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For a small non-profit organization, the average technology spending is around 13.2% of the overall budget… But what’s the right amount to set aside?
Small non-profit organizations tend to devote more of their overall budget to technology than medium or large non-profit organizations. According to the Nonprofit Technology Network’s annual report, small non-profit organizations spend around 13.2% while large non-profit organization spend around 2.8% of their overall budgets. In addition, non-profit organizations that report having a failing infrastructure tend to spend more than those with well-functioning infrastructures. They report spending most of their technology budget on:
Sounds frustrating, doesn’t it? This is a great example of the importance of proper technology budgeting. Ultimately, spending your dollars in a strategic manner helps prevent unnecessary expenses from arising in the future.
When it comes to spending your technology dollars in a strategic manner, it’s all about taking a proactive approach to managing your infrastructure. Those with a failing infrastructure know all too well how costly the wrong approach can be. So how can you avoid unnecessary technology-related expenses? Spend wisely on the following:
This combination will go far when it comes to keeping your infrastructure well-managed and maintained, which means you won’t end up with unexpected expenses that can quickly eat into your budget.
Along with spending your technology dollars in a strategic manner, it’s important to look for ways to stretch your budget. One of the best ways to accomplish this involves moving dollars from capital expenses to operational expenses. The cloud allows you to do exactly that. Plus, many cloud providers offer discounted cloud-based solutions for non-profit organizations like yours. Instead of spending a large portion of money upfront, you’re able to pay for what you use in the form of a monthly fee. This stretches your technology budget as you’re able to:
Essentially, you access the computing resources you need without paying for the infrastructure to support them.
The amount you should expect to spend on your technology is entirely dependent upon the following:
Naturally, if you’re heavily dependent upon your information technology to complete tasks, meet deadlines, and communicate with your target market, it’s important to spend a bit more making sure you’re infrastructure is reliable. If you’re undergoing or expecting to undergo significant growth, you should expect to spend a bit more on IT support in NYC to accommodate that growth. On average, non-profit organizations can expect to spend roughly 2-4% of their annual revenue on technology.
Network Outsource is here to answer any questions or concerns you may have about technology budgeting. Call (516) 207-1889 or email us at email@example.com.
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