INDUSTRY DEEP DIVE CONT.
things like tech platforms, not just vendor services. In a sector where many clients don’ t even list technology as separate line items in their budget, having a go-to technology authority enables much needed visibility and strategy.
MSPs can help nonprofits prevent costly mistake too. Bryan recalls one client whose leadership hadn’ t shared a planned cloud migration with the staff.“ We evaluated five products for the client, and then somebody bought a sixth that we never even knew existed.” The result was around $ 40,000 wasted on hardware and software that were inadequate and unused within six months.
Marketing to the Mission-Driven
Word-of-mouth referrals are the top business generator, plus multi-channel campaigns( mailers, social media, etc.). But nonprofit decision-makers and buying processes are different from most business clients, so using typical B2B marketing could be a mistake.
In most cases, MSPs are dealing with finance-focused decisionmakers such as the CEO or CFO, not technical staff. These buyers have specific concerns.“ The CFO is the person that’ s behind all the different budgets that they have per year. They need something that’ s more of a flat-rate type of plan where they know what their spend is going to be and there’ s not going to be some hidden surprises,” Krstinovski says.
There may also be additional, atypical stakeholders weighing in.
“ Most decision-makers are a blend of executive leadership, operations directors, and sometimes board members or grant influencers. They’ re not just buying IT but investing in a longterm partnership,” says Saikaly.
Bryan stresses the importance of understanding nonprofit budget cycles as well.“ Their budgets are usually set three to four months before the fiscal year for them starts. They don’ t generally handle surprise well.” So, take note that“ surprises” run on a different timeline in this sector.
All of this means MSPs must be more proactive in their planning and communication. You’ ll need to set clear expectations and roadmaps for clients whose budget is probably firmly fixed.
Getting Rich in the Niche
While serving nonprofits requires patience and specialized approaches, the business benefits can be substantial. Both Saikaly and Bryan say nonprofit clients tend to be stickier than others.
“ Our nonprofit clients have been some of our most loyal, some of our best net promoters and referral sources. They’ ve just basically been champions for our business,” Bryan says. He adds that as those clients stick around for three to seven years or more, you’ ve solved many of their problems and don’ t have to charge a lot for the account to be profitable.
Saikaly says a nonprofit focus creates competitive advantages.“ Specializing allows us to be extremely efficient. We know the tools, compliance frameworks, and funding cycles nonprofits operate under. That means we can implement solutions faster, avoid costly missteps, and provide strategic guidance that other generalist MSPs often miss.”
Finally, there’ s an important, if intangible, impact on the staff of MSPs who feel good about supporting nonprofits.
“ The biggest benefit is purpose. We’ re not just solving IT issues; we’ re helping organizations that tackle homelessness, education, mental health, and social justice. That gives our work deeper meaning and keeps our team highly motivated,” Saikaly says.
But Still, Choose Wisely
Success in the nonprofit sector isn’ t guaranteed, so choose clients that serve both your heart strings and your purse strings.
“ If they’ ve got fractured leadership, lack a strategic plan or a clear vision, they can be very chaotic and very expensive,” Bryan says. The key is finding organizations that align with your own approach.“ You have to partner with clients that look and smell like you do... If you’ re a growing business, you’ re probably better off doing business with growing organizations... Our best clients are ones that are looking to grow, get better, and iterate."
Krstinovski says it’ s also important to jell beyond business.“ We try to connect on a deep personal level with everyone that we work with, especially nonprofits, and just really understand and support their goals and their missions behind [ them ].”
In short, serving nonprofits successfully demands specialized processes, adapted pricing models, and a genuine commitment to understanding their unique challenges. But for MSPs willing to invest in this approach, it can become one of the most rewarding and profitable segments of their business in the long run.
Jennifer Oladipo is an award-winning business journalist. She’ s written for national and international publications focused on science and technology sectors and has held communications positions in multiple organizations, including a Fortune 200 technology company.
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