Nonprofits and 12 Current Trends

Nonprofit leaders can and do react to current conditions in developing their plans and advancing their organizations’ missions. Effective leaders also proactively prepare for the future while looking back for lessons and context.

Among the many trends and forces for the future worthy of consideration:

1. Demographics, including of employees and intended beneficiaries
2. Migration, domestically and globally
3. Social movements
4. Polarization, conflicts, war
5. Communications, including through virtual reality and augmented reality, and with worries of deepfakes and privacy
6. Service delivery
7. Artificial intelligence
8. Blockchain
9. Climate change and pollution
10. Epidemics, pandemics
11. Biotech advances (e.g., mRNA vaccines, CRISPR gene editing)
12. Law and politics

Many nonprofits have adopted devices and strategies incorporating their thinking about how to address some of these trends and forces. But changes appear to be happening faster than ever, and leaders of nonprofits must be diligent in staying informed and prepared. Below are some of my quick thoughts on the areas identified above.

Demographics

Over the next couple of generations, in the United States, we’ll have a much higher number of older residents and a more racially and ethnically diverse population. Younger generations will prioritize different things from older generations, which will contribute to the mismatch between those who control wealth and power (including in government and philanthropy) and those who do not. Nonprofit boards will struggle because of these mismatches and should seek to address this issue through focusing on greater diversity and inclusion in their board compositions. See Leading with Intent (BoardSource). Wealth and income inequality are also rising and should be addressed by nonprofits that are driven by missions or values to help wealth- and income-disadvantaged persons thrive, be treated justly, and/or access their charitable goods and services. See Nine Charts about Wealth Inequality in America (Urban Institute). Nonprofits may also need to think about how the widening wealth gap is impacting their donor bases and fundraising. See Income Inequality Is Impacting Your Nonprofit (Otis Fulton, Nonprofit PRO).

Migration

People are on the move, responding to a number of forces, including climate and environmental changes, remote work, population growth, urbanization, gentrification, threats of violence, and immigration policies. Migration may have profound impacts on the economy and on how nonprofits may need to adapt in order to best advance their missions consistent with their core values. Some key questions: How should organizations connect with their intended beneficiaries? How are the beneficiary population and their needs changing? What cultural competencies should the nonprofit team possess? Where should offices and centers be located? What remote work policies should be offered? What data does the nonprofit require to answer these questions? See, e.g., Betting on Migration for Impact (Jason Wendle, Stanford Social Innovation Review); From Big Cities to Small Towns: The Ongoing Migration Reshaping America’s Housing Landscape (Stephanie Horan and Tori Addison, MarketWatch).

Social movements

Social movements are collective efforts, some organized, some impromptu, with a goal to bring about some change important to movement participants. Movement organizations are typically nonprofits. In the United States, such organizations are often nonprofit tax-exempt organizations, including 501(c)(3) charitable organization, 501(c)(4) social welfare organizations, 501(c)(5) labor organizations, and 501(c)(6) business leagues. There have always been movements, but the trend seems to be getting stronger as technology has allowed for cheap forms of mass communication and organizing and, in the United States, as groups have become more polarized with many willing to protest, advocate, and fight over historical and pervasive injustices and often misunderstood inequities. Nonprofits should consider whether their missions, values, and the lives of their intended beneficiaries may be improved by some form of participation in movements or the issues on which they are based.

Polarization, conflicts, war

Polarization seems to be ever increasing, including in political, economic, religious, and other ideological areas. Even where there is more to connect rather than separate groups, there is an emotional or affective polarization that can inhibit dialogue and bridging. Additionally, there are individual actors (particularly the very wealthy or very powerful) who stand to gain from the polarization by using it to leverage benefits for themselves and their perceived peers. These forces can and do create conflicts that can result in wars, particularly where there is a win-lose dynamic. Nonprofits should consider how their missions and values may be impacted by increasing polarization and conflict and how they may reduce such polarization and conflict through education, dialogue, collaborations, and other forms of advocacy and bridging. See, e.g., Polarization, Democracy, and Political Violence in the United States: What the Research Says (Rachel Kleinfeld, Carnegie Endowment for International Peace).

Communications

As technology advances, the methods of communications are changing. With those changes comes increasing outreach (potentially great for community power-building) and ways to effectively connect with others (consider, for example, the use of communication apps, social media, gamification, virtual reality, and augmented reality). But the changes also bring with them new risks, including to privacy, security, and trust. Both in terms of information gathering and distribution, consider the threat of deepfakes. See, e.g., NSA, U.S. Federal Agencies Advise on Deepfake Threats (National Security Agency); Deepfakes Post Business Risks – Here’s What to Know (Booz Allen Hamilton). In addition to technology changes, nonprofits must consider their cultural competency needs as they utilize new communication media and reach new audiences.

Service Delivery

Technology and demographics are impacting service delivery, and nonprofits should consider how they should adapt. It’s always a challenge when major changes involve upfront costs for future benefits, but strong leadership must be prepared to make difficult programmatic investment decisions. This may involve greater use of digital tools, data-driven decision-making, workforce training, collaborations, and advocacy. See, e.g., Service delivery trends for charities in 2023 (Laura Stanley, Charity Digital); Non profit service delivery: Business Models for Effective Non profit Service Delivery (Faster Capital)

Artificial Intelligence

The most high-profile technological change discussed these days is artificial intelligence (AI). Nonprofits are already reaping some of the benefits of AI whether they recognize this or not because AI has been embedded in a number of commonly used tools and platforms. But many are also intentionally using specific AI applications like ChatGPT for research, content creation, idea generation, proofreading, and programming. Generative AI is being used to create new content, including text, images, music, audio, and videos. See, e.g., How Nonprofits Are Using AI (Janelle Levesque, TechSoup); 8 Steps Nonprofits Can Take to Adopt AI Responsibly (Beth Kanter, Allison Fine & Philip Deng, Stanford Social Innovation Review).

But there are very serious risks with the use of AI. AI provides answers based on the data it can access and algorithms dictating how to process such data. This can lead to inaccurate and biased responses and the promotion of falsehoods, both unintentional and intentional. AI can also promote closed feedback loops and thinking. Beyond such limitations, like other powerful tools, AI can be used for criminal and other unlawful activities, which can result in all types of harms to a nonprofit’s fundraising, reputation, and ability to advance its mission. See Addressing the Risks and Harms of Artificial Intelligence by Leveraging Capital (Antonio Pontón-Núñez, Nonprofit Quarterly); AI Threats in Elections: What Nonprofits Must Know (Brittany Hacker and Alexandra Roseberry, Alliance for Justice).

Blockchain

Nonprofits should have a basic understanding of blockchain technology to evaluate its potential benefits and challenges for their operations and communities. While many people know blockchain solely for its application in the development of cryptocurrency, the technology provides for a distributed, immutable, and transparent ledger where data can be stored without a central administrator and single point-of-failure. This potentially allows data to be shared with greater trust and security, smart contracts that can automate certain compliance provisions (e.g., payments based on defined parameters), secure recordkeeping, and global application without regulatory (and criminal) attention. But those characteristics also allow blockchain to be used for illegal and unlawful activities, and the legal and regulatory environment for blockchain is still in its infancy. For most nonprofits, the technological complexities may keep the use of blockchain out-of-reach in the short-term, but the potential uses to advance charitable missions is compelling. See, e.g., 9 Nonprofits Harnessing Blockchain For Social Impact (Giving Block); DAO: What is it? What does it mean for nonprofits?

Climate change and pollution

Nonprofits with environmental missions are actively working to educate the public, advocate for behavioral and policy changes, and create innovative solutions to address the climate change and pollution crises. But despite their efforts, and those of millions of individual advocates, the outlook remains dire. Because of the urgency of the problem, all nonprofits should review how their missions, core values, intended beneficiaries, and communities are and will increasingly be impacted by climate change and pollution. It’s going to get hotter, there will be more natural disasters, plastics and other toxins are pervasive in our environment including in our foods and within our bodies. See, e.g., our earlier posts: What’s Your Nonprofit Doing to Fight Climate Change?, Purpose-Driven Board Leadership and Climate Change, and What Do Nonprofits Owe to the Future?

Epidemics, pandemics

Nonprofits dealt with, and continue to deal with, the impact of COVID, including public and private responses to the pandemic. Among the lessons learned: we’re going to be subject to more epidemics and pandemics that will have serious impacts to public health as well as to the economy; and we’re unlikely to be prepared for them. Still, nonprofits can take some steps to anticipate such disruptions through improvements in their technology, diversification of services, and building of reserves. Crisis management plans, health and safety infrastructures, remote service protocols, and attention to organizational adaptability and resilience are now better understood as keys to a nonprofit’s viability and lasting effectiveness. Advocacy and lobbying may also become part of a nonprofit’s strategy to help mitigate some of the adverse impacts an epidemic or pandemic may have on its ability to further its mission or on its intended beneficiaries. See, e.g., Nonprofits, foundations adjust to the post-pandemic era (Matt Sinclair, Candid); U.S. Nonprofit Organizations Respond to the COVID-19 Crisis: The Influence of Communication, Crisis Experiences, Crisis Management, and Organizational Characteristics (Ryan P. Fuller, Ronald E. Rice, and Andrew Pyle, National Library of Medicine).

Biotech advances

Advances in biotechnology may impact many nonprofits in myriad ways including through health care, infectious disease control, food production, robotics, environmental conservation, and the consideration and development of ethical and safety standards. Among some of the high profile examples: (1) mRNA vaccines allow for the delivery of vaccines without use of a bacteria or virus and without altering DNA; and (2) CRISPR allows for genome editing and offers some exciting potential treatments for genetic disorders and advancements in crop engineering. See, e.g., 18 New And Emerging Biotech Developments Everyone Should Know About (Forbes).

Law and politics

Laws are continually evolving and impacting nonprofits in every facet of their operations. Among the areas of more immediate concern: (1) registration, reporting, and disclosure requirements, (2) data privacy concerns, (3) tax law reforms (including with respect to donor advised funds and charitable contribution deductions), (4) convergence of nonprofit commercial and for-profit ‘social good’ activities, (5) permissible and impermissible political activities, (6) remote work, (7) public funding priorities, and (8) globalization and cross-border issues.

Politics of course shape our laws, and the influence of money on politics and the law has become increasingly problematic with concentrations of wealth and power and the impact of the Supreme Court’s decision in Citizens United. See, e.g., Citizens United Explained (Brennan Center for Justice). While too many public charities are afraid to lobby because of the prohibition against substantial lobbying codified in Section 501(c)(3), lobbying by public charities is a key to offsetting the extreme influence of wealthy individuals and corporations and the 501(h) election provides public charities with generous and simple lobbying expenditure limits. See, e.g., What Is Lobbying Under the 501(h) Election? (Bolder Advocacy, Alliance for Justice). Public charities can also engage in permissible political activities like voter registration and get-out-the-vote drives that can amplify community power. See, e.g., The Rules of the Game: A Guide to Election-Related Activities for 501(c)(3) Organizations (Bolder Advocacy, Alliance for Justice).