Tag Archives: board of directors

What every nonprofit executive needs to know about information technology (Redux)

Smart Nonprofit Executive

This article is another in a series of republications of items from my now-defunct first blog.  I wrote this in 2004, as one of my first blog articles.  Reflecting on these ten items, I’d say that the underlying principles still hold true, although if I were writing if from scratch today, I’d include more examples and different examples.  I’d be less sure about the percentage break down of a typical nonprofit’s budget. I’d be more sanguine about donated services and hardware, in cases where a really well-planned and well-executed model was in place.The availability of cloud computing has probably made a couple of the bonus items obsolete, but it’s still important for a nonprofit CEO to know how to deal with the organization’s digital storehouse. 


29 Dec 2004 01:03 PM EDT

1.  Very little technical knowledge is required in order for nonprofit CEOs to participate actively in strategic IT planning.

As long as you thoroughly understand your organization’s overall mission, strategy, and tactics and (are willing to learn a little bit about the technology), you can keep your information technology infrastructure on target.

Example: Your mission is to save the whales (not to maintain a local area network)!  In order to save the whales, you need a strategy: to stay informed and inform others about the issues, lobby for policy changes, to issue action alerts, to raise money, and to maintain relationships with various legislators, constituents, communities, donors, potential friends, and allies. Keep pressing for tactics that will help you achieve your desired outcomes (saving whales); this will enable you to hold your own in most discussions with technical experts.

2. Your board of directors should be calling for and participating in your strategic information technology planning.

If they’re not, it’s time to recruit some board members who are techies. For example, your region probably has an internet service provider, a high-tech corporation, or a large retail firm with an extensive IT department. Perhaps you can recruit representatives from these organizations to serve on your board as part of their community benefits program.

3.  A tremendous number of high-quality resources for strategic IT planning are available to nonprofits at no charge.

Free advice, products, and services make it possible for nonprofits to lower the risk of trying new technology – but in the long run you’ll have to pay real money to have precisely the right tools for supporting your mission.

4.  You can keep an eye on innovations in IT, and think about possible uses for them in the nonprofit sector, even if you don’t have a technical background.

If you regularly read the technology columns of a good daily newspaper, and a few general interest magazines such as “PC Monthly,” “MAC User,” or “Network World,” you will soon catch on to the basic concepts and terminology.  (Don’t worry if it seems over your head at first – you’ll catch on! Everybody has to start somewhere.)

Example: You work for a nonprofit organization with five employees and four non-networked computers. It’s time to link them up so that you and your colleagues can share information and regularly back up your work. As you read articles on wireless networking, and look at the building where you work – which is a pre-electricity Victorian house only somewhat successfully retrofitted for its current functions – you see that you may actually save money by going wireless.

You ask your IT vendors for estimates on drilling and running cables through the building, and find that the cost of labor, support, upgrades, future expansion, and maintenance for a more conventional network will exceed that of a simple wireless network.

5.  Information technology, no matter how strategically you apply it, will probably never save your nonprofit organization any money.

It will, however, enable you to work more effectively. You will probably be able to do more work, of higher quality, with fewer person-hours. But don’t be surprised if this raises the bar of expectations on the part of the board, the community, the clients, the constituents, and the donors!

6.  You need an in-house IT committee.

Convene an Information Technology team or working group, within your nonprofit, and make sure that you meet regularly to give input to the senior management on strategic IT issues.

The team should include a cross-section of staff – administration and finance, programmatic, secretarial. Be sure to include staff members who are overtly or covertly technophobic; their concerns should be addressed.

7.  Secretaries and administrative assistants should be the lynchpins of your IT infrastructure. Budgeting for IT training for these employees can be one of your best investments.

Which staff members are more likely to be there when problems arise, to knowabout the technical abilities (and phobias) of their colleagues, and to know where the (paper or electronic) files are? Professional development that includes IT training is likely to increase job satisfaction and employee retention. Don’t forget to revise job descriptions and job titles as your secretaries and administrative assistants move into IT management responsibilities!

8.  In the long run, IT training and support (and other operating expenses) will make up about 70% of your IT budget.

The more obvious line items – such as hardware, software, and network services – will comprise about 30%. This is a highly counter-intuitive fact of nonprofit life. However, there is research on the “Total Cost of Ownership” that bears this out.

9.  Donated hardware, software, and services can cost a nonprofit more than purchased products or services in the long run.

The cost in person hours of using and maintaining non-standard or sub-standard configurations is astonishingly high, and donated equipment tends to be in non-standard or sub-standard. Likewise, donated services will cost you a great deal of time in support, supervision, and ongoing maintenance. Beware of the web site design services donated by a close relative of the chair of your board! You may end up with something that you don’t like, can’t use, or can’t easily change.

10. In a nonprofit organization, most strategic IT problems are actually organizational development problems.

Is it a CEO who is resistant to technical innovations? A board of directors that hesitates to make the commitment to raise the money need for the IT infrastructure? Line staff who are already stressed and overworked, and can’t stop to learn and implement new technologies? An inability to make outsourced IT consultants or in-house IT staff understand organizational processes? All the information technology in the world won’t resolve these issues, if you don’t address them at the organizational level.

Bonus items: Hands-on IT skills that the CEO, CFO, and COO of every small nonprofit ought to have:

  • How to compose, send, read, and delete email, using the organization’s standard application.
  • How to create and save a simple text document, using the organization’s standard application.
  • How to do the daily back up of the system.
  • How to bring down and bring up the network server.

Now that you’ve read what I formulated in 2004, I’d like to invite you to post comments about what you’d add, cut, or revise in this list of crucial knowledge for nonprofit executives.

How grantmakers and how nonprofits use information about outcomes

State of Evaluation 2012: Evaluation Practice and Capacity in the Nonprofit Sector, a report by the Innovation Network

I’m sitting here, reflecting on the Innovation Network’s “State of Evaluation 2012” report.

I encourage you to download it and read it for yourself; start with pages 14 and 15. These two pages display infographics that summarize what funders (also known as “grantors,” or if you’re Bob Penna, as “investors”) and nonprofits (also known as “grantees”) are reporting about why they do evaluation and what they are evaluating.

Regardless of whether you call it evaluation, impact assessment, outcomes management, performance measurement, or research – it’s really, really difficult to ascertain whether a mission-based organization is delivering the specific, positive, and sustainable change that it promises to its stakeholders. Many organizations do an excellent job at tracking outputs, but falter when it comes to managing outcomes. That’s in part because proving a causal relationship between what the nonprofit does and the specific goals that it promises to achieve is very costly in time, effort, expertise, and money.

But assuming that a mission-based organization is doing a rigorous evaluation, we still need to ask:  what is done with the findings, once the analysis is complete?

What the aforementioned infographics from the “State of Evalution 2012”  tell me is that both grantors and grantees typically say that the most important thing they can do with their outcome findings is to report them to their respective boards of directors.  Considering the depth of the moral and legal responsibility that is vested in board members, this is a pretty decent priority.  But it’s unclear to me what those boards actually do with the information.  Do they use it to guide the policies and operations of their respective organizations?  If so, does anything change for the better?

If you have an answer to the question of how boards use this information that is based on firsthand experience, then please feel to post a comment here.

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