Omatic Software Launches First-Ever Nonprofit Modernization Index, Revealing a Sector That Feels Ready for Modernization but Isn’t Structured for It
New benchmark research finds that 53% of nonprofits delayed or abandoned a technology project in the past year, even as
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Mt. Pleasant, SC, July 28, 2026 (GLOBE NEWSWIRE) — Omatic Software, a leader in nonprofit integration and data management, today announced the release of the 2026 Nonprofit Modernization Index, the organization’s first-ever sector benchmark measuring how ready nonprofits are to navigate technology change, including the rapid rise of AI. The report is based on responses from more than 400 nonprofit professionals across nine verticals and introduces a new composite score that nonprofits can use to evaluate their own technology readiness against sector benchmarks.
2026 Nonprofit Modernization Index from Omatic
The Index measures organizations across five dimensions: Strategic Clarity, Data Health, People & Capacity, Investment & Sustainability, and Change Velocity. The report reveals a sector that feels the pull to modernize, whether from funders, boards, peer organizations, or the wider adoption of AI, and is responding to that pull with real investment and real intent. What the Index also shows is that intent is outrunning infrastructure.
“When we set out to build the Nonprofit Modernization Index, we felt that the sector deserved a real benchmark: a rigorous, honest measure of where nonprofits actually stand when it comes to technology readiness, especially as it relates to AI” said Brian Alster, CEO of Omatic Software. “The findings show a sector that is genuinely ready to change: leadership is engaged, budgets are growing, and the appetite for modernization is real. At the same time, there is a growing confidence gap in data: organizations trust their data despite requiring manual edits and management that corrode data integrity over time. This gap will only limit the effectiveness of tech adoption, including AI.”
Key Findings
The Index uncovered several tensions that define the sector’s current state of readiness.
AI adoption is furthest ahead of the structure meant to support it: 62% of nonprofits use AI today, but only 18% do so as part of a defined strategy. Nonprofits still rank data integration and automation (57%) above AI tools (42%) as investment priorities, a signal that many organizations already understand the growing importance of a trustworthy data foundation.
Nonprofits are more confident in their data than the evidence supports: 89% manually reconcile data between systems at least monthly yet rate their data confidence at 3.78 out of 5. As AI and other tools built on that same data become part of daily operations, that gap between belief and evidence carries further than it used to.
The sector is eager for technological change, but execution remains a significant challenge: 53% of nonprofits delayed or abandoned a planned technology project in the past year, and only 34% report a project proceeding as planned. There is a strong appetite to move, but nonprofits continue to struggle with making it to the finish line.
Ultimately, nonprofits are prioritizing modernization, but the underlying foundation hasn’t caught up.
“At Omatic, we’ve spent years working alongside nonprofits on the exact problems in this report: fragmented data, disconnected systems, and the manual work that drains staff capacity and slows the mission,” Alster said. “We published the research contained in our 2026 Nonprofit Modernization Index because we believe a more informed sector is a more effective sector.”
The full 2026 Nonprofit Modernization Index report is available now at https://omaticsoftware.com/modernization-index/.
About Omatic Software
Omatic is the leading integration and data management platform purpose-built for nonprofits. For more than 20 years, Omatic has helped thousands of organizations unify their systems and trust their data, giving every team the confidence to focus on what matters most: their mission. Learn more at www.omaticsoftware.com.
Press Inquiries
Mary Garcia
mary.garcia [at] omaticsoftware.com
https://omaticsoftware.com/
75 Port City Landing, Suite 310 Mt. Pleasant, SC 29464
