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A Quandary for the Non-Profit Sector
15 October 2003

In this tough economic climate, for-profit enterprises are having a hard enough time keeping their software up-to-date. So what of the software situation in the consistently cash-strapped non-profit or charity sector?

Dependent on funding from private donors and foundations and a volunteer workforce, non-profit organisations (NPOs) are facing mounting pressure in a variety of ways, from the drying-up of funding sources to being unable to afford the latest software or obtain technical support on previous versions.

"Life has been getting harder for non-profits this year, with the lag in foundation giving," says Jim Lynch, computer recycling and reuse program manager for Compumentor, a San Francisco-based technology support resource for the non-profit sector. "We are putting in twice as much work for half as much money."

With donors these days requiring a high level of accountability and efficiency from current and potential client organisations, NPOs are learning to function in a more business-like manner. Acquiring and maintaining up-to-date systems helps NPOs manage their projects and fulfil their missions more effectively, making them more appealing to funders.
"There's a trend towards groups thinking strategically about what they need," says Ryan Turner, non-profit technology analyst with OMB Watch, the White House Office of Management and Budget watchdog.

At Groundwork UK, an environmental regeneration organisation headquartered in Birmingham, IT is considered a priority. "We recognise that for the Trust to run as effectively as possible, we need to have as reliable and up-to-date tools as we can afford," says Josephine Porter, PA to the directors and office manager at Groundwork Camden & Islington.
"There is more to consider than the cost of a piece of equipment or software. The time wasted by staff if they are using old software can cost more to the organisation than the price of the software, therefore an investment has to be made in IT."

Paradoxically, most foundations, which often regard overheads with suspicion, are reluctant to fund technology, leaving NPOs in a quandary. "We are financed through the projects we deliver therefore funding for anything that isn't directly related to projects is difficult," says Ms Porter. "The majority of funding for IT and maintenance has to be figured into staff charge-out rates, which has its limitations."

Despite financial obstacles, non-profits are finding creative ways to get the most from their software. By pooling resources, obtaining charity-status discounts, using the web and taking advantage of free or low-cost software based on Open Source platforms, non-profits are efficiently creating and maintaining contact databases, accounts systems, websites, e-mail lists and online donation programmes.

The Corporation for Enterprise Development (CFED), a Washington DC-based non-profit which promotes economic development in low-income areas, runs its back-office systems on OpenBSD. This variant of the Unix platform is not only free, but, according to Sean Stickle, senior manager of information systems at CFED, is secure and runs on both new and old machines alike.

Meanwhile, the San Francisco Ballet participates in a variety of donation programmes run by technology support organisations like Compumentor, and has obtained software donations from companies like Microsoft, Novell and Veritas. And Groundwork makes the most of its in-house-developed Project Management System by sharing it among several of its offices.

The results of the 2002 Technology Tracking Study of the Non-Profit Sector by the product philanthropy charity, Gifts In Kind, show that close to 85 per cent of non-profits surveyed have a website (compared to 77 per cent in 2001) and 76 per cent use high-speed internet access.

While the non-profit sector still has a long way to go before technology becomes pervasive, recent developments are encouraging. "I'm seeing many non-profits developing long-range technology plans, upgrading their IT support, implementing new technologies like e-mail marketing and web content management, and buying more sophisticated donor databases," says Robert Weiner, a non-profit technology consultant. "They're seeing technology as an investment rather than an unaffordable cost."