Opportunity is defining 2023 for nonprofits, education, and local government organizations. From capturing new market opportunities to investing in opportunities to increase efficiency, organizations are finding new ways to meet the needs of their beneficiaries, despite an uncertain economic environment.
MIP Fund Accounting conducted its 2023 Trends and Insights Report to quantify the state of the nonprofit, education, and government sectors as a whole and define how organizations believe 2023’s economic environment will affect them and various aspects of nonprofit operations and management, including staffing, technology utilization and efficiency, and technology investment.
Some of the most telling insights in the survey relate to the economy and cloud-based technologies.
The 2022 economic environment created more questions and uncertainty, but nonprofit organizations, municipalities, and schools have answered with opportunity in 2023. Respondents are weathering the economic uncertainty, and all three sectors believe their organization’s outlook will improve in 2023.
When questioned about the economy, 36% of organizations believe the U.S. is in a recession, 42% do not believe the U.S. is in a recession, with the remainder undecided. Yet, respondents aren’t concerned. Seventy-five percent of respondents expect the U.S. economy to improve in 2023.
Respondents also believe the current economic climate will not affect revenues. Seventy-seven percent of organizations expect their revenues to increase in 2023, with 80% of nonprofits, 69% of schools, and 82% of government organizations predicting increases. Organizations are driving these increases by diversifying accounting streams and relying on technology to accelerate that transition.
Technology plays a vital role in an organization. Respondents attributed their optimistic mindset for 2023, in large part, to their technology.
Over the last two years, we’ve conducted surveys on cloud-based technology adoption and workflow efficiency. While MIP’s 2022 Nonprofit Research Study found that organizations used multiple pieces of technology that created inefficiency, they also desired to adopt cloud-based systems that could condense their technology portfolio and create efficiency. In this year’s survey, respondents continue the trend and are actively seeking out opportunities to invest in cloud-based systems and processes with 58% of organizations planning to adopt a cloud-based accounting solution and 69% of organizations planning to adopt a cloud-based payroll solution in 2023.
“Opportunity is defining 2023,” shared Neil Taurins, MIP General Manager. “Our research found forward-thinking organizations are capturing new market opportunities and investing to increase efficiency. Across nonprofit, education, and local government, organizations are finding new ways to maintain their success and provide opportunities to advance their missions.”
With 2023 underway, nonprofit, education, and governmental organizations will lead the charge to look ahead, create opportunities, and capture success.
The survey further discusses economic observations by organizational type, technology efficiency, and technology adoption trends.
To read more, download the 2023 Trends and Insights Report here.