Nonprofits often struggle with planning and budgeting for IT expenses. Since IT often falls under overhead expenses, it is difficult to allocate funding for it. Johan Hammerstrom, Chief Operating Officer, and Matthew Eshleman, Chief Technology Officer, talked about what you need to consider as you start to plan and budget for IT expenses. Key Questions: What are the ongoing IT costs you should budget for? What are fixed IT costs that will be coming up in the next year? How do you plan and budget for IT staff?

1. IT Planning & Budgeting
May 23, 2013
Community IT Innovators Webinar Series
Presenters:
Matthew Eshleman
Johan Hammerstrom

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• Webinar Powerpoint & Recording
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3. About Community IT
Community IT Innovators partners with nonprofits to help them solve their
strategic & day-to-day IT challenges.
Strategic
Proactive approach so you can make IT decisions that support your
mission and grow with you
Collaborative
Team of over 40 staff who empower you to make informed IT choices
Invested
We are committed to supporting your mission, and take care of your IT
network as if it were our own
Nonprofit focus
Worked with over 900 nonprofits since 1993

4. About the Presenters
Matthew Eshleman
Chief Technology Officer
meshleman@communityit.com
@meshleman
Johan Hammerstrom
Chief Operating Officer
jhammerstrom@communityit.com
@hammerstromj

5. Agenda
I. Governance
II. Strategy
III. Assessment
IV. Budget Guidelines

6. Affirmation
• Technology is important, your organization
should make it a priority
• Focusing on technology brings significant
value to your organization

7. The essentials that ensure that IT
sustains and extends the mission.
revised ITGI, 2012
I. Governance

8. 1. Leadership
2. Organizational Structures
(2a. IT Director/CIO)
3. Processes
Governance Essentials

9. Getting buy-in…
• Educate leadership in an inclusive way
• Be patient, be persistent
• Walk leadership through different scenarios
• Tell some good stories
• Set realistic expectations

10. Prioritizing
II. Strategy

11. Strategic Plan
1) Maintain the Status Quo
2) Change
a) Size (# of staff)
b) Scope (# of programs)
c) Scale (# of locations, constituents)

12. III. Assessment
• Set expectations about the assessment and
what will result
• Review YTD Budget to Actuals, prev Year
• Talk to staff
• Try to keep it ongoing over time

13. Assessment Categories
• Policies
• Capacity
• Security
• Staffing and Support

14. Enterprise Architecture
- Simple way of mapping business processes to applications and systems
- A lot of applications may be in the cloud or linked to other applications
Business Process Business Process Business Process
Function 1 Function 2 Function 3
Application
Platform
Hardware

15. Enterprise Architecture
- Simple way of mapping business processes to applications and systems
- A lot of applications may be in the cloud or linked to other applications
Business Process Business Process Business Process
Email File Sharing CRM
Application Exchange Windows Salesforce
Platform OrgSrv01 OrgSrv02 Salesforce
Hardware VirtualHost1 VirtualHost2 N/A

16. budget
IV. Guidelines

17. RUN / GROW / TRANSFORM

18. IT Budget Spreadsheet
Year 1 Year 2 Year 3 Year 4 Year 5
Run
Grow
Transform

19. IT Budget Spreadsheet
Year 1 Year 2 Year 3 Year 4 Year 5
Run
Internet 1000 1100 1500 1500 1500
Software 2500 2000 2000 2000 2000
Hardware 12000 0 0 12000 0
Email 1200 600 600 600 600
Services 5000 8000 8000 8000 8000
Grow
O365 4000
Web 20000
CRM updates 10000 5000 5000
Transform
CRM 25000

20. Hardware
• Network
– Switches
– Firewall
• Servers
– Cloud
– Virtualization & consolidation

21. Hardware• Workstations
– Replace every 3-5 years
– Align with your funding
– Cascade down to interns, volunteers
• Laptops
– Replace every 3 years
– Support contract and warranty
• Budget for eCycling!

22. Software
• Hosting
– Host locally?
– Migrate to the cloud?
• Routine upgrades
– Upgrade server OS
– Upgrade Office version

23. Security
• Backup
– Local devices
– Hosted service
• Anti-virus
– Local software
– Email & Web filtering
• Passwords

24. Ongoing Contracts
• Understand Contract & Renewal Process
• Internet Services
– Internet Connection
– Web-hosting
– Domain name
• Annual Support Contracts
– Hardware
– Software

25. People
• IT Support:
– In-house
– Volunteer
– Support firm
• Training to use software
• IT Acceptable Use Policy

26. Resource Link
Article: A Strategic Approach to IT Budgeting
By Donny Shimamoto
http://www.journalofaccountancy.com/Issues/20
12/Mar/20114439.htm

27. Upcoming Webinar
June 20
Bring Your Own Device (BYOD)
f
Presenter
Johan Hammerstrom
ff

28. Next Steps
• Connect with us
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http://www.communityit.com
• Provide feedback
Short survey after you exit the webinar. Be sure to include any
questions that were not answered.
• Missed anything?
Link to slides & recording will be emailed to you.