Citi Commercial Bank 2024 Global Industry Insights Report

NONPROFIT TECHNOLOGY CAN LIGHTEN THE LOAD Perhaps themost surprising element of the figures from this year’s GIIR is the pace at which Nonprofits are adopting technological solutions as a priority. Around 43% of Nonprofits are already deploying AI solutions, in many cases, tomodernize their donor outreach and diversify their supply chains, putting this industry on the higher end of AI use among those surveyed. We expect that figure to growwith inflation pushing Nonprofits to focus on financial discipline and efficient staff deployment. As well as a trend of more Nonprofits digitizing operations and integrating cybersecurity and cloud solutions. NONPROFITS ARE BETWEEN A ROCK AND A HARD PLACE Nonprofit organizations are under growing pressure to adapt to shifting constraints, with donor expectations continuing to rise. Some 71% of this year’s respondents —more than any other industry — identifiedmanaging cash and minimizing costs as priorities. SUSTAINABILITY BECOMING INCREASINGLY ESSENTIAL This year’s data show a stronger- than-expected focus in the Nonprofit industry on sustainability. While they already have programmatic goals and their own missions, dovetailing themwith environmental goals is becoming more essential if operators in the industry want to secure funding fromdonors. Only 4% of Nonprofits said they saw sustainability as not important in driving long-term growth and competitiveness. Nonprofits are already pressing ahead with plans to better incorporate technology, particularly AI, into their operations. In doing so, they hope to boost efficiency and resilience even as the environment around them gets tougher to navigate. Adopting new technologies is a proactive approach to addressing the financial constraints of staffing pressure, shifting supply chains, geopolitical demands and increasing expectations fromdonors in this industry. Pushing to modernize despite high expectations and headwinds “The most surprising aspect of the data is the rapid pace at which Nonprofits are prioritizing technology adoption, especially AI, despite limited budgets and staffing.” Irina Berg “We would like to have financial stability prior to engaging in any further expansion.” U.S.-based company with annual sales turnover of up to $10million. INFLATION PROMPTS TOUGH DECISIONS Inflation remains a concern— only 8% of respondents said that rising prices haven’t hurt their ability to deliver on their missions. Consequently, Nonprofits are rethinking where money can be best deployed. Inflation has strained budgets, making it more difficult tomaintain previous levels of service and support as effectively as before. Evolving banking regulations and fears about supply chains in an unpredictable geopolitical environment are also playing into this. As such, Nonprofits are seeking new funding and renegotiating contracts with vendors. Irina Berg North America Head for Nonprofit*, Citi Commercial Bank *Nonprofit coverage ismainly out of North America, with the capability of supportingNorth America basedNonprofits with their international expansion ambitions and needs across our more than 90markets.