The Budget Blind Spot Funders Created—and Nonprofits Are Paying For.
Funders want nonprofits to deliver more impact, protect sensitive data, serve communities efficiently, and operate securely—while excluding the very resource that makes those expectations possible. This article explores how common grantmaking practices helped create this problem—and what funders can do differently.
8/19/20264 min read
Nonprofit organizations handle sensitive information every day. Client records, employee information, donor data, financial documents, account credentials, and program records all need to be protected.
Yet technology and cybersecurity are still too often treated as secondary expenses instead of essential parts of nonprofit operations.
That creates a serious problem. Nonprofits are expected to protect sensitive information, maintain secure systems, support employees, and deliver modern services while technology expenses may receive little or no dedicated funding.
One of the biggest barriers to better nonprofit technology is funding.
Modern organizations cannot operate without technology. Email, websites, cloud storage, virtual meetings, databases, laptops, software, internet service, and cybersecurity are part of normal operations.
When grants and program budgets do not include adequate technology funding, nonprofits are forced to make difficult choices.
The organization may delay replacing equipment, continue using outdated systems, avoid professional IT support, or stretch employees beyond what their roles were designed to handle.
Eventually, those decisions can affect the mission itself.
Technology should therefore be considered when nonprofit programs are being designed and funded—not added as an afterthought once the work has already started.
Technology Needs to Be Included in Nonprofit Budgets
Funding technology means more than purchasing a laptop.
Technology expenses can include:
Computers and mobile devices
Software subscriptions
Cybersecurity tools
Cloud services
Internet access
Website services
Data storage and backups
Technical support
IT consultants
Technology training
Device maintenance and replacement
Skilled technology staff
These costs change over time, and nonprofit budgets need enough flexibility to reflect what technology actually costs.
A program that depends on technology professionals also needs to account for the cost of hiring people with those specialized skills.
Underfunding the technology portion of a program can ultimately reduce what that program is able to accomplish.
Schedule a No-Cost IT Consultation if your nonprofit needs help identifying its technology requirements and building a clearer picture of the systems, services, and support needed to operate securely.
Funders Should Consider the True Cost of Technology
Technology professionals have specialized skills, and nonprofit programs competing for those workers are operating within the same labor market as other organizations.
If a program cannot offer compensation that allows it to recruit and retain qualified technology workers, turnover can become a major problem.
That turnover affects more than staffing.
When an experienced technician leaves, an organization may lose institutional knowledge, delay services, spend additional time recruiting and training someone new, and reduce the number of people the program can serve.
For a nonprofit delivering technology-related services, the effect can be even greater.
A program designed to provide digital navigation or technology assistance cannot meet its goals if it continually loses the people qualified to deliver those services.
Funding decisions should therefore consider whether staffing levels and compensation realistically support the work being requested.
Underfunding Technology Staff Can Hurt the Mission
Technology spending can sometimes be viewed as administrative overhead that should be minimized.
But technology is often directly connected to program delivery.
A nonprofit cannot effectively serve clients if employees cannot access the systems they need. A program cannot protect confidential information without appropriate security. A digital services initiative cannot operate without qualified technical staff. An organization cannot communicate reliably if its email, website, or internet services are poorly maintained.
When technology fails, nonprofit programs feel the effects.
That makes nonprofit IT funding part of mission funding.
The question should not only be, “How little can we spend on technology?”
It should also be, “What technology does this program actually require to succeed?”
Technology Funding Is Mission Funding
Improving nonprofit cybersecurity does not require changing everything at once.
Start by reviewing the fundamentals.
Ask:
Where is sensitive information stored?
Who has access to it?
Are physical records secured?
Are former employees removed from organizational accounts?
Are staff using individual accounts instead of shared logins?
Are organizational devices properly managed?
Are important files backed up?
Are software and devices receiving security updates?
Who is responsible for responding when a technology problem occurs?
Does the organization have enough technology funding to address weaknesses?
These questions can help leadership identify immediate risks and determine where additional planning is needed.
Start With a Basic Nonprofit Cybersecurity Review
Nonprofits should not have to wait for a cybersecurity incident, lost device, exposed client record, or system failure before technology receives attention.
Technology needs should be considered while programs are being developed, budgets are being created, and funding decisions are being made.
That includes the cost of secure systems, equipment, professional support, and qualified staff.
Funders also have an important role. When a grant requires an organization to deliver technology-dependent services, the budget should realistically support the technology and people required to deliver those services.
Otherwise, restrictions intended to promote responsible spending can unintentionally make it harder for the nonprofit to complete the mission the funding was meant to support.
Build Technology Into the Program From the Beginning
Cybersecurity is not only an IT issue. It is part of protecting your clients, employees, organization, and mission.
A strong nonprofit technology strategy begins with understanding what information you hold, how it is protected, what technology your programs depend on, and whether your budget realistically supports those needs.
If you are unsure where your nonprofit currently stands, schedule a No-Cost IT Consultation to discuss your technology environment, cybersecurity concerns, and practical next steps.