First Monday
The Australian non-profit sector and the challenge of ICT by Tom Denison, Larry Stillman, and Graeme Johanson


Abstract
In recent years, the Australian Government has been encouraging the adoption of Information and Communications Technologies (ICT) by non-profit organisations. In 2006, as a part of that process, the Government initiated a project to develop a possible model and business plan for a National Non-profit ICT Coalition (NNIC), conceived of as a coalition of leading non-profit organisations and social enterprises that would assist the sector in making more effective use of ICT. This paper draws on data collected during an extensive consultation process conducted to inform that model, and examines the data in terms of the response of non-profit organisations to the challenge of ICT within an Australian context. It then considers the implications for both the management of non-profit organisations and government policy.

Contents

Introduction
The Literature
Methodology
Results
Discussion
Conclusion

 

 

Introduction

In recent years, the Australian Government has been encouraging the adoption of Information and Communications Technologies (ICT) by community sector organisations, defined broadly as any non-profit organisation. The Australian Government has adopted an approach in keeping with Lyons’ (2001) definition, which states that a non-profit organisation is any private organisation, whether serving the public or its members that is explicitly prohibited from distributing a profit. Such a definition includes organisations such as charities, religious groups, professional organisations, political, sports and cultural clubs.

Government interest has been driven by two major developments, the first being intense lobbying over a number of years by the sector itself and the second, the recent process to provide input to the World Summit on the Information Society (WSIS) (Schauder, et al., 2005). These developments have highlighted the fact that the sector within Australia could be making far better use of ICT and the Internet in particular.

In February 2005, the Information Economy Division of the Australian Department for Communications, Information Technology and the Arts (DCITA) released two discussion papers reflecting both the impact of ICT on the Australian non-profit sector and the importance of the sector in building communities (DCITA, 2005a; 2005b). Specifically, these were intended to illustrate how non-profit organisations and communities were using ICT to: enhance operational efficiency and capability; deliver services and support; and build communities and social capital. They were followed by a report summarising theresponses to the discussion papers (DCITA, 2003c) and two guides to best practice for non-profits (DCITA, 2005d; 2006). Because of its potential to revolutionise communications and service delivery, the ability of the sector to harness the Internet has been prominent in all of these.

Subsequently, DCITA initiated a project to develop a possible model and business plan for a National Non-profit ICT Coalition (NNIC), conceived of as a coalition of leading non-profit organisations and social enterprises (DCITA, 2005e) that would assist the sector in making more effective use of ICT, by:

  1. Providing strategic oversight, coordination and leadership for the Australian non-profit sector on effective ICT use and ICT capacity building.
  2. Raising awareness and understanding of the strategic benefits of ICT for non-profit organisations and for the sector as a whole.
  3. Having a particular focus on raising awareness and understanding of CEOs, senior staff and board members of non-profit organisations of the strategic benefits of ICT.
  4. Improving the effective use of ICT by non-profit organisations and the sector.
  5. Facilitating affordable, reliable and sustainable advice and support models for non-profit organisations at a national, state/territory and regional level
  6. Improving the ICT infrastructure, ICT funding and ICT procurement arrangements for non-profit organisations and for the sector as a whole.
  7. Working to increase engagement between the business sector and non-profit sectors.

In March 2006, a contract to manage the project was awarded to a consortium led by Community Information Strategies Australia Inc (CISA) — a community-based not-for-profit organisation that provides a range of (ICT) consulting services. Other members of the consortium included the Centre for Community Networking Research (CCNR) at Monash University, WorkVentures Australia, Albany Consulting, Energetica Consulting, and the Non-profit Roundtable, a council of major non-profit representatives.

While the weaknesses of non-profit or community-based organisations with regard to the adoption of ICT have been well documented in the literature, the response to the problems that need to be addressed, and detail of how the sector is responding to the challenge of ICT, have not. The purpose of this paper, within an Australian context, is to draw on data collected during the process associated with developing the NNIC model and to examine it from the point of view of what it tells us about the responses of non-profit organisations to the challenge of ICT. It will then consider the implications for both the management of non-profit organisations and government policy.

 

++++++++++

The Literature

Reflecting the position adopted by the Australian Government, the literature typically focuses on two reasons as to why the adoption of ICT by community sector organisations is important: the benefit to organisations and their members or clients (Burt and Taylor, 1999); and the enhancement of the role of voluntary sector organisations in building vibrant communities and bonds of mutual trust, tolerance and co-operation (Canadian Voluntary Sector Initiative, 1999). Evidence that there are serious barriers to achieving these outcomes is provided by a significant body of work suggesting that although community sector organisations have been quick to adopt basic computing tools, many have difficulty in realising the potential benefits of the technology. For example, in Australia, the CCNR ICT Index (2002) confirmed the rapid take-up of ICT, but reported that only a minority of organisations had managed to develop Web sites that met their needs (Denison, 2003). In Canada, Surman (2001) found that the application of technology to key business activities was poor, with few organisations having made strategic use of the technology. These findings have been echoed in many other studies (Burt and Taylor, 1999; Wyatt, 2001; PRA, 2001).

Further examination of the literature reveals a number of explicit factors that contribute to the perceived inability of community sector organisations to take full advantage of the potential of ICT, including:

This is strikingly similar to the list of barriers faced by small businesses drawn up by Burgess (2002) when examining the question of how to build capacity for the use of ICT in an environment of limited resources and time. Indeed, Karanasios, et al. (2006) extended Burgess’ work by examining both small businesses and community organisations and found that both rely on informal networks to build capacity for the use of ICT, and that they had similar problems, for instance with regard to training.

Focusing on the ways in which organisations obtain support, Denison (2006) concluded that a major problem faced by non-profit organisations is the lack of support networks that can assist them in adapting to new circumstances and in planning the adoption of technology in such a way as to align with business processes and needs. He suggested that governments need to find ways of working with non-profit organisations that build on their strengths while at the same time providing them with access to trusted links that could provide them with expertise and other resources on an ongoing basis, for example by building local capacity by fostering trusted local intermediaries.

In summary, the literature suggests that the challenge for organisations is to take up technology in sustainable ways by embedding themselves in networks capable of providing the expertise and resources they need.

 

++++++++++

Methodology

Drawing on the example of existing overseas models and research, such as the ICT Hub in the U.K., N-TEN in the U.S. and SANGONet in South Africa, the consortium was expected to consult with relevant key stakeholders across the non-profit sector to design, test and refine a possible model and business plan for NNIC.

The consortium took the view that the consultation process should be as inclusive as possible, so as to reflect the needs and opinions of the sector in all its diversity and that the sector would feel some ownership of the result. To that end, it adopted a five-step process, based on collecting and synthesising data, using each succeeding stage to refine and test tentative conclusions:

  1. Undertake an initial analysis of the issues and of overseas models, including a review of existing research, a review of exemplary practice via written documentation and reports, discussions with overseas experts and representatives of relevant organisations. The review was to be used in the framing of subsequent consultations and the survey.
  2. Conduct a series of parallel workshops during the annual CISA ‘Connecting Up’ Conference, an event which has a high profile with the non-profit sector in Australia. As the conference was to be attended by representatives of a number of comparable overseas organisations, including the U.K. Hub, N-TEN and SANGONet, it was seen as providing delegates with a unique opportunity to discuss the pros and cons of overseas models.
  3. Establish a reference group comprising a minimum of 20 ‘informed observers’ chosen for knowledge of, or importance to, the sector. It was to include not only expert opinion from within the sector, but also representatives of government and business who have had significant dealings with the sector. Each member of the reference group was to be asked to participate in an in-depth interview, by telephone or e-mail, to ensure that the opinions of all stakeholders were represented, not just those of the sector.
  4. To solicit the broadest input, conduct an online survey of non-profit organisations. Unlike the reference group, this was to be open to the entire sector. The questions were designed to solicit information and opinions on existing capacity, sectoral needs, and the structure and role of the proposed NNIC.
  5. Conduct a series of face-to-face meetings in the capital city of each state and territory, open to all members of the sector, at which the outcomes of the previous stages of the consultations and a set of guiding principles and broad options were to be presented for consideration.

 

++++++++++

Results

‘Connecting Up 2006’
The series of parallel workshops, held at the CISA Conference in Adelaide on 2 May 2006, were used to solicit and synthesise the opinions of conference delegates. Those sessions commenced with an outline of what the consortium had been asked to do, and considering the strengths and weaknesses of the sector in relation to ICT, however their main focus was to canvas opinions on what roles a NNIC-type organisation could usefully undertake.

Apart from demonstrating strong support for the concept, the feedback from those meetings was that:

Consultations with Informed Observers
The second stage, that of interviewing ‘informed observers’, produced the widest range of opinions. That was not surprising as this stage canvassed the widest range of stakeholders, including representatives of governments at all levels, major IT corporations such as Microsoft, IBM, Cisco, peak non-profit groups and philanthropic organisations, non-profit ICT service organisations and a mix of non-profit organisations based on size and location. In all, 23 people were interviewed. These interviews focused on three main areas: the current state of the sector with regard to ICT; the structure of NNIC; and the types of services it could offer.

... many boards and organisations were unaware as to how the contemporary workplace has changed under the impact of ICT ...

By and large the interviews with the ‘informed observers’ confirmed and expanded on the opinions of the delegates at Connecting Up 2006. They recognised that ICT offers significant opportunities to the sector for administrative efficiencies and communication, and that, if well-used and supported, it could act as an industry skiller and employer. They considered that many boards and organisations were unaware as to how the contemporary workplace has changed under the impact of ICT, failed to see ICT as a contributor to overall organisational performance and lacked overall strategic vision. They also considered that in many organisations, planning and investment decisions weren’t integrated with organisational processes and were often underinformed and ineffectual. Similarly, despite some notable examples, they considered that there is significant untapped potential for strong relationships with business, and a lack of collaboration between the sector and government on ICT issues.

The ‘informed observers’ did not present a coherent view of what form the model of the NNIC should take, but emphasised that it would be difficult to maintain engagement and sustainability across the sector. For that reason, they considered that NNIC must not neglect the interests or representation of smaller organisations, which are often focused more on their immediate needs and concerns and do not have as intense an interest in high-level issues related to policy development and advocacy. Representation of indigenous groups and the various geographic regions was also considered as being very important. While the ‘informed observers’ considered that NNIC must be sector-led, they also emphasised that it needed to include government and corporate representatives so as to encourage ‘buy-in’ from those sectors, because they considered that the business model would need to incorporate commercial fee-for-service with additional government and corporate funding.

In terms of roles for NNIC, the ‘informed observers’ agreed with most of the points made at the initial workshops but, overall, they emphasised in a way that the other consultations did not, the benefits and the need for brokering links and partnerships between organisations, especially to organisations outside of the sector. In this context, the concept of an ‘executive briefing centre’ was suggested, where members of the sector could engage with the issues of technology and their business at a range of different levels, perhaps in collaboration with relevant commercial interests. Other useful functions identified by the group included: assisting with strategic planning in general, and more specifically with the preparation of business cases and capacity building; supporting research into the ICT needs of non-profits; providing independent information; providing a point of contact; developing information standards; the dissemination and promotion of best practice; and facilitating demand aggregation within the sector by assisting with bulk purchasing deals, developing collaborative service and support arrangements, and the joint development of common applications. They agreed that NNIC should identify what is available already, identify gaps and leave existing competitive players to sort it out in the marketplace.

The NNIC Online survey
The NNIC Online Survey was designed to solicit the broadest possible response from the sector on the questions of the role, structure and activities of the NNIC. Notice of the survey was sent out widely via newsletters and targeted e-mail to lists of non-profit organisations maintained by the various participants. It was advertised widely through numerous newsletters and e-mail distribution lists maintained by members of the consortium, various peak bodies and ICT support organisations. Provision was also made for offline submission.

The survey was conducted over a three week period between 21 August and 11 September. A total of 908 responses were received, of which 881 were usable. This is a good response rate but when interpreting the results it needs to be borne in mind that they are based on a self-selecting sample and both by the nature of the lists used and the ease of responding online, was skewed to those already online and to larger organisations.

The key results were:

The answers to the questions relating to what sorts of services were desired, were grouped around the themes of cost and advice, particularly in terms of making better use of existing applications. The top six desired services are listed below. Each had a comparatively high ranking in terms of the desirability of the service, but it should be noted that they do not necessarily correspond to what respondents thought that NNIC should offer, presumably because respondents were sophisticated enough to draw distinctions between what they need and what NNIC could usefully provide.

The top six options were:

Breaking down the responses into three categories on the basis of annual revenue a) less than $250,000 p.a., b) between $250,000 and $1million p.a., and c) greater than >$1 million p.a., some differences in attitude, primarily in the midrange group, can be detected. In general, the midrange group seem to be more supportive – perhaps because they have more need or perhaps because they have achieved a sufficient level of understanding to appreciate the need while not having the resources to meet it.

Lower income and higher income groups tend to have similar opinions, although probably for different reasons. For example, on the question of where they get support and what types of support are satisfactory, the lower income group prefer known sources such as colleagues in the non-profit sector, family members and local support, while at the other end of the income scale, large organisations were shown to prefer more professional support. Smaller organisations were also strongly against the possibility of fee-based membership (24 percent in favour/46 percent against) while both other groups supported the idea (mid-range organisations 40 percent/29 percent, larger organisations 38 percent/31 percent). Typically, these responses reflect a lack of resources, or a reluctance to commit them in this area, on the part of smaller organisations. Similarly, there was a wide variation in all categories when asked about the size of ICT training budgets, but the smaller group of organisations reported a typical budget of $0, occasionally rising to $1,000.

State-based Consultations — the final round
During September and October 2006, a final series of face-to-face meetings was held in the capital city of each state, attended by a total of approximately 90 members of the sector. Each meeting followed the same loose structure, with a brief general discussion of the types of problems faced, followed by a report on the feedback received to date as the basis for a more informed discussion of how NNIC might be structured and suggestions as to what services it might offer.

The discussion again demonstrated strong support for some form of organisation that could assist the sector by building on the services available from existing providers, providing advocacy on issues of importance, assisting with ICT fundraising, and brokering access to expertise and technical support.

There was strong concern that insufficient emphasis had been given to the fact that the sector was not homogenous in its needs or in its behaviour and that smaller organisations and those based in both regional and outer-suburban areas actually have distinct needs, such as lack of broadband, ICT support, and access to skills development, that would require new strategies if they were to be addressed. There is a need to provide advice to organisations providing training and support about the areas of priority for the non-profit sector – what training and skills do they need? For many smaller non-profits, decisions to invest in IT require difficult trade-offs within tight and finite budgets. In relation to this, many participants considered that there was a danger of NNIC becoming too diluted unless it focussed on a particular audience, for example, small-medium size organisations that can’t work on their own. A related suggestion was that NNIC should adopt a lifecycle approach to distinguish the different stages of ICT development and capacity of non-profits, and then offer groups of services based on those stages.

In terms of structure, it was felt that functions should centre around activities such as: policy development, provision of a coordinating voice for the sector, advocacy on issues information provision, funding, and negotiation with the corporate sector on support/funding. Everything else should be handled at the state/regional/local, preferably via existing providers, and it should not attempt to become a service delivery organisation itself. This would allow the organisation had to be in touch with the grassroots and reflect different needs of different regions and places, so that it could devise strategies to deal with them.

In terms of the type of activities NNIC should support, the meetings endorsed the findings from the previous stages of the consultative process, while emphasising the issue of support, the inability of non-profits to pay for the people and resources needed to make the technology useful, and the lack of affordable training and ongoing support. Some participants were insistent that many small organisations were not in a position to pay a fee for service at all.

 

++++++++++

Discussion

The key findings of the consultation process can be summarised by saying that at the sector level there is a general recognition that the application of ICT has enormous potential not only to contribute to administrative efficiency but also to transform service delivery. There is also a recognition that this potential is not being realised because:

There is strong support for a NNIC-type organisation, and while there is no consensus on its exact form, there is broad agreement on a number of principles:

There is a broad range of activities that it could undertake, but it needs to focus its efforts on raising general levels of awareness in the sector those activities that build or contribute to the overall capacity of the sector, such as:

While overall the findings of the consultation process were remarkably consistent, perhaps reflecting the degree to which the issues have already been canvassed throughout the sector and the level of thought given to them, there were some significant differences in emphasis that emerged between the different groups.

In particular there was recognition of the diversity of approach and the diversity of need, and that any attempt to help the sector will fail, or at best have only partial success, unless it can recognise that diversity and cater to it. Some of the more important differences that were identified include:

What this implicitly means – but is not always recognised – is that organisations themselves need to commit more resources to doing the task well ...

The findings suggest that there is a critical mass requirement that is necessary for an organisation to meet in order to be able to commit sufficient resources and time to both ICT and the necessary support networks before they can actually even distract people from the need to address core business issues and/or think about strategic directions. What this implicitly means – but is not always recognised – is that organisations themselves need to commit more resources to doing the task well, for example, by broadening their range of trusted contacts in order to successfully adopt and sustain ICT. Indeed, in some cases the necessary resources may be available but there is a reluctance to commit them without a clear understanding of the benefits, especially to core business, and an understanding of the strategic benefits and development path of ICT.

Returning to the theme of how the sector sees itself, one final comment is worth making. That is, although the sector sees these issues as important, the extent to which they pose a threat to the status quo is not recognised by all. Large organisations seem to cope well and are well positioned, but smaller and medium-sized organisations generally are not, and medium to large organisations with a diverse geographic constituency may find themselves forced into increasingly large operations to take up economies of scale in order to facilitate the adoption of ICT, in order to justify the increased level of investment in staff and resources (Denison, 2003). Such factors may add to the pressures for sectoral change already identified by Lyons (2001).

 

++++++++++

Conclusion

The final report developed by the consortium states that, if such a body were to be established, it should focus on:

The original motivation for the NNIC exercise was recognition that the improved use of online services and networks was central to enabling the ability of non-profit organisations to provide improved services, but that they were having severe difficulty in doing so. It is interesting to note that for many reasons, including the perceived ability of such an infrastructure to strengthen communications and reduce the cost of service delivery, this infrastructure is also key to the solution. End of article

 

About the authors

Tom Denison is a PhD candidate and member of Centre for Community Networking Research, Faculty of Information Technology, Monash University, specializing in community informatics, electronic publishing and Internet applications.
E-mail: Tom [dot] Denison [at] infotech [dot] monash [dot] edu [dot] au

Larry Stillman, PhD, is a Research Fellow of the Centre for Community Networking Research, Faculty of Information Technology, Monash University.

Associate Professor Graeme Johanson, PhD, is Director of the Centre for Community Networking Research, Faculty of Information Technology, Monash University.

 

References

S. Burgess, 2002. “Information Technology in Small Business: Issues and Challenges,” In: S. Burgess (editor). Information Technology in Small Business: Challenges and Solutions. Hershey, Pa.: Idea Group Publishing, pp. 1-17.

E. Burt and J. Taylor, 1999. Information and Communication Technologies: Reshaping the Voluntary Sector in the Information Age? Centre for the Study of Telematics and Governance, Glasgow Caledonian University, at http://www.brunel.ac.uk/research/virtsoc/reports/voluntarymain.htm, accessed 23 March 2005.

Centre For Community Networking Research (CCNR), 2003. The Monash Community Information and Technologies Index (CICT). School of Information Management and Systems, Monash University, Clayton, Vic.

T. Denison, 2006. “The Diffusion and Sustainability of Technology within Community Sector Organisations,” International Journal of Knowledge, Culture and Change Management, volume 6, number 3, pp. 19-28.

T. Denison, 2003. “Community Sector Organisations: A Digital Divide in Communication and Knowledge Creation?” In: S.. Marshall and W. Taylor (editors). ITiRA: Information Technology in Regional Areas Conference. Caloundra, Queensland, Australia (December), pp. 21-30.

Department of Communications, Information Technology and the Arts (DCITA), 2005a. Information and communication technologies transforming the nonprofit sector: A discussion paper, Australian Federal Government.

Department of Communications, Information Technology and the Arts (DCITA), 2005b. The Role of ICT in Building Communities and Social Capital, Australian Federal Government.

Department of Communications, Information Technology and the Arts (DCITA), 2005c. Community ICT Transformations: Next Steps.

Department of Communications, Information Technology and the Arts (DCITA), 2005d. Achieving Value from ICT: Key Management Strategies.

Department of Communications, Information Technology and the Arts (DCITA), 2005e. Request for Tender No. DCON/05/169: Development of a possible model for a National Nonprofit ICT Coalition (NNIC).

Department of Communications, Information Technology and the Arts (DCITA), 2006. e-Strategy Guide for your nonprofit organisation, at http://www.e-strategyguide.gov.au.

ICT Hub, 2006. ICT Hub Accessability Research. Final Report.

S. Karanasios, C. Sellitto, S. Burgess, G. Johanson, D. Schauder, T. Denison, 2006. “The role of the Internet in building capacity: small businesses and community based organisations in Australia,” Seventh International We-B (Working For E-Business) Conference 2006, Victoria University, Australia (30 November-1 December 2006.

M. Lyons, 2001. Third sector: The contribution of nonprofit and cooperative enterprises in Australia. Crows Nest, NSW: Allen and Unwin.

PRA, Inc., 2001. Information Management/Information Technology and the Voluntary Sector – Environmental Scan. Voluntary Sector Initiative: Canada.

D. Schauder, G. Johanson, T. Denison and L. Stillman, 2005. Draft Information Economy Strategy for Australian Civil Society, Monash University, Melbourne Australia, pp. 1-53.

L. Stillman and R. Stoecker, 2005. “Structuration, ICTs, and Community Work,” Journal of Community Informatics, volume 1, number 3, pp. 83-102.

M. Surman, 2001. “From Access to Applications: How the Voluntary Sector is Using the Internet,” at http://www.volunteersonline.ca/news/environmentalscan.htm, accessed: 15 March 2005.

Voluntary Sector Initiative, 1999. Building on Strength: Improving Governance and Accountability in Canada’s Voluntary Sector. Voluntary Sector Initiative: Canada.

J. Wyatt, 2001. “E-enabling the Voluntary and Community sector,” Office of the e-Envoy, U.K., at http://www.e-envoy.gov.uk/publications/reports/e-enabling/summary.htm, accessed 6 December 2004.

 

 

Editorial history

Paper received 16 January 2007; accepted 30 January 2007.

Contents Index

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 Australia License.

The Australian non–profit sector and the challenge of ICT by Tom Denison, Larry Stillman, and Graeme Johanson
First Monday, volume 12, number 5 (May 2007),
URL: http://firstmonday.org/issues/issue12_5/denison/index.html