Tech is Limiting Nonprofits' Potential with Subscription Models

Introduction

Nonprofits play a vital role in addressing the world’s most pressing challenges. With 70% of these organizations operating with fewer than 10 employees, they are often small but mighty. Yet, despite their critical role, many nonprofits struggle to access the technology they need to sustain and scale their impact. The issue? Tech solutions designed for large enterprises, leaving mission-driven organizations behind.

*Data & Image Reported by Candid

The Challenge with Current Tech Models

Tech subscription models are built to scale with price. While this approach works for corporations, it creates barriers for most nonprofits. Essential features are often gated behind higher rates or user thresholds, leaving nonprofits priced out of tools that could significantly boost their work.

What We’ve Seen

At The Collaborative Collective, we work with nonprofits ready to innovate and grow. They’ve secured funding and built innovative programs, but they too often hit a roadblock: the rising cost of technology. Even with resources allocated, tech expenses quickly exceed what’s feasible for most nonprofit budgets. This leaves organizations settling for less effective tools or stretching their teams beyond capacity.

The Power of Disruptive Technology

There’s no denying that disruptive technology—automation, AI, and more—could fuel nonprofit growth in unimaginable ways. But until nonprofits have equitable access to these tools, the true potential of their missions is stunted. Nonprofits don’t need to be treated as just another sale. They need technology partners who invest in their success.

Promising Models

There are glimmers of hope. Companies like Google, Microsoft, and Monday.com have begun recognizing the gap. Monday.com, for example, intentionally gives favorable terms to nonprofits and has created a dedicated community forum where nonprofits can engage with each other and connect with Monday's nonprofit team. Similarly, Google and Microsoft offer nonprofit accelerators, providing resources, discounted services, and tailored solutions. These programs give nonprofits access to the same transformative tools as larger organizations. It’s a model more tech firms should adopt—seeing nonprofits not just as customers, but as partners in creating change.

A Call for Change

While the giant companies are making small strides, the broader tech industry remains slow to adapt. Subscription models, focused on profit, fail to meet the needs of smaller nonprofits. But there’s an opportunity here—tech companies can contribute positively to community services and global solutions by forming true partnerships with nonprofits.

We’re not just talking about discount codes. Tech firms could donate user fees and services, offer free training and certification, and invest in these organizations’ success. By recognizing nonprofits' vital role in addressing societal challenges, tech companies can integrate community and global health into their business model, contributing to long-term social impact. It’s time to see nonprofits as partners in progress, not profit centers.

Conclusion

At The Collaborative Collective, we believe that technology has the power to unlock incredible possibilities for nonprofits—if only it’s made accessible. It’s time for the tech industry to shift its mindset. By embracing nonprofits as partners, not profit centers, we can help solve the challenges that businesses shy away from and, ultimately, build a better world together.