AI for Nonprofits

Chapter 31.1Best Practices in Funding Nonprofit Technology

Based on insights from an interview with Chantal “Coco” Forster.

As a philanthropist or foundation executive, you understand the critical enabling role technology plays in expanding the impact and efficiency of nonprofit organizations. However, funding technology can sometimes feel like navigating uncharted waters, especially if you're concerned you may be enabling groups to employ shiny new tools without the proper forethought. What's the best way to support mission-led organizations in their tech journeys? How can we ensure our investments lead to sustainable improvements? Here's some practical advice on how to effectively, responsibly fund nonprofit technology initiatives, designed to help ensure your contributions are used to their fullest potential.

Framework for Funding Nonprofit Technology

Fund Tool Adoption

When it comes to technology, the initial investment in tools and software is just the beginning. Here's how to strategically support these costs:

• Integrate tech funding into general support: Allocate a percentage of each grant specifically for technology needs and associated costs. This approach acknowledges that tech is as essential as other operational costs and ensures that nonprofits have the resources to adopt necessary tools.
• Provide dedicated tech grants: Offering additional, tech-focused grants to organizations you already support can unlock exciting possibilities to expand mission fulfillment ...