You may have determined that your organization needs a more deliberate technology strategy during your nonprofit’s strategic planning process. If that’s the case, you’re not alone—according to the most recent Nonprofit Standards Benchmarking Survey, nonprofits say their top three priorities are:
- Digital transformation (42%)
- Reducing costs (38%)
- Seeking new sources of revenue/funding (36%)
It may seem like the first two priorities are contradictory; how can you successfully overhaul your technology strategy while keeping costs low? This guide answers that question by outlining five best practices to increase your technological capacity while sticking to your budget.
Identify your needs
The first step in building a cost-effective technology strategy is understanding the present state of your technology and what your current approach lacks. Identify your needs by taking these steps:
- Audit your current technology strategy and tools. Conduct a SWOT analysis—analyze your:
- Strengths: What’s currently working well with your technology? What elements would you want to retain as you build a new strategy?
- Weaknesses: What areas do you need to improve in your technology strategy? Are there gaps in your technology where you may need to invest in a new tool? Are you spending too much in certain areas that don’t yield a high return on investment (ROI)?
- Opportunities: What new features or tools have your current technology platforms released since the last time you updated your strategy? Are you taking advantage of them? Are there opportunities to use certain solutions across different departments in your organization?
- External obstacles to your success: How is the current state of the economy affecting your nonprofit? What technologies are your competitors using that are helping them gain an edge? What new data privacy laws or regulations are going into effect that may impact your data collection and tech use?
- Gather stakeholder input. Seek input from the people who work with your software daily. What do your staff members think about your current technology approach? What suggestions do they have for improving your strategy?
- Pinpoint your needs. Use your SWOT analysis to identify clear recommendations and next steps for your technology strategy. Common nonprofit technology needs include newer or more streamlined software, better data hygiene, clear technological procedures, and enhanced staff training.
Working through these steps should give you a clear picture of how to adjust your technology strategy to better meet your needs going forward. Organize your needs based on priority so you know which ones are worth the budget investment.
Leverage existing resources
To keep costs low, determine whether you can get more value from your existing technology solutions. The following will help you gain more from your current technology stack:
- Staying on top of software updates. Updating your technology whenever new versions or security updates are available is critical to keeping your software secure and maximizing new features.
- Using add-ons, plugins, or integrations. These tools extend the functionality of your existing technology. For example, you may want to integrate your CRM with a workflow automation tool like Zapier or Microsoft Power Automate. This can help automate tasks like updating donor records when a new donation is received, sending personalized thank-you emails, or triggering alerts for follow-up tasks, which can streamline your fundraising team’s workflows.
- Providing thorough staff training. For instance, perhaps your organization uses Raiser’s Edge NXT as its constituent relationship management system (CRM). You may want to conduct regular Raiser’s Edge training sessions with your staff to increase their familiarity with the tool and ensure they use its features to their full potential. You should also teach your staff general technology best practices, such as how to keep sensitive donor information secure.
- Monitoring and removing duplicative technologies. Having multiple tools with overlapping functionalities leads to unnecessary expenses and may confuse team members, leaving them wondering which tool they should use. Maximize the value of all of your tools and simplify your tech stack by cutting out any duplicates.
Don’t neglect this step—there are often plenty of solutions already available in your existing technology that you may have overlooked or forgotten about. Discovering these assets may mean you have to budget for one less tech consideration.
Work with a consultant to identify cost-effective solutions
According to Sage’s 2024 Nonprofit Technology Trends report, budgeting and planning are among the top challenges nonprofits face internally when building and refining their technology strategies. One of the best ways to tackle budgeting and planning sustainably and productively is to work with an outside expert.
A technology consultant can review your budget to understand your financial parameters for updating your technology approach. Then, they can help identify the right solutions that fit your budget or adapt your current tools to your unique needs while staying within your means.
Plus, these professionals can help:
- Test your software solutions to ensure data flows seamlessly.
- Gather user feedback to identify issues.
- Troubleshoot technical problems and create a standard set of best practices.
- Assist with change management as your team adapts to new tools or processes.
These safeguards help ensure your nonprofit uses its software effectively and avoids common pitfalls that slow down fundraising and reporting efforts and require time-intensive fixes.
Use donations and discounts
Nonprofit organizations are often eligible for special perks because of their charitable statuses. These perks in particular can help you stay on budget while building your tech strategy:
- In-kind donations. If there is a specific software solution that you want to acquire but can’t quite find the room in your budget, consider asking a corporate partner for an in-kind donation to cover the costs.
- Nonprofit discounts. Many software vendors offer nonprofit discounts for verified charitable organizations. If you want to bring new software solutions into your tech stack, first check whether they offer these discounts to help bring down costs.
- Technology grants. Examples include the Google Ad Grants program, Microsoft’s nonprofit tech grants and discounts, and Verizon’s grants. Remember that researching and applying for grants can be time-consuming and that time is money in the nonprofit world. Work with a nonprofit consultant to help identify grants your organization will likely win, and devote your resources to those applications.
Keep track of any donations, discounts, or grants you receive to thank the funders properly and maintain compliance with any stipulations or specifications. Use your CRM to store grant information and stay up to date with reporting requirements.
Focus on scalable investments
To make your technology approach as sustainable as possible, build your tech strategy hand in hand with your nonprofit’s strategic plan. This cohesion allows you to create a forward-thinking tech approach that works for your organization long-term. By building flexibility and scalability into your strategy, you can avoid costly tech updates down the line.
Prioritize investing in technology solutions that:
- Scale as your organization grows.
- Enable customizability to create the custom functionality your organization needs.
- Offer a user-friendly interface for your staff.
- Are offered by reputable vendors who provide high-quality customer support.
Additionally, focus on finding solutions that offer transparent pricing and flexible payment options for nonprofits. For example, the Salesforce Nonprofit Success Pack and Nonprofit Cloud offer 10 free subscriptions to qualifying nonprofit organizations. Discounts like these can provide wiggle room in your budget to add consulting services, implementation support, or additional functionality if needed.
As you can see, your organization can successfully develop a strong nonprofit technology strategy while remaining within your budget. In fact, a robust tech strategy can support your efforts to keep costs low and drive revenue for your nonprofit. Setting up your technology strategically and making the right investments can help you fundraise more effectively, fostering long-term success.
Creating a cost-conscious tech strategy should be a top priority in your strategic planning process because driving a higher ROI from your tech solutions allows you to work more effectively toward your mission.
