What Is Nonprofit Change Management?

Change management is a structured process that guides an organization’s transition through operational or technological changes, improving overall nonprofit performance.

A well-planned change management strategy minimizes resistance to new processes and technology and helps organizations operate more effectively.

In this article, we’ll cover the fundamentals, best practices, and the key stakeholders who should be involved in any change initiative.

Why Is Change Management Important for Organizations?

Effective change management helps nonprofits, foundations, and schools adopt new processes and technologies without disrupting operations. Internal buy-in is key—when staff are on board, the organization can run smoothly, avoiding missed opportunities, especially during peak fundraising seasons.

Many nonprofits hesitate to move away from legacy systems, even when they know these systems are inefficient or should be consolidated into a “single source of truth” platform. The perceived cost or complexity of transitioning can seem overwhelming, but continuing to use outdated tools leads to wasted time and resources, which nonprofits can’t afford, especially those with limited staff and budgets.

What Makes Change So Difficult?

Gaining Organizational Buy-In

Resistance to change, lack of trust in leadership, and poor communication can make it difficult to gain employee support. Frequent changes may lead to fatigue, leaving employees less engaged and resistant to future initiatives.

If the proposed changes conflict with the organization’s culture or values, there can be significant pushback. Moreover, when employees feel excluded from the planning process, they are more likely to disengage and resist the change.

Dealing with Technology Challenges

New systems frequently introduce technical complexities, from integration challenges to potential data risks. Staff may require substantial training to adapt, and limited time or budget can further strain the implementation process. In addition, ensuring reliable vendors and addressing cybersecurity concerns are critical to achieving a smooth transition.

9 Key Principles of Successful Change Management

Organizations can avoid the headaches of operational change by keeping these principles in mind:

1. Clear vision and objectives: establish a clear understanding of what the change aims to achieve and how it aligns with the organization’s mission.
2. Effective communication: keep all stakeholders informed about the change process, benefits, and impacts to ensure transparency.
3. Stakeholder engagement: involve employees, volunteers, donors, and beneficiaries early to gain their input and buy-in.
4. Strong leadership support: leadership must actively support and drive the change, setting an example for the rest of the organization.
5. Comprehensive planning: develop a detailed roadmap that outlines steps, timelines, and resources needed for the change.
6. Training and support: provide education and resources to help everyone adapt to new processes or technologies.
7. Monitoring and feedback: regularly assess progress and be open to adjusting the plan based on feedback and changing circumstances.
8. Effective communication: maintain transparency, providing open and honest information about the change process to reduce uncertainty and build trust.
9. Adaptability and continuous improvement: foster a culture that focuses on change as an opportunity for growth by regularly assessing the impact of the change and being willing to adjust plans.

By embracing these principles, you’ll do more than just get through uncomfortable change—you’ll set your organization up for growth and even better performance.

Which Team Members Should be Involved?

When determining who should be part of the change management team, first ask:

• “Who will use this daily?”
• “Who is impacted by the software or tech?”
• “Who can ensure a successful launch?” 

The answers will typically point to following groups:

• Executive leadership: CEOs, directors, and board members who can provide direction and make strategic decisions. Having a single executive “champion” can also be beneficial, so they can lead the charge to drive urgency and act as the main point of contact for the change.
• Management teams: department heads and project managers who will oversee implementation and address operational concerns.
• Staff and volunteers: those who will be directly affected by the change and are crucial for its successful adoption.
• Technology experts: IT professionals or consultants who can provide technical support and ensure smooth integration of new systems.
• Donors and beneficiaries: stakeholders who may be impacted by the change in services or engagement methods should always be consulted.

Measuring Success

To evaluate how effectively a change was implemented, the organization should establish specific Key Performance Indicators (KPIs) and metrics that align with the desired outcomes.

Here are some examples to consider:

• Reduced costs: Measure how streamlining technology or consolidating systems has reduced overhead.
  • Example: After adopting Blackbaud Raiser’s Edge NXT®, the organization reduced software expenses by 20% and eliminated the need for multiple platforms.
• Performance improvement: Measure key performance indicators such as an increase in funds raised, new donors, or donor retention rates.
  • Example: After implementing a new donor segmentation strategy, the organization achieved a 20% increase in fundraising revenue.
• Process efficiency: Assess reductions in time or resources needed to complete tasks.
  • Example: After automating the gift acknowledgment process, the time spent sending personalized thank-you letters to donors was reduced by 60%, freeing up staff to focus on high-impact fundraising activities.

Some other examples include measuring staff satisfaction, adoption rates, and training completion percentage.

Software Providers Should Also Provide Transitional Support

Your organization shouldn’t have to go through changes alone. Ideally, if your nonprofit is migrating to a new software platform or making an upgrade, the software provider should offer ample support. For example, Blackbaud provides implementation consulting services, an account manager, extensive documentation, and a community that encourages feedback.

Blackbaud University courses have helped legacy Raiser’s Edge users transition to Raiser’s Edge NXT, enabling them to fully utilize its cloud-based capabilities and consolidated workflows. A strong external support team paired with an internal change management team can be a powerful combination for success.

Starting the “Change” Conversation

If your organization faces current challenges with outdated processes or technology, how do you begin the conversation about change? Start with the steps below:

1. Identify and communicate the need for change: clearly articulate the limitations of the current process or technology, focusing on how these issues are costing the organization money, wasting time, or risking loss of critical data. Emphasize how these inefficiencies impede the organization’s mission and create a compelling case for change.
2. Engage key stakeholders early: bring together leadership, staff, and other essential stakeholders to discuss the potential technology change, encouraging open dialogue to address concerns and gather input.
3. Research and present solutions: investigate suitable technological options and present how these new solutions could enhance workflows and fundraising efforts, while aligning with the organization’s goals.
4. Outline a preliminary change management plan: provide a high-level overview of the proposed implementation process, including timelines and required resources, to give stakeholders a clear understanding of next steps.

And where do you go from there? You can download Blackbaud’s Nonprofit Change Management Toolkit for best practices and the step-by-step strategy your organization needs to manage change, from start to finish.