For a small non-profit organization, the average technology spend 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 organizations 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:
- A managed IT services plan that covers around-the-clock monitoring, maintenance, and support to resolve issues as soon as they arise.
- A data backup and disaster recovery plan that keeps all your donor information, applications, and other important data recoverable in a moment’s notice.
- 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 labor costs associated with adding storage, users, etc.
- Avoid ongoing maintenance and support costs for physical devices.
- 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 your infrastructure is reliable. If you’re undergoing or expecting to undergo significant growth, you should expect to spend a bit more on IT support to accommodate that growth. On average, non-profit organizations can expect to spend roughly 2-4% of their annual revenue on technology.
For more information on what your business should be spending on Technology and what you should be getting as a result, call 813.514.8600 or email us at info@predictiveIT.com