2010 nonprofit it staffing and spending report

8/3/2019 2010 Nonprofit IT Staffing and Spending Report

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An NTEN Report Prepared by:

Chris BernardSenior Writer & Editor

Kimberly Bernard PhDResearch Consultantwww.italicsmedia.com

APRIL

2010 Nonprofit

IT Staffing & SpendingSurvey Results

Conducted With:

NTEN | 1020 SW Taylor Street | Suite 800 | Portland, Oregon 97205 | p: 415.397.9000 | f: 415.814.4056


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Table of ContentsABOUT NTEN . . . 2

ABOUT THE NONPROFIT TIMES . . . 3

EXECUTIVE SUMMARY: KEY FINDINGS . . . 4

ABOUT THE SURVEY . . . 8

ABOUT THE RESULTS . . . 8

ABOUT THE RESPONDENTS & THEIR ORGANIZATIONS . . . 9

SPENDING TRENDS . . . 13

LEADERS IN IT ADOPTION . . . 15

IT BUDGETING . . . 19

STRATEGIC PLANNING . . . 21

OUTSOURCING IT RESPONSIBILITIES . . . 24

ORGANIZATION OF IT . . . 27

SATISFACTION WITH IT FUNCTIONS . . . 33

IT STAFFING . . . 37

IT RECRUITING . . . 41

APPENDIX: SURVEY TEXT AND QUESTIONS . . . 44

NTEN: A COMMUNITY TRANSFORMING TECHNOLOGY INTO SOCIAL CHANGE IT STAFFING & SPENDING REPORT APRIL


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About NTENA CommunityTransforming

Technology IntoSocial Changewww.nten.org

Who We Are

A community of nonprofit professionals, we aspireto a world where nonprofit groups of all types andsizes use technology strategically and confidentlyto fulfill their missions. Together, the NTEN

community helps members put technology towork so they can bring about the change theywant to see in the world.

What We Do

NTEN connects members with one another andoffers many opportunities for learning andprofessional developmentall so you can focus onachieving your goals and meeting your mission.

How We Do It

NTEN helps members, with their diverse jobfunctions and levels of tech comfort andexpertise, share best practices, and glean insightsfrom one another both online and off: training,research and industry analysis, regional meet-ups,our signature Nonprofit Technology Conference.As a member, you gain instant access to asupportive community that shares your passionsand challenges, as well as to valuable resourcesfor professional development.

Connect

Online Networking / www.groups.nten.org

Whether youre a webmaster, marketer, executivedirector, fundraiser, blogger, program manager, orplay another role in the nonprofit sector, connectwith your peers online. Join our Affinity Groupsand social networks, browse the MemberDirectory, post in our online forums.

Events / www.nten.org/events

NTENs Nonprofit Technology Conference andlocal meet-ups bring nonprofit professionalstogether to share ideas and best practices. Get toknow colleagues. Develop a support network. Talkshop. Vent. Congratulate. Collaborate. Thepossibilities are endless.

Learn

NTEN Webinars / www.nten.org/webinars

Changing the world isnt easy. NTEN members arealways looking to learn more about how to usetechnology to further their missions. Gain awealth of knowledge without ever leaving yourdesk through NTENs extensive schedule of livewebinars and archived events.

NTEN Research / www.nten.org/research

NTEN collaborates with renowned industry,academic, and nonprofit partners to conductresearch on key subjects related to nonprofittechnology like IT staffing and spending, salaries,social networking, and data ecosystems. Ourreports and benchmarks studies offer actionabledata and invaluable insider information.

Change

NTEN: Change / www.nten.org/ntenchange

NTEN: Change is a quarterly journal for nonprofitleaders. Youll find guidance on the strategic andpractical considerations necessary to make thesound investments and decisions that will helpyour organization achieve its mission.

NTEN Connect newsletter /

www.nten.org/signup

Read how NTEN members are fulfilling theirmissions and changing the worldand how youcan too. The free monthly NTEN Connectnewsletter brings you solid advice, successstories, and best practices related to technologyand the nonprofit sector.



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About TheNonProfit Timeswww.nptimes.com

NPT Publishing Group has been the leadinginformation provider for the nonprofit sectorsince 1987. The NPT has provided news andinformation to help nonprofit executives managetheir organizations more efficiently and increasethe effectiveness of fundraising efforts.

The NPT provides a mix of news, in-depthfeatures, how-to articles and special reports tokeep our readers informed of the latest trendsand technology that drive the marketplace. Just as

the nonprofit marketplace has grown, TheNonProfit Times also has evolved. The NPT startedas a monthly publication.

NPT now publishes 19 print issues plus two digitalissues per year, publishes six issues of Exempt,a standalone magazine which provides financialinformation for the largest nonprofits, has twoWeb sites which are updated constantly, and fiveseparate eNewsletters for nonprofits (NPT Weekly,NPT Instant Fundraising, NPT TechnoBuzz, NPT

Jobs and Exempt), and broadcasts a series ofeducational Webinars. The magazine goes out tomore than 34,000 nonprofit executives andreaches more than 200,000 people through ourcombined circulation with our eNewsletters.

The NonProfit Times (NPT)

Circulation: 34,000

The readers of The NonProfit Times are leaderswithin the nonprofit world. With more than 75percent having a title of vice president or higher,

NPT subscribers are responsible for a number ofduties within a nonprofit organization, includingvital purchasing decisions. By advertising with TheNonProfit Times, you will get your product/servicedirectly in front of these decision makers, thusincreasing sales and awareness.

NPT Weekly

Circulation: 85,000

NPT Weekly is an e-letter that addresses matterspertaining to all aspects of nonprofit management news, fundraising, financial management, directmarketing, technology, legal issues and humanresources. It offers a mix of how-to and newsstories.

NPT Instant Fundraising

Circulation: 34,000

NPT Instant Fundraising is geared towardskeeping development officers and executivedirectors up to date with the latest fundraisingdevelopments. It offers news, tips and provenmethods to fund organizations.

NPT Jobs

Circulation: 85,000

NPT Jobs is the premier nonprofit newsletterbringing new career opportunities to thenonprofit executive community.

NPT TechnoBuzz

Circulation: 40,000

NPT TechnoBuzz is for CIOs, CFOs, IT Directorsand Development Directors responsible for the

purchase and management of hardware andsoftware at the nations nonprofit organizations.It features trends and business storieswith a focus on technology solutions for donormanagement, finance and fundraising.



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Executive Summary: Key FindingsIts no longer possible for organizations to ignore technology. Technology hasthe power to transform not just our work, but our entire world. When usedproperly, it can streamline processes, improve communication, and effectively

shrink the world into a manageable community. To not use it is to risk fallingbehind, or becoming irrelevant.

But technology is constantly changing and immeasurably diverse. It can be a challenge for organizations tofind the right mix of training, staff, commitment, leadership and funding to keep on top of itor better yet,to keep ahead of it, not just using technology but advancing it.

In the fifth year of this survey, were seeing clear patterns around nonprofits and technology. Some mightsay that throwing money at it is one way to fix the issues many organizations face, but our results showthats not the only way, or even the best way. In fact, funding is only one piece of the puzzle. Weve foundthat the following components are of equal, or greater,

importance to using technology effectively:

Strategic planning around technology

Examining the Return On Investment in technology

Having a standalone or clearly defined-and-dedicatedIT department

Investing in IT staffing

This report gauges the state of nonprofit staffing andspending, and provides organizations with annual

information to help evaluate their own approaches. When webegan, it was the first time a survey of this kind had ever been done. We hoped to shed light on the mostcommon questions nonprofit organizations were asking in this area, including the level of investmentnonprofits were making in IT, what typical salaries looked like, and how Small and Large organizationscompared with each other.

We also started asking organizations to rank themselves in terms of where they fell on the scale oftechnological proficiency, which enabled us to ask a few new questions:

What are the decisions and practices that define a technological leader?

What can organizations that lag behind these leaders learn from them?

Is there any correlation between budget, IT spending, staff size or organizational size and thisranking?

With this information, we believe all nonprofitsregardless of their self-reported rankingcan analyze andadjust their IT practices to their own benefit.


Leaders are found among

organizations of all sizes. Small-

and Medium-sized organizations

may have accounted for 59 percent

of our stragglers, but they also

accounted for almost 39 percent

of our leaders.


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Key Findings

Because some nonprofit organizations adopt and manage technology better than others, we askedrespondents where they see themselves on that curveas early adopters or fast followers, which wevecombined into a single group of leaders, or as average, lagging behind, or in trouble, which wevecombined into a group that well call stragglers. Then we took a look at what the leader organizations aredoing, and what the other organizations can learn from them. The key findings are summarized below.

Technology Leadership

Using the criteria described above to categorize respondentsas coming from either leader or straggler organizations, wesaw:

Less than 32 percent of respondents self-identified asleaders. This is down more than 3 percent from lastyear, and the first decline since 2007.

Respondents from organizations in all size categories considered their nonprofits to be technologyleaders, but larger organizations are more likely to consider themselves leaders.

Of the leaders, 33 percent were Very Large organizations, 28 percent Large, 29 percent Medium, andjust 10 percent Small.

Nearly half of all Very Large organizations considered themselves leaders, in line with the last twoyears results.

Of Small organizations, about 17 percent considered their organizations to be leadersdown fromlast year. From Medium organizations, less than 25 percent considered their organizations to beleaders, also slightly down from last year.

The number of Large organizations (35 percent) who considered themselves leaders was almostidentical to last year.

IT Investment

Leaders, regardless of organizational size, continue to spend more money on technology thanstragglers.

Though the average percentage for all respondents organizations overall budgets allocated to ITwas less than 3 percent, this figure was significantly higher among Small organizations than thoseof any other size.

In general, IT expenditures either stayed the same or increased for the majority of surveyrespondents compared to last year.

Investment was most static in the areas of Help Desk Support, which stayed the same for 84 percentof respondents organizations, followed by Network Administration and Support (79 percent), Technical

Training for IT Staff and Security and Data Backup (76 percent), and Technical Training for Other Staff(75 percent).

35 percent of organizations increased their spending on Hardware, while 15 percent decreased theirspending in this area.

34 percent increased their spending on Website Design and Development, while 8 percent decreased.

32 percent increased their spending on Software, while 11 percent decreased.


Leaders were far more satised

with every aspect of IT function

than other organizations.


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Satisfaction with IT Function

Leaders were far more satisfied with every aspect of IT function than other organizations.

All organizations, on average, continue to be most satisfied with Hardware and Software In Use,followed closely by Availability of IT to Meet Staff Needs, Organizations Website and Availability to MeetClient Needs.

All organizations, on average, continue to be least satisfied with IT Budget Allocations, Quality of ITTraining for Staff, Integration of IT into Strategic Plan, and IT Recruiting Procedures.

In no category did leaders satisfaction fall below 50 percent.

Conversely, in no category did stragglers satisfaction rise above 41 percent.

Planning

Strategic, formal planning continues to be a sign ofsuccess for organizations in terms of technologyamajority of leaders (64 percent) have a formal plan inplace, compared to just 29 percent of stragglers.

However, most respondents (60 percent) said theirorganizations still do not have a formal plan.

For the first time since 2007, the percentage of respondents who report having no strategictechnology plan increased when looking at year-over-year trends.

Just 26 percent of respondents said their organization had ever evaluated the Return on Investmentfrom IT projects or programs. Those who did were much more likely to be leaders (44 percentcompared to 17 percent).

Outsourcing

Outsourcing does not appear to have any impact on whether an organization identifies as a leader.

Organizations of all sizes outsourced at least some IT functions.

Salary and Tenure

CEOs topped the list with a reported annual averagesalary of just more than $100,000, followed by CIOs,at $97,250.

Web Masters, Web Developers and SystemsAdministrators held the middle of the list, rangingfrom about $59,000 to just over $60,000.

IT Support Staffcontinued to hold the bottom rung, at $41,751, behind Online CommunicationsManagers at $52,777 and Online Community Managers, at $56,590.

Online Community Managers continued to have the shortest tenures, at three years. At the other endwere CEOs, with the longest average tenure at 8 yearsexactly the same as last years report.

Of the nonprofits who did not contract any IT needs to outside consultants, organizations regardlessof size devoted an average of 55 percent of their IT Budget to staffing.

Medium orgs devoted the largest percentage (72 percent), followed by Large (67 percent), Very Large(54 percent) and Small (41 percent).


A majority of leaders (64 percent)

said they had a formal plan in

place.

Across organizations of all sizes,

leaders averaged almost ve IT

staers compared to about three

for stragglers.


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Among organizations of all sizes, the median budget for IT staffing was $50,000, and the averagewas $218,000.

Among organizations that dont use external IT consulting, leaders spent four times as much asstragglers on IT staffing, regardless of size.

Among organizations of all sizes, staffing ratiosthe proportion of IT staff to total staffaveragedone IT staffer to every 34 staffers.

Across organizations of all sizes, leaders averaged almost five IT staffers compared to about threefor stragglers.

The ratio of IT staffers to total staffers was one to 30 for leaders, and one to 37 for stragglers.



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About the SurveyThis is the fifth year of conducting the Nonprofit IT Staffing Survey. The resultsprovide information that nonprofits of all sizes can use to better their ownapproach to technology. To gather the data for this report, we rely on the

generosity and participation of respondents throughout the nonprofitcommunity who completed the survey.

We distributed an invitation to participate in the survey to all organizations on the NTEN member anddiscussion lists, a combined circulation of over 20,000. In addition, links to the survey ran in The NonProfitTimes email newsletter (circulation about 34,000). Invitations were also distributed to potential participantsthrough a number of nonprofit capacity-building and membership organizations. All respondents wereencouraged to invite others to participate.

For the full text and questions included in the survey, please see Appendix A.

About the ResultsIn November and December of 2010, we collected surveys from a total of1,199 people representing a wide variety of nonprofit organizations.

The non-random sample and low response rate means these respondents are probably not representative ofthe nonprofit sector as a whole, and reflect only those organizations that chose to fill out the survey. One

example that illustrates this fact is that, while the majority of nonprofit organizations in the United Stateshave budgets under $500,000, only 17 percent of survey respondents work for such organizations.

In addition, our survey pool means its likely our respondents are generally more aware ofand moreconcerned abouttechnology issues than the rest of the sector. That said, we believe theres much to begained from the insight this survey gives us into the differencesand the similaritiesin thinking aboutInformation Technology expressed by respondents. We present this data not as a rigorous look at the sector,but as a set of benchmarks and figures to help guide those who are thinking about nonprofit ITinfrastructure.

If youre thinking about it, youve already made that critical first step.

Note: In the survey, respondents were asked for additional comments to elaborate on their answers or toarticulate ideas or concerns that didnt fit within the options provided for a standard response. Some of those

remarks appear in this report, both in pull-out boxes and in lists at the end of certain sections. These respondents

remarks have been edited for spelling and punctuation.



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About the Respondents andTheir OrganizationsIn all, we collected surveys from a total of 1,199 people, a 19 percent increase

over last year. This years respondents resemble the past two years in almostevery respect, including job titles, organizational size and focus area, andgeographic locationif nothing else, this supports our efforts to drawconclusions about trends over multiple years, though the nature of thoseconclusions is limited by the size and demographics of our respondent group.

Respondents Job Titles

As weve already mentioned, the nature of this survey meansits likely our respondents are generally more aware ofandtherefore more concerned abouttechnology issues than

much of the nonprofit sector. We asked about their roles intheir organizations, and their answers seem to bear this out.

More than half (57 percent) were the Executive Directors/CEOsor the IT Directors of their organizations, but we also heard from Chief Technology Officers, Project Managers, Systems Administrators, Webmasters and Database Managers. The remainderlisted as Other in the chartbelowincluded Program Analysts, Information Architects, Web Developers, Circuit Riders and Programmers.

CHART :Job Titles Of Survey Respondents (N=759)


We don't have departments,

IT is me.

From a Straggler organization

Executive Director/CEOIT Director/Technology Director

Project Manager

Chief Technology Ocer/Chief Information Ocer

Online Communications Manager/Strategist

Systems or Network Administrator

Other

Webmaster/Web Administrator

Database Manager

PC Technician or IT Support Sta

0 50 100 150 200 250 300

268168

67

62

57

45

30

23

22

17


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Organizational Focus

In all, survey respondents represented more than 25 different sectors of the nonprofit community at large.Most survey respondents came from the following programmatic focus areas:

Human Services (136)

Education (114)

Health Care (63)

Arts, Culture, Humanities (53)

Youth Development (43)

Community Improvement and Capacity Building (39)

Environment (37)

Mental Health and Crisis Intervention (34)

Geographic Locations

A generous 876 respondents shared the location of their organizations headquarters with us. The majoritywere from the Northeast and Mid-Atlantic regions, followed by the West. We also received one response

from a U.S. territory, and 24 from outside of the U.S.

CHART : Where The Surveys Came From (N=876)


Outside US: 24

173

179

87191

221


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Size of Organizations

However you measure it, the results represent a broad range of nonprofit organizations, but for this report,we had to establish certain scales to measure other things. To understand the size of an organization, weused two methods: Overall Staffing (which uses the number of Full Time Equivalent, or FTE, positionsemployed by the organization), and Budget. Unless staffing is specified, any references to size in this reportrefer to budget.

In past editions of this report, we defined a range of sizes to categorize organizations budgets, which wellcontinue to use to make it easy to compare results from year to year.

Heres what we came up with:

Small: Budgets under $500,000

Medium: Budgets from $500,000 to $3 million

Large: Budgets from $3 million to $10 million

Very Large: Budgets over $10 million

Based on those categories, this year just 17 percent of our respondents represented Small organizations,35 percent Medium organizations, 24 percent Large organizations and 23 percent Very Large. As wementioned earlier, this doesnt line up with what we know about the size of nonprofit organizations in theUnited States in general.

CHART : Size Of Nonprofits Participating In Survey


17% 35% 24% 23%2010

15% 32% 24% 29%2009

17% 31% 26% 26%2008

0% 20% 40% 60% 80% 100%

Small Medium Large Very Large


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TABLE : Total Number Of Full-Time Equivalents Staffed By 2009-10 Nonprofits

Office Locations

Similar to the responses we received last year, almost half of our responding organizations maintain just oneoffice location, and three-quarters of respondents maintain four or fewer office locations.

TABLE : Number of Office Locations


Number of FTEs Frequency 2009 2010

None/Less than 1 FTE 23 (3 percent) 22 (2 percent)

1 FTE 14 (2 percent) 19 (2 percent)

2 - 10 FTEs 175 (21 percent) 230 (24 percent)

11 - 20 FTEs 112 (13 percent) 130 (13 percent)21 - 40 FTEs 127 (15 percent) 142 (15 percent)



141 - 200 FTEs 51 (6 percent) 49 (5 percent))



More than 500 FTEs 60 (7 percent) 65 (7percent)

Number of 2008 2009 2010Oce Locations Nonprofits Nonprofits Nonprofits

1

2 - 45 - 8

9 - 15

More than 15

492 (48 %)

274 (27 %)99 (10 %)

69 (6 %)

94 (9 %)

367 (44%)

245 (29%)85 (10%)

52 (6%)

94 (11%)

452 (47%)

278 (29%)91 (9%)

44 (5%)

101 (10%)


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Spending TrendsThe economic downturn affected nearly everyone, from individuals tononprofits to corporations. We were curious if it affected the waysand theamountsnonprofits spent on IT. We asked respondents to compare their IT-

related expenses from fiscal year 2009 to fiscal year 2010. What did we find?

IT expenditures increased or stayed the same for the majority of organizations in all areas. The areas withthe least amount of change were Help Desk Support, which stayed the same for 84 percent of respondentsorganizations, followed by Network Administration and Support (79 percent), Technical Training for IT Staffand Security and Data Backup (76 percent), and Technical Training for Other Staff(75 percent).

35 percent of organizations increased their spending on Hardware, while 15 percent decreased theirspending.

34 percent increased their spending on Website Design and Development, while 8 percent decreased.

32 percent increased their spending on Software, while 11 percent decreased.

The largest decreases were for:

Hardware, Telephone/Mobile Expenses, and OutsourcedIT Consulting (15 percent)

Technical Training for IT Staff(14 percent) and OtherStaff(13 percent)

Software and Custom Software (11 percent)

IT Staffing and Payroll (9 percent)

Interestingly, some of the largest increases also occurred in the same areas: Hardware (35 percent), Website Design/Development (34 percent) and Software (32 percent)

Outsourced IT Consulting (25 percent) and CRM/Database Development (24 percent)

IT Staffing and Payroll (22 percent)

Its difficult to draw firm conclusions from this data, but its possible organizations took a safe route withexpenditures and held a steady course during the downturn. New hardware purchases, outsourcedconsulting and technical training are easy line-item targets in budget crises, and payrolls are also commonlycut, but at least as many organizations increased spending in each of these areas as decreased it, and wefind that encouraging.

Last years survey asked respondents about the areas in which their spending had increasedin most cases,those areas were Website Design, Hardware, Software and Consulting, which resonates with this yearsresults. 2009 was the first year we asked about specific expenditures, so the data doesnt go back farenough yet to monitor longer-term trends.


Lack of funding causes us to be a

generation or three behind the

curve in equipment.From a Straggler organization


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CHART : Reported Changes In Nonprofit IT Costs Between 2009 And 2010


Help Desk Support

Security and Backup

Network Administration/Support

Other Custom Sotware

CRM/Database Development

Telephone/Mobile

Website Maintenance

Website Design/Development

IT Stang/Payroll

Software

Hardware

Technical Training for Other Sta

Technical Training for IT Sta

Outsourced IT Consulting

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10%84%

20%76%5%

14%79%7%

17%72%11%

24%68%8%

20%66%15%

21%71%7%

34%58%8%

22%69%9%

32%57%11%

35%51%15%

12%75%13%

10%76%14%

25%60%15%

6%


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Leaders in AdoptionOne of the goals of this report is to determine what makes organizationssucceed or fail at Information Technology. Obviously, theres no easyanswerno silver bullet or magic wand. But by identifying the behaviors of

organizations that are successful at IT and looking for patterns, our hope isthat we can learn something about the practices that lead to positiveoutcomes in this area.

So, how do we identify an organization thats successful atIT? We asked respondents to rate their own nonprofits andtell us where they think their orgs stand in relation to therest of the nonprofit sector in terms of the technologicalsolutions theyve implemented for their daily practices. Whatstandard practices do they maintain, how do they manage

them, and how do they see themselves positioned relative toother organizations in the nonprofit sector in terms ofadopting technology? We gave the following choices:

Leading Edge/Early Adopter

Fast Follower

Average

Lagging Behind

In Trouble

CHART : Nonprofit IT Adoption Reported in 2010 (N=972)

Just 91 respondents felt their organizations were on the leading edge, and just 54 felt their organizationswere in trouble.


450

400

350

300

250

200

150

100

50

0

91

285

428

320

54

LeadingEdge

FastFollower

Average LaggingBehind

In Trouble

We prefer to wait until technology

has a chance to mature but believe

in investing in systems that allow

stato be ecient and accurate.From a Leader organization


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As you might expect, the majority by far, at 428, felt their organizations were average. Next were the 320respondents who felt their orgs were lagging behind. The fast followers trailed them with 285 respondents.That means the bulk of organizations feel they fall somewhere in the middle, with 376 indicating aboveaverage and 374 below average.

A lower percentage of respondents felt their organizations were leaders this year than in either of thesurveys since 2007. A higher percentage felt their organizations were stragglers than in either of the surveyssince 2007.

TABLE : Self-Identified Leaders in IT 2007-10

Respondents Comments

We were curious what factors respondents took into consideration when deciding how to rank their ownorganizations, so we asked them. Recurring themes mentioned by respondents from leader organizationswere Planning and Evaluation, Committees or Groups Devoted to Technology, and Staff Member Interest.

Other leaders comments included the following:

We have established a tech team that meets every other week to talk about tech-related issues,and things that we have learned about. Through this constant assessment we keep IT issues on theforefront of our minds, thus being able to try new things quickly.

We don't go after every new gadget or format, we let the market test the product a bit, but weusually go after useful tech stuff rather quickly.

A small staff (one) that is interested and recognizes the cost-effectiveness of many tools, and areally accepting forward thinking board.

Adoption of new technology, constant re-examination of technology road map.

In-house IT.

Latest versions of software are reviewed and updated quite often.

The main factor is the way in which we have evaluated and implemented technology in the last 2years.

We do like to explore new technology, but the actual adoption involves in-depth discussions andweighing ROI. We never jump right in.

Moving to (Software as a Service) solutions, mobile strategy, and updating key applications toensure best of breed.

We have adopted software earlier than others -- we are always looking for new ways to use tech tohelp our business process.

Don't always have the funding to be a leader, but with necessity and our new leadership'sprogressive attitude, we're catching up.

Young staff interested in latest technology.

There are committees in place to review new software and decide if it's right for the organization.


2007 2008 2009 2010

Leaders

Stragglers

Number of Responses

30.4%

69.6%

1,010

32.3%

67.7%

753

35.5%

64.5%

994

31.9%

68.1%

1,179


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Recurring themes among the stragglers were overwhelmingly Budget and Staffing Limitations and Lack ofTraining, though multiple respondents mentioned consciously choosing to avoid the risks of cutting-edgetechnology.

Other respondents comments from straggler organizations included the following:

We are still using some IT technology from the year 2000.

The rate at which we purchase and upgrade, and how we use technology. Budgets and number of IT staff.

Budget, bureaucracy and attitude of leadership.

Budget drives our adoption of new technologies.We advance our IT when we can.

An aversion of senior management to embrace newforms of technology and communication.

We have limited budget to put to IT; we have limitedunderstanding of what IT is among the staff.

Very little reliance on virtual/cloud computing. Usetraditional on-site methods for storage, security, etc.

Planning and architecture take time. It would begreat if innovative ideas and changes could beimplemented instantaneously.

IT was done by volunteers. When professional management took over it was a slow process toaccumulate the needed funding and to convince the board that additional expenditures on IT wereappropriate.

Budget constraints, poor understanding of how technology can further our goals.

Our investments in technology are driven by operational needs, we do not try to be a leader in IT

support. Small staff, non-technology savvy leadership.

Trying to be standard and avoid risk make us slow on the uptake of new technologies.

Staffing levels, some reluctance to change.

We opt for stability and functionality.

We try to stay one generation behind for the sake of maturity and cost.

Size & IT Leaders

The larger the operating budget, the more likely the organization will be identified as an IT leader. That was

true in each of our past years surveys, and it remains true this year. Almost half the nonprofits with operating budgets over $10 million dollars identified as leaders.

Just 17 percent of Small nonprofits with budgets less than $500,000 identified that way.


We make heavy use of the

donated Microsoft and other

products through TechSoup, and

our stamake eorts to stay

current with leading tech trends

and hardware/software, with the

support of senior management.From a Leader organization


19/56

CHART : 2010 IT Leaders Found in Size Categories

Despite the clear pattern, there are bright spots. Leaders are found among organizations of all sizes. Small-and Medium-sized organizations may have accounted for 59 percent of our stragglers, but they alsoaccounted for almost 39 percent of our leaders.

Size may be a factor in an organizations IT success, but its far from being the only factor.CHART : Percent IT Leaders Found in All Size Categories 2007-2010

An emerging pattern shows a steady, four-year decline in the number of small organizations that identifythemselves as Leadersat least one percent drop each year. In no other size category has there been a clearpattern of increase or decrease. This is not the trend wed hope to see, and we hope this trend reverses itselfover the coming years as the economy improves.


Very Large

Large

Medium

Small

0% 20% 40% 60% 80% 100%

Number of IT Leaders

Number of IT Stragglers

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

%

Leaders

2007

14%

29%

25%

32%

2008

12%

32%

24%

32%

2009

11%

24%

24%

41%

2010

10%

29%

28%

33%

Small

Medium

Large

Very Large

I

I

I

I

NN

N

N

L

LLL

X

X

X X


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IT BudgetingHow much are nonprofits spending on IT, and what are they choosing tospend it on? We asked respondents to describe the components of theirorganizations IT budgetseverything from Overall Expenditures to what

proportion they allocate for Staffing, Capital, Consulting Contracts and OtherDiscretionary Expenditures.

About 60 percent said they either did not know or did notwant to share this information. But 476 respondents provideddetails that lets us put their IT spending decisions into a largerorganizational context. Heres what we learned:

The median budget for IT expenditures for all surveyrespondents was about $56,000.

The average budget for all IT expenditures was about

$431,000. On average, organizations devoted 2.7 percent of their budget to IT.

Small orgs devoted the largest portion of their overall budget, at 7.1 percent, reporting an average ITbudget of just under $17,000.

TABLE : Total IT Expenditures Reported by Nonprofits in All Size Categories (N=476)

Like last year, leaders spent more money on IT across allorganization size categories.

Among Very Large organizations, the gap betweenleader and straggler IT expenditures was about

$261,000. Among Small organizations, it was more than $8,000.

The gap widens in the middle, too. Leaders spentalmost $38,000 more than stragglers among Medium-sized orgs.

Leaders spent over $60,000 more than stragglers among Large organizations.


Size of Number of Median Budget Average Budget % OrganizationalNonprofit Responses For All IT For All IT Budget Allocated

Expenditures Expenditures To IT

Small

Medium

Large

Very Large

All Respondents

95

171

108

102

476

$2,500

$28,000

$100,750

$490,000

$55,600

$16,617

$50,696

$148,072

$1,753,204

$430,811

7.1%

3.4%

2.5%

2.7%

2.7%

While we are ahead in terms of

software, lack of money makes us

lag in terms of having a hardware

replacement policy. We use a lot of

duct tape.From a Straggler organization

To the extent possible, budget is

allocated to IT, and we have often

found ourselves pushing the

envelope with our funders.From a Leader organization


21/56

Where is the money going? For most organizations, to IT Contracts, followed by Discretionary Expenditures,and Software or Cloud Expendituresthis is true for organizations of all sizes.

The median IT budget for organizations of all sizes dropped from $91,000 to $55,600, though the averagerose. Because the inclusion of extremely small or extremely large budgets can skew the average, its likelythat this year we received responses from large organizations that did not participate last yearraising theaveragewhile a number of organizations reported smaller budgets than last year, causing the median todecrease. The latter probability is more relevant, as organizations of all sizes reported spending less on ITthis year than in the previous yearthe one exception was Very Large organizations, maybe a sign that theeconomic downturn had less of an impact on the largest organizations spending habits.

The percent of the overall budget devoted to IT dropped for organizations of all sizes.

For Large and Very Large organizations, it dropped only slightly.

For Medium organizations, it dropped noticeably (from 6 percent to 3.4 percent).

For Small organizations, it dropped considerably (from 14 percent to 7.1 percent).

CHART : Comparison of Median IT Budgets Between IT Leaders & Stragglers

TABLE : Median IT Expenditures Reported by Nonprofits in All Size Categories


$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$

$10,450 $2,000$56,250

$19,000$155,000

$95,500

$680,000

$418,601


Size of Median Budget Median Budget Median Budget ForNonprofit For Discretionary For Software Or IT Contract

IT Expenditures Cloud Expenditures Expenditures

Small

MediumLarge

Very Large

All Respondents

$100

$4,000$12,500

$44,100

$5,000

$0

$1,500$10,000

$30,000

$2,000

$1,800

$10,000$29,000

$50,000

$15,000


22/56

Strategic PlanningPlanning ahead for technology means your organization has put some thoughtinto its needs beyond the present moment, whichconsidering organizationalgrowth and technological depreciationis a smart bet. But budget and

staff considerations can often make planning ahead difficult. Sometimes itsa challenge even to fight fires as theyre started.

Technology Plans

Weve seen in the past that planning is an important factorfor organizations that are IT leaders, and weve seen anincrease in the number of organizations that are looking tothe future. We asked respondents if they had a formal,organization-wide technology plan or strategy.

Last years survey saw the percentage of respondents who

said yes increase for the third straight year, but still fail toreach a majority. This year the news is even worse: the percentage who said their organizations had a plandropped. Just 40 percent said yes, and about 8 percent90 respondentswerent sure if their nonprofit hadan IT plan.

TABLE : Percent Of Nonprofits With Established Technology Plan

Here, too, lines are drawn across organization sizes. Theres a direct, proportional relationship between thesize of the organization and whether or not it has a plan. Almost 60 percent of Very Large organizations didand remember, such orgs were also more likely to be leaders. At the other end, just 14 percent of Smallorganizations reported having a plan or strategy for technology.

Of organizations that identified as leaders, 64 percenta solid majoritysaid they had plans.

A full 71 percent of stragglers said they did not have a plan.


2007 2008 2009 2010

Yes

No

36%

64%

40%

60%

42%

58%

40%

60%

We have traditionally taken an

attitude of, If it is cheap we will use

it regardless of how well it meets

the organizations needs.From a Straggler organization


23/56

CHART : Size of Nonprofits withEstablished Technology Plan in 2010

Return on Investment

We asked respondents whether their nonprofit had ever evaluated the Return On Investment (ROI) fromIT projects or programs. A large number (176) didnt know. Of the rest, about 26 percent said they had, andabout three-quarters had not. These percentages were almost identical to last years report.

As organizations increase in size, so does the likelihood thattheyve evaluated their ROI. Just 15 percent of Small orgs haddone so, compared to 38 percent of Very Large orgs.

Those organizations that evaluated their ROI for ITexpenditures were much more likely to be leaders44 percent, compared to just 17 percent of stragglers.

With less than half of IT leaders analyzing ROI, evaluationis an area in which mostif not allorganizations canimprove.


Are you nuts? All our IT is

donated. We spend all of our

money serving our clients. In what

world would we waste it on

evaluating IT?

From a Straggler organization

70%

60%

50%

40%

30%

20%

10%

0%

14%

28%

43%

59%

Small Medium Large VeryLarge

70%

60%

50%

40%

30%

20%

10%

0%

64%

29%

CHART : Leaders vs. Stragglers withEstablished Technology Plan in 2010

Yes My Nonprofit Has A Technology Plan Yes My Nonprofit Has A Technology Plan

50%

40%

30%

20%

10%

0%15% 18%

23%

38%

Small Medium Large VeryLarge

50%

40%

30%

20%

10%

0%

44%

17%

CHART : Leaders vs. StragglersExamining IT ROI in 2010

CHART : Size of Nonprofits ExaminingROI In 2010

Leaders Stragglers

Leaders Stragglers

Yes My Nonprofit Has Examinedour IT Return on Investment

Yes My Nonprofit Has Examinedour IT Return on Investment


24/56


Some of the respondents comments for this questionincluded the following remarks.

Leaders said:

Communications regularly provides reports on IT.

There is an annual communications plan whichincludes IT. There is an annual staff plan for emailand server needs by our IT contractor.

Each major expense and upgrade is assessedthoroughly.

Yes, but in an informal waythere have been plentyof discussions but no formal process.

Since our main investment is time, I think we are doing well.

The Advancement Department analyzes ROI on the IT-related projects/investments we considerthat are under our direct management.

We perform and request ROI studies from vendor partners and use this as well as research.

Were always evaluating our use of technology and comparing it to the costs of acquisition ormaintenance.

Stragglers said:

Are you nuts? ALL our IT is donated. We spend ALLof our money serving our clients. In what worldwould we waste it on evaluating IT?

Due to budget challenges, we are in a hold-steady

mode regarding technology. Focus is to keepeverything as operational as possible, but with theawareness that a major investment in infrastructure is needed to support operational growth.

Due to our current scramble, I dont expect to have time to evaluate usefulness for 1) two years or2) we can afford two more FTE folks!

IT has always been an afterthought.

IT is seen like plumbingsomeone to call when it breaks.

The ROI evaluation happens in an ad-hoc way. There is not a comprehensive ROI assessment thatties to the overall strategic goals for the org.

They ignore the results.

We have not conducted official IT evaluation. That said, from experience, we have seen howdevastating it can be when IT support and effective capacity is absent. As we mature as anorganization, our IT effectiveness becomes more and more critical.

We couldnt do what we do without technology. It saves me from having to hire personnel.


We keep ourselves apprised of

developments and best practice in

the nonprot technology world,

and implement new technologies

as appropriate. We aren't cutting

edge, but we're ahead of the

curve.From a Leader organization

IT is seen like plumbing

someone to call when it breaks.From a Straggler organization


25/56

Outsourcing ResponsibilitiesMany nonprofits budgets cant support a full-time staff IT person. And evenwhen they can, its not always feasible for a single person to be up-to-date onall aspects of technology. Whether its for a generalist or a specialist, outside

help can be a good way for nonprofits to bridge the IT gap.

IT consultants offer a broad range of services and expertisein everything from setting up hardware and buildingwebsites to customizing and integrating databases. Weasked respondents about their organizations relationshipwith outsourcing IT. Similar to last year, about a quarter ofnonprofits who responded said they do not contract with anoutside IT consultant or firm. The majority, however, do:

35 percent said they used One Part-Time Consultant

20 percent said they used One Consulting Firm 15 percent said they used More Than One Firm

3 percent said they maintained a Full-Time Consultant for IT

CHART : Nonprofit Use of IT Consultants (N=1052)

What areas of technology are nonprofits outsourcing? According to our respondents, its a mix. Mostcommonly outsourced IT functions were:

Website Hosting (81 percent), Website Design (69 percent) and Website Development (68 percent)

Telephone Services (68 percent)

Programming/Custom Software Development (62 percent)


We have outsourced so much of

our support that computers and

printers are dysfunctional for days

or weeks at a time.From a Straggler organization

More than 1Consulting Firm

15%

No outsideConsultant

or Firm27%1 Part-Time

Consultant35%

1 Full-TimeConsultant

3%

1 ITConsulting

Firm

20%


26/56

IT functions least likely to be outsourced were:

Social Media (17 percent)

Website Content Management (31 percent)

Help Desk (32 percent)

There wasnt significant change in these areas compared to last years survey, with a few exceptionsthemost notable was that half of our respondents are handling Security and Data Backup in-house this year, anincrease of 19 percent compared to last years respondents. Maybe the proliferation of online backup optionshas contributed to that, since its easier than configuring redundant servers and the physical transfer of datato offsite storage.

Slightly more orgs said they were outsourcing Telephone Services and Programming/Custom SoftwareDevelopment than last year.

Slightly fewer orgs said they were outsourcing Database Hosting & Management, HardwareRecommendations and Software Installations.

Because survey questions have evolved, its difficult to track longer-term trends for outsourcing, but as farback as the first survey in 2006, almost all organizations outsourced at least a single aspect of technology.The most commonly outsourced items were website hosting, telephone services, custom softwaredevelopment and technical training for IT staff. Almost 4 percent of all organizations outsourced all, or amajority, of their IT functions.

In the past, as in this years survey, leaders were no more likely to seek IT consulting services than stragglers.This means that outsourcing IT has no bearing on your nonprofits IT leadership.

CHART : Use of IT Consulting Services by IT Leaders & Stragglers


80%

70%

60%

50%

40%

30%

20%

10%

0%

71% 74%

Leaders Stragglers

Yes My Nonprofit Uses an

External Consultant


27/56

TABLE : Changes in Nonprofit Outsourcing Practices 2009 to 2010


% Nonprofits % NonprofitsOutsourcing This Outsourcing This

Aspect of IT Activity in 2009 Activity in 2010 Dierence

Web site hosting

Web site designWeb site development

Telephone services

Programming/custom software

development

Email hosting and maintenance

Hardware maintenance

Web site maintenance

Technical training for IT sta

Network administration/support

Hardware installationDatabase hosting/maintenance

Security and backup

Software installation

Hardware recommendations

Technical training for

organizational sta

Software recommendations

Help desk

Web site content management

Social Media

81%

69%70%

64%

66%

57%

53%

52%

64%

53%

50%47%

70%

44%

42%

44%

42%

29%

30%

19%

81%

69%68%

68%

62%

60%

55%

55%

64%

54%

53%52%

51%

49%

46%

45%

44%

32%

31%

17%

0%

0%-2%

4%

-4%

3%

2%

3%

0%

1%

3%5%

-19%

5%

4%

1%

2%

3%

1%

2%


28/56

Organization of ITWith each years survey we try to better understand the contributing factors toan organizations IT success. How your nonprofit treats IT seems to matter. Weask respondents about the location of the department within the

organizationor if there is even an IT Departmentand who the IT directorreports to in an effort to better understand the relationship between ITdepartments and IT success.

Location

Weve found that the location of the IT department says a lotabout how the organization views the departments role.Organizations that understand the crucial role of technologyfor their general mission are more likely to assign technologya more deliberate place in the organizational structure.

In fact, among leaders, the majority reported standalone IT departmentsand with significantly morefrequency than stragglers. Just 2 percent of leaders said they had no one with official IT responsibility.

CHART : Location of IT in Organizations, Leaders and Stragglers


Our IT guy me

is remarkably under-qualied.From a Straggler organization

Within Marketing orCommunications

Within Finance

We have no one with ocialIT responsibility

Separate IT department withinorganization

Within general operationsor administration

Within Development or

Fundraising

Other

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

4%

6%

14%

8%

16%2%

21%43%

32%30%

1%

1%

13%

9%

Leaders Stragglers


29/56

Among all our respondents:

Most orgs have either have Standalone IT Departments or place IT within GeneralOperations/Administration.

A full 12 percent said they had No One with Official IT Responsibility.

Another 12 percent said IT fits within the Finance department.

The remaining 17 percent places IT within Marketing or Communications, Development or Fundraising,or some other department.

Among leaders, 43 percent said they had a standalone IT department, compared to just 21 percent ofstragglers. The only other scenario indicated by more leaders than stragglers was grouping IT functionswithin the Marketing or Communications department (6 percent compared to 4 percent).

Grouped by size, with a majority of 58 percent, Very Large orgs were the most likely to have a separate ITdepartment. Among Medium and Large organizations, the largest percentages (42 percent and 34 percent)reported grouping IT functions within General Operations or Administration. Among Small orgs, a slightlyhigher percentage (37 percent) reported having no one with official IT responsibility than reported grouping

IT within General Operations or Administration.

These trends stand up over timewe began tracking the location of IT within an organization in our 2008report. That year, the majority of leaders (46 percent) reported a standalone IT department, compared to 30percent of stragglers. Leaders were least likely to group IT within Development and Fundraising, whichremains true. And stragglers were far more likely to have no one with official IT responsibility than leaders(13 percent compared to 5 percent), which is even more true today (16 percent compared to 2 percent).

CHART : Location of IT Within Organization (N= 1174)


WithinFinance

12%

Other11%

WithinDevelopment or

Fundraising1%

Within generaloperations or

administration31%

Separate ITdepartment

withinorganization

28%

We have noocial IT

responsibility12%

WithinMarketing orCommunications

5%


30/56

TABLE : Location of IT and Organization Size

Another way to look at this area is by staffing size. Generally, the more staff an organization has, the greaterthe likelihood it has a separate IT department. Organizations with greater than 80 people were most likely toreport having a separate IT department, while orgs with between two and 80 people were mostly to reportthat their IT is housed within General Operations or Administration.

TABLE : Location of IT and Staffing Size

Those respondents that selected Otherreported the following:

I am the internal point person for office IT management, software and hardware. I had no formaltraining and have learned as I went along. All CPUs in our office were five-plus years old and wereneglected in basic maintenance and safety features.

IT Director reports to CFO, everyone else reports to someone else at the third-party company. So ITDirector doesnt technically manage the IT staffits a nightmare.



Other

Within Development

or Fundraising

Within general operationsor administration

Separate IT department

within organization

We have no one with

ocial IT responsibility

Within Finance

Within Marketing or

Communications

18%

1%

35%

5%

37%

0%

4%

16%

3%

42%

8%

15%

11%

6%

8%

1%

34%

28%

4%

22%

3%

9%

1%

15%

58%

1%

16%

1%

Number Of Full Within General Separate IT No One With OtherTime Equivalents Operations Or Department Ocial IT

Administration Responsibility

None/Less than 1 FTE

1 FTE

2 - 10 FTEs

11 - 20 FTEs

21 - 40 FTEs

41 - 80 FTEs

81 - 140 FTEs

141 - 200 FTEs

201 - 300 FTEs

301 - 500 FTEs

More than 500 FTEs

25.0%

21.1%

38.7%

44.6%

35.9%

35.0%

18.1%

24.5%

22.9%

16.0%

12.3%

0.0%

5.3%

5.2%

12.3%

16.9%

32.0%

40.5%

38.8%

56.3%

64.0%

73.8%

37.5%

42.1%

24.3%

11.5%

11.3%

2.0%

3.4%

6.1%

0.0%

0.0%

0.0%

37.5%

31.6%

31.7%

31.5%

35.9%

31.0%

37.9%

30.6%

20.8%

20.0%

13.8%


31/56

Product department (our organization is IT-based).

Combination of special projects, communications, and finance.

A director assumed responsibility, and oversees organizational planning.

Separate company does our ITa guy visits biweekly but is available upon request.

A volunteer committee.

Admin Assistant and contracted IT company. Administrative Assistant with Tech Training.

As the director and only staff member, I do it.

Board and key staffengage outside consultant when absolutely necessary.

Board communications committee.

Board member.

Consultantas needed.

Current ED gets very involved.

Director of Library/Archives.

ED and Board. External consultant and a volunteer.

Facilities and Grounds.

Human Resources.

It is part of the job of our 2nd employee.

Supervision of IT

Another way to determine the roles and responsibilities of an IT Department is to examine who the ITDirector reports to in an organization. For the majority of ourrespondents, the IT Director or equivalent reports directly to

the Executive Director (39 percent), followed by: Other(21 percent)

Administrative Director/Chief Operating Officer(20 percent)

Chief Financial Officer(17 percent)

Another 3 percent said they did not know.

Last years survey was the first to ask this question, and the numbers looked similar. A majority (35 percent)said their IT Director or equivalent reported to their Executive Director, and the rest were as follows:

Administrative Director/Chief Operating Officer(22 percent)

Other(19 percent)

Chief Financial Officer (18 percent)

The largest percentage of both leader (37 percent) and straggler (40 percent) organizations said their ITdirectors reported to their Executive Directors, followed by:

Administrative Director/COO, Chief Financial Officer and Other, in that order, for leaders.

Other, Administrative Director/COO and Chief Financial Officer, in that order, for stragglers.


The nance director who oversees

IT doesnt even own a TV at her

home.From a Straggler organization


32/56

CHART : Who Does Your IT Director Report To in Your Nonprofit? (N= 1162)

CHART : Who Does Your IT Director Report To in Your Nonprofit?Comparison of Leaders and Stragglers


Other

I dont know

Executive DIrector

CFO

Administrative Director/COO

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

22%

17%

4%

3%

40%37%

16%18%

Leaders Stragglers

18%25%

Other21%I dont know

3%

AdministrativeDirector/COO

20%

CFO17%

ExecutiveDirector

39%


33/56

Respondents who selected Otherreported the following:

Academic Dean and VP

Agency head

All staff are responsible for IT management.

Associate Director

Board Board Chair

Business Manager

Chair

Chief Academic Officer

Chief Officer for Facilities and Operations

Chief Quality and Safety Officer

CIO

Communications Director

Congregational Services Coordinator

Controller

Development & Marketing Director

Director of Evaluation and Technology

Director of Human Resources

Director of Membership

Director of Programs

Director, Marketing & Communications (Because it is a good personality match)

Editorial Director (Because IT director is also responsible for Web site execution, Ed Director isresponsible for online content)

Executive Director is the IT director

Founder

Institutional Assessment

Office Manager

Pastor of Administration

Planner

Principal and Vice Principal

Probably the college president



34/56

Satisfaction with IT FunctionsWe asked our respondents to rank their satisfaction with a number of ITfunctions to see if any trends emerged. Organizations were most satisfiedwith:

The Hardware and Software they were using at their nonprofit organization

The Availability of IT Staffto meet their needs

They were least satisfied with:

The Quality of IT Training they were receiving

The IT Budget Allocations available to them

CHART : Satisfaction Among Nonprofits In 2010

Across the board, there was little change from last years survey, which was the first year we asked aboutthis topic. The bright spot is that the areas that did show change all showed improvement. The mostoccurred in two areas, Availability to Meet Client Needs and Organizations Website. Both showed about a 4percent increase in satisfaction. No area showed a decrease, but one areaIT Budget Allocationsstayed thesame.

Organizations appear to be happy with their websites, and feel they are better able to meet their clientsneeds.


Quality of IT Training for Sta

IT Budget allocations

Integration of IT into strategic plan

IT Recruiting procedures

Availability to meet client needs

Organizations website

Availability to meet sta

needs

Hardware and software in use

0% 20% 40% 60% 80% 100%

44%29%

45%28%

38%25%

33%30%

27%26%

23%28%

25%25%

21%

27%

27%

37%

37%

47%

49%

50%

51%

Satisfied Neutral Dissatisfied

28%


35/56

TABLE : Changes in Nonprofit Satisfaction 2009 to 2010

Among leaders and stragglers, heres what we found.

Leaders were: Most satisfied with Hardware and Software in Use, Availability to Meet Staff Needs, Availability to Meet

Client Needs, and Integration of IT into Strategic Plan.

Least satisfied with Quality of Training for IT Staff, IT Budget Allocations, IT Recruiting Procedures, andtheir Organizations Website.

Stragglers were:

Most satisfied with their Organizations Website, Hardware and Software, and Availability to Meet StaffNeeds.

Least satisfied with their IT Budget Allocations followed by Quality of IT Training for Staff, Integration of

IT Into Strategic Plan, and IT Recruiting Procedures.

In no category did leaders satisfaction fall below 50 percent. Conversely, in no category did stragglerssatisfaction rise above 41 percent.

In general, leaders and stragglers were most and least satisfied with the same categories, with one notableexception: Integration of IT into Strategic Plan. This area showed the most disparity between leaders andstragglers satisfaction. Combined with the earlier finding that 64 percent of leaders said their organizationshad a formal strategic plan for technology, this suggests that planning is key to both leadership andsatisfaction.


% Nonprofits % NonprofitsAspect of IT Satisfied in 2009 Satisfied in 2010 Dierence


Availability to meet sta needs

Organization's websiteAvailability to meet client needs




Quality of IT training for sta

49%

48%

45%42%

35%

35%

27%

26%

51%

50%

49%47%

37%

37%

27%

27%

+3%

+2%

+4%+4%

+2%

+2%

0%

+1%


36/56

CHART : Percentage of Leaders and Stragglers Satisfied With IT in 2010

CHART : Percent of Nonprofits Satisfied By Organizational Size


80%

70%

60%

50%40%

30%

20%

10%

0%

80%

38%

Hardwareand

softwarein use

77%

37%

Availabilityto meet

sta needs

64%

41%

Organizationswebsite

74%

33%

Availabilityto meet

client needs

58%

25%

ITRecruitingprocedures

70%

22%

Integrationof IT intostrategic

plan

55%

14%

IT Budgetallocations

50%

17%

Quality ofIT training

for sta

Leaders Stragglers

Quality of IT training for sta




Availability to meet client needs

Organizations website

Availability to meet sta needs


0% 10% 20% 30% 40% 50% 60% 70%

34%24%

23%17%

40%27%

24%12%

50%41%30%

23%

43%43%

20%31%

60%51%

44%26%

59%43%

49%40%

65%

57%43%

22%

69%48%

37%44%

SmallMediumLargeVery Large


37/56

In general, the larger the organization, the greater the satisfaction. Very Large organizations weresignificantly more likely to be satisfied with Hardware and Software in Use than organizations of any othersize, and at least twice as likely to be satisfied as Small organizations with every function except theOrganizations Website, which showed the least disparity (59 percent compared to 40 percent).


Respondents comments revealed a little more detail about the areas in which respondents felt theirorganizations IT teams were succeeding, or failing. They included the following:

Leaders:

Good tech funding and tech focus.

[We] have added EMR and Social Media. Computers and networking is up to date.

Maintain newest hardware and software. Using cloud computing.

We've designed a Drupal CMS which inspired all leaders to take classes in SEO and writing for the webso they can maintain their own pages. We're using crowdsourcing to engage our grassrootsmembership. We're using webinars and social networking to promote civic engagement and advocacy.

Stragglers:

We excel at cloud computing, but we are behind inhardware and need maintenance for ourorganization.

Inadequate website, late to get updates onsoftware/hardware.

We don't even have a server. Help!

System assessment determined systems were from the 1980's, with no capabilities for upgrading.Old technology including hardware and software. Havent adopted any social networking.

Our phones do not have an easily accessible voicemail system or caller ID, and the internet/emailsystem is often painfully slow. They have done a good job, however, with installingvideoconferencing capabilities.

Our website looks like hell!

No WiFi, old computers, just not up-to-date in general.

Outdated website, in-house server, weak IT support. Still using MS Outlook.


We don't even have a server.

Help!From a Straggler organization


38/56

IT StaffingWe asked respondents to share information about their organizations IT staff.Of those who said they had at least one full-time IT staffer in each of thefollowing positions, we asked them for the average annual salary for the

person. (Since CEOs make up a large proportion of our survey respondents,weve also included their salary information):

The highest-paid position is CEO ($101,982), followed by CIO ($97,250), Information Architect ($85,312)and IT Director($75,211).

Those were the only positions averaging more than $70,000 per year, followed closely byProgrammers ($69,843).

The lowest-paid positions were IT Support Staff($41,751), Online Communications Manager($52,777)and Online Community Manager($56,590).

We also asked about the tenure for each positionhow long has the person in that job been there? Heres

what respondents told us: CEO (8 years), CIO (7 years), and Information

Architect, IT Directorand Systems Administrator(6.5years) held the longest tenure, followed closely byProgrammersmore or less in-line with the highest-salaried positions.

Online Communications Manager(3 years) and OnlineCommunity Manager(3.5 years) held the briefesttenures, more or less in-line with the lowest-salaried positions.

Pay ranges vary geographically. A position in Los Angeles might pay more than the same position inCincinnati. This diversity makes it difficult to draw conclusions about salary trends, as two people answeringthe same question a year apart in different parts of the country might show an artificial decrease in salaryattributable to geographic location.


We have one person whos hyper

web-savvy.From a Leader organization


39/56

TABLE : IT Staffing Salary and Tenure 2010

Percentage of Budget

We learned in the Outsourcing section that 283 nonprofits chose to handle IT entirely in-house and notcontract any IT needs to outside consultants. We asked them how much of their IT budgets were dedicatedto staffing. Just 122 respondents shared both their IT staffing budget and overall IT budget, making anyconclusions we draw somewhat unreliable. However, heres what we found:

Organizations of all sizes devoted an average of55 percent of their IT Budget to staffing.

Medium orgs devoted the largest percentage (72percent), followed by Large (67 percent), Very Large(54 percent) and Small (41 percent).

Among organizations of all sizes, the median budgetfor IT staffing was $50,000, and the average was$218,000.

Among Small organizations, the median budget for ITstaffing was $0, but the average was about $13,000.(Respondents remarks showed that a number of Small organizations dont have a dedicated ITperson on the books, or share their IT responsibilities with other positions, departments, ororganizations, which accounts for the disparity between these numbers.)

On the whole, leaders spent four times as much as stragglers on IT staffing, regardless of size. Thats a prettyclear message.


1 Participants were asked to provide the average salary for each position at their organization. Salarieswere reported as a range and these results reflect a weighted average using the midpoint.

2 Participants were asked to provide the average length of tenure for each position at their organization.Tenure was reported as a range and these results reflect a weighted average using the midpoint.

Number of Average Annual Average YearsIT Position Responses Salary 1 Of Tenure 2

CEO

CIO

Information ArchitectIT Director

Programmer

Systems Administrator

Web Developer

Webmaster

Database Manager

Online Community Manager

Online Communications Manager

IT Support Sta

425

60

16177

32

142

31

78

80

22

54

127

$101,982

$97,250

$85,312$75,211

$69,843

$60,422

$60,241

$59,038

$57,375

$56,590

$52,777

$41,751

8

7

6.56.5

6

6.5

4

5

5.5

3.5

3

4.5

[We have a] proactive stathat

sees the benet of staying fairlycurrent on technology and how it

helps the entire organization be

more productive.From a Leader organization


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TABLE : Staffing Expenditures for Nonprofits Who Provide Their Own IT Support

CHART : Median Budget Dedicated To IT Staffing (N=120)

Staffing Ratios

Among organizations of all sizes, staffing ratiosthe proportion of IT staff to total staffdidnt change muchfrom last years report, and averaged one IT staffer to every 34 staffers. Broken down by size:

Small orgs averaged one IT staffer to every 24 staffers.

Medium orgs averaged one IT staffer to every 22 staffers.

Large orgs averaged one IT staffer to every 32 staffers.

Very Large orgs averaged one IT staffer to every 45 staffers.

Across organizations of all sizes, leaders averaged almost five IT staffers, while stragglers averaged aboutthree. The ratio of IT staffers to total staffers was one to 30 for leaders, and one to 37 for stragglers.


$90,000

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

$20,000

$80,000

LeaderStraggler

Size of Number of Median Budget Average Budget % Of IT BudgetNonprofit Responses For IT Stang For IT Stang Allocated To

Expenditures Expenditures Stang

Small

MediumLarge

Very Large

All Respondents

36

3424

28

122

$0

$29,500$80,000

$382,726

$50,000

$13,025

$35,704$98,095

$805,715

$218,009

41.28%

72.15%66.82%

53.75%

55.05%


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TABLE : Staffing Ratios For Nonprofits Who Provide Their Own IT Support

CHART : Average Number of IT Staff For Leaders And Stragglers


Size of Number of Average IT Average Total Average Ratio ITNonprofit Responses StaSize StaSize To Total Sta

Small

Medium

LargeVery Large

All Respondents

36

34

2428

122

$0

$29,500

$80,000$382,726

$50,000

$13,025

$35,704

$98,095$805,715

$218,009

41.28%

72.15%

66.82%53.75%

55.05%

5

4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

4.61

2.82

StragglersLeaders


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IT RecruitingNearly half of our survey respondents (44 percent) held positions at theirnonprofit in which they were responsible for recruiting or hiring ITprofessionals, a comparable percentage to last years survey. We asked them

what methods they use in their positions to recruit new hires, where they findthem, and what they look for in a good IT staffer.

Electronic Recruiting of IT Professionals

Just 14 percent of respondents said their organization doesnot advertise IT positions online, and another 10 percent didnot know. Of those who do post such jobs electronically, 46percent said they post them to their organizations ownwebsite, up a few points from last year, followed distantly byCraigslist (23 percent) and Idealist.org (13 percent), neither ofwhich changed much in popularity since last year.

NTEN, Tech Soup and DICEs websites were next, each earning 4 percent of the responses, followed byOpportunity Knocks and Progressive Exchange.

TABLE : Common Websites Used to Advertise Nonprofit IT Jobs

Other popular websites mentioned in respondents comments were:

CareerBuilder.com

Monster.com

Local Newspapers and Job Boards

Regional Job Sites

Mailing lists

Very few responses indicated social media sites, but Facebook, Twitterand LinkedIn were each mentioned byat least one respondent.


We were in great need, but now

have an amazing part-time staer

with these skills.From a Straggler organization

Website % 2009 Nonprofits % 2010 Nonprofits

Their Own Nonprofits Website

Craigslist

Idealist.org

NTENDICE

TechSoup

Opportunity Knocks

Progressive Exchange

Developers.net

Computerwork.com

Justtechjobs.com

43%

23%

14%

7%5%

5%

3%

1%

0%

0%

1%

46%

23%

13%

4%4%

4%

3%

2%

0%

0%

0%


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Recruiting Tactics for IT Professionals

We asked if nonprofits were targeting any particular recruiting or retention practices toward IT professionals,and what we heard was very similar to what we heard last year. Of the 800 survey respondents whoanswered this question, the majority (58 percent) reported not doing anything differently for IT staff.

Of those who did report IT-focused recruiting techniques, the most commonly cited were to offer:

A Higher IT Pay Scale than other staff (90) IT Staff Telecommuting (37)

Other options cited included:

Alternative and Flexible Work Schedules

Establishing a Trial or Probationary Period

Paying for Ongoing Professional Development Opportunities

Hiring Considerations for IT

We also asked survey respondents what skill set their orgs are looking for in their employees. Among both

leaders and stragglers: Past experience with Technology, Fit with Organizational Culture and Attitude/Personality were the most

important.

Past Training/Certificates, Prior Work in a Nonprofit Setting and a Degree/Formal Education were leastimportant.

Its safe to say nonprofit organizations want experienced people who will mesh with existing staff.

CHART : Most Important Considerations by Nonprofits in Hiring IT Staff


Fit with organizational Culture

Attitude/Personality

Past Tech Experience

Prior work in nonprofit setting

Past Training/Certificates

Degree/Formal Education

0% 20% 40% 60% 80% 100%

StragglersLeaders

85

80

84

78

91

83

36

41

4746

34

29


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Respondent remarks for this question included the following:

(We have a) lack of knowledgeable staff to handle new IT capabilities.

Small staff, lack of emphasis on social networking.

We need knowledgeable personnel.

Staff capacity and finances are limiting. Staffing levels, some reluctance to change.

Staff capabilities are a concern.



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AppendixSurvey Text and Questions1. How would you describe your organization's IT adoption?

K Leading edge/early adopter

K Fast follower

K Average

K Lagging behind

K In trouble

K I don't know

2. What factors contribute to that self-assessment?

_____________________________________________________________________________________________

3. Please indicate how satisfied you are in each of the following areas:

Not at all Extremely Dont KnowSatisfied 1 2 3 4 Satisfied or N/A

IT recruiting process used K K K K K K

by your organizationQuality of IT training K K K K K Kprovided to your staff

Integration of IT into your K K K K K Korganization's strategic plan

Availability of IT to respond K K K K K Kto your staff needs

Availability of IT to respond K K K K K Kto your client needs

Quality of hardware/software K K K K K Kin use by your organization

Quality of your organization's K K K K K Kweb site

Amount of total organization K K K K K Kbudget allocated to IT



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4. How would you describe your current IT staffing condition?

K Inadequately staffed

K Adequately staffed

K Overstaffed

5. Please provide comments if you wish to explain your ratings above:

_____________________________________________________________________________________________

6. Does your organization have a formal, organization-wide technology plan or strategy?

K Yes

K No

K Not sure

K Other

7. Where is the responsibility for IT primarily located in your organization?

K We have no one with official IT responsibility

K Within Finance department

K Within Marketing or Communications departments Part of general operations or administration

K Part of Development/Fundraising

K Separate IT department within organization

K Other (please specify)

8. Who does the IT Director or person responsible for IT report to?

K Executive Director

K Administrative Director/COO

K CFO

K I don't know

K Other Other (please specify)



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9. Has your organization ever evaluated the return on investment from IT projects or programs?

K Yes

K No

K I don't know

10.

2010 nonprofit it staffing and spending report

Documents