How Much Should Technology Cost Your Non-Profit Organization?

Small non-profit organizations spend 13.2% of their budget on IT expenses. Is this amount the right proportion to set aside for your IT expenditure? Discover how much you should spend on IT and how you can get the best out of your allocation.

Non-profit organizations (NPOs) acknowledge the importance of IT investments. Many NPOs incorporate their IT expenses into their budgets. Allocating funds for this function can help them spend their resources well.

Nonprofit Technology Network’s annual report shows that small NPOs spend about 13.2% of their budget on IT expenses, while large NPOs use 2.8% of their budget.

You need to allocate the right amount of resources to your IT infrastructure. NPOs that do not assign adequate funds to their IT setup spend more resources in the long run. They identify issues late — when they have caused substantial damages and need more resources to fix.

Non-profit organizations often ask Fuelled Networks the funds they should allocate to IT expenses on their budget. Fuelled Networks provides IT services and support. This article will help you discover the right amount of resources to assign to your IT setup to avoid unnecessary expenses.

How Much Should You Expect to Spend on IT Expenses? The specific amount you will spend on IT depends on some factors.

  • How long you can stay without accessing IT
  • The extent of your operations’ reliance on IT
  • How much you need IT support to engage with the public
  • The magnitude and frequency of your scaling
  • The level and frequency of changes in your organization, such as mergers

If your operations need a lot of technical support, your IT budget may be higher than an NPO with little reliance on IT.

On average, NPOs spend 2–4% of their annual revenue on IT expenses.

Working with a marketing services provider (MSP) can allow you to save on IT costs. They are cheaper than supporting an IT department that satisfies all your IT needs. Plus, they may offer many other benefits, such as free consultation, and you will only pay for the services you use.

You should avoid unnecessary IT expenses and stick to your budget. They can take up resources for other functions, denying your NPO essential services. You will spend more than your IT budget if you incur a lot of unexpected IT costs.

How Can Your NPO Avoid Unnecessary IT Expenses?

NPOs that do not have strategic IT budgets incur unnecessary expenses. These expenses may include the costs of creating workarounds, repairing equipment, and duplicating tasks.

Wouldn’t you want to avoid these unnecessary expenses?

Being strategic with your IT budget entails taking a proactive approach to managing your IT infrastructure. This strategy ensures your system works well and helps you to avoid unexpected expenses. Your budgetary allocations include those of critical areas that help you identify opportunities and fix issues early. These areas include:

  1. Managed IT service for round-the-clock monitoring, support, and maintenance
  2. A disaster recovery plan and data backup that ensures your data and programs are recoverable when you need them
  3. Extensive cybersecurity solutions that protect your networks from unauthorized access and malicious attacks

Allocating funds for these areas ensures your IT infrastructure operates at optimum levels. You identify and fix issues early, which helps you avoid unnecessary repairs or upgrades.

Stretching Your IT Budget

Can your IT budget achieve more?

You should find ways your IT expenditure can help you accomplish more. One way is to look for IT innovations and solutions that move from capital to operational expenses. For example, cloud technology costs can provide many benefits to your NPO. You pay periodic fees instead of buying and maintaining expensive servers. This investment can help your budget in various ways.

  • Avoiding hefty upfront costs of replacing or purchasing equipment like servers
  • Minimizing labor costs that you will incur through the management of onsite data storage
  • Avoiding continuous support and maintenance costs of physical devices

Many IT innovations can help your NPO stretch its budget. Consult your IT company to discover ways you can leverage IT solutions to achieve this goal.

How Fuelled Networks Can Help Your NPO Budget for IT Expenses

Fuelled Networks provides cutting edge IT solutions for organizations based in Ottawa. We provide various services, including managed IT service, cybersecurity, IT consulting, and cloud technologies.

Fuelled Networks can help your NPO have strategic IT expenses. We offer affordable, reliable, and customized services that will help you achieve your objectives. You will not incur unexpected IT expenses that will affect your budget if you work with us. Our qualified staff will also provide proactive support. We will identify opportunities to stretch your IT budget and fix issues before causing significant disruptions and losses.

Are You Ready to Have Strategic IT Budgets?

Contact us today and let us help you get the most out of your IT budget.

Ernie Sherman

I have a strong passion for helping Ottawa Businesses, Entrepreneurs and professionals to become more productive and successful while allowing them to feel at ease and secure when it comes to their Information Technology needs. As the President of Fuelled Networks since 1998, I specialize in providing no-nonsense flawless and prompt technical support to Ottawa businesses, with in-depth consulting on Fortinet, Microsoft, Microsoft Cloud Stack and security. I strive to help businesses to succeed and take great pride in building long-lasting positive relationships and taking on a strong leadership role within the Ottawa community.

Published On: 28th October 2020 by Ernie Sherman.