Digital Tools Can Help Nonprofits Mitigate COVID-19 Impact

Roughly 38 percent of nonprofits could be forced to close their doors for good due to the financial impacts of COVID-19, shows a July 2020 analysis by Candid. This worst-case scenario is part of modeling that explores the potential financial status of more than 315,000 nonprofit organizations across 20 possible scenarios. Within these, nine factors were assessed, including the length of disruption and availability of contribution revenue and government grants.

Additionally, a June 2020 report from the Center for Effective Philanthropy found that 81 percent of nonprofits have reduced programs or services, despite more than half reporting increased demand for their programs. COVID-19 and the resulting economic collapse has forced 80 percent of nonprofits to draw upon their reserves and has led to a 43 percent decrease in gifts from major financial donors, a 51 percent decrease from individual donors and a 77 percent decrease in earned revenue. 

Plan, Track and Report to Prepare Against Impacts 

The duration of this disruption and long-term financial effects are largely unknown, but according to Candid, there are strategies, including scenario planning, collaboration and innovative finance, that could help nonprofits mitigate the worst-case scenarios explored in its model. 

As we know, COVID-19 is a reminder that good financial management is crucial to the operational success of nonprofits, as well as a vital form of due diligence to the communities they serve. It is now more important than ever for nonprofits to show successful results in their programs to acquire future funding, and Resilia’s platform can help organizations do just that.

The Resilia Funder Platform helps both nonprofits and grantors track grants throughout the award cycle and streamline reporting and compliance data. The platform also creates scenario modeling with constant program evaluation and insights to help nonprofits plan for the worst and track and share successful program results with grantors. 

Leverage Technology to Demonstrate Successes

These planning, tracking and reporting capabilities provide nonprofits with a set of turnkey digital resources that are important when 85 percent of nonprofits say technology is the key to their success. Sophisticated data collection and analysis tools have never been more accessible and are easily implemented across organizations of all sizes.

Instead of relying on governments and grantors to take the lead in streamlining grant applications, reporting and compliance processes, nonprofits are able to leverage these powerful digital resources to standardize information management and demonstrate outcomes.

During these uncertain times, managing resources, evaluating impact scenarios and tracking funds are more important than ever. At Resilia, we can help to open channels of communication between nonprofits and grantors to ensure project scopes remain consistent, compliance processes are streamlined and program successes are clearly communicated. 

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