Or do we? Do you know what you're really spending on your technology? Do you know where you could and where you shouldn't cut costs? Do you know where to find free or reduced technology hardware and software if you're a nonprofit? How about which funders support technology requests?

Read on and maybe you'll get some ideas!

Tip of the Month: Budgeting for Technology

One of the most important things for a nonprofit to do when it comes to technology is have a clear idea where it makes the most impact.  We often forget that the benefit of technology comes not just from the purchasing of the stuff, but the actual using of it.  When budgeting, this is the part that usually gets forgotten and what we at the Bayer Center call "humanware."  Humanware is fiddling with the printer or trying to get the correct information out of that darn database.  It's the money we spend when we lose time because something isn't working correctly or we don't know how to do something that we need for our jobs.

Did you know that 'humanware' should be the largest part of well-balanced ongoing technology budget?  If you're not spending up to 70% of your technology budget on maintenance and training, you're losing money on unaccounted costs.  On new implementations, humanware for implementation and training will outweigh the  purchase price of the hardware and software.  Otherwise, money is lost from time lost that could have gone towards services for constituents.  If you have technology and you don't budget for it, you might be surprised at how much you're actually spending, particularly when you include lost productivity. 

Some guidelines that have been developed by the Bayer Center as well as our peers who work with nonprofits in other regions of the United States are as follows:

• Overall technology spending should be between 4 - 6% of your total operating costs.  If not all staff use technology, this percentage may be less.

• A balanced technology budget will be divided between hardware (20%), software and licensing (10%), and 'humanware' (70%).  Note that the percentages are rough estimates and may fluctuate if you have more extensive licensing needs due to a customized database.

• Be aware of the hidden costs of free gifts.  Donations of used hardware should be accepted only when you understand they may take more maintenance than new.  However, this doesn't mean you shouldn't accept donations at all.  There is some great stuff out there for free!  (Just plan for humanware based on market value!)

• Don't forget that sometimes technology can help lower the costs of doing business when efficiencies are introduced that allow staff to focus more on what they should be doing.

• When money gets tight, opt for maintaining and replacing core systems rather than implementing new solutions that could require extensive training or even organizational change.

• Always have a plan.  It helps to focus purchases and create solidarity among those involved.

Upcoming Technology Classes

Did you know that if you are an employee of a qualified nonprofit you could get a scholarship for up to 50% of the tuition for a Bayer Center class thanks to the generosity of the Alcoa Foundation?  Follow the links to read more or call 412-227-6814.
 

Visit the education section at www.rmu.edu/bcnm to register or see all our fall courses.  Financial aid is available.

Technology for Leaders:

Funding Opportunities
Can your nonprofit show innovative uses of technology and a sustainable support structure for continued technology training and implementation?  If so, you could be eligible for a TechFoundation grant. In the Spring of 2003, TechFoundation provided over $750,000 in technology and implementation grants  to 100 nonprofits through partnerships with Intranets.com, Skillsoft and Altrue.  Visit http://www.techfoundation.org/ for information about Fall 2003 grant eligibility and applications.

If you decide you need to approach a foundation for a technology enhancement, you should be able to clearly articulate how the technology can improve your organization's capacity and be integral to the success of your mission.  Also, be sure to have a well-thought out approach to implementing, training staff and maintaining any technology.  Locally, the Buhl Foundation and the Heinz Endowments accept technology requests. 

Breakfast at the Schenley Park Visitor's Center

Join other nonprofit leaders for breakfast catered by Dorie's on October 15 from 8:00 - 9:30 am in this lovely and technologically-advanced space.  The discussion will be "What is Open Source Technology and why should my organization care?"  We will be focusing on the advantages and disadvantages of adopting new technology that has greater cost-savings, stability and flexibility and yet faces marketing challenges. 

The cost for this event is $30.  Please RSVP to bcnm@rmu.edu or 412-227-6814.

All nonprofit techies (accidental, part-time and full-time) are welcome but please RSVP to wormer@rmu.edu or 412-227-6823. There is a $10 fee to cover the cost of a light breakfast and materials.

http://fdncenter.org/technology/tech_archive.html