Nonprofit networks, 08/09/99

Nonprofit networks
IT executives from nonprofit groups share their secrets for running the LAN on a tight budget.

By SUSAN BREIDENBACH
Network World, 08/09/99

It's hard enough to calculate return on investment, but how do you measure it when, by definition, your organization doesn't have any profit to associate with a network project? This quandary is just one of the unique challenges nonprofits face as they struggle to keep up with technological change. Most nonprofit groups can't compete with private industry salaries, and they often fight a perception that nonprofits will settle for obsolete castoffs.

"What we are really in is the information business," says Harry Johns, executive vice president for strategic initiatives and marketing at the American Cancer Society in Atlanta. "We don't have to be on the bleeding edge, but we have to be very good at it."

No matter what type of company you work for, there are several lessons to be learned from the technology pros who know how to make the most of a nonprofit group's limited resources.

Judicious use of outsourcing, volunteer help, internships and equipment donations can help stretch IT budgets, but they all present potential pitfalls.

"The biggest obstacle you have to overcome is your management, which in nonprofits tends to come from the pre-PC generation," says Peter Saliba, director of technology for The Holderness School, a boarding school in Plymouth, N.H. "You need to spend a lot of time educating them and justifying investments in terms of intangibles like reaching more constituents or keeping pace with competitors."

But on the upside, directors of nonprofits are skilled fundraisers. If you can convince them something is important, they are good at getting money for it.

Still, nonprofits can't pay corporate IT salaries or bolster compensation packages with stock options. The 1999 Network World Salary Survey shows that network professionals who work for nonprofit organizations earn an average of $55,606 in total compensation, while their counterparts in profit-oriented ventures bring home an average of $82,776.

Consequently, the perks at nonprofits have to be largely emotional and collegial.

Nonprofits must recruit people who are looking for personal fulfillment and better quality of life. The organizations tend to be more lenient about work schedules as long as people are doing their jobs.

The community and the diversity of the job are what drew Saliba to Holderness. "I develop and present five- and 10-year technology plans, and I replace the toner cartridges in the printers," he says. He also coaches varsity soccer and teaches history.

Nonprofits can appeal to network professionals suffering from midcareer burnout. You'd be surprised at the number of highly competent people who want to apply their skills in a place where they will make a difference, says Michael Gilbert, president of The Gilbert Center, a Seattle-based incubator for projects that help nonprofits take advantage of the Internet.

Internship and volunteer programs can be mutually beneficial to volunteers and nonprofits. In some areas, interns will work for college credits and job experience.

"Interns bring a number of things to organizations," says Thomas Sobczak, MIS director for Woman's American ORT in New York. "They also have a lot of energy, which is very important in nonprofits where everyone tends to be overworked."

There are often IT professionals who are committed to an organization's mission and are ready and willing to volunteer time. But exploiting such resources can be difficult.

Someone on the staff has to set aside time to work with the volunteers. Nonprofits such as Habitat for Humanity recommend assigning volunteers to straightforward tasks that don't require any transfer of knowledge.

Conversely, the American Cancer Society prefers to use high-end volunteers to help with strategy and present the case for technology to the board.

Nonprofits are often too small to have a strong IT department and too large to ignore IT. The obvious solution is outsourcing, says Jeff Behrens, president of Telluride Group, an outsourcer in Newton, Mass., that has a large number of nonprofit clients.

"Selective outsourcing has saved us about 75% in network administration costs, and we aren't getting a discount," Sobczak reports. Other nonprofits prefer to keep ongoing network operations inside and outsource application support.

"It was hard for us to get people who knew all the products well enough, so we outsourced our help desk," said Darian Boggs, network communications analyst for Habitat.

Outsourcers generally don't offer pro bono help or discounts. While product donations are tax-deductible, gifts of service are not. However, some outsourcers will turn around and donate some of the payment they receive.

Moreover, nonprofits can benefit from the personal commitments that individual board members of major suppliers have made to their causes. One of Cisco's directors has an interest in Habitat, and the vendor has donated or provided discounts on new equipment.

However, managers need to carefully evaluate product gifts for associated costs of ownership.

This advice applies equally to Web sites. The Web's lure is irresistible as an inexpensive medium for advertising, recruiting volunteers and soliciting donations. Volunteers may develop your site for free, but you're going to have to maintain it, notes the American Cancer Society's Johns. "A poorly maintained site can do more harm than good," he says.

To top

Send this article to a colleague

Breidenbach is a consultant and freelance writer in San Mateo, Calif. She can be reached at SBreide@ aol.com.

A Blueprint for Infusing Technology into the Nonprofit Sector
Report from the National Strategy for Nonprofit Technology.

Volunteer your skills
Network World and the United Way are working to match up volunteers and non-profits in need of IT expertise.

You make a difference
A report on IT professionals volunteering their time. Network World, 7/26/99.

Volunteer for adventure
How IT workers are doing the right thing and putting their technical talent to use for good causes. More on the theme. Network World, 6/8/99.

Tips for non-profits
Online forum to exchange ideas.

Feedback
Tell us your thoughts on this article or the issues it raises.

ICANN board approves reform agenda

House committee subpoenas WorldCom executives

KPMG Consulting to hire Andersen IT staff, not unit

Xerox accounting troubles may total $6 billion

Analysis: Ciena/ONI deal done

All of today's news

A good .plan
Plus: Porn credit-card site hacked.

Prioritizing voice over data in VoIP
Nutter helps a user make sure voice gets priority on a Cisco net.

E-comm Innovator of the Year Award
Know someone with a groundbreaking e-commerce project? Nominate him or her for our annual award.

Home
Contact us
Site Map
Today's news
This week in NW
Research

Free newsletters
Forums
Opinions
Careers
Terms of Service
Network World, Inc.

Seminars & Events
Advertiser Index
Product Showcase
Vendor white papers
NW Subscriptions