Google Answers Logo
View Question
 
Q: IT spending in not-for-profit industry ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: IT spending in not-for-profit industry
Category: Business and Money > Finance
Asked by: dominiccko-ga
List Price: $25.00
Posted: 13 Nov 2002 09:56 PST
Expires: 13 Dec 2002 09:56 PST
Question ID: 106956
Ultimately would like a recent survey of IT spending in the not for
profit sector (e.g. IT budget as a % of total budget) preferably in
Canada but US/European numbers are good too. Also nice to see how this
compares to the For Profit sector but this is not critical
Answer  
Subject: Re: IT spending in not-for-profit industry
Answered By: omnivorous-ga on 13 Nov 2002 14:01 PST
Rated:4 out of 5 stars
 
Dominiccko –

Thank you for the interesting question.  I've long been familiar with
the spread of IT spending among commercial firms but this sent me
searching for non-profit organizations.

Non-profit groups are varied.  There are 175,000 non-profit groups in
Canada; 77,000 of them are charities.  This also includes governments,
hospitals and schools – which may explain why there seems to be no
aggregate number for non-profits.  Unfortunately, a search yields no
OVERALL non-profit numbers for Canada or the U.S. (though there's a
very interesting study of Internet spending by Canadian non-profits).

Modern Healthcare puts overall hospital spending at 3.5% of revenues,
according to Tufts Managed Care Institute, "Quality and Clinical
Decision Support Systems" (May-June, 2002):
http://www.tmci.org/downloads/topic5&6_02.pdf

Recently Metricnet, which is a subsidiary of IT research company Meta
Group, did a 2002 analysis of government (federal, state, local)
spending.  I include it because there's some excellent detail – and
because a government's a non-profit organization too:
Metricnet
"2002 IT Key Metrics Analysis" (October, 2002):
http://128.121.222.187/data_access/ITSpend/GVT1.pdf

In the government comparison, 21 agencies were examined having an
average employee size of 625.  Median spending was 3.95%; average
spending was 7.63%; the upper quartile was 8.5%.  Spending was split
almost evenly, with 52% of budgets going to operational expense and
48% to capital acquisitions.  There are further splits by types of
technology and how much of the budget are going to staffing, if you're
interested.

Metricnet has long tracked IT spending in a number of ways.  Though
they don't give non-profit figures, they provide a good baseline for
IT spending.

Overall, private corporations spend 3.61% of revenue.  At the low end
are construction/engineering; hospitality and travel; and retail firms
which spend between 1.43% and 1.63%.  At the high end are
telecommunications (6.4%) and financial services (6.64%) companies.

Though you're interested in the broad category of IT spending, Levurus
Associates has published (and is currently updating) a report on
Internet spending by Canadian non-profit organizations.
"Leveraging the Net: Association Internet Benchmark Spending"
(December, 2001)
http://www.leverus.com/associationresourcecenter/Leverus_survey2001.PDF


Google search strategy:
"non-profit" + "IT spending" + Canada


Best regards,

Omnivorous-GA
dominiccko-ga rated this answer:4 out of 5 stars
Thanks. This helps - clearly there is a durth of such info.

Comments  
There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy