Non-Profit Software Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 – 2028)

Non-Profit Software Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 – 2028)

The Non-Profit Software Market is expected to grow at a CAGR of 7.6% for the next five years. This growth is mainly attributable to the increase in the adoption of non-profit software across organizations. Also, there is a strong automation demand across the new non-profit-seeking organizations, which aids growth.

• Over the forecast period, there is likely to be an increase in demand for non-profit software due to the need for a single platform for managing all an organization's responsibilities. Non-profit software comes with capabilities like volunteer management, donor management, event management, and event marketing, which aid in the efficient operation of a non-profit organization and allow for the management of all duties from a single location.
• An evident global market trend is the use of donor management non-profit software on a global scale. Due to significant investments and the development of manufacturing facilities in the area, the Internet Software & Services industry in North America has been growing steadily and is anticipated to continue growing during the projection period.
• However, a major constraint to the technology adoption of non-profit seeking firms is the budget-related challenge. The non-profit industry is concerned about how to increase funding, donor numbers, and revenue. Implementing this software requires some initial investment, which becomes a concern for small organizations.
• Furthermore, implementing cloud-based services in the organization helps quick creation and sharing of documents, and the inclusion of real-time commenting and editing tools all made it possible. On the other hand, non-profit cloud hosting is a strategy to address the problem of digital data storage. The "cloud" is physical storage dispersed across several computers and locations.
• Despite the increased difficulties owing to the COVID-19 pandemic, there is a growing need for additional charity-related activities and services. Technology can assist as COVID-19 forces non-profit organizations to become digital, and constituents require greater support. The needs of constituents who are accustomed to personalized and real-time experiences in their daily lives are placing greater pressure on NGOs of all kinds to adopt a digital attitude.

• The implementation of fundraising software has witnessed a positive trend as people increasingly utilize accounting data systems rather than the traditional approach of physically storing financial information. It is anticipated that the market for fundraising software will expand considerably during the period of projection owing to the rapid demand expansion over the past few years.
• Currently, the major non-profit organizations handle their financing procedures using fundraising software. Its major objective is to draw in and keep contributors to guarantee their steadfast support and ongoing funding. Online through social media and email campaigns, as well as at live events, are all viable options for fundraising initiatives.
• The non-profit software market is gradually implementing cloud-based services in fundraising software due to the rise in demand for cloud computing since it speeds up processing and is cost-efficient. This is a major shift in trend. Until recently, fundraising software mostly concentrated on meeting basic accounting requirements, such as general record keeping.
• Fundraising software has the highest adoption of basic CRM. A non-profit CRM may assist with fundraising by identifying the contributors who are most likely to make greater donations, demonstrating whether and how donors are related, and providing information on their giving preferences. For instance, one may track when contributors donate and how frequently they donate, as well as forecast when and how much they would likely donate in the future, using CRM technologies.
• The average one-time donation to organizations that promote animal or wildlife welfare in 2021 was USD 69. Each month, USD 44 was given to non-profits fighting hunger and poverty.

• North America holds the largest market share and is expected to increase in the forecast period due to a rising number of non-profit-seeking organizations in the region and growth in donation-related activities. The USA holds the highest position when it comes to charitable donations.
• North America is the most technologically developed region in the world. The USA and Canada are financially and technologically among the top countries. These countries are always open to new innovative technology investment and have the highest adoption rate of any IT and software-related advancement.
• The region has a significant number of non-profit software key players like Microsoft, Oracle, Intuit, and others. Owing to the growing number of market participants, North America is anticipated to present several chances for market vendors to develop throughout the projected period.
• Since 2015, United States has led the globe in cloud adoption and has set the pace for it. From Wall Street financial firms to trade associations to member-based enterprises, businesses of all shapes and sizes in United States are moving their operations to the cloud. The use of cloud computing has completely changed how companies conduct their operations. It enables businesses to use any internet-connected device to access data and apps from anywhere globally. Most non-profit organizations across the region, which sometimes have a restricted budget and cannot acquire costly or pricy technology and software, have gradually started implementing it.
• According to a survey conducted by Lending Tree, more than half (56%) of Americans donated to charity in the previous year. Although the percentage rose slightly from the last years, it is still lesser than the pre-pandemic level, which was approximately two third of the entire population.

The Non-Profit Software Market is highly fragmented as it currently consists of many players. Several key players in the market are in constant efforts to bring advancements. A few prominent companies are entering into collaborations and expanding their global footprint in developing regions to consolidate their positions in the market. The major player in this market includes Bloomerang, LLC, Salesforce, Inc., SAP SE, Intuit, Inc., and Microsoft Corporation.

• In November 2022, Intuit, the world-class technology platform, in collaboration with NFL Players, unveiled the launch of "Give Where You Live." This a worldwide generosity movement to assist the vital work of regional organizations in six important markets of United States—Atlanta, Buffalo, Detroit, Chicago, Los Angeles, and Philadelphia.
• In September 2022, Blackbaud., introduced two new functionalities for eTapestry® and Raiser's Edge NXT® forms in United States and Canada to help the non-profit organization to raise more funds and lessen the processing fees for online donations, event and membership registrations, and fundraising initiatives.

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