Avoiding Technical Debt in Nonprofits: Why and How

Technical Debt! It will get you if you’re not careful. At this year’s Nonprofit Technology Conference, I was a panelist in a breakout session called Avoid Technical Debt from Killing Your Nonprofit, then recorded an episode of Nonprofit Radio on the same topic.?

Technical debt can indeed suck the life out of an organization. Let me explain, starting with a definition. Technical debt refers to choosing an option that is less expensive or more convenient in the short term, but causes more work in the long term. Maintenance costs, labor, risks, and opportunity costs can accumulate over time. Borrow now, pay it back with interest later.

Some of the costs we incur from technical debt include:

• Putting off hardware replacement or getting by with outdated software until you can’t avoid a very large spend–just to get back to basic standards.?
• Giving people a bad impression or experience via your website, making them wonder if they can trust you and if the rest of your work will give them an equally poor experience.
• Delaying software upgrades because they might break your customization, and therefore missing vital security patches and becoming increasingly vulnerable to cyber attacks.

Even those of us who know better can fall into this trap, because there are many forces pulling us in that direction. I gave the example of my so-called accounting system, which is actually just a combo of a spreadsheet and document templates. It costs me no money, but it lacks automation, and it’s vulnerable to errors and omissions.

There are legitimate reasons why nonprofits do this. There’s an impulse toward frugality that comes with being a steward of community resources. Moreover, nonprofit funding models offer a perverse incentive. With websites, for example, I've found it’s easier to get a $100,000 grant for a major redesign than $10,000/year for maintaining a fresh website continuously.?

I’ll close with a few thoughts on how to prevent technical debt from piling up.?

• Audit for technical debt as part of a routine annual technology assessment, prior to budgeting for the coming year.
• Spread out the costs where possible, such as through a rolling equipment replacement cycle.
• Shift your mindset from cheapest up front to lowest cost of ownership (and don’t forget disposal/decommissioning costs).
• Avoid customization, which can make systems more difficult to update.
• Avoid shadow IT, which prolongs the upgrade/replacement of the sanctioned tech. Shadow IT is often a result of ad-hoc choices without proper consideration of ROI.
• Read this article from my friends at Build Consulting for another take on Technical Debt.

If you can strengthen your practices and decisions in a few of these areas, you’ll be in a better position to resist technical debt, leading to more cost-effective, and productive operations over time.