Technological resources for improved management of the fundraising unit
Baumol and Bowen (1966) detailed the problem of cost disease for arts organizations. Technology has produced increased labor productivity in many fields which supports increased wages. This applies upward pressure to salaries in other fields, even when technology cannot be leveraged for productivity advantages. Fundraising is an area within which new technology can be used to increase efficiency and productivity and deliver important organizational benefits. Technology has been leveraged for fundraising in a variety of nonprofit fields. The Salvation Army recruited significantly more donors, maintaining a high return on investment (ROI) after adding new media channels (Colling, 2011). Saxton and Wang (2014) report that fundraising success is not a product of an organization’s financial capacity but its web capacity. Technology advances allow organizations to send and receive information and, more importantly, to connect with the public and prompt them to act (Saxton & Wang, 2014). Investment in the development of infrastructure, such as systems for information technology, financial management, and fundraising, indicate organizations that are more likely to survive economic recessions (Gregory & Howard, 2009). Despite numerous benefits, nonprofit arts organizations have lagged behind other nonprofit fields in their adoption of technology.
Nonprofit arts organizations often struggle with capacity issues. Expanding fundraising efforts and growing donor bases are major challenges (Schatterman, 2015). While nonprofit arts organizations acknowledge that technology increases efficiency, representatives report capacity issueswhen it comes to adopting and using technology (Thompson et al., 2013; Schatterman, 2015). Upgrading hardware and software, creating, updating, and effective use of databases are common problems (Schatterman, 2015). Costs, funding, staffing, and time are cited as barriers to adopting new technologies in nonprofit arts organizations (Thompson et al., 2013). Limited external funding is available to help nonprofit arts organizations expand their technology tools (Thompson et al., 2013). Despite the promise of technology tools, arts organizations face numerous barriers to adoption of new technologies.
Nonprofit arts organizations experience lags in adopting new technologies. Despite awareness that digital technologies are very important for fundraising, less than 40% of nonprofit arts organizations report that they generally embrace new technology well and only half report that is “somewhat true” (Thompson et al., 2013). With an ever-growing array of digital tools, a dedicated digital manager is desirable but frequently it is not viable. Fewer than half of nonprofit arts organizations have a dedicated digital manager, more common among organizations with budgets over $10 million (M+R, 2019). Only 20% of nonprofit arts organizations feel they do not need outside help for their technology needs but only 16% report securing external tech support (Thompson et al., 2013). Nonprofit arts organizations face capacity issues and delays in adoption of new technology. Fundraising units derive significant benefits from technology-enhanced practices. This opportunity positions the fundraising unit to lead the adoption of the technological tools that support unit performance and management.
Technology offers direct response to specific needs of the fundraising department. Fundraising is highly competitive, stressful, and prone to high turnover and burnout. Technology can be deployed to enhance recruitment and increase retention of successful fundraisers. There are additional digital resources for managing teams. New modalities provide rich access to a variety of continuing education opportunities. Integration of new tools promises to generate benefits in both fundraising and managing the fund-raising divisions.
Fundraising is identified as a growth area (Meisenbach et al., 2018). Furthermore, executive directors report an insufficient number of qualified candidates for director positions (Ernst, 2017). The vast majority of fundraisers (80%) report satisfaction with their jobs (Association of Fundraising Professionals, 2019). Two-thirds are satisfied that the technology provided supports their ability to do their jobs (Association of Fundraising Professionals, 2019). However, fundraising is marked by a turnover of 19% per year (Meisenbach et al., 2018). Half of fundraisers reported they would likely leave their position within two years, and 30% indicated they were likely to leave the profession altogether in that time (Association of Fund-raising Professionals, 2019). The average tenure of a major gift officer is 1.5 to 2 years (Ernst, 2017). Nonprofit arts organizations must compete for
The impact of digital transformation 257 competent, qualified development personnel and technology provides an array of solutions that can be used to recruit and retain employees.
- • Organizational transparency before candidates are hired. Organizational performance and reputation are essential to successful fund-raising. Prospective employees have increased access to indicators of organizational health with transparency-driven websites such as Candid (formed by the merger of the Foundation Center and GuideStar) and Charity Navigator. Regular maintenance of the information on these sites contributes to assuring donors and job candidates.
- • Flexible work arrangements. Teleconferencing, web-conferencing, and telecommuting have been around for many years and have always promised the opportunity for workers to connect and work from anywhere. A variety of platforms allow remote workers to participate in and contribute to meetings. This became common practice across industries during the COVID-19 pandemic. Tools were adapted for virtual fundraising and social events. Flexible work location is an important benefit. It can improve work-life balance and increase employee productivity, health, and happiness. In competitive fields, such as fundraising, jobs with greater flexibility become more competitive and attractive.
- • Networking, collaboration, and communication. Remote workers need to collaborate and connect with others in the unit. New systems for sharing files, calendars, ideas, holding meetings, and instant messaging support team pursuit of shared goals (McNutt et al., 2018). Programs and apps can be found to meet all budgets—from purchasing a license to free access means that there is a solution for any budget.
- • E-supervision/cyber supervision. The completion of work in multiple locations makes tracking progress more difficult unless digital tools are employed (McNutt et al., 2018). While employees value flexibility, remote work can feel isolating. Managers can use digital tools to check in and offer feedback and training.
- • Augmented reality (AR) and virtual reality (VR). These new technologies allow users to interact with and explore simulated experiences (McNutt et al., 2018). They are a promising tool for attracting donors—by offering a meaningful examination of the organization’s mission, services, and programs. They also have potential for preparing fundraising experts for a variety of scenarios.
Sustainability of arts nonprofits requires competent, efficient work on the part of the fundraising unit. Digital tools provide multiple resources to increase an organization’s efficiency and efficacy in fundraising—from the funds raised to the behavior and performance of those working in the fund-raising unit.
Being a fundraising professional today means more than just having the necessary fundraising knowledge and experience,” said Geiger. “Themore leadership and management skills we have—the more we can lead up, down and sideways, educate our CEOs, boards and other staff, and help develop organizational cultures—the more effective we will be in our jobs” (Association of Fundraising Professionals, 2019, p. 1).
