Nonprofit technology is the deliberative use of technology by nonprofit organizations
to maximize potential in numerous areas, primarily in supporting the
organization mission and meeting reporting requirements to funders and
regulators.
Types of technology do not differ between nonprofit and for profit organizations. Nonprofit technology is differentiated by specific strategies and purposes. Numerous nonprofit organizations approach technology with an emphasis on cost effectiveness due to limited budgets. Information technology in particular offers low-cost solutions for non profits to address administrative, service and marketing needs. Technology deployment grants nonprofits the opportunity to better allocate staff resources away from administrative tasks to focus on direct services provided by the organization.
Types of technology do not differ between nonprofit and for profit organizations. Nonprofit technology is differentiated by specific strategies and purposes. Numerous nonprofit organizations approach technology with an emphasis on cost effectiveness due to limited budgets. Information technology in particular offers low-cost solutions for non profits to address administrative, service and marketing needs. Technology deployment grants nonprofits the opportunity to better allocate staff resources away from administrative tasks to focus on direct services provided by the organization.
Definitional Issues
Due
to the topic's inherent breadth of reach and the constantly changing
nature of technology in general, the sphere of nonprofit technology is
somewhat difficult to define. Despite this, in order to provide a stable
foundation upon which the remainder of this discussion can stand, it is
necessary to engage in laying a groundwork of both baseline and
integrated definitional constructs.
Nonprofit technology can be generally defined as any
technological tool that assists a nonprofit organization by helping it
to work with greater social impact in forwarding the overall organizational mission.
Technology is essential to effectively advancing and managing a
nonprofit, playing an important role in the advertisement of goods and
services offered, the communication of mission, and the recruitment of
volunteers among other things. From thoughtful utilization to enhance both internal and external organizational communication
efforts, to increased ability to measure, evaluate, and more
successfully track and engage specific initiatives, the use of
technology within the nonprofit sector is wide-ranging.
Technology use associated with nonprofits is not dedicated in
nature, that is, technologies and specific uses of such technology by
nonprofits cannot be linked solely to the nonprofit sector. Because of
this, constructing a definition of nonprofit technology is based in
large part on use.
Uses
Nonprofit organizations use computers, Internet and other networking technology for a number of tasks, including volunteer management and support, donor management, client tracking and support, project management, human resources (paid staff) management, financial accounting, program evaluation, research, marketing, activism
and collaboration. Nonprofit organizations that engage in
income-generation activities, such as ticket sales, may also use
technology for these functions.
Some technology programs are created specifically for use by
nonprofit organizations. For instance, there are more than 30 software
packages designed for nonprofits to use to analyse donations, manage volunteers. There is software designed to help in the management of animal shelters, software to help nonprofit manage pets, animal rescue, county code management software to help nonprofit performing arts groups sell tickets and manage donors, software to manage sports clubs, and on and on.
Nonprofit organizations also use both proprietary and open-source software, as well as various online tools (the World Wide Web, email, online social networking, wikis,volunteer web blogs micro-blogging,
etc.), that are also used by for-profit businesses. Nonprofit groups
may leverage web-based services in their media outreach, using online
newswires such as Nonprofit Newswire.com to disseminate their press
releases.
Because of their limited budgets, nonprofit organizations may not
be able to upgrade their hardware or software, buy computers or
Internet tools, or provide technology training for staff to the degree
of for-profit businesses. This means that, often, nonprofit
organizations can be on the wrong side of the digital divide.
Benefits of technology
Implemented correctly, technology stands to benefit nonprofits in a
variety of ways. One obvious benefit is the dissemination of
information. Technological tools (e.g., computers and cellular
telephones) and platforms (e.g., Facebook and Twitter) allow for the
aggregation and wide-scale distribution of knowledge and information. To
the extent that tools and platforms can be integrated, nonprofits may
better serve themselves and their clients.
Krause and Quick discussed a melding of this sort in the area of "maternal health interventions".
By combining Facebook's social networking platform with SMS text
messaging, the Women's Refugee Commission (WRC) was able to launch a new
initiative, which it dubbed "Mama." Mama's mission is to bring clinical
practitioners together in a virtual forum (i.e., their Facebook page)
for purposes of information sharing and support. Given the remote
locales of many maternal health workers, regular access to the Internet
can prove difficult, if not impossible. But with the help of SMS messaging, this problem becomes entirely manageable.
The Mama platform readily accepts text messages sent from
anywhere in the world. These messages then appear, automatically, on the
Mama Facebook page, allowing practitioners with more reliable access to
the Internet a chance to appraise the situation and respond.
Once the Mama community arrives at a consensus, a text message is
dispatched back to the original practitioner. Although this process is a
bit deliberative, it is nonetheless instrumental in achieving
beneficial outcomes for both the organization and the population it aims
to serve.
Without an SMS-Facebook linkage, maternal health workers embedded deep
within the field would effectively be cut off from both colleagues and
information. Technology, it would seem, is aptly suited for bridging
this spatial divide.
Cost reductions and efficiency improvements may also encourage
nonprofits to adopt new digital and information technologies. According
to Luksetich et al., administrative expenses are particularly bothersome
for nonprofits and their stakeholders.
To the extent, then, that technology can be viewed as a long-term
administrative cost-saver, it becomes increasingly likely that
nonprofits will become adopters of information technology. Hamann and
Bezboruah advanced this premise in a recent study, noting that
nonprofits may have greater incentive to deploy technology for the
accomplishment of administrative tasks as opposed to provision-of-care
tasks.
A final and largely unquantifiable benefit of nonprofit
technology is the degree to which these tools can and do save lives.
Mama, in particular, has developed a "Lives Saved Counter" to allow
members to document each time they save a "woman's, girl's, or newborn's
life".
The Counter is significant because it acknowledges both individual
achievement and evidence-based best practices. Moreover, it stands as a
constant reminder and celebration of life, contrasting markedly with the
conventional practices in this field, which tend to document only the
deaths of mothers.
Social media
The use of social media
by nonprofits should follow a stewardship model that includes acts of
reciprocity, responsibility, and accountability in an effort to nurture
nonprofit relationships and place supporters at the forefront. Referencing organizational partners and supporters is one way in which these ideals can be expressed through social media use.
Furthermore, listing the nonprofits specific use of donations and
volunteers as well as posting the names of board members and mission statement can cover the responsibility and accountability components.
And although most social media sites provide free services, for
social media to be most effective, organizations must provide on-going
interactional experiences for users, which requires additional
man-hours.
It is estimated that for a mid-size nonprofit with revenue between $1
and $5 million annually, having a social media presence will cost, on
average, $11 thousand annually to attain an adequate level of
interaction. Examples of such interactional components for a nonprofit website might include: downloadable video, RSS feeds, chat rooms, polls or surveys, linked publications and always, contact information.
In a poll conducted with mid-sized nonprofit organizations, 51
percent reported that between one and five hours were spent weekly
attending to social media.
Additionally, as the nonprofits social media presence grew, more
hours were required to sustain the same level of interaction. Yet, these
same nonprofit respondents, that had been using social media for at
least 12 months, reported less than stellar results for attracting new
donors or volunteers, which had been one of the main motivations for
establishing a social media presence. Therefore, if a nonprofit organization
is insistent on an established social media presence, it is advised to
continue direct channels of communication such as direct mailings which
still outperforms email and social media marketing.
Practitioners/sources of training and support
Whereas a for-profit business
may have the budget to hire a full-time staff member or part-time
consultant to help with computer and Internet technology use, nonprofit
organizations usually have fewer financial resources and, therefore, may
not be able to hire a full-time staff person to manage and support
technology use. While there are nonprofits that can afford to pay staff
devoted to managing and supporting the nonprofits technology needs, many
of those who support nonprofits in their technology use are staff
members who have different primary roles (called accidental techies) and volunteers.
Those providing support to nonprofit organizations regarding
their use of computers, the Internet and networking technologies are
sometimes known as eRiders or circuit riders, or more broadly as NTAPs (nonprofit technology assistance providers).
A membership association for people volunteering or working for pay to support nonprofit technology is NTEN: The Nonprofit Technology Enterprise Network.
Sources of hardware and software
A variety of organizations support NPOs' acquisition of technology, either hardware or software.
Certain NPOs (for example Free Geek or Nonprofit Technology Resources) support local NPOs with discounted refurbished personal computers.
In the United States and Canada, a web-based membership
association that provides non-profit organizations with discounts on
products and services, including technology providers, is the Non-Profit
Purchasing Group.
For developing areas or nations, technology may be available from organizations mentioned in Computer technology for developing areas.
Best practices/guiding principles for effective adoption
A
number of contributing factors have effected non-profits' ability to
adopt information technology in recent history. Cutbacks in public
sector services, decreases in government spending, increased scrutiny on
the public sector, increased competition and increased financial
transparency are all issues facing non-profit organizations today.
Due to these issues, it has become increasingly important for
non-profits to be aware of best practices and potential pitfalls when
adopting effective IT practices in the public sector.
Planning has become one of the most important practices for the successful strategic utilization of information technology. A 2003 study
found that 79 percent of organizations in 2003 (up from 55 percent in
2000) had some sort of "strategic plan" specifically for the use of the
Internet, tending to be "medium-sized charities with medium income and
larger Web budgets, as well as those that set their sites up earlier and
update them more frequently."
Among the most important practices in IT planning are budgeting,
training and staffing. A 2007 study from the Public Administration
Review shows that the majority of nonprofits budget for purchasing and
upgrading hardware (57 percent) and software (58 percent), as well as
computer maintenance (63 percent), but only 36 percent budget for
computer-related training. However, these planning methods receive only 9
percent of the budget after personnel costs are removed, which is of
particular importance because 56 percent of nonprofits report that less
than 2 percent is available for these essential IT activities. The
amount set aside for training varies considerably depending on overall
budgets, making training a luxury for lower-budget organizations.