Fundraising & Grants
IT Fundraising for Nonprofits
March, 2005
By Jessica Roake Tech News Staff Writer
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The morning conference sought to empower nonprofit managers who seek to secure funding for IT-related initiatives, and to improve understanding of how to write successful tech proposals. "Our goal is to give you insight into how funders are looking at proposals coming in, and to make your proposals as effective as possible," said Foster.
In today's market, building technology is simply good business practice in both the public and private sectors. "Tech savvy organizations are going to be more successful; people want to invest in that," said Foster. IT initiatives often have a clear return on investment (ROI); when nonprofits present this data to grantors, they find it easier to secure funding. So why do nonprofits often struggle to get the IT funds they require?
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Challenges The presenters initially tackled the difficulty of IT project proposals. Grantors generally don't give money for 'straight technology' (i.e. computers as opposed to specific programs.) Only .4% of foundation grants go to non-project directed technology. And, 80% of nonprofit tech projects ultimately fail, either because they go over-budget, don't adhere to timelines, or fall short in successfully implementing their programs.Given these discouraging statistics, it can be extremely difficult to obtain the necessary internal support for IT programs. Technology is often thought too expensive, risky, and peripheral to the mission of an organization. Techno-phobia, or simple lack of knowledge, keeps some nonprofit directors from grasping the importance of building technology, and from fully supporting tech grants. |
"It's about addressing issues important to funders: Is this really related to your mission? Is this something you can sustain? Is this something that people in your organization will use? How are you going to support the system after we (the funders) leave, in year one, year two, year three? Show you have a plan for maintenance. Grantors want to see that you've thought about it and know what to expect." Reg Foster Manager, Corporate Community Relations, IBM |
Making the Case for IT
Reg Foster proposed a simple response to the idea that technology is superfluous. Make it clear that "technology is like the lights and the rent: integral to the operation of the organization. To get the 'right people' on board-the executive director or project manager, your IT person, and the people who will use the tech you're implementing-people need to know the basic technology and really BELIEVE in how essential technology is."By stressing the benefits of technology-IT initiatives increase program breadth and depth, client satisfaction, and program accuracy while decreasing expenses and time spent on tasks-the 'right people' will help to ensure that your proposal is supported and successfully implemented. Putting a dollar amount on your time helps to make this case. How many hours of your employees' time does it take to accomplish certain tasks? How could technological tools save your organization time and money by efficiently handling odd-jobs like mailings? Making these connections clear can prove how IT programs end up paying for themselves.
Mission, Mission, Mission
Another challenge of tech proposals is the degree of technical language fluency and expertise on the part of the grantee and grantor required. While the key of the grant writer is using the knowledge of an IT consultant when necessary, an effective proposal should not be buried in tech details. Instead, nonprofits should find the right funder, and remain focused on their missions, and on how the technological tools they're seeking will help them to achieve their objectives.Tying technology to mission is the most important aspect of a successful IT proposal. Organizations must make a case to the funder and all materials in the proposal should support the mission focused approach. As Sherwin said, "Your task, as an organization, is to prove that you absolutely have to have this technology to be effective, and to achieve your mission."
Foster suggested, "Tell us: 'how have you redefined your process through analysis.' This is an organizational opportunity not simply to automate your existing process - but an opportunity to rethink how you achieve your goal. Ask, 'What is the direct impact of this technology on my organization?' Tell us what is missing, and how it affects each department, then say, 'Here are the technological tools that will help us achieve our mission."
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"Your task, as an organization, is to prove that you absolutely have to have this technology to be effective, and to achieve your mission." Kathleen Sherwin Director, Programs and External Affairs Tech Foundation |
Show You Know Your Stuff In a successful proposal, nonprofits seeking funds demonstrate that they are tech-savvy. For example, if an organization has had past success with technology, those experiences should appear early in the grant. This illustrates an organization's familiarity with the issues and risks inherent to technology projects. Even with past successes, however, grantors need to see that an organization has thought through the life cycle of a project."It's about addressing issues important to funders: Is this really related to your mission? Is this something you can sustain? Is this something that people in your organization will use? How are you going to support the system after we (the funders) leave, in year one, year two, year three? Show you have a plan for maintenance. Grantors want to see that you've thought about it and know what to expect," said Foster. |
An honest assessment of need is essential. A successful proposal must include current inventory, not only of existing software and hardware, but of the staff technology level. Because nonprofit staffs will often find a way to achieve their goals in individual ways, with or without new tools, a technology plan that incorporates thorough staff training should always be built into the proposal. Accurate scheduling and preparation with your staff convinces a grantor that the technology will not sit, unused, in a foundation closet.
Budgets
When building a proposal budget, a proposal writer should work with an IT consultant to study the entire life-cycle of a technology program and the Total Cost of Ownership (TCO). TCO is the sum cost of a project's assessment, acquisition, implementation, staff training, and decommissioning. There should be enough detail in the proposal to enable the evaluator to understand the project and assess the plan. For example, has a grant-seeker priced all the options, and addressed whether to use open source, custom, or off the shelf technology? If they have decided not to use off the shelf software, have they made the case for custom, proved that off the shelf will not meet their needs, or successfully educated funders on the benefits of open source technology? By showing familiarity with all elements of a project, a nonprofit seeking IT funds makes a convincing case to the grantor.A Beautiful Marriage
While IT fundraising can be a challenging enterprise, always remembering that mission sells technology enables nonprofits to secure IT funds and increase effectiveness. TechConnect's presentation demonstrated how to compose a successful IT proposal, and helped participants to better envision what one participant called the "beautiful marriage of technology and the nonprofit organization's mission."