Cloud-Based Technology for Nonprofits

Nonprofits shopping for a new CRM have a list of questions to ask. They range from available features to cost to support and, deservedly, get center stage. But there are a few important questions many organizations don’t ask, and the answers can have big consequences on the security and availability of your donor data. After all, no nonprofit wants to wake up on Giving Tuesday to find a software outage or data leak!

We’re talking about the cloud; both where your data is stored and the implications of your choice of vendors. CharityEngine has been in the technology industry for a long time and educating nonprofits is our passion. We’re proud to offer cloud technology to our clients, and we want all nonprofits to be educated and able to make informed decisions. If data security and system uptime are important to you, keep reading!

In this article, we’ll break down cloud-based technology and share the ten questions you need to ask nonprofit CRM vendors.

What is Cloud-Based Technology?

Let’s think back to the way things were about ten years ago. Organizations had computers and they had server rooms: always humming, always freezing cold, and always behind lock and key because that's where all the data lived.

Fast forward a decade, and people aren’t even in offices as much, and server rooms have largely disappeared. What happened in those years is that big companies (think Amazon or Microsoft) realized that they could house massive server rooms with the data of millions of companies, and that the companies could access those files through the internet.

No bulky and expensive servers in offices anymore. For a fee, organizations can hire a company to put their files “on the cloud” – meaning stored in servers somewhere else. The files aren’t stored locally on your computer; they are accessed via the Internet.

There are different types of cloud-based solutions. A public cloud is one in which a third-party service provider delivers resources to multiple customers as a managed service. Customers, such as CRM vendors, pay for the resources they use. Your data is isolated and private, but the solution serves many.

In a private cloud, which is what CharityEngine offers, one team maintains the infrastructure and delivers the services to clients. The benefits of a private cloud include the limited number of individuals with access to your data, as well as tighter control over outage prevention and remediation. Because of the way CharityEngine's cloud technology works, our clients enjoy a security and uptime record that is nearly impossible for competitors to match.

Both types of cloud solutions have benefits, as do hybrid solutions that are part private and part public.

Benefits of Cloud-Based Solutions

These days, you hear a lot about the cloud and why it’s preferable to any other data storage solution. And this is true; if you have files stored on computers without backups, your data can easily be lost or compromised.

Whether your nonprofit takes advantage of cloud-based productivity suites, donor management systems, accounting software, or file storage, there are significant benefits to using this technology.

• Cost savings because you’re not buying the hardware and hiring the IT experts to manage the servers.
• Enhanced collaboration because remote teams can access and edit documents in real time, improving efficiency and productivity.
• Improved data security is achieved because providers invest heavily in security and focus on data backups and disaster recovery.
• Rapid scalability as your nonprofit needs it. If your fundraising surges during year-end giving, a cloud solution—your access to hundreds of servers—can meet your needs.

Common Misconceptions About Cloud-Based Technology

If you use a cloud for data storage, there aren’t servers or hardware.

FALSE. Data is stored on servers. There isn’t a literal cloud in which invisible bytes roam, although that is what many people believe. The cloud just means the servers are likely a few states away on a large data campus.

Cloud technology isn’t secure.

FALSE. There was a widely publicized data leak at a large financial institution, and the FDIC was quoted as saying they were concerned about security as consumers were increasingly storing personal data “in the cloud.” In reality, the servers didn’t fail. A human being was behind the data leak! With 24/7 monitoring, a team of experts watching system controls, and massive encryption protocols, data stored in the cloud is safe.

Cloud technology is unreliable.

FALSE. If an update contains a bug and worldwide systems are shut down, it’s easy to see why outages are synonymous with the cloud. In reality, your home computer is much more likely to pick up a bug than hundreds of servers with advanced security.

All cloud providers are the same.

FALSE. This is a commonly held belief: there are about three cloud technology providers, and everyone who wants the cloud needs to use them. This isn’t the case, and it’s important to know that nonprofits have a choice. When selecting technology, cloud-based storage is one of the many variables to assess, along with features and support.

Nonprofit Cloud Technology Providers

There are thousands of cloud technology providers, and each offers different levels of security and support.

Of course, there are the huge providers. Think of IBM, Oracle, Google, and the others we mentioned. These companies serve Fortune 500 companies as well as consumers and all types of organizations.

Some companies work with more medium-sized companies. You might hear a name like DigitalOcean in this category.

There are also cloud providers that offer services to their clients. In the nonprofit space, several fundraising software providers provide a cloud-based technology solution: CharityEngine is one of them.

We’re invested in this technology and have been providing it to nonprofits for a long time. Our parent company, BIS Global, has been providing cutting-edge, business-to-business cloud services—powering some of the largest global e-commerce and nonprofit organizations—since 2000. We offer clients state-of-the-art data centers and an industry-leading security and uptime track record. Our clients know their data is safe, and our systems will be available to help them raise money.

You have lots of choices in the fundraising software space, and we are one of many options. We aim to share tips to educate you and help you find the right solution for your unique nonprofit. Let’s look at ten pertinent questions you should ask about cloud technology.

The 10 Tech Questions Nonprofits Should Ask

Whether you’re shopping for a new CRM or you want to kick the tires and ask some tough questions of your current providers, here’s a guide to ensure you’re getting the best cloud solution you can.

1. What’s your data security track record? If there’s been a data breach, what happened? What was the company’s response?
2. What is your outage track record? If your clients have suffered a significant outage, what was the cause, and how can you assure clients it won’t happen again?
3. How do you ensure data security and privacy compliance? As a nonprofit, donors trust you with financial information. Keeping donor data safe is paramount. Is the company PCI-certified? SOC 2-certified?
4. How many vendors store my data? You’re educated and you know that your data is on servers somewhere. Where? How many different vendors have access to the data? The more people accessing your data, the greater the risk of a disgruntled employee, as occurred in the example with the financial institution leak, or other bad actors with access to your data.
5. How long have you offered a cloud solution? Experience matters. Don’t be someone’s first cloud client!
6. What’s your uptime guarantee and disaster recovery plan? This strikes at the heart of what you need to know. The higher the uptime guarantee and the more comprehensive the disaster recovery plan, the more likely it is you’ve hit on a solid solution.
7. What kind of customer support do you provide? While support is always important, instant support is critical if systems go down.
8. What control do you have over fixing outages? Consider that your vendor will have little to no control over the timing if they use one of the largest providers. This can frustrate clients losing time and money while their systems are down.
9. Does your solution work for international nonprofits? You may not be a global organization yet, but with the right technology, you can dream big. Ask in particular about additional certifications specific to international nonprofits.
10. What’s coming in the next six months? Your provider has a product roadmap. They might share it, they might not, but you can ask questions about how they plan to use emerging technologies like AI and automation. If the company already uses them, you might have a winner.

Embracing the Cloud: A Strategic Necessity

Nonprofits get a powerful set of tools with cloud technology. You can enhance your operations, increase efficiencies, and further your mission.

Understanding what the cloud is (and what it’s not), as well as realizing that cloud technology is varied and available to everyone, can help you make an educated decision. As the digital landscape evolves, embracing cloud technology isn’t a luxury as much as a necessity. Cloud-based technology will keep your nonprofit nimble and competitive in an increasingly digital world.

And yes, CharityEngine clients enjoy the most secure cloud-based technology available. We’re certified in all the right acronyms and have patent-pending fraud protection, as well as industry-leading billing technology to put more money in your nonprofit’s bank account. Curious? Let’s talk.