Joint AFP and Telosa Study Reveals Impact of Internal and External Forces on Technology Investments in Nonprofits

A survey of more than 400 nonprofit professionals shows a growing disconnect between senior management and IT and development professionals on technology priorities

(March 25, 2003, Palo Alto, Calif.) – According to a survey of more than 400 nonprofit professionals released today, there is a growing disconnect between nonprofit senior management (CEOs, presidents and executive directors) and information technology (IT) and development professionals with regard to emphasis on technology investments.

The Association of Fundraising Professionals (AFP), the world’s largest organization of development professionals, and Telosa Software Inc., a leading provider of fundraising and information management software solutions, jointly conducted a survey of more than 400 nonprofit executives, development directors and IT professionals. The survey revealed that although the majority of nonprofit leaders believe that technology can improve operational efficiency, they are not making technology a priority within their organizations. IT and development professionals, however, view technology as a necessity.

While 83 percent of nonprofit leaders are heavily focused on improving the operational efficiency and effectiveness of their organization, and 100 percent believe technology can definitively contribute to this goal, only 33 percent reported that they factor technology investments into their organizations’ operating plans. This compares to 80 percent of their IT professionals and 74 percent of development directors. Similarly, 60 percent of the IT and 58 percent of the development personnel said that their organization had recently invested in or plans to invest in technology during 2003, while only 27 percent of nonprofit senior management claimed this to be true.

“The survey confirms what we have been hearing all along: IT and development personnel in nonprofit organizations experience the most pain when it comes to performing the everyday tasks associated with fundraising and donor and information management without technology,” said Colette Murray, AFP chair. “On the other hand, nonprofit leaders don’t place enough emphasis on technology budgeting and planning. This is becoming even more prevalent as nonprofits are forced to do more with less in tough economic times. Technology needs to be viewed from the top down as a means to streamline ongoing fundraising and organizational operations.”

The results also reveal that the economy is having broad implications on technology planning. More than half of the respondents noted that it is more difficult than ever to raise money for technology investments for their organizations in the current economy. Although an overwhelming majority of survey respondents (97 percent) believe that technology can play an important role in improving how their organizations operate, more than half (54 percent) do not have a long-term technology plan in place.

“It is good to see that, for the most part, nonprofits understand that technology can play a significant role in improving the operational effectiveness of their organizations,” said Susan Packard Orr, founder and CEO of Telosa Software. “However, it is alarming that a sizeable number of nonprofits do not have a strategy or long-term plan for technology in place. In times when donor dollars are harder to come by, these activities become even more crucial for the ongoing stability and growth of any nonprofit organization.”

Other key findings include:

· Almost three-quarters of the survey respondents citing technology as important to their organization’s ongoing fundraising success due to a greater ability to maximize relationships with existing donors, open doors to new donors, and assist with donor and volunteer prospecting.

· The volatile economy has hit the arts, culture and humanities organizations the hardest, with almost half (47 percent) saying they are not planning to invest in new technology to improve fundraising efforts in 2003. Furthermore, 71 percent of arts, culture and humanities organizations admitting that the current economic climate has negatively impacted their technology plans for 2003.

· Smaller nonprofits are least likely to recognize the importance of technology to their organization’s fundraising success. As a result, they are also least likely to feel that the economy has impacted their plans to invest in technology. Close to two-thirds (60 percent) of the nonprofit organizations surveyed with budgets less than $0.5 million are placing only minimal emphasis on technology.

For an executive summary of the survey findings, please contact AFP (info@afpnet.org) or Telosa at info@telosa.com.

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The Association of Fundraising Professionals (AFP) represents 26,000 members in 170 chapters throughout the United States, Canada, Mexico and China, working to advance philanthropy through advocacy, research, education and certification programs. The association fosters development and growth of fundraising professionals and promotes high ethical standards in the fundraising profession. For more information or to join the world’s largest organization of development professionals, go to AFP’s website at http://www.afpnet.org.

Founded in 1986 by Susan Packard Orr, Telosa provides premier fundraising software and a committed support team connecting mid-sized nonprofits to their mission and donors. Telosa is passionate about delivering affordable, easy-to-use fundraising software and information management solutions that empower nonprofits to develop stronger relationships with all their constituents. Telosa (http://www.telosa.com) is located in Palo Alto, Calif.

Telosa: empowering nonprofits to focus on their mission.

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