ExP estimates $43 billion in annual U.S.nonprofit IT spending
ExP estimates $43 billion in annual U.S.nonprofit IT spending - This from our friends Paul and Rem: Exponent Partners estimates that U.S. nonprofit organizations annually spend at least $43 billion on IT products and services. With 1.4 million organizations that make up 7.5% of the U.S. gross domestic product, this is a substantial market for technology vendors. However, the preponderance of small nonprofits, fragmented across many divergent subsectors, makes it a challenging market to serve. [Exponent Partners]
Take a look at the numbers - they are not bad as a basis. What is the big wild card is the percentage of "revenue" of nonprofits spent on IT which is a number Paul and Rem draw out of a hat (though with some logic reasoning). They also call for a benchmarking study which will be essential to come closer to actual reality based on data rather that guesses.
It would also be very helpful, of course, to have IT spending be allocated more systematically and reported as part of the 990, similar to how fundraising costs are borken out today. Since this is not likely to happen anytime soon, we ned to seriously look at a larger-scale investigation to accurately assess the size of the market as well as pry lose some internal market analysis that some of our bigger players in this field undoubtedly hold.