conduct third-party risk assessments and internal IT audits to uncover weaknesses.
- Create AI governance frameworks that facilitate responsible use while maintaining compliance standards.
Moving Forward, Together
True transformation happens when mission and technology move in sync. By leveraging cloud-native ERPs, structured data strategies, and AI-driven insights, nonprofits can streamline operations, enhance decision-making, and maximize their impact.
About the Authors:
David M. Rottkamp
David M. Rottkamp, CPA, is a Partner and Nonprofit Practice Leader at Grassi, with over 38 years of experience providing audit and advisory services to nonprofit organizations, including religious organizations, educational institutions, membership associations, social service providers, healthcare providers, foundations, and arts and culture organizations.
Hassan Khan
Hassan Khan is a Technology Consulting Partner at Grassi, leading the firm’s Technology Advisory Practice. He has over 20 years of experience in technology accounting, operations and business process optimization, strategy and governance, risk analysis, offshoring, and enterprise intelligence, primarily focusing on the Nonprofit industry.
