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2025 Research Report

State of Nonprofit Technology
2025

Comprehensive research on technology trends, cybersecurity challenges, AI adoption, and IT investment priorities across 500+ nonprofit organizations.

Based on 500+ organizations|Q4 2024 - Q1 2025 data|Free to share with attribution

Key Findings at a Glance

The most significant insights from our 2025 nonprofit technology research

67%
Lack formal IT strategy

Two-thirds of nonprofits operate without a documented technology roadmap

43%
Experienced cyber incident

Nearly half experienced a cybersecurity incident in the past 12 months

78%
Plan to adopt AI

Majority planning AI implementation within 24 months

52%
Underspend on IT

Over half spend less than recommended 5% of budget on technology

Share These Findings

These statistics are free to use with attribution to Wellforce.

Source: State of Nonprofit Technology 2025, Wellforce (wellforceit.com/resources/nonprofit-technology-report)

Detailed Research Findings

In-depth analysis across key technology areas

Cybersecurity

43%experienced a cyber incident in past 12 months
61%don't have cyber insurance coverage
38%never conducted a security assessment
72%cite budget as primary barrier to security
29%have formal incident response plans

Key Insight

Nonprofits are increasingly targeted by cybercriminals due to perceived weaker defenses. Donor data and financial information make them attractive targets.

Cloud & Infrastructure

84%use some cloud services (email, storage)
31%fully migrated to cloud infrastructure
56%still maintain on-premise servers
47%plan cloud migration in next 12 months
63%use Microsoft 365 as primary platform

Key Insight

Cloud adoption accelerated post-pandemic but many organizations struggle with hybrid environments and legacy system integration.

AI & Automation

78%plan to implement AI within 24 months
23%currently using AI tools in operations
41%use automation for donor communications
67%interested in AI for grant writing
12%have formal AI governance policies

Key Insight

Strong interest in AI exists but implementation lags. Most common use cases: donor engagement, grant writing assistance, and administrative automation.

Budget & Staffing

52%spend less than 5% of budget on IT
71%have no dedicated IT staff
34%use managed service providers
89%rely on staff wearing multiple hats for IT
$127average per-user monthly IT spend

Key Insight

Underinvestment in technology creates technical debt and increases risk. Organizations spending 5-7% on IT report significantly better outcomes.

Recommendations for Nonprofit Leaders

Based on our research, here are the top priorities for nonprofit technology leaders in 2025

Critical Priority#1

Conduct Annual Security Assessments

Regular vulnerability assessments and penetration testing help identify risks before attackers exploit them.

High Priority#2

Develop a 3-Year Technology Roadmap

Strategic planning prevents reactive spending and ensures technology investments align with mission goals.

High Priority#3

Invest in Staff Security Training

Human error causes 82% of breaches. Regular training is the most cost-effective security investment.

Medium Priority#4

Establish AI Governance Policies

Before adopting AI tools, create policies for data handling, bias mitigation, and appropriate use cases.

Medium Priority#5

Consider Managed IT Services

MSPs provide enterprise-grade capabilities at a fraction of the cost of in-house IT staff.

Medium Priority#6

Plan for Cloud Migration

Modern cloud platforms offer better security, reliability, and collaboration tools than aging on-premise systems.

Research Methodology

How we conducted this research

Sample Details

Sample Size
500+ organizations
Budget Range
$500K - $50M annual operating budgets
Timeframe
Q4 2024 - Q1 2025

Methodology

Data Collection
Online survey, interviews, and analysis of IT service data
Sectors Included
Human services, education, healthcare, arts & culture, environmental, religious organizations

Get the Complete Report

Download the full PDF report with additional data, charts, and detailed analysis. Plus, receive our quarterly nonprofit technology updates.

Free for nonprofit organizations. No credit card required.

Related Resources

More insights for nonprofit technology leaders

Nonprofit Technology Assessment Guide

What to expect from a technology assessment and how to prepare your organization.

Cybersecurity Assessment Guide

Complete guide to cybersecurity assessments for small organizations.

Nonprofit IT Services

Learn how managed IT services can help your nonprofit mission.

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