How Much Should Technology Cost Your Non-Profit Organization?

The Cost Of Technology For Your Non-Profit Organization

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:

• Creating workarounds
• Duplicating tasks
• Repairing old equipment

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.

How can non-profit organizations avoid unnecessary technology-related expenses?

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:

1. A managed IT services plan that covers around-the-clock monitoring, maintenance, and support to resolve issues as soon as they arise.
2. A data backup and disaster recovery plan that keeps all of your donor information, applications, and other important data recoverable in a moment’s notice.
3. A comprehensive suite of security solutions that ensures your network is protected against unauthorized access and/or malicious attacks.

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.

How can non-profit organizations make their technology budget stretch farther?

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:

• Avoid the large upfront cost of purchasing or replacing equipment
• Minimize labour costs associated with adding storage, users, etc.
• Avoid ongoing maintenance and support costs for physical devices

Essentially, you access the computing resources you need without paying for the infrastructure to support them.

How much should non-profit organizations expect to spend on their technology?

The amount you should expect to spend on your technology is entirely dependent upon the following:

• How heavily you depend on your information technology for day-to-day operations
• How much you’re growing as growth means heavier technology demands
• How heavily you rely on your information technology for engaging the public
• How much organizational change you’re undergoing in terms of staff, mergers, etc.
• How long you’re willing and able to go without access to technology

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 info@networkoutsource.com.

Like this article? Here’s a few more we’re sure you’ll enjoy:

Do You Know about the SHIELD Act in NY State?

Adiós, Exchange Server 2010 It’s Time to Upgrade!

Are You Missing Opportunities Due to Old Technology?