Nonprofit
Author: Unit4 Communications August 18, 2025 4 min read

Drive greater impact with smarter solutions for your nonprofit

Nonprofits are accustomed to facing challenges, but constant disruptions over the last few years have compelled nonprofit professionals to reassess their operations in light of rising costs, tighter budgets, and an increasing demand for their services. 

A recent study conducted by PAC with over 200 nonprofit strategy leaders sheds light on how these organizations are addressing challenges, breaking down silos, and leveraging technology to make tangible transformations. 

With the support of tailored solutions like those offered by Unit4, nonprofits are finding innovative ways to adapt and thrive, ensuring they continue to deliver maximum impact in the communities they serve.

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Financial and operational challenges facing nonprofits 

Nonprofits are grappling with dual pressures of rising costs and a surge in demand for services. 

  • Rising Costs: 77% of nonprofit leaders anticipate a surge in fundraising costs, while 81% expect operational and trading costs to increase in 2025. Costs related to salaries, property, and utilities continue to strain financial resources. 

  • Increasing Demand: 79% of nonprofits anticipate an increase in demand for their services, and 38% predict a rise of over 5%. However, constrained budgets mean many will reduce or streamline services to cope with demand. 

  • Fraud Risks: The sector also faces increasing threats of fraud, with 70% of nonprofits reporting consistent or rising levels of fraudulent activity, which further complicates financial stability. 

Despite the grim outlook on costs and fraud, nonprofits recognize the opportunity to optimize their operations and enhance financial resilience through strategic transformations.

Slow access to data is a barrier to decision-making 

Access to accurate and timely data remains a significant challenge for nonprofits seeking to make informed decisions. 

The PAC study revealed that 43% of strategy leaders take between 2-7 days to compile essential financial or operational data, while 29% admit that it takes over a week. This delay hinders their ability to act swiftly on emerging challenges or opportunities. 

To complicate matters further, 40% of nonprofits report limited visibility into organizational data due to silos. This fragmented approach decreases transparency and constrains decision-making.

By centralizing operational processes and breaking down silos, nonprofits can foster better collaboration, improve enterprise-wide data visibility, and reduce redundancies.

 

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Centralizing operations to break down silos 

Recognizing the inefficiencies caused by compartmentalization, nonprofits are shifting toward shared services delivery models to centralize key functions, such as finance, accounting, and compliance. 

  • 50% of nonprofits plan to centralize their finance and accounting teams within three years. 

  • 45% aim to consolidate governance and compliance systems, ensuring streamlined processes and increased oversight.

Shared services offer nonprofits a unified view of their data, enabling them to make informed decisions more quickly. This centralization also creates opportunities for collaboration across teams, further promoting operational efficiencies.

The role of technology in future success 

Technology has become indispensable for nonprofits seeking to streamline operations, reduce costs, and enhance their ability to deliver services effectively. The PAC study revealed that nonprofits are aligning their digital transformation agendas with strategic priorities. 

Key statistics show how technology is shaping nonprofits’ strategies moving forward:

  • 70% of nonprofits plan to ramp up spending on technology in 2025, with a focus on improving cost efficiency and operational performance. 

  • 56% of leaders identify improved efficiency as the primary driver for tech investments. 

  • Yet, 45% cite dependency on outdated technology as a major barrier to meaningful transformation. 

Upgrading legacy financial, compliance, and HR systems is a top priority, with many nonprofits focusing on tools that facilitate streamlined workflows and real-time data visibility. 

For example, one UN organisation’s automation of payroll reports has drastically reduced processing times from 7 days to 14 hours, while eliminating manual errors.

How Unit4 helps nonprofit professionals adapt and thrive 

Unit4 provides nonprofits with the tools they need to overcome these challenges and thrive in an increasingly demanding environment. With over 40 years of experience serving the NFP sector, Unit4 delivers systems that help nonprofits optimize their resources, connect teams, and amplify their impact.

Click to read Helping nonprofits deliver on their mission with FP&A and HCM Gated

Key features of Unit4 for nonprofits:

  • Streamlined operations: By centralizing back-office functions like finance, HR, and procurement, Unit4 helps nonprofits reduce inefficiencies and drive collaboration across teams. 

  • Enhanced financial management: With robust grant management and transparent reporting abilities, nonprofits can manage funds more effectively and ensure compliance. 

  • Improved decision-making: Unit4 enhances data visibility, empowering leaders with actionable insights in real time. This enables quicker and more strategic decision-making. 

  • Focus on what matters: Through automation and visibility, Unit4’s solutions reduce administrative burdens, allowing nonprofit professionals to dedicate more time to their core mission. 

Real-life impact

Organizations like Oxfam America exemplify what’s possible with improved data strategies. By upgrading their core enterprise technologies, they’ve established insight-led operations that enhance decision-making and operational efficiency.

Similarly, organizations such as War Child and the Norwegian Refugee Council are leveraging digital transformation to increase productivity, meet rising service demands, and better connect with their beneficiaries.

Technology investments and the road ahead 

Nonprofits are at a pivotal moment, and digital transformation is no longer a luxury but a necessity. By prioritizing investments in modernized systems, nonprofits can address longstanding barriers, harness the power of data, and create more flexible and agile operations.

Unit4’s commitment to empowering nonprofits is rooted in creating user friendly, automated solutions tailored to the sector’s unique challenges. From enhancing financial resiliency to breaking down operational silos, Unit4 helps nonprofits build capabilities that enable lasting change.

Looking forward 

The nonprofit sector’s resilience and adaptability are being tested like never before. Yet, with strategic investments in technology and data management, nonprofits can adapt, thrive, and enhance their impact on the communities they serve.

If your organization is seeking to overcome operational challenges and bring transformation goals to life, Unit4 is here to help. You can watch a demo or talk to our sales team to discover how we can help your nonprofit achieve greater efficiency and deliver its mission more effectively. 

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