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SAMPLES: ARTICLE ON INFORMATION TECHNOLOGY

The following article has been published on the Internet and in print. It was commissioned by a nonprofit organization to educate its members about a specific information technology issue.

Other IT topics include: Internet application security guidelines; tips for writing e-newsletters; the benefits of a web site for disseminating data, gathering data and collecting charitable donations; how to attract visitors to a web site; and web sites offering support to nonprofit organizations.

Sample IT Article

Using an Application Service Provider for Your Office Software

By Mary Ann Siegel


Are you hesitant about buying more software for your organization's increasing fundraising and data management needs because your budget won't cover that cost along with new hardware and training?  And are you worried that you might have to upgrade again the next year because your organization is growing or changing?

Before you invest in purchasing additional software for your office, there is a data management option available to you that offers you the capability of integrating additional software functions into existing ones, forming your own customized and unique system.

This increasingly popular option is to contract an application service provider to supply this service, via the Internet.  Knowing the pros and cons of using an application service provider or “ASP” will help you make a decision about choosing the option that is best for you.  Using an ASP is like renting the services of many different software packages rolled into one instead of buying, maintaining and upgrading different software packages for various fundraising needs. Since all this is done via the Internet, you may not want to investigate this option if you don't have high-speed Internet access - which includes adequate connectivity.


I. What is an application service provider, or “ASP,” and how does it work?

An application service provider is a supplier that provides the customer with access to various applications - including software and similar services - via a subscription service on the Internet.  This system is different from buying and installing a software package on your individual office or home computer.  In other words, you rent or sign up for this service, rather than buying it.  Your data - which comes from the different data management functions you need your ASP to perform - does not have a “home” inside your computer in the traditional software sense.  Rather, it has a home on the ASP's web server. And, yes, there is backup should the server go down which in many cases is still better than getting stuck with problems with your own hard drive. Furthermore, you won't have any nagging technical problems as that is the responsibility of the ASP, not you. 

Think of the ASP as being one integrated software package that is custom-made for your organization alone and you rent it instead of owning it.  It will be upgraded continually through the server so this big package cannot become outdated.  Most importantly, the donor or visitor to your web site will not be able to tell if you have purchased software or are using an ASP.

There are two types of ASPs. The older model accesses software via a network but the newer ASPs allow users to access a real Internet product that comes from a web site.

The client usually pays for start up fees and regular ongoing service fees.  The fees can differ depending upon the number of functions you want performed and the number of users.


II. What are the benefits of using an application service provider?

The main organizations that use application service providers are smaller organizations with moderately sized budgets and larger firms with a desire to outsource these same services or a need to insure that all their affiliates around the country can access the same information. 

The ASP system is easy to learn and use.  Because access to the software is through the Internet, it is easy to access information remotely or from within the office.  And for this reason, too, access is available to more constituencies within your organization.  It is no longer staff alone that can retrieve and enter data but volunteers, board members and donors as well.

Flexible access to the database has many advantages.  For example, the user can access a particular donor's file before making a personal solicitation.  No longer do you need to print out and fax materials ahead of time to your fellow solicitor to study before going on the solicitation call.  And because a laptop can go anywhere, so can your venue for accessing data.  Another big advantage of ASPs is that you get your answers fast because the Internet is fast.

The ASP system is easy and inexpensive to maintain.  You will not need to upgrade your software by purchasing new editions nor wait a year or more for an upgrade as upgrading is a continual and seamless process that does not require you to purchase anything additional.  You will also not need to upgrade your hardware when youwant to add applications.  Technical support is free.  And, because you subscribe to this service, you can get rid of it at any time the needs of your organization change.

The ASP system will perform more functions than traditional software because data can be integrated in any way that you choose.  Your data is secure because the server of your application service provider is offsite and secure.  And lastly, for those who feel they are not technology buffs, ASPs make access easy and free for users needing to learn a new traditional software package.


III. What are the challenges of using an application service provider?

The argument previously mentioned is the chief argument for not using an ASP.  If your office is not very well set up in terms of Internet technology then adding this resource will be costly to you.  In addition, access and speed could be a problem for users who are geographically remote from connectivity to a line. 

Often, you will need a certain volume of transactions to contract with an application service provider. If yours is a small office, these service fees may not be within your budget. You may have start up fees as well.  Because service fees are calculated according to the number of users, large offices with many users might find traditional software the least expensive means. 

Many nonprofits are concerned about their ability to control the data if they sign up with an ASP but this issue has been counter addressed as well.


IV. What are the kinds of application service providers available for your organization?

Identify the functions you need traditional software to perform.  Application service providers aid the nonprofit world and the corporate world alike in managing your data.  In some companies such as eTapestry data can be woven into your existing web site.  However, integration to the web site is not required with eTapestry so it is simple to setup and use.

Generally, the list of functions that an ASP can perform include: donor database management, accounting, e-commerce, online donation collections with credit card processing and information collection, the recruitment of volunteers, and fundraising and advocacy functions with customized mailings. 

As each application service provider offers different functions, you will need to interview the various providers, tell them your needs and find out costs.


Sources:
Deane, Nicolas, “ASPs Getting Hot,” The Nonprofit Times, June 15, 2000;
Osten, Marc and Stein, Michael, “Application Service Providers,” TechSoup.org (reprinted by that site from The Nonprofit Quarterly, April 10, 2001).

Reproduced by permission of FundraisingINFO.com and also by the Texas Association of Nonprofit Organizations where this article appeared in the Summer 2001 edition of Texas Nonprofit under the title, “Application Service Providers: A Software Solution for Your Nonprofit Agency?” Also accepted for publication in March 2002 issue of Fund Raising Management magazine.



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