Envisioning and Empowering the New Normal in Nonprofit Fundraising

The nonprofit sector is a fractured and fragmented landscape of funders and nonprofits, all feeling pressure from different sides. After several decades of digital transformations, state and federal policy changes, and capitalist market pressures, nonprofits and their funders now navigate layers of complexity that make it hard to actually work together.

A coalition of long-time leaders in the Chicagoland philanthropic community came together to see how they might build connections that live up to the urgency of the moment. As 8th Light’s designers and product specialists learned more, we saw an opportunity to uncover the underlying challenges in the nonprofit funding landscape, and collaboratively craft a solution that is systemic and sustainable to stand the test of time.

What if we support the nonprofit community to …

• Respond to emergent needs?

• Impact communities more equitably?

• Build future-focused and growing partnerships?

Uncovering the root issues with design thinking.

8th Light led a human-centered design research process to explore the problem directly with intended end users. The process included 14 hour-long interviews with professionals working at six nonprofits and seven funding organizations. Interviews were optimized for learning and inspiration, speaking directly with stakeholders and potential users to gain a full context of their world — from personal, professional, psychological, and physiological circumstances.

As we learned, we began organizing recurring themes and concentrating on shared challenges. We aspire to do more than simply recreate existing systems with nicer tools, but to unpack the users’ goals and intentions. To do this, we need to think outside of existing solutions. Using the Jobs To Be Done technique, we challenged our own assumptions, ensuring we understood users’ underlying motivations and needs.

Mapping the problem space.

The current nonprofit funding landscape is a patchwork of disconnected and redundant application forms and data requirements. After synthesizing these challenges into themes, we collectively converged on a product vision for a matchmaking platform and community-building tool.

Challenges For Funders

• Covering and coordinating over geographic distance

• Discovery of new and innovative opportunities

• Easier response to relevant and ongoing needs

• Measuring and showing impact

• Providing equitable funding

Challenges For Providers

• In-person networking drives most fundraising efforts, limiting access to connections

• Increasing visibility and awareness

• Lack of resources

• Funders often do not fund overhead, including the cost to apply for and manage grants

Envisioning a new future together.

Just like the fragile ecosystem of nonprofit funding, software systems present a complexity that requires thoughtful consideration and planning.

8th Light’s Executive Consultant consulted throughout this engagement to provide perspective on technical challenges and opportunities, and to monitor the scope of our ambition. The goal is to connect people with resources, and the team aspired to the simplest software solution that could bring them together without introducing new challenges or frustrations.

Together, we developed a product roadmap that breaks down the project into phases — bringing funders and providers together sooner — while providing the team with vital feedback on how this product should evolve.

Now equipped with the right solution based on user needs, 8th Light’s leadership team is working with the product stakeholders to gain additional interest and secure funding so that funders, nonprofits, and the communities they support can all build a brighter future together.