Beyond the Initial Price Tag: A Look at the Total Cost of Nonprofit Technology

As a nonprofit professional, you know that technology is an essential part of running the organization. From donor management to volunteer tracking, technology plays a crucial role in helping you achieve your mission. However, technology can also come with hidden costs that can quickly add up and eat into your budget. That’s why it’s crucial to evaluate the total cost of ownership (TCO) of your nonprofit technology solutions.

TCO is the total cost of owning and maintaining a technology solution (or multiple point solutions) over its lifespan. It includes all the direct and indirect costs associated with acquiring, implementing, and supporting the solution. These costs can be significant and may not be apparent at the outset.

To identify the hidden costs of nonprofit technology, it’s essential to consider all the cost categories. These categories include acquisition costs, implementation costs, support costs, subscription costs, etc.

Acquisition Costs

Acquisition costs are the upfront costs of purchasing the technology solution. These costs can include license fees, hardware costs, and any necessary upgrades or add-ons. It’s important to consider not only the initial purchase price but also any ongoing costs associated with licensing or maintenance fees.

Implementation Costs

Implementation costs refer to the cost of setting up the technology solution. This could include customization, data migration, and training costs. These costs can vary depending on the complexity of the solution and the amount of training required.

Support Costs

Support costs could include ongoing technical support, troubleshooting, and upgrades. It’s important to consider the level of support offered by the vendor and the cost of additional support if needed. It’s also essential to consider the potential for downtime or lost productivity due to technical issues.

Subscription Costs

Subscription costs include the length of subscription. Are you paying annually or monthly? Does this price fluctuate? Also consider what is included in this fee. Is licensing included, or will that incur an additional cost?

Evaluating Total Cost of Ownership for Your Nonprofit Technology Selections

By considering all these cost categories, you can get a more accurate picture of the TCO of your nonprofit technology solution. This can help you identify any hidden costs that may be eating into your budget and make informed decisions about whether to continue using the solution or explore other options.

One way to reduce the TCO of your nonprofit technology solution is to move to an integrated nonprofit cloud solution. We offer an integration solution at StratusLIVE. This approach brings together all the different technology solutions used by a nonprofit into a single, unified platform. This eliminates the need to manage multiple systems, reduces the risk of data duplication and errors, and streamlines processes. An integrated solution also provides real-time insights into the organization’s performance, making it easier to make informed decisions.

If you do determine that an integrated solution is right for your nonprofit, we recommend finding one that is is specifically designed for nonprofits. A solution like this should include fundraising, programs and operations in one platform. This includes CRM, donor management, event management, financial management, and so much more. The solution should also be highly configurable, allowing nonprofits to tailor it to their specific needs.

Evaluating the total cost of ownership of your nonprofit technology solution is essential to identifying any hidden costs and making informed decisions about your technology investments. By considering all the cost categories, you can get a more accurate picture of the TCO and make informed decisions about whether to continue using the solution or explore other options. Moving to an integrated cloud solution is one way to reduce the TCO of your nonprofit technology solution and increase efficiency.

For more information, download the StratusLIVE guide on TCO for nonprofits.

This was a guest post provided by Katie Wilson and StratusLIVE. Read more about StratusLIVE here.