Avoid wasting your donors money on abandonware with a rounded digital product procurement strategy.
Technology should be a powerful tool for good, propelling nonprofits forward in their missions. However, the reality often falls short. Procurement processes in the sector, plagued by a lack of digital expertise and funding constraints, frequently lead to poor technology choices, wasted resources, and ultimately, hindered impact.
Knowledge Gap, Costly Trap: Many nonprofit decision-makers lack the technical chops to evaluate technology solutions effectively. They get dazzled by sales pitches focused on upfront costs, neglecting crucial factors like long-term maintenance, integration complexity, and user adoption. A report by Charity Digital reveals that 41% of charities lack the skills and knowledge to assess digital solutions, leaving them vulnerable to overpaying for ill-fitting software.
Procurement Policies Stuck in the Past: Traditional procurement practices, designed for hardware and mass-produced software, don't translate well to the dynamic world of modern technology. Rigid rules around price comparisons and fixed-term contracts fail to capture the ongoing complexities of cloud-based solutions and open-source tools. This mismatch often leads to abandonware, where expensive software sits unused after initial implementation due to poor adoption or lack of ongoing support.
Funding Feast or Famine: The feast-or-famine funding cycle prevalent in the nonprofit sector further exacerbates the problem. Short-term grants rarely cover the true cost of ownership, including user training, customisation, and long-term maintenance. This "quick fix" mentality leads to poorly optimised systems and frustration among users, ultimately hindering the very impact the technology was meant to support.
The Ripple Effect: The consequences of poor technology procurement extend far beyond financial waste. Ill-suited software hampers productivity, demotivates staff, and frustrates beneficiaries. A study by NTEN found that 51% of nonprofits struggle with data silos and fragmented systems, a direct result of hasty technology choices.
Charting a Better Course: There is hope for the future. Nonprofits can overcome these challenges by:
The power of technology to transform lives in the nonprofit sector remains undeniable. By addressing the current procurement challenges and embracing a more informed and strategic approach, we can ensure that technology becomes a true force for good.
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