2024 State of Nonprofit Digital Engagement Report

Background

Back in 2022, the urgency for more developers and software engineers to empower nonprofits in their digital transformation was widely recognized. Both businesses and nonprofits were increasingly reliant on digital engagement, and facing the growing complexity of managing these technologies effectively.

But there was an obstacle: the availability of talent. Our 2022 report put a finer point on that need by reporting that 25% of nonprofits were experiencing a shortage of developer talent, and 65% planned to hire developers to bridge this gap and enhance their digital capabilities.

Nearly 8 in 10 nonprofits plan to increase their investment in digital communications in 2024.

Building customer trust by protecting data

Addressing the talent gap

Our latest research shows nonprofits are making great strides in hiring developers. Only 19% report a shortage, with 90% planning to hire more in 2024. Nonprofits now average 33 developers on staff, with the majority of organizations reporting that they have the software developer talent that they need.

Developer investments pay off

Investing in developers to support digitizing engagement has led to better outcomes for end users, more end users served and increased retention. By hiring the right talent and leveraging pro bono support, nonprofits are set to achieve their goals and drive meaningful change.

Top benefits of digitizing end user engagement

Most importantly, in this era of “do more with less,” 33% report a positive return on investment on digitizing engagement with end users, reflecting the significant impact of strategic developer hires and enhanced digital engagement strategies.

Percent of nonprofits with at least one software developer/engineer on staff

Nonprofits are hiring technical talent

97% of organizations say they have at least one software developer or engineer on staff. Most teams are much larger. On average, organizations employ 33 software developers.

This rise in technical talent is delivering benefits across nonprofits. As covered in Trend 1, the majority of nonprofits report that digitization of their end user engagement provides them with four or more different benefits. In 2022, 39% reported gaining four or more distinct benefits from digital engagement, a number that surged to 60% by 2024.

How Twilio funds tech-driven impact

At Twilio.org, we believe organizations should be able to source the right dedicated technical talent and reward them for their value. We understand how difficult it can be to get unrestricted funding to hire developers, and how essential that dedicated expertise is to scaling nonprofit impact.

This is why we run two funding programs aimed at supporting tech-driven impact; The Customer Acceleration Fund and Digital Innovation Grants:

The Customer Acceleration Fund helps nonprofits implement Twilio solutions through expert consulting services, removing barriers to digital engagement.

Digital Innovation Grants provide broader support to build technical capacity and drive comprehensive digital transformation within nonprofits.

Actionable insights

As many organizations are struggling with declining donations and greater competition for grant funding, optimal allocation of funds becomes an even trickier puzzle. The problem is only compounded when well-intentioned funders request that their donations go only to the programmatic needs of the organization.

In order for these nonprofits to thrive, they need the technical talent that will help them scale their operations and make a larger impact in the world. It’s not that the need to hire skilled employees outweighs the core mission. Rather, it complements those efforts.

Successful organizations often embrace a holistic approach to grantseeking, identifying potential funding sources for their workforce, technology, and other operational expenses. This also applies to flexible donations that aren’t designated for specific use. By ensuring that investments can be made that support digital engagement with end users, organizations can pave the way for sustainable success.

With the increasing dependency on digital engagement for operational success, there is lots of work to be done. So even with their larger developer teams, roughly 3 out of 4 organizations plan to seek a moderate to large amount of outside technology support.

Budget constraints are one of the most frequently cited challenges when it comes to nonprofits understanding and serving their end users. Many successful nonprofits manage costs and achieve their goals through pro bono contributions from volunteer developers. Nearly half of nonprofit ‘digital leaders’ report using volunteers, compared to just 39% of organizations at the early stages of digital maturity. However, it's important to note that while volunteer tech talent can be valuable, it often lacks consistency. For example, volunteers may not always be available for long-term projects, which can affect the stability and maintenance of a code base.

Explore the data

Sector-specific insights for nonprofits, public sector, and 501(c)(3) healthcare and education

State of technical talent within this sector

Percent of this sector's organizations have 10+ developers on staff

Percent of this sector needing outside help in 2024

Planned software developer hires by this sector in 2024

Nonprofit spotlight

IFRC helps more people internationally by building team of digital experts

The International Federation of Red Cross and Red Crescent Societies (IFRC) is expanding its humanitarian reach by deploying Twilio Flex for digital helpdesks in Hungary and the Netherlands. These help desks streamline the delivery of aid to displaced individuals, handling cases in multiple languages through local channels like Viber and WhatsApp.

The Data & Digital initiative of the Netherlands Red Cross, called the 510, developed these helpdesks to meet surging demand, providing cash assistance to people displaced by the Ukraine conflict in Hungary and delivering critical support to undocumented migrants in the Netherlands. With Twilio Flex, IFRC is able to personalize aid, respond to requests faster. The organization has plans to extend its humanitarian reach with Twilio Flex in 15 additional countries.