Nonprofits Spending More on Software
Nonprofits are spending more on software than hardware as a drive toward cloud-based computing is leading organizations to shift technology resources around.
For the first time in its eight years of benchmarking surveys, the nonprofit technology support group NTEN found that nonprofits spent more last year on software than hardware. Spending on hosted software packages saw the largest increase in spending from last year, with 43 percent of surveyed organizations saying they increased their outlays for such services.
Growth remains possible it would seem for vendors who offer marketing or communication packages. Respondents were fairly confident in their effective use of technology to support these efforts, and less than average confidence in using technology to fundraise.
As reported in its benchmarking white paper released this week, NTEN found that overall spending on project consulting, outsourced services and staff training remained relatively flat within the sector.
The average nonprofit spent nearly $31,000 on software last year, about $900 more than for hardware.
About two-thirds of nonprofit organizations NTEN surveyed consider their overall approach to adopting technology to be up to or exceeding solid operating standards. Only 7 percent, meanwhile, described their organization as “struggling” to keep up. A little more than half of small organizations – those with budgets under $1 million – said they were doing a bare minimum or struggling to keep up with technological progress.
Overall, surveyed nonprofits allocated an average of $114,000 for technology, or roughly 3 percent of their operating budget.
Nearly two-thirds of surveyed organizations said that technology was part of a strategic plan. Roughly the same percentage said that technology staff had input in their organization’s strategic direction.
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