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Lakeside

How Non-Profits are Challenged by Technology

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The challenges non-profits face today in our society have been quite difficult. There are financial limitations, staff burn-out and turnover, an increasing and more difficult client base, significant adaptations, and the normal personnel conflicts, to name a few.

Another major challenge that has emerged in a significant way is technology and information management. Our organizations are turning to technology for many operational functions such as administrative tasks, financial management and HR. Also records for clients, students and all the many activities of the organization are another source of significant usage. The more activities that are part of any non-profit, the higher the demand for technological sophistication.

Yet we recognize that non-profits have had many financial setbacks due to funding cuts in grants and regular funding streams, and rising expenses in insurances, energy and now even fuel costs. The expenses are increasing while the funding is diminishing. This makes technology even more of a strain to non-profits when almost everything we do is dependent on technology of some kind.

Technology budget decreases in non-profits constitute major problems. It can lead to outdated hardware, slow networks and limited access to cutting edge technology. The growing threat of cybersecurity risks are also problematic. With limited cybersecurity measures in place, non-profits are often prime targets for cybercriminals. A data breach can compromise sensitive donor information, financial records, and beneficiary details.

Post-pandemic, many non-profits now operate remotely or in hybrid environments, making secure collaboration a major challenge. Unlike large corporations with dedicated IT teams, non-profits often rely on non-technical staff to handle IT issues, leading to inefficiencies and potential security gaps. From HIPAA to PCI-DSS and state-specific data protection laws, the compliance landscape in 2026 is complex and getting stricter. Grantmakers, donors, and partners increasingly expect nonprofits to meet these standards, yet few have the internal capacity to track compliance or enforce data privacy policies.

Many nonprofits don’t have a full-time IT staff member—let alone a department. Technology responsibilities often fall to a “tech-savvy” staffer or volunteer, leading to:

  • Burnout and inconsistent support
  • Lack of strategic planning
  • Reactive (not preventative) IT practice

With the advent of artificial intelligence and all the changes and challenges that come with it, there are a myriad of new options that have become available. The list goes on and on, and even though many non-profits are struggling with their funding, the continuing growth of IT needs are as prevalent as ever.

This is incredibly difficult for small non-profits who may have very limited staff and resources. Even for larger organizations, the challenges are exponentially growing. I am so thankful for Lakeside’s Technology team and all that they do to keep us updated and functional. Yet I know that many of our other organizations are not as fortunate and are falling far behind in their technological capacity. As we consider the many caregivers helping their clients all over our country, we need to advocate for their funding so they can maintain their technology, serve their population and achieve their mission effectively. 

Gerry Vassar

President/CEO

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