What Is the True Cost of Your Next Fundraising Cloud App?

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This article is part of a series by members of the Okta for Good Nonprofit Technology Fellowship.

With the current state of technology, nonprofits large and small are almost guaranteed to be going through a digital transformation or continuing to grow their technology stack in the cloud. CRM, financial, marketing, business intelligence and analytics software are just a few of the cloud services that work to scale your donor base and increase your mission impact. Fortunately, nonprofits are often offered these products at a discount or even free. There are the rare few that offer implementation and maintenance support for free as well.

Regardless of the discount, it is important to consider the true cost of the software. While your CFO may look at total cost ownership (TCO), the overall dollars and cents related to the lifespan of the application, it's prudent to expand on that concept and consider the “true cost.”

Does this scenario sound familiar? You’ve hit another recurring bottle neck in your fundraising workflow and you think there has got to be an app out there to streamline our fundraising process. You quickly identify a shiny new tool after some googling. The vendor makes it super easy to turn on and start using the app in minutes and you can envision the proof of concept in your head. The challenge is to remember the complexity of integrating new systems.

Adding a new software system to manage your fundraising process can be broken into four areas after you have identified which product fits your org best:

  • Financial cost

  • Implementation

  • Training life cycle

  • Maintenance life cycle

Financial cost

You've gathered nonprofit discount pricing and maybe even discovered free licenses your vendor offers. Have you asked your sales rep to go beyond what is publicly offered? I have successfully negotiated lower pricing by simply asking for it, then asking for even lower pricing again later during negotiation. Really, if you don't feel a bit uncomfortable asking for an even lower price, you should ask again and again until you do. Use your mission as the anchor for the ask. Working on an org-wide cloud based phone system vendor contract, after getting prices lowered, I simply asked at the next engagement if there was room to lower the price any more and it was granted! Another tip is to try timing contract execution for the end of the month, quarter or year. Sales cycle timing can give you more leverage in negotiation since the company is looking to maximize closed deals at the end of a cycle.

Implementation

Regardless of how easy it was for you to turn on the app for proof of concept, someone will have to plug the product into your tech stack, plug your workflow into the product and plug your team into the new system. Is that person you? Your IT team? A consultant? Often, tech expertise is required to implement the new service. Look for vendors that provide a clear process for rolling out their product into your tech stack. Alway ask the vendor if they offer pro bono hours toward implementation. For example, Okta provides hours of pro bono professional services to help you integrate Okta into your stack.

Training life cycle

After contracts have been executed and the application is all plugged into your org, now comes the hard part—getting your team onboard and trained to use the new system. Training materials are something every vendor should have available for you to onboard your team into the new system. Though the reality is, those materials are generic by design. Someone will have to use those generic base materials to develop training that speaks to your team's workflow and culture. That training should include protocols for getting new members of the org trained after the initial product launch. It takes time to build and execute a training strategy. These aspects of change management can be overlooked when considering the cost of a new software system; resource and opportunity costs can be hiding in plain sight. It is important to identify the who and what resources your org will need to get staff trained and who will own that responsibility throughout the life of the app.

Maintenance life cycle

Finally, your system is humming and your fundraising KPIs are reflecting all the work put into choosing, implementing and using an application that is bringing your team closer to its revenue goals faster than ever before. Then, the app launches a new release and boom, a plethora of new security features are added. Who is going to decide whether they get turned on or not? What will turning them on break? Which risks will they mitigate or create? Will the new security break integrations or automations within your tech stack? Someone has to answer these questions and more when it comes to new features in apps. One of the best things about cloud software is that it evolves to meet the needs of its clients and the constantly changing technology ecosphere. Which also makes maintenance a critical component to consider when thinking about the true cost of a new software system. A maintenance strategy is often overlooked when considering the resources needed for new applications. We embrace new feature releases, security enhancements, business continuity and upgrades and we need to plan for the changes they bring.

Remember to think about these four areas the next time you are alpha testing a new cloud application and evaluate the true cost of ownership before making the change. My goal is not to discourage, but to help you plan for the big picture resources needed after the contracts are signed.

For more than two decades, Christopher Prince-Barry has cultivated and led teams of innovative humans in technology in both the non-profit and for-profit sectors under the ethos of developing self-sustaining systems across the hemispheres. He is known for leading his team to be empowered and equipped problem solvers that ultimately drive innovation and productivity within the team, and the organization at large because of the systems they implement. Currently, he is the Sr IT Director at DonorsChoose and is dedicated to their mission.