Navigator's Log

The Silent Drain

Nonprofit leaders are the most resourceful people I know. Always doing more with less. Always looking for ways to stretch the dollar. However, it is easy to fall into the trap of pinching pennies during budgeting season while invisible subscription fees drain your impact every month. Sometimes you are paying for things that are not even being used, or paying for two separate licenses when one would suffice. At least once a year, just like the financial reviews we all know are so important, a technology audit should be done to protect your organization from both financial drain and security vulnerabilities.

Where the Leaks Hide

Inherited Systems

New leaders often inherit ‘ghost’ systems. Because auto-renewing subscriptions are often too small to trigger a red flag on a credit card statement, they are paid without anyone questioning their necessity.

Unchecked Upgrades

Software providers can change their pricing tiers, and while they may send an email about it, that notice is easy to miss. Maybe it got buried among spam-looking emails; maybe it went to an inbox no longer monitored. Now the subscription leveled up without review and you are paying for extra features when the lower tier is what you need.

Sometimes we do need the upgrade when we go over our limit, such as a large number of transactions at a peak time. The problem is that once the peak passes, we often forget to downgrade. The same is true for free trials that require a credit card upfront and you must remember to cancel.

Ghost Users

Some subscriptions charge by user and you still have a former staff member or volunteer listed as a user. You are not only paying for their unused license, but potentially creating a security vulnerability.

Nonprofit leaders, while the most resourceful, are also the busiest people I know. It is easy to have all these tasks fall through the cracks because they are admin work that is lower priority than the mission. But those fees add up when unmanaged. Not to mention the security implications of giving access to people who are no longer with your organization.

The Microsoft Shift

Many nonprofits have been using Microsoft for free. Recently, they adjusted their grant structure. When your annual license expires, you will shift to a discounted per user model. That cost multiplies quickly if your user list isn’t intentionally managed. When it was free, perhaps you created accounts for all your board members and volunteers to share documents in Teams. Similarly, you didn’t remove the license from staff members who have moved on. Now even at $5 per user, that could multiply and create a monthly subscription fee you had not budgeted.

The Tech Audit: A Strategic Must

Now that you know where the leaks are, you need a structured audit to close them. A technology audit should be as routine as your annual budget review. Some technology decisions are intentional; others are not. An audit brings those issues to the forefront for leaders to address. The technologies you choose, when aligned with the strategic vision of the organization, create the infrastructure that will enhance your growth.

Financial Benefits

When you ‘set it and forget it’, you are potentially paying for subscriptions you no longer need. Compiling a list of your technologies will reveal if you are paying for duplicate services such as Zoom and Microsoft Teams. Many software platforms offer different tiers and those offerings may have changed since you first subscribed. Check if you are paying for a higher tier than you need. Perhaps a team package could save you on licensing fees and unlock team management features now that your organization has grown. Always ask if there is a nonprofit discount, especially for the platforms you already use. And of course, cancel those that no one is using.

Security Benefits

Have you ever added a volunteer to the account or shared a password to someone to help with something and never went back to remove their access? A tech audit reveals who is on what account. Staff and board members who have left the organization but still hold licenses are both a financial and a legal liability. Review user access to ensure the right people have proper permissions on your systems. If data integrity and accountability are very important to you, make sure the platform you choose can handle that and you are using its features to manage access properly for auditability.

Operational Benefits

So far the focus has been on saving money and plugging security holes, but another benefit of the tech audit is gaining operational efficiency. If you are using two tools to do one job, that creates administrative overhead. While an audit reveals if your organization is paying for unused features, it is also an opportunity to see what new features are offered that could improve your workflow. As your organization grows, the systems that support it need to evolve as well. Assessing the existing technology to ensure it can support future growth is another important reason to do the audit.

Best Practices

Fortunately, many of the tools needed are available to nonprofits at a fraction of the commercial cost.

Sign up with TechSoup. They have both software and hardware discounts. Once TechSoup verifies your nonprofit status, their certification unlocks discounts with many vendors. Read the fine print. Some deals require a minimum number of licenses that, when bundled, may cost more than you need to spend. One good deal is Quickbooks, free for 5 users with an annual admin fee of $80 to TechSoup.

Reach out to companies and ask if they offer nonprofit discounts. But do your research. Not everything free is a good fit. Look into the company and the service it provides. Stay with trusted ones that are supporting philanthropy. Make an intentional decision rather than being lured in by a sales pitch.

A Simple Action Plan

The tech audit doesn't have to be overwhelming. A simple plan will tighten your financial commitment, security, and internal workflow. Perform the audit routinely to keep your technology list and account credentials current.