#Software

Nonprofit & Social Impact Software & Services

Nonprofit and mission-driven organizations operate in a large, resilient ecosystem that is still in the early innings of technology adoption. As organizations face growing pressure to engage donors and constituents more effectively, diversify funding sources and operate with greater efficiency and transparency, purpose-built software is increasingly replacing spreadsheets, legacy systems and fragmented point solutions.

LLR is focused on software and services that help nonprofits modernize critical workflows across fundraising, constituent engagement, financial operations, grant and program management and impact measurement. We believe the combination of a large and fragmented customer base, durable charitable giving and accelerating adoption of cloud, data and AI solutions creates a compelling opportunity for category-leading vertical software and services businesses.

The US nonprofit sector is large and growing with many organizations still in the early innings of tech adoption within their operations.

Cheng Li, Principal, LLR Partners

Tailwinds that Further Accelerate Demand for Nonprofit & Social Impact Software & Services

Large and Resilient Market: Approximately 1.8 million nonprofits operate in the United States, with roughly 80,000 new charities created annually. 1 U.S. charitable giving reached ~$610 billion in 2025 (~4% CAGR since 2000).2 Despite macroeconomic volatility, charitable giving has remained durable, supporting a significant ecosystem of nonprofit organizations and technology vendors.

Modernization of Legacy Technology: Only 12% of nonprofits consider their organizations digitally mature, with many still relying on spreadsheets, horizontal tools and legacy systems. 3 Purpose-built, cloud-native platforms are gaining adoption as organizations seek greater scalability, flexibility and integration.

Shift Toward Digital and Recurring Giving: Even as total charitable dollars grow, nonprofits face an increasingly competitive environment for donor attention. Integrated CRM and engagement platforms can provide a 360-degree view of constituents, enabling more personalized communication and helping organizations improve donor acquisition, engagement and retention. 4

Increasing Importance of Constituent Engagement: Online giving continues to outpace overall giving growth, increasing 11% between 2024 and 20255, with 63% of donors preferring to give online by credit or debit card. 6

Data, AI and Automation: Resource-constrained nonprofits are increasingly able to leverage analytics and AI to identify prospective donors, personalize outreach and automate administrative workflows. These capabilities can improve fundraising effectiveness while allowing staff to dedicate more resources to their core missions. 7

 

The value proposition for nonprofit & social impact software & services

48%
8
of nonprofits have adopted AI in their workflows
85%
9
nonprofit finance leaders use vertical-specific management and accounting software
$617B
10
estimated donor management and fundraising SaaS opportunity

Meet the LLR Team

References

  1. “The State of the Nonprofit Sector (2026): 150+ Nonprofit & Fundraising Statistics for U.S. Organizations.” Funraise, 2026, https://www.funraise.org/blog/the-state-of-the-nonprofit-sector
  2. “Giving USA 2026: The Annual Report on Philanthropy for the Year 2025.” Giving USA, 2026, https://givingusa.org/product/2026-annual-report/
  3. “Nonprofit Trends Report 5th Edition.” Salesforce, 2022, https://www.salesforce.com/news/stories/nonprofit-statistics-trends-2022/
  4. “15 Best Nonprofit CRMs for 2026: Compare the Top Solutions.” Kindful, 2026. https://kindful.com/nonprofit-glossary/nonprofit-crm
  5. “2025 Trends in Giving.” Blackbaud Institute, 2025, https://institute.blackbaud.com/resources/2025-trends-in-giving
  6. “Nonprofit Fundraising Statistics to Boost Results in 2026.” Double the Donation, 2026, https://doublethedonation.com/nonprofit-fundraising-statistics/
  7. “Nonprofit Trends Report 7th Edition.” Salesforce, 2025, https://www.salesforce.com/nonprofit/resources/ngo-trends-report-7th-edition/
  8. “Nonprofit Leadership Report 2025-26.” Grassi Advisors, 2025, https://www.grassiadvisors.com/blog/nonprofit-leadership-report-2025-26/
  9. “Key Findings from the 2024 Nonprofit Technology Trends Survey.” Sage, 2024, https://www.sage.com/en-us/blog/key-findings-2024-nonprofit-tech-trends/
  10. “Giving USA 2026: The Annual Report on Philanthropy for the Year 2025.” Giving USA, 2026, https://givingusa.org/product/2026-annual-report/
Disclaimer:

The information presented herein is intended for an audience of potential LLR portfolio companies and the intermediaries supporting their capital raise processes. Named LLR investments presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives and other quoted parties herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies or reflect the individual’s perspective on the featured industry sector. Such portfolio companies are controlled by investment vehicles managed by LLR. Quoted parties were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company or Senior Operating Advisor roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.