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Nonprofits & Public Institutions
Report

Public institutions and nonprofit organizations — Making Value Visible to Preserve the Means to Act

The State of the Market

Indispensable organizations, limited means

Nonprofit organizations and public institutions employ millions of people, sustain the social fabric, and deliver services that communities depend on in their most vulnerable moments. In the United States alone, the sector contributes $1.4 trillion to the economy and employs more than 10% of the private workforce.

Yet in budget debates they are still treated as a “bonus,” subject to discretionary charity, even though they are essential to the socio-economic landscape. 

This gap has a serious impact: 36% of American organizations ended 2025 with an operating deficit, the highest rate in ten years, a trend also observed in Europe.

A structural gap between the value produced and its budgetary recognition

The pursuit of low overhead costs has limited investment in the tools needed to measure and demonstrate the value created. 

Many organizations hold data on their activities, but not always the systems needed to convert it into tangible evidence: jobs supported, wages paid, tax revenues generated.

Unable to present this evidence in formats that decision-makers can use directly, they are at a disadvantage in budget trade-offs against organizations able to substantiate their results and contribution more clearly. 

More than half of American organizations have three months or less of cash reserves, while 90% of leaders say they fear the growing risk of team burnout. It is a vicious circle: fewer resources, less capacity to produce evidence, less funding, and a sector under strain.

We have identified three recurring issues: narratives still largely centered on the mission and the urgency of needs, without making the organization’s socio-economic contribution sufficiently visible; fragmented service journeys, reflecting programs organized in silos that force beneficiaries to repeat their situation from one touchpoint to the next; and data systems too scattered to measure and share results effectively.

At AREA 17, we approach these challenges through three complementary dimensions: how the organization asserts its role and demonstrates its value, the experience offered to the people it supports across its different touchpoints, and the technological and organizational foundations that make it possible to better connect services, data, and results.

Anchoring the Narrative in Socio-Economic Contribution

When resources shrink, the mission alone is no longer enough to secure budget priority. Organizations must also be able to state clearly what they contribute to the economy, to regions, and to the communities they serve.

This requires evolving the narrative: no longer speaking only about the needs they address, but also about the results produced, the public value created, and the concrete effects of their action. 

Organizations then shift the conversation: they no longer defend only a mission or a funding need, but the public and socio-economic value they generate.

This matters all the more because access to funding remains unequal. In the United States, 71% of organizations led by people of color have been affected by funding restrictions, compared with 57% of white-led organizations.

Donor expectations are changing as well. The youngest donors expect more evidence of the effects of their giving: measurable results, transparency on the use of funds, and consistency between commitments and practices. 

Making impact visible thus becomes a lever for trust as much as a lever for funding.

Key takeaway

Shifting the narrative from the mission alone to a clear demonstration of the contribution created is becoming essential to convince funders, inform decision-makers, and strengthen donor trust.

Rethinking Journeys Around People, Not Programs

People who turn to public or nonprofit services rarely arrive with an isolated need. Financial hardship, housing, health, employment, and social support are often linked. Yet services remain largely organized by program: separate entry points, poorly connected files, and information that moves with difficulty from one program to the next. 

For beneficiaries, this often means having to find the right contact, repeat their situation, and reconstruct their journey at every step.

This fragmentation reflects the way programs are funded, administered, and monitored more than it reflects the reality of needs. Services exist, but coordinating them remains difficult, at the risk of leaving some needs unanswered and shifting part of this complexity onto teams already under pressure.

Technology-backed experiences can help simplify these journeys: eligibility or status checks, appointment booking, referral to the relevant services. AI opens up new possibilities for these tasks, but its role must remain that of a facilitator. 

For complex situations, 83% of beneficiaries prefer direct access to a qualified person. The challenge is therefore to reduce friction and improve the flow of information, while preserving human involvement where judgment, understanding of context, and relationship are essential.

Key takeaway

Unified entry points and journeys able to support people from one program to the next reduce the fragmentation of services. AI can absorb repetitive tasks and facilitate referral, while preserving human involvement where it remains essential.

Turning Infrastructure into a Lever for Impact

Public institutions and nonprofit organizations often operate with an accumulation of systems designed to serve specific programs, funders, or obligations. Beneficiary management, donation collection, reporting, operational tools: each new requirement can add another layer, without necessarily strengthening the whole.

This fragmentation has a cost. It multiplies manual tasks, limits the flow of information, and makes every change more complex.

In a context of constrained resources, the challenge is therefore not to add more technology, but to build foundations that are interoperable and modular enough to evolve services without rebuilding systems every time a program or funding source changes.

Better structured and governed data is an essential component. It makes it possible to share information between services, to produce more easily the evidence funders expect, and to create a reliable base for new uses. 

It is also a prerequisite for the responsible deployment of AI: 58% of organizations now use it, but only 21% feel prepared to manage its impact.

In a sector where resources are limited, and where services and data are often fragmented across programs, technology must above all reduce complexity, strengthen continuity of services, and allow organizations to adapt without weakening what already works.

Key takeaway

Interoperable systems, governed data, and architectures able to evolve allow organizations to do more with their existing resources, while preparing for new uses such as AI without compromising trust.

Conclusion

Nonprofit organizations and public institutions are already essential infrastructure for our economies and societies. The challenge now is to make this contribution more visible, to simplify access to services, and to have the data needed to demonstrate their results. These are the conditions under which they can strengthen their legitimacy and preserve their means to act over the long term.

At AREA 17, we combine strategy and craft to act on three complementary levers:

Making socio-economic contribution visible, by translating the mission and results into metrics and formats that allow funders, decision-makers, and donors to measure its value.

Coordinating services around people’s needs, by reducing the fragmentation of journeys and creating experiences able to support beneficiaries from one program to the next.

Building more adaptable technology foundations, by connecting systems and data to simplify operations, evolve services, and deploy AI responsibly.

Facing these challenges? We would love to talk.

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