What's Happening?
Nonprofits are facing significant challenges due to underinvestment in information technology (IT), leading to dependency on private technology vendors. This dependency, known as 'technical debt,' results in nonprofits spending a substantial portion of their budgets just to catch up on outdated systems. Many nonprofits rely on donor management systems and databases that are decades old, which can lead to inefficiencies and vulnerabilities when key staff leave. According to a report by Salesforce, 76% of nonprofits lack a data strategy, highlighting the fragility of their IT infrastructure. This dependency often results in nonprofits signing contracts with vendors under duress, leading to vendor lock-in and mission drift, where priorities shift from community impact to metrics serving vendors.
Why It's Important?
The reliance on private vendors for IT solutions poses a risk to the autonomy and mission of nonprofits. As vendors consolidate their gains, nonprofits may face higher costs and reduced competition, which can undermine their ability to serve communities effectively. The structural dependency created by proprietary platforms can lead to 'digital eviction' if discounts are withdrawn or prices change, leaving nonprofits vulnerable. This situation is exacerbated by the COVID-19 pandemic, which forced many nonprofits to sign costly long-term contracts for remote work solutions. The extraction of resources by private vendors can divert funds away from community-focused initiatives, threatening the core mission of nonprofits.
What's Next?
Nonprofits are encouraged to invest in in-house technical skills to reduce dependency on external vendors. Building digital literacy and technical responsibility within the organization can lessen vendor pressure and save money. Open-source software presents an alternative, offering adaptable and auditable tools that can be shared among nonprofits. Collaborative efforts, such as those by the Catalyst Cooperative in the UK, demonstrate the effectiveness of cooperative digital tools. Nonprofits are urged to treat technology as essential to independence and to advocate for public or philanthropic investment in shared infrastructure. Collective resistance and advocacy for nonprofit data rights are crucial to reclaim control over technology.
Beyond the Headlines
The issue of technology dependency in nonprofits is not just operational but also political. Decisions around technology can mask underlying values and priorities, such as efficiency rhetoric enabling privatization. Nonprofit leaders are encouraged to challenge these hidden costs and focus on community-driven outcomes. By forming coalitions, nonprofits can document the human costs of vendor dependency and advocate for shared infrastructure. Organizations like the Nonprofit Technology Enterprise Network (NTEN) provide resources and advocacy for nonprofit data rights, framing technology as an equity issue. This approach emphasizes the importance of technology in preserving autonomy and accountability within the nonprofit sector.
