What Separates Digital Leaders From Laggards in the Nonprofit Sector?

This content is brought to you by our partner, Twilio.org, which helps social good organizations use communication technology to amplify their impact.

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Maria was exhausted. As the Director of Outreach at Unity Outreach Network, she juggled donor engagement, volunteer coordination, and digital communications—but engagement was slipping. Emails went unopened, volunteers missed shifts, and tracking interactions across spreadsheets felt impossible.

Maria knew that in the 21st century, reaching people meant meeting them where they already were—on their phones, in their inboxes, and across digital channels. 87% of nonprofit leaders agree that digital communication is critical, according to Twilio.org’s 2024 State of Nonprofit Digital Engagement Report. But Maria lacked the time, budget, or expertise to overhaul their approach.

Some nonprofits, like hers, struggle with disconnected systems and one-size-fits-all messaging. Others are beginning to adopt AI, automation, and integrated engagement tools. A growing number are leaders in digital maturity, using data-driven strategies to scale their impact.

Where does your nonprofit stand? This article follows Maria and her peers on their fictional but relatable journey, offering real-world insights on the future of nonprofit engagement.

The Four Factors of Digital Maturity

Through conversations with other nonprofit leaders, Maria had come to understand that digital maturity isn’t a single milestone but a spectrum, shaped by four key factors that determine how well an organization communicates and connects with its audience:

• Communications Channels – How an organization reaches its audience, ranging from limited digital outreach to seamless omnichannel engagement across email, SMS, social media, chat, and more.
• Communication Style – From one-way messaging to fully conversational communication, where supporters engage in real-time.
• Level of Personalization – The degree to which communication is tailored, spanning from generic, one-size-fits-all communication to AI-driven predictive engagement that anticipates donor and volunteer needs.
• Use of End User Data – How effectively an organization uses data to drive engagement, from ad hoc, manual efforts to automated, data-driven decision-making that optimizes outreach.

Twilio.org’s report categorizes nonprofits into three levels of digital maturity:

• Beginner– Limited digital channels, one-way messaging, minimal personalization, and ad hoc use of data. 24% of nonprofits sampled fell into the beginning stage.
• Developing – Expanding digital channels, early-stage personalization, and some automation, but gaps in integration. 53% of nonprofits sampled fell into the developing stage.
• Leader– Fully integrated digital ecosystems, AI-powered personalization, predictive engagement, and data-driven decision-making. 23% of nonprofits sampled fell into the leader stage.

Maria wondered: Where did Unity Outreach Network stand?

A Beginner Digital Communication Profile – Siloed and Struggling

Maria prided herself on doing a lot with a little. For over a decade, Unity Outreach Network had provided food assistance, emergency housing, and job readiness programs. But donors gave less, volunteers felt disconnected, and staff were stretched thin. Every campaign felt like starting from scratch.

With 71% of nonprofits prioritizing personalized communication in 2024, Maria realized the issue wasn’t effort—it was a lack of digital structure and personalization.

Signs of a Beginner Stage Nonprofit

Maria’s struggles mirrored what many nonprofits face in the early stages of digital maturity. Some of the key challenges included:

• Siloed Systems – Donor, volunteer, and beneficiary data were scattered across spreadsheets, email chains, and a legacy CRM that no one knew how to use properly. 
• One-Size-Fits-All Communication – Whether a donor had given $10 once or contributed monthly for five years, they received the same generic email. Volunteers weren’t thanked personally. No segmentation, no relevance—just mass messaging with declining impact.
• Manual, Time-Consuming Processes – Staff spent hours pulling reports, following up individually, and managing disjointed systems. 

Maria knew Unity Outreach Network needed a change. She thought of her peer, Robert, who had faced similar struggles but was making progress toward digital transformation. 

Digital Communications Progress Over Perfection

Robert, Executive Director of Community Impact Collective, had once struggled with fragmented systems and manual processes. But a year ago, Robert’s organization received a small but strategic grant from a foundation that supported technical capacity-building for nonprofits. He, like 92% of nonprofits, believe that AI will enhance their engagement with beneficiaries. His board approved investing part of the grant into digital infrastructure upgrades.

Unlike Maria, Robert had resources to take that first step. His team focused on a few key things: strengthening donor retention: they used part of the grant to implement a CRM with automated follow-ups, improving volunteer coordination: they introduced an SMS-based volunteer management system, sending automated text reminders and shift confirmations, which significantly reduced last-minute no-shows. 

With all of these improvements, Robert’s nonprofit scored in the “Developing” stage of digital maturity. 

Signs of a Developing Stage Nonprofit

Majority of nonprofits, like Robert’s, fall into the Developing category—they recognize the importance of digital engagement and have taken steps to improve, but gaps still remain.

1. Some Integration, but not Full Connectivity – Robert’s team had adopted a donor CRM and sent automated volunteer updates, but they weren’t fully integrated. They still had to manually pull reports and sync data between platforms.
2. Personalization in Progress – Email segmentation had improved outreach efforts, and AI-powered tools helped answer common questions from donors and volunteers. But personalized engagement still wasn’t happening across all communication channels.
3. AI & Automation Adoption Is Growing – Robert’s organization had started using basic automation tools, like chatbots and email workflows, to save time on repetitive tasks. However, they weren’t yet leveraging more advanced AI-driven insights to inform their strategy.

Robert knew there was still room to grow. One of his biggest inspirations? His peer, Joon, who had taken digital maturity to the next level.

Leading the Digital Communications Charge

Joon, CEO of HopeWorks Alliance, had taken digital maturity to the next level. Like Maria and Robert, he once struggled with engagement challenges. But as 9 out of 10 nonprofits now leverage AI, investing in technology was an easy decision.

A surge in donations following a high-profile disaster gave them the chance to invest in long-term digital infrastructure. Their goal? Ensure every interaction with donors, volunteers, and beneficiaries was meaningful and data-driven.

That decision paid off. Today, HopeWorks Alliance has a more connected ecosystem, with donor, volunteer, and messaging platforms working together. AI-driven personalization has improved outreach and increased recurring contributions.

Beyond fundraising, AI helps them better serve beneficiaries. A modernized helpline with AI-powered chatbots provides immediate assistance, triaging urgent cases and reducing wait times.

Joon’s nonprofit wasn’t just embracing digital transformation—it was proving how technology can enhance, not replace, human connection.

Signs of a Leader Stage Nonprofit

Leader nonprofits seamlessly integrate technology, unifying donor, volunteer, and beneficiary data. AI and automation drive personalized, proactive engagement, strengthening relationships and scaling impact.

Joon’s nonprofit had reached this stage—but Maria wondered: Where should she start?

Turning Vision Into Impact

Maria, Robert, and Joon each represented a different stage of digital communications maturity within their fictional nonprofits, but they all shared the same goal: to make a greater impact with the resources they had.

Curious about where your nonprofit stands on the digital maturity scale? 

Take our Nonprofit Digital Maturity Quiz to see how your organization compares to peers, identify growth opportunities, and receive tailored recommendations. Based on insights from over 1400 nonprofit leaders and 1500 nonprofit beneficiaries, this quiz highlights key digital engagement trends and best practices. 

Working in healthcare, higher education, or the public sector? We’ve developed sector-specific assessments to help other mission-driven organizations enhance their digital engagement.