How Tech-Savvy is Your Board?

We have all read the articles about how technology is the key to increasing efficiencies. This is not limited to the accounting and finance department, but is important in every single facet within your organization. The program department needs to reach their members and contributors, HR needs to reach prospective employees and finance needs to process information in a way that is meaningful, timely and accurate. Technology has become critical to the long-term success and growth of your organization. Therefore board members should take note and make an effort to understand its importance and the opportunities that effective and strategic use of technology can bring to the organization.

Unfortunately, many nonprofits are finding that their current board members do not have the knowledge to understand that technology can be key to the organization’s success. Proper systems and processes can improve the donor experience thus increasing the amount of contributions it receives; technology and the use of key data and metrics will help an organization understand membership demographics and how they interact with your organization. And of course technology is key to the finance department’s ability to produce financial information as efficiently as possible, from anywhere and in real-time.

So how do you elevate the importance of investing in technology to your board? Many Executive Directors and CEOs understand the importance of having a diversified board and push to have board members who have a finance background, or a legal background and even experience in fundraising. What about expanding that diversification to include board members who understand technology? One way that has been trending is to use a mix of those with an IT background and millennials – both of which represent the wave of the future.

Technology Experts

Many organizations have found that bringing on board members with technology expertise enabled the organization to not only better educate the rest of the board (and the Executive Director/CEO) about incorporating technology into its strategic plan, but also eased the approval process of IT investments. The tendency is to just look at the cost of an IT investment. However board members with expertise in technology are better equipped to help the rest of the board understand that the cost can be offset by the potential to reduce other costs through automation and increased revenue by expanding the organization’s reach to its stakeholders. That expertise can also be used to make sure the board is asking the right questions as it relates to additional opportunities, risks and potential threats.

Millennials

Nonprofits will often seek out millennials for staff positions due to the fact that they tend to be more tech-savvy. However when looking for board members, organizations typically look for members with more experience, who are likely to be older and not necessarily as tech-savvy. The future is the millennials who will soon comprise over half the workforce. By tapping into this resource for your board, you are able to gain a new perspective. Millennials understand how to expand the organization’s reach through social media. They understand that by creating a direct link to your donors and constituents through mobile technology, apps and “the cloud,” the organization can increase its revenue. And finally, as millennials themselves, they have a better understanding of the unique traits and behaviors of this key demographic. And what better way to reach them then by having one on your board?

Technology must be incorporated into an organization’s strategic plan. To that end, it is essential that the board understands and embraces the idea of technology and the opportunities it brings. By adding technology expertise to your board in addition to those who understand its reach, you will enable your organization to be more competitive and more efficient – both of which are essential to long-term success.

Jacqueline Bryant is a partner in the Firm’s Outsourced Services practice and can be reached at jbryant@tatetryon.com.