RSMUS.comIn the nonprofit world, passion and purpose are the beating heart of every organization. But as these mission-driven entities grow, they face a critical challenge: how to scale their impact without compromising their values. In a recent thought leadership interview, Bob Kanzler, RSM’s Nonprofit consulting leader, offered a compelling roadmap for how nonprofits can evolve from mission-focused startups to mature, tech-enabled changemakers.
The Lifecycle of a Nonprofit
According to Kanzler, nonprofits typically progress through multiple stages as a nonprofit matures. In the early stages, organizations tend to be deeply focused on their mission, whether it’s feeding families, providing shelter, or supporting education. In these cases, Technology is often an afterthought, and IT responsibilities are scattered across departments with little central oversight.
As nonprofits begin to mature past a mission-focused organization, they begin to recognize the need for IT infrastructure to support their mission. This is when they start hiring IT leaders, centralizing IT budgets, and thinking about platform-based solutions. By the time they reach IT maturity, they’re ready to invest in scalable systems that can drive efficiency, transparency, and growth.
But the journey doesn’t end there. As nonprofits reach the maturity, they are poised to make significant strides in efficiency and impact. “At this point, they have the opportunity to refine their operations,” Kanzler explained. “They can leverage data analytics to measure outcomes, optimize resource allocation, and improve decision-making processes.” This phase allows nonprofits to better engage with their communities and stakeholders, ensuring that their mission is being effectively carried out on a larger scale. By investing in scalable technology solutions, mature nonprofits solidify their foundation for long-term success and sustainability.
Technology as a Catalyst for Growth
Technology plays a pivotal role in helping nonprofits transition from organizations focused on a mission to businesses built to support the mission. Kanzler emphasized that the turning point often comes when an organization hires its first dedicated IT Professional. This signals a shift from ad hoc tech spending to strategic planning.
At this stage, nonprofits begin to consolidate their systems, moving away from siloed for fundraising or for grants management. Instead, they use integrated platforms such as Microsoft Dynamics 365 to consolidate donor, volunteer, and program data. By employing the Dynamics 365 Customer Engagement Sales app along with the nonprofit accelerator (allowing organizations to have a comprehensive solution allowing for scalability), nonprofit organizations can improve donor relationships, streamline fundraising activities, volunteer management, and optimize resource management, thereby enhancing their impact and operational efficiency.
One of the most powerful examples Kanzler shared was the transformation of Community Housing Partners (CHP), a nonprofit organization focused on creating homes and communities that are healthy, sustainable, and affordable. RSM implemented Microsoft Dynamics CE applications, Customer Service, Field Service, Marketing, and Power Apps Portals. The implementation of automated processes reduced the time from inquiry to inspection by 60%.
The Role of Microsoft Elevate (Formerly Tech for Social Impact)
RSM’s partnership with Microsoft Elevate (formerly Tech for Social Impact) has been instrumental in driving innovation in the nonprofit sector. In 2022, RSM was named Microsoft’s Global Nonprofit Partner of the Year. Through Elevate, Microsoft not only supports nonprofits but also enhances the capabilities of its partners. These partnerships drive innovation, as partners can leverage Microsoft’s enterprise-grade tools to offer strategic solutions that elevate the operations and impact of nonprofits, ultimately fostering a collaborative ecosystem for social good.
Through Elevate, nonprofits gain access to deeply discounted licensing. This makes enterprise-grade tools accessible to even mid-sized organizations, leveling the playing field and enabling them to compete for attention and funding in a crowded landscape.
AI in Action: From AI Agents to Job Matching
Artificial intelligence is rapidly becoming a game-changer for nonprofits seeking to scale their impact. From digitizing decades-old handwritten records to optimizing donation intake and volunteer engagement, AI is helping organizations streamline operations and unlock new insights. Use cases include converting unstructured historical data into searchable formats, deploying chatbots to match community members with relevant programs, and using image recognition to assess the resale value of donated goods. AI is also being applied to enhance job placement services by intelligently matching resumes with open roles and suggesting improvements to candidate profiles. These innovations not only save time and resources but also empower nonprofits to serve their communities more effectively.
Challenges and Opportunities
Despite these advances, nonprofits still face significant hurdles. Funding remains a perennial concern, especially for organizations reliant on government grants. Talent retention is another issue, as many nonprofits struggle to compete with private-sector total compensation. Yet, as Kanzler pointed out, the nonprofit sector also offers something unique: purpose. “My impact isn’t just about helping a company sell more widgets,” he said. “It’s about helping organizations that are truly changing the world.”
Final Thoughts
The path from mission to maturity is neither linear nor easy. But with the right technology and partners, nonprofits can scale their impact without losing sight of their core values. As Bob Kanzler and the nonprofit team at RSM have shown, when purpose meets innovation, the results can be transformative. As he put it, “My impact is not to the bottom line of some company—I get to impact
organizations that are truly changing the world.”
Jordan Krasner
Jordan Krasner specializes in Microsoft Dynamics Customer Engagement (CE) as well as Microsoft Sustainability Manager