![]() ![]() This is an actual dollar figure of how much money the various size nonprofits spend annually on average on their technology efforts:įinding the Right Balance with Your Nonprofit Technology Budget Here’s a chart of how the report classified nonprofits by the size of their overall budgets: Size also plays a factor in how much nonprofits typically spend. They’re deeply committed to using technology in the best ways possible to fulfill their missions. Their boards are continually following technology trends and tools that pertain to the nonprofit world. They’re inclined to incorporate technology costs into their strategic planning. They realize that it’s vital to invest in technology. ![]() Leading.20.41%-This category of nonprofits considers themselves to be innovators. ![]() Many of them had taken steps to get input from technology experts or consultants before making decisions about technology investments. The board and leaders make technology decisions based on industry standards. They were likely to have established a specific set of policies and practices around technology. Operating.50.2%-This group of nonprofits claimed to have a stable technology infrastructure. Most indicated they weren’t likely to get input from a consultant of their staff. Their board makes the decisions around technology and they focus on efficiency. They have the basic technology to support their immediate needs. These types of problems cause them to have to spend time duplicating tasks.įunctioning.22.86%-Their systems are hanging on with the minimum. They’re spending much of their budget on workarounds and repairing outdated or old equipment. 6.53%-The nonprofits in this category acknowledged that they’re struggling with technology. Here’s a snapshot of what each category spends their technology budget on and the percentage of their budget they’re using for it: The report classifies nonprofit organizations into the four categories of struggling, functioning, operating, and leading. The 2017 Nonprofit Technology Staffing and Investments Report gives your nonprofit board some solid data to help you understand what nonprofits of a similar size are spending on technology. What Do Other Nonprofits Spend on Technology? Part of the answer lies in keeping your budget for technology in line with what nonprofits of a similar size spend and the other part of it depends on helping your donors and stakeholders understand how the right technology provides efficiency and security for your nonprofit. So, how much should you be spending on technology? How much is too much and how much is too little? More importantly, how can you justify to your supporters that your board is making prudent decisions about your spend on technology? You need it to function, but you don’t want to invest in technology so much that donors might view it as wasteful. Technology can be a bit of a double-edged sword for nonprofits. Donors and grant-makers are looking for proof that your nonprofit manages its money well before they’ll make a commitment to supporting you. To survive and thrive, you need to be able to communicate and interact with the following individuals and groups electronically:īudgeting is an important issue for nonprofits. Even if your board members aren’t tech-savvy, your stakeholders are. Regardless of what type of programs and services your nonprofit provides, and regardless of how large your nonprofit is, you need some type of technology to function in today’s world.
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