The Importance of Senior Technology Leadership in Nonprofit Organizations
For the 2024 Donor Management Use and Satisfaction Study, 379 nonprofit professionals responded to a survey about their experiences with donor management software. Alongside questions about software satisfaction and the factors influencing their purchasing or retention decisions, the study also delved into the technology practices of these organizations.
A key data point emerged: a significant number of nonprofits lack a senior technology leader on their executive team. This gap presents a critical challenge, as it hinders the strategic use of technology not only in fundraising efforts but across all aspects of the organization.
The Role of a Senior Technology Leader
When I’m talking about a senior technology leader, I mean a member of the nonprofit's senior leadership team with technology as their primary focus or a significant portion of their responsibilities. This role could be filled by a Chief Information Officer (CIO), Vice President of Technology, or similar title. In some cases, nonprofits might engage a contractor, such as a Virtual Chief Information Officer (VCIO), to fulfill this function. The title doesn’t matter as much as their status and influence in the organization–what’s more important is their ability to shape the organization's technology strategy and ensure its alignment with the overall mission.
Senior technology leaders are responsible for several critical functions within a nonprofit organization. These include:
Setting the technology strategy, ensuring that it supports the organization's goals and mission.
Overseeing the technology budget, approving large investments and ensuring that resources are allocated effectively.
Overseeing technology governance, including the development and enforcement of policies that ensure the ethical and secure use of technology.
Managing risks related to technology, such as cybersecurity threats and business continuity.
Seeking out innovations and exploring how emerging technologies can be applied to further the nonprofit’s objectives.
Senior technology leaders play a crucial role in change management, ensuring that new technologies are adopted smoothly and that staff are adequately trained. By fostering a tech- and data-positive culture, these leaders help create an environment where technology is seen as an enabler of success rather than a barrier.
Current Landscape: Senior Technology Leaders Are Not the Norm
Despite the clear benefits, only 26% of nonprofits currently have a senior technology leader on their executive team. Larger organizations are more likely to have someone in this role, while smaller nonprofits often struggle to justify the expense or find the right person. This data point highlights a significant gap in the sector, with many nonprofits potentially missing out on the advantages of having a dedicated technology leader.
What’s at Stake
The Strategic Advantage of Technology Leadership
I remember the first time I worked with a nonprofit that had a senior technology leader. This organization was dramatically better positioned to make strategic technology decisions that were directly connected to their mission and goals, compared to its peers without a senior technology leader where tech decisions were more reactive and narrowly considered. Their VP of Technology ensured that technology initiatives received the resources they needed to succeed, leading to better outcomes and a higher return on investment. By making evidence-based decisions and leveraging data, the organization could better forecast and plan for the future.
Having a senior technology leader also helps nonprofits avoid or mitigate risks related to technology. With the right tools and processes in place, staff become more productive and collaborative, and the organization can innovate more effectively. This leadership allows the organization to spot opportunities and take decisive action, keeping them ahead of the curve.
Risks of Not Having a Senior Technology Leader
Without a senior technology leader, nonprofits risk making technology decisions without a strategic lens. This can lead to unsuccessful implementations, poor returns on technology investments, and an organization that falls behind in a rapidly evolving digital landscape. Even if a nonprofit has a skilled technical expert on staff, if that person is not in a leadership position, the organization may still lack the strategic oversight, big-picture view, power, and influence necessary to fully leverage technology.
Alternatives to Having a Senior Technology Leader
For nonprofits that are not yet ready to hire a senior technology leader, there are some alternatives. One option is to save up for the role and make a case to funders that it is a necessary long-term investment. Another approach is to provide professional development for an existing leader, enabling them to take on technology responsibilities in addition to their current role.
Outsourcing to a fractional resource, such as a VCIO, can also be a cost-effective solution. Additionally, nonprofits can seek support from qualified board members or volunteers with technology expertise.
Finally, including technical experts in leadership and strategy discussions, even if they are not part of the senior leadership team, can help ensure that technology considerations are integrated into the organization’s broader strategic planning.
Final Thoughts
The presence of a senior technology leader can significantly enhance a nonprofit's ability to leverage technology strategically, improve outcomes, and remain competitive. For organizations without this role, exploring alternatives can provide some of the same benefits, ensuring that technology remains a powerful tool for achieving their mission. As the nonprofit sector continues to evolve, prioritizing technology leadership will be increasingly critical to long-term success.
Download the full public findings from the 2024 Donor Management Use and Satisfaction Study and explore NTEN’s research publications to learn more about the current technology landscape.
