Why Should Associations Invest In Technology? (2024)

Information technology has revolutionized the global society, with a significant increase in productivity and efficiency. It offers benefits such as automation of processes, streamlining of work and better organization of information. However, the non-profit sector seems to be rather slow in catching up to IT, in comparison with other sectors.

Due to both internal and external pressure for directing maximum funding to their program work, non-profit associations generally tend to underinvest in technology. This decision to repeatedly under budget for technology and staff training prevents non-profit associations from reaching their full potential.

A survey by Fairfield County Community Foundation found that 22% of non-profit associations have no budget for information technology. The few non-profit associations who have appropriate software do not have a proper budget for training staff on how to make the most of the software. Many such associations and societies miss out on the efficiency of IT systems mostly because of this lack of funding for technology.

Also Read:How Can Associations Distribute e-Reports Effectively?

The Need to Adopt Technology

For every new hire, some of the basic technological skills include proficiency in Microsoft Outlook, Word, PowerPoint and Excel. Although these are not considered as necessary skills in most non-profit associations, it is obvious that proficiency in these will contribute greatly to more effective operations. As non-profit associations struggle to deal with the world’s increasing demands along with a lack of proper funding, applying technology for improved efficiency seems to be the perfect solution.

Across the globe, non-profit organizations have embraced technology for better management, organization, streamlining, communication, measurement, and analysis. Information technology offers solutions in various areas including service, administration, and marketing issues.

Furthermore, relying on technology for administrative tasks means associations have the opportunity to reallocate staff resources towards the more immediate task of direct services instead.

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Advantages of Technology in Non-profit Organizations

Non-profit associations can benefit from technology in many ways. Using computers and mobile phones, and social media platforms like Facebook and Twitter, help in gathering and circulating knowledge and information quite effectively.

If these instruments are employed and integrated well, non-profit associations stand to benefit a lot while serving both themselves and their clients better.

Technology assists associations by helping them create a greater social impact as well as taking forward their social mission as a whole. For effective advancement and management of a non-profit association, technology plays a crucial role in advertising its services, better communicating its mission, and recruiting volunteers.

Some of the areas where non-profit organizations can make use of computers, internet and other networking technology include

  • Volunteer management and support
  • Donor management
  • Client tracking and support
  • Project management
  • Human resources management
  • Financial accounting
  • Program evaluation
  • Research
  • Marketing
  • Activism
  • Collaboration

Adopting the latest digital and information technologies leads to cost reductions and drastic improvements in efficiency as well. They can use IT tools to support daily operations, fundraising, community engagement, and much more. Furthermore, they can also leverage technology to deliver services faster to a larger number of people within the community.

However, as mentioned earlier, limited budgets lead to non-profit organizations becoming unable to upgrade their hardware or software or provide the necessary training for their staff. Thus, more often than not, non-profit organizations fall on the wrong side of the digital divide. This growing performance gap limits their organizational mission and fundraising potential significantly.

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Guide:

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Things to Focus on in Technology

  • Personalization of volunteer requirements

With the aid of the internet, non-profit associations now have the opportunity to personalize stories like never before. They can bring the stories of their beneficiaries to life and make it easy for others to connect with them through images, videos, voices, sounds and music. This helps people to relate better with the beneficiaries of the association, and volunteer for their cause.

  • Social networking sites

Websites, blogs and social media are cost-effective tools to stay connected with the volunteers and community members of an association. Social media is a great place to build an online community and to engage more people in the cause — which ultimately leads to not only an increase in volunteers and donations but to an overall increase in public awareness as well.

  • Use of online banking services

With the world moving to online banking, it is time non-profit associations make the shift as well. Adding a ‘donate’ option on the website and allowing donations using major credit cards and electronic transfers are imperative for the sustenance of such associations.

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A Few Things to Keep in Mind

Regular review of technological requirements and making the necessary changes to them is very important. However, as most non-profit associations operate on a limited budget, skipping one or two upgrade cycles — especially if they only use technology for basic processes such as word-processing, spreadsheet and Internet — is also recommended.

Furthermore, training the staff and volunteers in the proper use of the available technology assets must not be overlooked. Online monitoring of media coverage about the organization is also of utmost importance. If the media coverage seems inaccurate or unfair, news editors and webmasters are to be immediately contacted.

Conclusion

Over the years, it has become clear that non-profit associations become significantly more effective when their digital team plays a major role in their management and campaigns. Ultimately, what it comes down to is not just technology, but the strategic use of it. The challenge is to use the available technology the right way — for better management and bookkeeping — as well as appreciating the volunteer efforts and creating more impact.

If done effectively, technology adoption does not merely amount to gadget chasing. On the contrary, it is the strategically selected digital tools that empower its members to deliver the organization’s mission effectively. To improve operational efficiency, and increase mission impact, you need to take a look at using the right tech solutions.

Why Should Associations Invest In Technology? (2024)

FAQs

Why is investing in technology important? ›

Invest in technology

Information technology can boost productivity in companies of all sizes. It can also reduce costs and improve profitability.

Why is technology important for nonprofits? ›

Technology makes it possible to expand a nonprofit's reach in the products and services they provide, thereby increasing their capacity to serve their intended population. The right technology helps nonprofits significantly by helping them increase their revenue.

Why organizations are investing heavily in information technologies? ›

Organisations invest in information systems for various reasons: Operational excellence: in order to achieve higher profitability, firms need to improve the efficiency of their operation. IS provides managers with the means to achieve high level of efficiency and profitability in business operations.

Why is it so crucial for organization to invest in modern technologies? ›

The competitiveness of organizations increasingly depends on their ability to digitize systems, operations, and processes at the pace of technology. The thing is that today technology has become essential for the sustainability and growth of businesses, especially in the long term.

What are the advantages of investing in technology in business? ›

Increased efficiency: Investing in technology can help businesses streamline their operations and increase efficiency. For example, using cloud-based software can allow businesses to access their data from anywhere, making it easier to manage remote teams and work on projects collaboratively.

Why is the technology industry important? ›

Oftentimes, technology also serves as a USP or something that sets the company apart from others in the eyes of potential clients and customers. With access to advanced technology, companies have the opportunity to create better products, which can ultimately help them improve their sales.

How technology can help an organization? ›

The effectiveness of systems, goods, and services is improved through technology. Maintaining data flow, managing contacts, and streamlining operations are all made easier by this. Actually, the business is able to grow quickly and cut costs because of this improved operational efficiency.

How important is technology in an organization? ›

Technology helps increase the efficiency of systems, products and services. It helps track and streamline processes, maintain data flow and manage contacts and employee records. In fact, this increased efficiency in operation helps reduce costs as well as enable the business to grow rapidly.

How does technology impact nonprofit organizations? ›

In today's digital world, technological advancement has immensely impacted nonprofit organizations. With increasingly sophisticated tools and platforms, not for profits can reach larger audiences, raise funds more quickly and efficiently, and coordinate services more precisely than ever.

What is technology and its importance? ›

Technology is the application of conceptual knowledge for achieving practical goals, especially in a reproducible way. The word technology can also mean the products resulting from such efforts, including both tangible tools such as utensils or machines, and intangible ones such as software.

How technology affects the business? ›

Small business owners can use technology to reduce business costs. Business technology helps automate back office functions, such as record keeping, accounting and payroll. Business owners can also use technology to create secure environments for maintaining sensitive business or consumer information.

How does technology affect business positively? ›

One of the most significant positive impacts of technology on modern businesses is improved efficiency. With the help of technology, businesses can automate various processes, such as inventory management, order processing, and customer service, leading to improved efficiency and reduced costs.

Which technology is essential for an organization? ›

In summary, while all the mentioned technologies can contribute to a technologically advanced and integrated organizational environment, cloud computing and IoT are particularly crucial for handling the computational demands and data requirements of generative AI.

Can technology transform the nonprofit sector? ›

Digital transformation empowers nonprofits to streamline processes and eliminate manual and paper-based workflows. Organizations can automate routine tasks by leveraging digital tools and technologies, freeing valuable staff time for more strategic initiatives.

Why do governments and nonprofits use technology? ›

By investing in new technologies, you optimize your data analysis processes. It helps you identify issues and improve your organization before your competitors. It can also help you to identify growth opportunities and welcome new donors.

How nonprofits can embrace technology to deliver excellence? ›

The key is to focus on the technology that can best meet their needs and do their research. This includes looking into available options, assessing each option's pros and cons, considering budget constraints, and understanding the potential challenges associated with implementing a specific technology.

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