1. Lower Overhead Tech Costs

One of the Non-Profit organizations’ biggest challenges is the cost associated with running technology infrastructure. According to a recent American Society for Information Management (ASIM) survey, nearly half of the Non-Profit organizations surveyed spend between $10,000-$20,000 per month on IT expenses. That means if a Non-Profit organization spends $100,000 per year on IT, it will take approximately four years to recoup those costs.

In addition, according to ASIM, only one-third of Non-Profit organizations use any kind of cloud computing solution. These organizations tend to be smaller and operate under tight budgets. However, many benefits to cloud computing could benefit even large organizations.

So Non-Profit organizations spend significant time and resources maintaining their existing infrastructure. For instance, if a Non-Profit organization uses Microsoft Office 365, then it must maintain its computers, software, and servers. Additionally, they must keep up with security patches and updates, manage backups, and ensure that their data remains safe.

With cloud computing, however, organizations no longer need to worry about any of those costs. They only pay for the services they use and let the provider handle everything else. With cloud computing, organizations only pay for the services they actually use.

2. Software Cost Savings

Cloud computing allows organizations to save money on software licensing. Many organizations currently buy licenses for each employee who accesses their computer systems. When employees work remotely, they may still require access to certain applications.

For example, if a Non-Profit organization has a database application that requires a license per user, then they would need to purchase a license for each person accessing the system. However, if the same application was hosted on a cloud server, then the organization could buy one license for the entire organization.

Another challenge Non-Profit organizations face is the cost of purchasing new software applications. A Center for Digital Government study found that government agencies spent over $8 billion annually on software licenses. However, the average annual cost of licensing software for Non-Profit organizations was estimated to be around $7 million.

However, cloud computing allows Non-Profits to access the software online rather than buying physical copies. This eliminates the need for expensive hardware and software upgrades. As a result, organizations can save significant amounts of money each year.

3. No Spending on Tech Support

Cloud computing eliminates the need for costly IT support contracts. Instead, organizations can now outsource their IT support needs to a third-party vendor. In addition, these vendors provide 24/7 monitoring and maintenance services, ensuring the organization’s network is always secure and functioning properly.

A major concern for Non-Profit organizations is the cost involved in hiring IT professionals. According to a survey conducted by the National Association of State Chief Information Officers (NASCIO), state governments spend an average of $6,500 per employee on IT salaries. This includes wages, payroll taxes, insurance, retirement plans, training, and other benefits.

This expense can add up quickly for Non-Profits. According to NASCIO, the average salary for a full-time IT professional working in a Non-Profit organization ranges anywhere from $50,000 to $80,000 per year. While some organizations may not need such a highly skilled workforce, others may require multiple IT experts to handle everything from data backup to social media management.

For Non-Profits, outsourcing IT functions to a managed service provider (MSP) can significantly lower the overall cost of managing IT operations. An MSP can manage the entire process, including security, maintenance, and backups. Additionally, an MSP can perform tasks that would otherwise require specialized skills. For example, an MSP can monitor servers remotely, fix problems, and update operating systems.

4. No Extra Cost for Disaster Recovery and Backup

Disaster recovery planning is another area where Non-Profits struggle. According to the Federal Emergency Management Agency (FEMA), disasters caused by natural events, human error, or cyber-attacks cause damage worth billions of dollars each year.

According to FEMA, the total economic loss due to natural disasters in 2013 alone was $178 billion. Additionally, the agency estimates that the total economic losses due to manmade disasters will exceed $1 trillion by 2020.

While a Non-Profit organization should always plan for potential emergencies, it is important to remember that the worst-case scenario is unlikely to happen. Therefore, ensuring that the organization has adequate resources available to recover from a disaster is critical.

If a disaster does occur, however, it is essential that the organization has a way to back up its data. Many Non-Profits store sensitive financial records, donor lists, and other valuable documents online. Without proper protection, these files could become inaccessible after a disaster.

An MSP can protect the organization’s data by backing up the system regularly. Backups can be performed automatically or manually. Automatic backups are typically scheduled to run at certain times throughout the day. Manual backups allow employees to schedule regular backups themselves.

Manual backups can also be used to restore lost data. After performing a manual backup, the organization can easily retrieve any missing files. Organizations can minimize the risk of losing data by implementing a comprehensive disaster recovery plan.

The key components of a good disaster recovery plan include testing, monitoring, and reporting. Testing ensures that the plan works properly. Monitoring helps detect problems early so they can be fixed before they escalate into bigger issues. Finally, reporting provides detailed information about how the plan is functioning.

How Much Does a Non-Profit Actually Save by Moving to the Cloud?

According to research by the National Association of State Treasurers, the average cost of running a state government was $6,000 per employee in 2011. That figure represents a significant expense for any organization, mainly a Non-Profit. In addition, according to a U.S. Government Accountability Office report, federal agencies spend nearly $20 billion annually on IT infrastructure.

While the numbers vary according to the organization’s size, the GAO estimates that the total annual cost of maintaining a typical medium-sized Non-Profit could range between $100,000 and $500,000. By comparison, the cost of storing data in the cloud varies from $10 to $40 per month.

That said, the amount of money saved by moving to the cloud varies widely among organizations. Some organizations use cloud computing to replace legacy systems, while others outsource certain functions to third parties. Whether the move is made for business reasons or purely altruistic, the potential benefits of cloud computing are clear.

In conclusion, cloud computing offers numerous financial benefits to Non-Profit organizations. Organizations can reduce overhead costs, lower software licensing expenses, eliminate IT support costs, and avoid downtime caused by disasters by outsourcing their IT infrastructure.

Cloud computing is an excellent option for Non-Profits. It reduces the time spent managing servers and eliminates the need for costly IT personnel.