Member Management Software – 2020

December 18, 2020. Strategic acquirers and the PE community have demonstrated an increased appetite for transactions in the nonprofit & association software sectors in H2 2020. As organizations have gained steady footing following a tumultuous H1, vendors have turned to M&A to bolster product portfolios and enhance appeal with member-centric organizations seeking an edge in their engagement efforts. We envision continued consolidation and investment activity in 2021 amidst an increasingly philanthropic environment.

MPG’s member management software practice is spearheaded by Jonathan Adler and Michael Magruder. Mr. Adler commented, “Amidst COVID-19 and social unrest in 2020, nonprofits and associations are increasingly vying for wallet & mind share as they seek to differentiate their organizations. These entities have turned to software to improve their engagement with donors & members while optimizing internal operations. Accordingly, we are seeing renewed interest in the segment and are excited to stand alongside our clients as they pursue growth & liquidity.”

MPG actively tracks the member management software landscape and have noticed a number of market dynamics:

• Analytics remains a key focus in the nonprofit technology ecosystem, with a focus on building complete donor profiles to drive improved engagement

• The corporate social responsibility (CSR) market is gaining steam as corporates and employees continue to focus on social well-being and community engagement

• In light of recent data breaches, software vendors and customers are leaning into enterprise-grade functionality & security standards

• Although disjointed expectations led to a dearth in deal activity in 2019/2020, we are seeing a resurgence in appetite for the sector