A T E C H N O L O G Y - B A S E D U N D E R S T A N D I N G O F T H E N O N P R O F I T M A R K E T I N W A S H I N G T O N

S T A T E .

Market Analysis: Washington State Nonprofit Technology Needs

Survey

Survey Methodology

The Washington Nonprofit Technology Needs Survey was distributed to 2,567 nonprofit organizations in the State of Washington. The survey was open to individuals in a wide array of positions at a wide array of nonprofits across the state. The nonprofits represented were diverse in industry-focus, size, and location in the state of Washington.

The survey had a response rate of approximately 15%, which is considered an adequate sample, and a total of 392 respondents. Of these respondents, 91% were reached through 501 Commons’ contact list. The other 9% were reached through a separate survey, which was distributed to nonprofits not associated with 501 Commons.

The following were the objectives of the survey: Gain an understanding of Washington nonprofit technology use trends Identify key opportunities given technology needs identified by Washington nonprofits Understand how Washington nonprofit technology planning operates as a subset of their

strategic planning Provide feedback to 501 Commons on their performance in the marketplace

2

Survey Results

Need for Solutions to Software/Hardware Failure

0%

5%

10%

15%

20%

25%

What are the major technology challenges you and your colleagues encounter on a day to day basis?

Pe

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nta

ge

of

Re

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nd

en

ts

4

Need for Solutions to Software/Hardware Failure

0 20 40 60 80

No

Yes 59%

41%

0 20 40 60 80

No

Yes 62%

38%

My organization has plans in place to address emergencies and disasters

A significant portion of nonprofits do not have plans in place to address equipment failure (41%) or emergencies/disasters (38%).

My organization has plans in place to address equipment failure

Percentage of Question Respondents Percentage of Question Respondents

5

Need for Technology Strategy

0%

5%

10%

15%

20%

25%

30%

IT InfrastructureConsulting

Technology StrategyServices

Databases forTracking and

Reporting

Data Management Website Analytics Other

Is there a technology software, service, or process you wish you had access to?

Pe

rce

nta

ge

of

Re

spo

nd

en

ts

6

Need for Technology Strategy

0

50

100

150

200

250

Expertise intechnological

implementation

Funds Knowledge oftechnology available

Knowledge of whattechnology best

satisfies yourorganizations need

Strategy forsuccessful

implementation

Other

6

5

4

3

2

1

Please rank the biggest hurdles facing technology implementation for your organization.

Pe

rce

nta

ge

of

Re

spo

nd

en

ts

7

NoYes45% 55%

Do you feel that your organization effectively allocates budget dollars to technology improvements or upgrades?

Furthermore, nonprofits do not feel they are budgeting for technology improvements appropriately.

Need for Technology Strategy8

Need for Database Tracking, Reporting, and Management

0%

5%

10%

15%

20%

25%

30%

IT InfrastructureConsulting

TechnologyStrategy Services

Databases forTracking and

Reporting

Data Management Website Analytics Other

Is there a technology software, service, or process you wish you had access to?

Pe

rce

nta

ge

of

Re

spo

nd

en

ts

9

0%

5%

10%

15%

20%

25%

DatabaseMaintenanceand Support

WebsiteMaintenanceand Support

IT Help Desk LiveTechnology

Training

Membershipand Contact

Management

OnlineTechnology

Training

EmailMarketing

andNewsletter

Creation

Ongoingtraining andconsultation

End UserRegistrationManagement

Other

Is there a technology software, service, or process you wish you had access to?

Need for Database Tracking, Reporting, and Management

Pe

rce

nta

ge

of

Re

spo

nd

en

ts

10

0%2%4%6%8%

10%12%14%16%18%20%

Is there a technology software, service, or process you wish you had access to?

Need for Database Tracking, Reporting, and Management

Pe

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of

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ts

11

Databases Used for Tracking/Reporting

Nonprofits do not have the technology, the know-how, or the time/money to effectively track their data

Source: NTEN, The State of Nonprofit Data, Idealware, © Nov. 2012,

Need for Database Tracking, Reporting, and Management

0

10

20

30

40

50

60

Other Salesforce Access BlackbaudRaiser's

Edge

HostedCRM

(DonorPerfect,

Donor Pro,etc.)

CiviCRM I don't know

Nu

mb

er o

f R

esp

on

de

nts

12

Need for Website Maintenance and Support

0%

5%

10%

15%

20%

25%

DatabaseMaintenanceand Support

WebsiteMaintenanceand Support

IT Help Desk LiveTechnology

Training

Membershipand Contact

Management

OnlineTechnology

Training

EmailMarketing

andNewsletter

Creation

Ongoingtraining andconsultation

End UserRegistrationManagement

Other

Is there a technology software, service, or process you wish you had access to?

Pe

rce

nta

ge

of

Re

spo

nd

en

ts

13

0%

5%

10%

15%

20%

25%

30%

Need for Website Maintenance and Support

Website Platforms Used by Nonprofits

Pe

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14

Appendix

Social Media Platform

Other includes Instagram, Flickr, email services (example: EmailNOW), Google shared email, or none (2x)

Social Media Platform

# of Respondents

16

Databases Used for Tracking/Reporting

0

10

20

30

40

50

60

Other Salesforce Access BlackbaudRaiser's Edge

Hosted CRM(Donor Perfect,Donor Pro, etc.)

CiviCRM I don't know

Database

# of Respondents

17

Nonprofit Data Tracking18

Other database technologies include

Common Responses from Survey Respondents: Cloud software (finance, HR) and increased remote access – 21 respondents

New or updated website - 17 respondents

Mobile devices, mobile –optimized website, mobile donation capability - 13 respondents

CRM – 11 respondents

Full customizable Salesforce to track client vists, volunteer hours, and cash/in-kind donations - 11 respondents

Sharepoint - 10 respondents

Program to track grant funding, expenditures, and budget remaining (for invoicing and reporting) - 6 respondents

Office 365 - 6 respondents

Disaster / offsite backup - 5 respondents

Electronic Health Records - 4 respondents

Online Collaboration Tools – 3 respondents

Time tracking system

19

Collaboration or File Sharing System Used

Collaboration or File Sharing System

# of Respondents

20

Use of Online or cloud based systems

Online or Cloud-based System

# of Respondents

21

What is your organization’s annual budget for technology products and services?

$1,000- $2,000

$10,001- $20,000

$100,001- $150,000

$150,001- $250,000

$2,001-$5,000

$20,001- $50,000

$5,001- $10,000

$50,001- $75,000

$75,001- $100,000

<$1,000

I don't know

Over $250,000

22

My organization has plans in place to address equipment failure

0 10 20 30 40 50 60 70

No

Yes 59%

41%

23

My organization has plans in place to address emergencies or disasters.

0 10 20 30 40 50 60 70

No

Yes 62%

38%

24

How often does your organization allocate budget dollars to technology improvements or upgrades?

Once a year

Once every 2 years

Once every 5 years

Once every 6 months

There is no budget allocation fortechnology improvements

25

Do you feel that your organization effectively allocates budget dollars to technology improvements or upgrades?

No

Yes

45%55%

26

If yes, what are some examples of this effective allocation?

Sample Responses from Survey Respondents: “We gradually bring onboard on big software packages like CRM and SharePoint

in limited ways and then expand them as staff gets to know them.” “We try to balance our tech improvement needs with available funding (both

general fund and grants)” “Allocation for Office 365 implementation; allocations for upgrading finance and

HR software; training” “We are doing the best we can with the limited funds we have” “All computers are no more than three years old and all are on the same current

platforms. Laptops and tablets used by staff off site are leased so as to ensure / maintain efficiency of use and are returned at end of lease for upgrade. This process has helped us change the tempting culture of small non-profits collecting outdated inefficient equipment.”

“IT (including equipment, staff, consulting and fees) is included in the annual budgeting process”

“We receive new computers on a reasonable basis, upgrade necessary software, and are willing to pay if it’s truly a necessary product”

27

If no, what are some examples of this ineffective allocation?

“I feel that we tend to be reactive versus proactive. We are doing better about allocating funds, but we still have a long way to go”

Salesforce (again), since the actual product is not meeting our needs” “We try to hold on to hardware/software too long and sometimes this

complicates the replacement/upgrade plan” “No real technology planning” “Limited funding”, “Not so much ineffective as simply not enough funding” “Training (not all training is good)”, “Sometimes takes more time to do a

task if the person is not trained” “We don’t have a plan for continued renewal of equipment and

software, so it gets used until everything dies at once, and then there are even more significant costs to make the necessary replacements”

“We tend to be reactionary to technology needs more than deliberately planning”

28

What could help your organization improve this process?

“More resources. We are a small non-profit and are trying to incorporate as much functionality into our web site for programming and other needs as we can… lack of time to learn new aspects of the web (and other technology like SalesForce), also a big issue”

“Better knowledge of technology” “Free assistance, free products, free advice” “Longer term planning for IT” “The learning curve of technology service organizations is just ahead of

ours and planning and implementation advice has not been the quality I would like”

“Pro bono IT consulting” “Creating a budget forecast and renewing it regularly” “First of all a clearing house of information that lists all current technology

applicable to a specific use, as well as some anecdotal information about its applicability from those who have implemented it”

“Multi-year strategic plan; analysis of needs” “Funds, knowledge of the best technology available to suit our needs”

29

0 20 40 60 80 100 120

No

Yes

Technology plays an important role in my organization's business

# of Respondents

30

My organization should utilize technology more often

0 10 20 30 40 50 60 70 80 90

No

Yes

# of Respondents

31

Technology plays a growing role in my organization’s effectiveness

0 20 40 60 80 100 120

No

Yes

# of Respondents

32

What are some major technology challenges you and your colleagues encounter day-to-day?

0%

5%

10%

15%

20%

25%

33

What are some major technology challenges you and your colleagues encounter day-to-day?

“Other” Responses from Survey Respondents: “Capturing data without duplication of effort”

“Managing hardware and implementing system policy. We have no mobile device management service or directory server to set access policies on devices.”

“Piecemeal systems... added on here or there out of necessity at the time but without a plan for scalability and long-term maintenance.”

“Network: connectivity, speed.”

“Ability to afford an IT person to call to help with computer issues; use volunteer right now.”

“Old hardware - SLOW!”

“Lack of efficient document management/filing system.”

34

Is there a technology software, service, or process you wish you had access to?

0%2%4%6%8%

10%12%14%16%18%20%

% of Respondents

35

Software-Specific Challenges

“Other” Responses from Survey Respondents: Integration across platforms

Enterprise-wide, cross-program & cross-platform data warehouse with web-based access and analysis portal

Program-specific database (Salesforce may not be the best option)

Hours tracking for service/tutoring

CRM – integrating with other softwares and systems

Online scheduling synched with our database and a database for client data (shelter program)

Client Tracking Database; Volunteer management

Medical records/case management database

Space rental/management software

36

Is there a technology software, service, or process you wish you had access to?

0%

5%

10%

15%

20%

25%

30%

ITInfrastructure

Consulting

TechnologyStrategyServices

Databases forTracking and

Reporting

DataManagement

WebsiteAnalytics

Other

% of Respondents

37

Process/Operations-Specific Challenges

“Other” Responses from Survey Respondents: Affordable, reliable customization and service

Currently we have a task force working on a proposal for a new comprehensive ordering system

Looking ahead to accommodate consituents’ needs

Systems Integration Analysis

Integrating organization values with IT and process – e.g. being able to hire and contract with IT women and people of color

Systems Integration Analysis

38

Is there a technology software, service, or process you wish you had access to?

0%

5%

10%

15%

20%

25%

% of Respondents

39

Services-Specific Challenges

“Other” Responses from Survey Respondents: Cost-effective programming

Planning to roll out and maximize benefits of SharePoint

Information management and best practices in storage

Commonly used language in our sector that would facilitate organization-wide practical, effective, long-term integration of strategic, management and IT planning

General IT support

CRM

40

Please rank the biggest hurdles facing technology implementation for your organization

0

50

100

150

200

250

Expertise intechnological

implementation

Funds Knowledge oftechnology available

Knowledge of whattechnology best

satisfies yourorganizations need

Strategy forsuccessful

implementation

Other

6

5

4

3

2

1

41

Biggest Hurdles Facing Technology Implementation for Organization

“Other” Responses from Survey Respondents: Migration to cloud, software maintenance in the meantime Solutions appropriate for small scale organizations with limited people resources. (e.g.

Salesforce could meet some of needs for data tracking, etc. But we are way too small to manage it.)

We are a very small organization, with only 4 part-time employees, and we just don't have the time or expertise to provide services to our consumers AND deal with technology issues/needs beyond a very basic day-to-day level.

General IT support. (i.e. in other organizations, they have an IT department; we can't afford it yet, so we rely on volunteers.)

Implementation of electronic medical records and ongoing support and use of the new system

Training for more than one person to be able to update the website or use the membership and contributions databases; also interface with fundraising letters, mailings, etc.

We just don't have extra time to explore technologies and get them up and running! A culture in the nonprofit sector of IT being mysterious, expensive, dependence-

oriented, and in need of a particular, stereotypical kind of person to address: dependent, creative, well-overseen, masterful IT innovators in service of their missions and issues.

42

Within the past three years, have you and your colleagues experienced challenges brought about by new government legislation?

Challenges with Government Legislation?

Yes

No

74%26%

43

Challenges with Government Legislation

“Other” Responses from Survey Respondents: Electronic Requirements for length of stay for homeless families in emergency shelter

[are] impacting current and future funding for our services.

“It took forever to gain our 501c3 status due to all the IRS troubles.”

“Grant funding availability has decreased.”

“Tax rules change quarterly, which are handled fine by existing payroll software but will they be when we upgrade? We get audited something like 13 times a year now.”

“Net Neutrality, Broadband Access (Low income Community we support, Multilingual community, Seniors computer access / literacy)”

“Additional auditing requirements, more extensive reporting requirements for public and private dollars.”

44

Is there one area of technology that consistently challenges you and your colleagues or makes aspects of work more difficult?

Common Responses from Survey Respondents: Database related issues and the ability to capture, record, and visualize data - 11

Staffing, support, and technological expertise – 8

Old equipment is incompatible with new software - 8

Network reliability and speed; wireless access – 8

Website Maintenance and Upgrades - 7

Training - 5

Knowledge of what is technologically available and its benefits – 4

Email issues: Being able to check email remotely, mass mailings, from your workstation,

phone, iPad, or remotely from another computer in another part of the world. S…nching

issues, emails lost, or emails deleted inadvertently, or 200 old emails being re-

downloaded - 4

Managing Social Media platforms – 3

Problems with or lack of accounting software/financial management - 3

Collaborative/Shared Documents - 2

Volunteer management systems - 2

45

What technology related issues or problems do you foresee for your organization in the future? (free response)

“Other” Responses from Survey Respondents: We realize that our technology is not keeping up with the general community. Being in a deficit mode will hinder our growth

and sustainability. (people, process, tech) Replacement of existing/aging computer and other technology equipment via a deliberate and planned schedule. (tech and

process) Backup issues, but Google Drive mitigates that so long as employees remember to use it (it is even HIPPA compliant). A system

like Carbonite would be nice to ensure each machine is backup totally, but is cost prohibitive. (technology) Because we work partially in a third-wold country, the move toward having everything on the cloud is a problem for us.

Internet access is difficult, and el… causes climate change. We wish we could still get simple CD's of all necessary software, data, etc. (technology)

No one really leading technology (ppl) Too many systems that don't talk to each other (tech and process) Managing a growing database/website with a small staff (people) Collaborative and organizational tools. GoogleDocs is great for sharing a document but limiting in terms of formatting (kind of

clunky). We have multiple…ols that give us ways to effectively collaborate (editing documents, virtual meetings, etc) are key. We are there now. All systems are old. Nothing works together. We collect customer data through ticket purchases at Brown

Paper Tickets that is difficult t…ial transactions. When we are on-site, we use Square, which is also not capturing our customer data.

Lack of in-house expertise means we have to pay a lot for help. Lack of analysis of our tech capabilities and potentials is a problem

We contract with a vendor to deliver IT services, but it's expensive. We may look to lower costs. Lack of strategic planning and budgeting - we tend to make tech decisions in a reactive and not planful way, and there are

never enough funds! Internet speed (limited to a specific ISP because of renting a City facility), running several different operating systems,

transitioning from server to cloud, Dataflow database (volunteer and programming cloud database) ending support Online document storage and sharing. We need to standardize our processes and be consistent about what is where. We struggle with knowing what's available and what best practices are for peer organizations Our enrollment/attendance data is already not up to date because we collect data on paper and post it into database at end of

quarter. This prevents us fro…dia presence - this is not just a technology issue but also a resource, training and protocol issue. We need a way to manage our growing and complicated contacts list. It must be smoothly and fully integrated with Outlook.

46

Which technologies does your organization plan or wish to adopt in the next 1-2 years?

Common Responses from Survey Respondents: Cloud software (finance, HR) and increased remote access – 21

New or updated website - 17

Mobile devices, mobile –optimized website, mobile donation capability - 13

CRM – 11

Full customizable Salesforce to track client vists, volunteer hours, and cash/in-kind donations - 11

Sharepoint - 10

Program to track grant funding, expenditures, and budget remaining (for invoicing and reporting) - 6

Office 365 - 6

Disaster / offsite backup - 5

Electronic Health Records - 4

Online Collaboration Tools – 3

Time tracking system

47