Nonprofit Software Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-based and On-premises), By Application (Individuals and Nonprofit Organizations) and Regional Forecast to 2033

NONPROFIT SOFTWARE MARKET REPORT OVERVIEW

Nonprofit Software Market was valued at USD 4.25 billion in 2024 and is expected to reach USD 4.68 billion in 2025, growing USD 8.23 billion by 2033, with a CAGR of 8.1% during the forecast period

Nonprofit software can be defined as the various applications and programs that are used to help non-profit organizations to manage their business effectively, and support achievement of their goals. These software solutions meet the specific needs of these organizations for fundraising, donor tracking, volunteer management, tracking of money received or spent, and management of programs.

COVID-19 IMPACT

Nonprofit Software Industry Had a Positive Effect Due to Increased Demand for Digital Tools during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

When the pandemic started, like many other industries, nonprofits also had to shift toward working remotely. From this it emerged a need to adopt technical products that supported remote working such as project management tools, collaboration software, and virtual event software.

LATEST TRENDS

"Cloud-Based Solutions and Integration to Propel Market Growth"

Increased usage is being seen to use cloud-based software solutions to work better with scalability for nonprofit organization. Cloud platforms provide affordable, available and versatile solutions that help the nonprofits to store information, and access it from a distance. The second indication found in the case is that nonprofit organizations are more interested in purchasing a software on, for example, CRM systems, email marketing applications, fundraising applications, and financial applications. It assists to build an integrated environment for operations as well as donor management and tracking.

NONPROFIT SOFTWARE MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Cloud-based and On-premises.

• Cloud-based- Web-based nonprofit software represents an application that is located on the internet, which means that the users can get it only through the internet on a browser or a mobile application. These solutions may cost a subscription fee and are evolved and managed by the software company.
• On-premises- On-premises nonprofit software has its software and data on some of the organization’s servers, not over the internet. Such software is bought on license basis, and the nonprofits are expected to provide the hardware, software and update them on their own.

By Application

Based on application the global market can be categorized into Individuals and Nonprofit Organizations.

• Individuals- Software available for nonprofit organizations, help persons to give online, and keep records for their donations as well as receive receipts for them from the IRS. Most fundraisers support the daily giving or allow users to make general donations to the frequency of donations.
• Nonprofit Organizations- Nonprofit software also helps organizations to have important donor relation data such as his/her donations history and level of engagement in order to facilitate proper stewardship and retention.

Driving Factors

"Increasing Adoption of Digital Transformation in Nonprofits to Drive Market Advancement"

One of the key driving factors in the Nonprofit Software market growth is the Increasing Adoption of Digital Transformation in Nonprofits. The nonprofits’ use of technology has seen a rise as an adoption of transformative measures to make their operations better, reach out new supporters, and undertake repetitive tasks. It is justifiable to state that corresponding software applications facilitating donor management, financial, and event tracking, and volunteer cooperation are emerging as indispensable. The growth in the market for nonprofit software solutions is driven by the continuous migration of nonprofits to the use of digital applications.

"Rising Need for Efficient Fundraising and Donor Management to Expand the Market"

Managing donations is an essential part of the nonprofit’s work, and nonprofits need tools to keep track of donors and fundraising campaigns. The use of nonprofit software enables segmentation of donors and communications, as well as tracking the donations received, aspects which have a positive impact of fundraising. The growing demand for better management of donors and improvements that need to be made in fundraising campaigns is driving the nonprofit software market.

Restraining Factor

"High Costs of Implementation and Maintenance to potentially impede Market Growth"

The expenditure required to incorporate nonprofit software is struggled with because of its high costs especially with the small organizations involved. The high initial cost is a major issue; this is most especially true with those Nonprofit organizations that are struggling to make ends meet or those with shrinkages in their budgets. Besides the acquisition costs, recurring expenses, such as software maintenance and upgrade costs, or costs for potential additional elements put pressure on the nonprofit’s financials.

Opportunity

"Growing Digital Transformation in the Nonprofit Sector To Create Opportunity for the Product in the Market"

The overall growth of nonprofit cloud solutions is one of the biggest opportunities for nonprofit software vendors. Saas solutions help the nonprofit organizations to access data over the internet, grow their organization effectively and efficiently and free them from costs on infrastructure and IT support.

Challenge

Complexity and Usability Issues Could Be a Potential Challenge for Consumers

Some nonprofit software solutions are somewhat intricate, and may present challenges both in terms of installation and usage. The software may look complicated especially for the smaller nonprofits with less human and technical capacity which will slow down the adoption. Another disadvantage is that some of the employees or volunteers will take time to learn how to use the software, or even after being trained, the software may have a complicated interface, or may require frequent upgrades that will make users slow down when undertaking their activities. Such steps can lead to wastage and are found to be counterproductive in the long run.

NONPROFIT SOFTWARE MARKET REGIONAL INSIGHTS

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• North America

North America has emerged as the most dominant region in the Nonprofit Software market share due to a convergence of factors that propel its leadership in this dynamic industry. North America and particularly the United States has a vibrant and well-developed nonprofit sector composed of thousands of organizations operating in diverse fields such as HC, education, social services and many others.

• Europe

Opening it up Europe also has a sound Nonprofit sector, several Nonprofit international organizations; but, not yet equal in size and growth rate as North America. As for nonprofit software, there is a great demand for it, but the purchase of software is itself influenced by national legislation, which differs from country to country in Europe.

• Asia

The Asia Pacific region is still in the development process and has not matured as much as the North American region’s nonprofit organizations: nonprofit organizations. Nonetheless, there are some countries that reported the growth of nonprofit organizations and digital tools which may point to further revenue growth for nonprofit software in the next few years at least for India & China.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Nonprofit Software Market Through Innovation and Market Expansion"

Key enterprise players are shaping the Sandblasting Media marketplace through strategic innovation and marketplace growth. Blackbaud is one of the largest global suppliers of nonprofit software solutions improving its product portfolio through adding features like advanced analytics, artificial intelligence, and data-driven campaigning and fundraising. They also outline work in Cloud solutions that can be elastically scaled for nonprofits of varying sizes.

LIST OF TOP NONPROFIT SOFTWARE COMPANIES

• Fundly (U.S.)
• Aplos (U.S.)
• Donately U.S.)
• Kindful (U.S.)
• NeonCRM U.S.)

KEY INDUSTRY DEVELOPMENTS

2022: Blackbaud has remained keen on improving its cloud offerings for instance Blackbaud Raiser’s Edge NXT for fundraising management in the cloud. The platform local accessibility makes it even easier for the nonprofits since it developed with a cloud base model which enhances integration with other systems.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.