When keeping your IT budget in check, you can’t afford to make any mistakes, primarily if you work for a nonprofit organization where dollars are hard to come by, and the last thing you need is a sky-high IT bill.

Fortunately, most of these mishaps are entirely avoidable once you know about them, so don’t let your nonprofit be another victim of poor planning or blatant budgeting errors. Here are ten IT budgeting mistakes nonprofits make – and how to avoid them, so you don’t lose out on funding opportunities or damage your reputation by cutting corners regarding technology.

1. Not Having an IT Plan

A significant mistake that nonprofits make is not having an IT plan. Technology evolves quickly, and it’s essential to adapt to it. Having a technology strategy in place can help you make better, more informed decisions on how you want your organization to use tech in managing a budget and moving forward.

So before you do anything else, sit down and develop an IT plan for your company. And keep on updating it as needed.

2. Letting People Use Their Devices for Business Purposes

It might sound like a good idea, but allowing employees (particularly your sales staff) to bring their own devices into work opens up a world of security issues you’re probably not equipped to deal with. You don’t want a tech meltdown on your hands!

If you allow BYOD, ensure it is only for personal use and that any company data stored on those devices is encrypted. Also, educate your staff about basic cyber-security measures to protect themselves and their business from cyber-attacks.

3. Overestimating What You Can Afford

According to The Center for Effective Philanthropy, there is a common misconception that nonprofits need more money than they do. Their Readiness Guide can help you assess your organization’s needs and how much funding you should be aiming for.

The result will help you find funding sources and ensure you don’t overspend on technology. It also helps to have an honest conversation with your team about where funds are coming from and going.

This transparency builds trust between staff members and gives them insight into where their contributions fit the company or organization’s bigger picture.

4. Underestimating Your Device Needs

As a nonprofit, you’re likely accustomed to getting everything on a shoestring budget. It can be tempting to go that route with your mobile devices, but you’re more vulnerable than you think.

Don’t forget: malware and viruses can infect your laptops and desktops as quickly as they can on your mobile devices. Protect them all accordingly. Also, don’t overlook essential features like GPS tracking or remote wipe capabilities, often available in low-cost models.

If you opt for higher-end equipment (or even if you don’t), it might make sense to purchase extended warranties or insurance plans for each device; these plans may also come with added theft protection or lost/damaged coverage.

5. Underestimating the Cost of Data Management

A nonprofit needs to take stock of its data, which is an invaluable asset. Making sure your nonprofit has an established governance plan in place is not only a good idea; it’s something you’re legally required to do. Otherwise, you risk exposing yourself and your donors to unnecessary risks like security breaches or lawsuits.

In addition to creating a formal structure that outlines who can access what data and when it’s also wise to develop clear policies that address how long information should be retained and what happens when someone leaves or changes roles within your organization. These issues are often overlooked until there is an issue; by then, it can be too late.

6. Not Managing Cloud Backups Effectively

One of the essential things a nonprofit can do is keep its data backed up. Don’t lose any precious work; keep your data safe for effective budgeting. The best way to do so is by investing in an online backup service (i.e., Mozy, Carbonite).

If you don’t have access to that technology, you can always burn a bootable disc or use an external hard drive—ensure it’s safe!

7. Underestimating the Need for Employee Training

A survey from Cougar Mountain Solutions found that 45% of nonprofits didn’t have a budget for employee training and development. That’s a huge oversight—mainly because it may be cheaper to invest in your employees than you realize. You can train your employees with effective budgeting.

Employee turnover can cost a nonprofit between 15% and 30% of an employee’s salary on average, according to Business Management Daily. Plus, if they don’t know how to use their tools properly, they won’t be able to do their jobs as effectively. Investing in their professional development is critical not only for them but also for your organization.

8. Spending Too Much on Software Licenses

The number one mistake nonprofits make when buying software is overspending on licenses. Effective budgeting is necessary. Companies like Microsoft are well aware of your needs and will offer several license options for many programs. You have to ask if there is a way for them to get you more value from their products, and they’ll find a way.

9. Not Having a Disaster Recovery Strategy in Place

Regarding critical systems, your organization can’t afford to have a disaster recovery plan in place. Without one, you risk losing data, resulting in downtime and difficulty retaining donors. To learn how to build a disaster recovery strategy for effective budgeting before it is too late.

10. Neglecting Network Security

You may know it’s essential to keep an eye on your organization’s security, but you might not realize how often small mistakes can lead to extensive vulnerabilities. Understanding how these mistakes are made and how you can avoid them can improve your network security.

One of the typical nonprofit budgeting mistakes regarding network security is not having a written policy for data storage and retention: It’s a good idea to have a written policy regarding data storage and retention; otherwise, you could violate state or federal law laws regarding personal information.

One of the examples of nonprofit budgets and nonprofit fundraising rules is if a donor calls with concerns about their personal information being kept longer than needed, there should be clear instructions for determining whether or not those concerns are justified.

Conclusion

When it comes to managing IT, nonprofits may face various budgeting challenges. But having a solid understanding of what you’re getting into and some practical strategies for staying under budget can help you avoid costly mistakes.

This budgeting checklist for nonprofits should be a helpful guide when deciding on your next piece of technology or software package.