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You can't effectively address today's challenges with dangerously old applications and devices
Many nonprofits make do with outdated technology, basically clunky legacy systems held together by digital duct tape. It’s easy to see why: funding for new tech is scarce, IT staff capacity (if they have any) is limited, and sometimes people resist change if the old system still seems to work. But relying on outmoded tech is an invisible anchor impeding nonprofit performance.
I raised this issue in late 2022, when I published Managing Your Nonprofit for Resilience. There, I listed "outmoded technology" as Challenge #12 in my 50 Reasons Why It Is Hard to Run a Nonprofit. We due for an update.
Have nonprofits made progress on upgrading technology in the past couple of years? Yes and no. On the one hand, awareness of the problem is growing. Nonprofits had a crash course in digital tools during the pandemic, and many organizations adopted things like cloud file sharing, Zoom, and online service delivery out of necessity. I'm also seeing anecdotal evidence that funders and sector leaders increasingly see that technology is not just overhead, but core to mission success. Funders are also beginning to streamline grant processes with digital tools and even open dedicated tech capacity-building grants in some cases. In short, conversation has advanced, and technology capacity is now seen as mission-critical for resilience and impact, not a luxury item.
However, when you look at the data, the overall challenge remains as steep as ever. Many nonprofits are still stuck with aging tech, and resource constraints are a huge part of the problem. Nearly half of nonprofits (45%) say they aren’t spending enough on technology, with the vast majority citing lack of budget as the number one barrier. Unfortunately, funders have not dramatically stepped up to fill this gap; in fact, a 2024 survey of grantmakers showed that only 20% are providing technology tools or resources to their nonprofit partners, down from 23% in 2022. Flexible funding that could be used for IT upgrades (unrestricted support) also declined slightly in that period.
In other words, after the pandemic urgency faded, some funders have reverted to the old habit of under-investing in infrastructure needs. This leaves nonprofits in a bind. They know tech improvements are needed, but they struggle to find dollars to pay for them. Most nonprofits are very small organizations, and most lack dedicated IT staff, so technology duties get tacked onto someone’s already full plate. This shortage of tech expertise means even when funds are available, nonprofits may hesitate or make do with insufficient or outdated systems due to capacity limits.
The result is an ongoing digital divide in the sector, with larger, well-resourced nonprofits forging ahead with modern CRMs, data analytics, and cybersecurity investments, while smaller community organizations risk falling further behind in technology adoption. Of course, the divide between large and small nonprofits is mirrored by the gap between the nonprofit and for-profit sectors, where "many nonprofits lag behind due to fears of implementation challenges, budget constraints, or a lack of understanding about how technology can support their mission."
Nothing illustrates this challenge better than hearing from a nonprofit that lived it. Take a look at the example from Michigan Nonprofit Association regarding Lansing Area AIDS Network (LAAN). Until recently, LAAN’s operations manager liked to "joke" that they were still operating in the 1990s, but that was not actually a joke. This small human services nonprofit was struggling along with a failing server and a patchwork of old, mismatched computers.
Staff knew their tech was out of date and creating bottlenecks, but like so many nonprofits, LAAN didn’t have an in-house IT department. Its accountant was the in-house technology support, but he retired. Not ideal.
The situation reached a tipping point when the old server teetered on the edge of failure. LAAN applied for a special capacity-building grant focused on technology. With that grant, they partnered with a state association tech team to replace their dying server, update all the PCs, implement proper cybersecurity protections, and provide staff with a real help desk support system. It was a huge leap forward for an organization that, days before, was worrying about a total IT meltdown.
LAAN’s story is unfortunately common, as many nonprofits operate in a “fixed until broken” mode with technology. They are aware of the risks but are unable to allocate budget or staff time to address them proactively.
On the bright side, however, LAAN’s story also shows that targeted investments can produce dramatic results. When nonprofits get the right support to modernize their technology, it can transform how they work.
For example, TechSoup’s Digital Resilience Program (launched in 2021) has helped small nonprofits make what amounts to several years of progress in just a few months of focused tech upgrades. In that program, funders provide grants and TechSoup provides expert guidance, allowing grassroots organizations to finally adopt new cloud platforms, update software, and apply better security.
When tech is treated as a strategic enabler, even small nonprofits can boost their impact and resilience. The key is that they didn’t do it alone; they leveraged external help and made tech a priority. In my next post, I will provide guidance about how nonprofits should address their technology concerns in 2025.