The social sector stands at a pivotal moment in its digital transformation journey. The integration of technology into nonprofit operations, service delivery, and stakeholder engagement has transitioned from being a ‘good-to-have’ to an essential.
For example, digital tools now enable nonprofits like Pratham, to reach remote communities with educational resources. According to a Forbes article from 2021, they have improved learning outcomes for more than 75 million children in over 22 Indian states and in recent years its model has been replicated in ten African countries. Digital skills and technology have expanded their reach even in the most remote corners of India. Additionally, CRM platforms such as Salesforce have helped organisations streamline donor management, while data visualisation tools enable nonprofits like Goonj to measure and communicate their impact effectively. This evolution underscores the growing indispensability of technology in achieving scalable and sustainable outcomes. Digital transformation is no longer just about adopting new tools; it’s about reshaping how nonprofits work, innovate, and create impact at scale.
‘The best way to predict the future is to create it.’
– Peter
Drucker
Several key trends are set to redefine the digital landscape for nonprofits. These trends aren’t just technological shifts; they also represent opportunities for the sector to overcome persistent challenges and reach underserved communities.
1. AI-Driven Insights for Program Impact
Artificial intelligence (AI) has been making waves across industries, and nonprofits are no exception. In 2025, AI will play a crucial role in helping organisations analyse complex datasets, predict outcomes, and make data-driven decisions. Tools like machine learning models can support everything from identifying donor patterns to tailoring program interventions for maximum impact. GivingTuesday conducted a survey to assess how well Indian nonprofits have adapted to AI. Compared to the global average, Indian organisations were more comfortable using AI at work — 29% gave it a score of 10 on a scale of 0–10.
AI-based tools help nonprofits tailor their interventions for marginalised communities by analysing community-specific needs and predicting outcomes. However, nonprofits must balance these opportunities with ethical considerations around data privacy and bias. For example, the misuse of sensitive beneficiary data could lead to unintended harm, such as stigmatisation or exclusion from services. Additionally, biases in AI algorithms might reinforce existing inequities, disproportionately affecting marginalised communities.
2. Digital Platforms for Collaboration
The rise of digital ecosystems is enabling nonprofits to collaborate more effectively with peers, donors, and beneficiaries. Platforms tailored for the social sector, such as the Digital Toolbook for Social Impact – DiTSI, have the potential for becoming central hubs for resource sharing, peer learning, and community building. In 2025, the Koita Centre for Digital Transformation (KCDT) at the ILSS plans to expand its functionality, integrating tools for real-time impact tracking, sharing knowledge products and creating a dynamic community for nonprofits. This shift will empower nonprofits to work in a more connected and coordinated manner, amplifying collective impact.
Another example is TechSoup India, which helps nonprofits collaborate through shared resources and digital tools, fostering collective impact and making technology accessible to smaller organisations.
3. Inclusion through Low-Tech Solutions
While high-tech innovations dominate conversations, low-tech solutions will remain critical in bridging the digital divide. Many grassroots organisations operate in areas with limited access to the internet or high-end devices. Low-tech tools, such as SMS-based communication platforms, offline mobile apps, and solar-powered devices, will continue to support inclusive digital transformation.
According to insights from this American blog, text messages have an open rate of about 99% compared to only 20% for emails — and that statistic only applies to emails that make it to an individual’s inbox. These solutions ensure that even the most marginalised communities can benefit from technology-driven initiatives without requiring significant infrastructural investments.
4. Cybersecurity for Nonprofits
As nonprofits increasingly digitise their operations, they become more vulnerable to cyber threats. Data breaches can compromise sensitive beneficiary information and erode trust. In 2025, the focus on cybersecurity will intensify, with nonprofits adopting advanced security protocols, training staff in cyber hygiene, and investing in secure digital infrastructure. In 2020, Save The Children (a global nonprofit) fell victim to the Blackbaud security breach, which was a large-scale data breach.
5. Human-Centred Design in Tech Adoption
The emphasis on human-centred design will grow stronger in 2025. Technology solutions tailored to the specific needs of nonprofits and their stakeholders will take precedence over one-size-fits-all approaches. Tools designed with empathy and inclusivity will help organisations enhance beneficiary experiences and streamline internal workflows. For instance, Wadhwani AI shared field insights on a human centred design approach for a specific use case – for designing better training material for farmers and field facilitators.
6. Hybrid Work Models and Virtual Operations
Hybrid work models are here to stay. Gallup’s latest insights show that the majority of remote-capable employees are currently working in a hybrid or exclusively remote arrangement, and the ability to work in a hybrid arrangement is what a majority of remote-capable employees want. This approach has proven to enhance staff retention and expand the talent pool by enabling recruitment from diverse geographic locations.
Nonprofits will continue to invest in tools that enable seamless remote work and virtual operations, ensuring staff productivity and collaboration across locations. Cloud-based platforms, virtual event tools, and digital workflows will become integral to day-to-day operations, reducing operational costs and increasing efficiency.
7. Enhanced Digital Fundraising Techniques
Fundraising is being transformed by digital tools, with nonprofits increasingly leveraging AI-driven donor insights, personalised outreach, and innovative campaigns. Crowdfunding platforms, virtual events, and blockchain for transparent donations are expected to see significant growth in 2025. These tools not only expand fundraising avenues but also build trust with donors through transparency and accountability. This IDR article provides guidance to nonprofits looking to design their digital crowdfunding campaigns.
8. Data-Driven Decision-Making
The ability to collect, analyse, and act on data will be a game-changer in 2025. Nonprofits will increasingly use data to monitor program effectiveness, track beneficiary outcomes, and inform strategic decisions. Tools for real-time data visualisation and impact reporting will become more accessible, enabling organisations to showcase their impact to donors and stakeholders effectively. Katalyst India and Milaan Foundation are examples of nonprofits that use data analytics to track the success of their programs and improve outcomes for women in India.
9. Green Tech and Sustainable Practices
Sustainability will take centre stage as nonprofits adopt green technology to minimise their carbon footprint. From energy-efficient data centres to paperless workflows, technology will support environmentally conscious operations. Nonprofits involved in climate action will also leverage technologies like predictive analytics for climate risk assessment.
10. Upskilling and Digital Readiness
Digital transformation requires digital-ready teams. In 2025, nonprofits will prioritise upskilling their workforce in digital tools, data literacy, and cybersecurity. Training programs, peer learning opportunities, and partnerships with tech providers will help build the capacity needed to sustain digital transformation efforts. For example, CEQUE — a nonprofit based in Maharashtra, has extensively invested in capacity-building initiatives and data literacy for its staff and field workers, ensuring they can effectively use digital in their work.
A Call to Action
The journey of digital transformation is dynamic, filled with opportunities such as enhanced program delivery and data-driven decision-making, alongside challenges like ethical considerations, cybersecurity risks, and the digital divide. By addressing these hurdles head-on, nonprofits can unlock the full potential of technology to drive meaningful social change. Nonprofits that stay ahead of these trends will be better positioned to create lasting social impact. As we embark on this year, let’s not just focus on adopting technology but on harnessing it to build a more equitable and just world.
The ILSS Digital Transformation for Social Impact (DTSI) Program is designed to support nonprofits in navigating these trends. Applications are now live for the second cohort of the Program which will begin in May 2025. Apply now and take the next step in your digital transformation journey.
About the Author
Roohi Sharma leads the Digital Transformation for Social Impact (DTSI) program at the India Leaders for Social Sector (ILSS), bringing together a background in technology and a deep commitment to education reform. She began her career as an IBM Application Developer before shifting to policy and strategy roles, including bridging gaps for students with learning disabilities at ChangeInkk Foundation in Delhi and shaping charter school systems in the U.S. with the Center on Reinventing Public Education and the Washington State Charter Schools Association. Her experience spans teaching with Teach For India in Pune, strategising with Education Pioneers in Boston, and serving on boards of League of Education Voters in Seattle and Fig Education Labs in Virginia. Roohi is also a women-centric and leadership coach, supporting individuals and organisations through transformational growth.
