Unit4 Enterprise Resource Planning (ERP)Nonprofit
Author: Unit4 Communications December 10, 2025 3 min read

How nonprofits can thrive this year and beyond – PAC’s recommendations for nonprofit leaders

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The past five years have challenged nonprofits with rising resource demands, escalating costs, and a need to adapt to volatile economic and global conditions. Many organizations have faced severe financial strain, with reduced funding or grants driving them to rethink their strategies and prioritize transformation. 

Nonprofits now recognize the benefits of innovative digital solutions such as the Cloud, which streamline operations to boost efficiency and build resilience. 

This blog highlights key insights from recent research by PAC and Unit4 and explores how nonprofits can adapt and thrive with support from tailored solutions like those Unit4 offers.

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PAC’s highlights for nonprofit leaders

Nonprofit leaders are navigating a unique mix of increased financial pressures and complex operational demands in 2025. While many global organizations need to find new sources of funding, they are simultaneously preparing to tackle rising costs, resource limitations and increased operational challenges.

Financial balance is key 

The outlook for nonprofits is getting brighter, with most leaders expecting an increase in income from new donor campaigns, greater grant availability or corporate donations. However, operational and fundraising costs are rising significantly, requiring outcome-based accounting for successful fund management.

Three-quarters of nonprofits anticipate higher fundraising expenses, and 81% foresee increased operating costs. For many, balancing these financial dynamics is pivotal to ensuring resources can continue fueling mission-critical impact.

Manage increased demand with streamlined services

Demand for nonprofit services continues to grow, with 79% of organizations expecting it to rise further this year. 

Yet, many face resource constraints, with nearly a third planning to reduce the number or scope of services they provide in response to financial strain. 

Additionally, operational inefficiencies, such as slow response launches and fragmented data access, impede agility.

Data management must be prioritized

Data silos remain a significant barrier, with 43% of leaders reporting that it takes 2-7 days to access operational data for decision-making, while another 29% take over a week. This lack of real-time data hinders nonprofits’ ability to respond quickly to emerging needs and opportunities.

Nonprofit leaders must reimagine their operations to place data at its heart, drawing as much value, insights, and actions from their data as possible.

 

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From Transition to Transformation

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Fraud and compliance remain a threat without modern technology

With 70% of leaders reporting consistent or rising levels of fraudulent activity. Only 30% experienced a decline, emphasizing the persistence of this challenge.

Fraud impacts not only finances but also organizational reputation and stakeholder trust. Addressing this issue requires proactive measures, including implementing robust compliance systems with increased transparency, strengthening internal controls, and leveraging technologies that can automate fraud detection, as well as have clear audit trails. 

Shared services present a solution

Partnerships are becoming a key solution for nonprofit organizations, with 50% planning to consolidate finance and accounting functions into shared services within the next three years. Additionally, 45% intend to centralize governance and compliance processes.

This trend signals a shift toward improving efficiency and reducing operational silos. By centralizing these core functions with a shared service model, nonprofits can achieve greater consistency, streamline workflows, and allocate resources more effectively. 

Real-life successes, such as St. John Ambulance and UNICEF, demonstrate how shared services can transform day-to-day operations and free up resources for program delivery.

Break down technology barriers

Technology plays an increasingly critical role in nonprofits’ resilience, yet many struggle with barriers such as dependence on legacy systems and limited access to Cloud capabilities.

Only 3% of organizations can launch fundraising campaigns within 24 hours; 30% take over a week. 37% face delays of more than a week to activate on-the-ground service delivery.

Legacy systems often prevent nonprofits from achieving operational agility and visibility. Investing in Cloud-based platforms can unlock efficiency and foster innovation

40% of NFPs are prioritizing budget increases for finance and compliance systems to address legacy technology challenges. 45% of nonprofit leaders cite reliance on outdated legacy systems as an obstacle to innovation and transformation.

How Unit4 can help nonprofits thrive this year

Unit4’s ERP suite provides nonprofit professionals with tools to help manage finance, HR, procurement and operations seamlessly. Cloud-based capabilities ensure that systems adapt to the scale and complexity of each organization while maintaining data security and compliance.

By automating processes and breaking down silos, Unit4 solutions enhance data visibility and streamline workflows as well as AI-powered solutions. This empowers nonprofit teams to shift their focus from administrative tasks to driving mission-critical initiatives with digital maturity.

Through Unit4, nonprofits have achieved measurable benefits, from improved financial visibility to faster decision-making. These ERP solutions allow nonprofits to thrive in challenging environments and maximize their impact.

70% of nonprofits aim to increase investments in digital transformation in 2025, with only 14% planning reductions. 56% identify cost efficiency improvement as a key driver of their digital strategy.

For nonprofits to succeed in 2025 and beyond, leaders must prioritize resilience and innovation. Key actions include optimizing efficiency through technology, fostering a culture of data-driven decision-making, and investing in scalable, sustainable tools like Cloud systems.

Looking to redefine your strategy and optimize your organization’s impact? Visit our website, read PAC’s research yourself, or view a tailored demo of Unit4’s nonprofit solution today!

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