5 Tips for Paying Less for Your Nonprofit’s New Software
When you’re choosing new software for your nonprofit, there are lots of things to consider. One important aspect is cost.
Of course, it’s important to understand the true cost of new software for your nonprofit so you can ensure it fits within your budget. But there’s another way to ensure your software doesn’t break the bank: negotiate a favorable contract.
Software vendors are often willing to work with you on costs, such as contract length, annual fees, and transaction rates, as well as other points in the contract. Talk with them about your organization’s needs and concerns. Then, ask what they can do to adjust the contract.
Tips for negotiating a favorable contract for your nonprofit’s new software
There are several “levers” that can be pushed or pulled during the software contract negotiation process. You won’t normally get concessions in all areas, but here are five examples of markdowns you might request:
- Ask for a reduction in the per-transaction fee. If you expect a large number of transactions, then this might have a big (positive) impact on your organization.
- Ask if the vendor will give you a discount if you sign a contract for more than one year.
- If you have a legacy event that has consistently raised a large amount online – say, $100K or more – then you might be able to get any annual platform fees reduced or waived because the vendor is confident that they’ll be able to cover their costs and profit margin through transaction fees alone.
- If there are implementation fees, ask if there are implementation options (different packages in which your team does more of the work or even works with a third party, such as Cathexis Partners, to implement).
- If you have had a very favorable payment processing merchant fee with your current software, ask if the new vendor can match or beat that rate.
Learn more tips for selecting new software for your nonprofit
Choosing the right software for your nonprofit isn’t always easy. There are a lot of considerations – from functionality and costs to implementation.
That’s why we put together a comprehensive checklist to step you through the process of finding and implementing your organization’s ideal software match. It can help if you’re planning to complete a full request for proposals (RFP) or a less formal selection process.
This checklist will help you learn how to:
- Make strategic software technology decisions.
- Create a short list of possible software products and select the right one.
- Determine the true cost of new software for your organization.
- Negotiate a favorable contract for your new technology.
- Prepare for a smooth transition to new software.
So, let’s get started: Download The Ultimate Checklist for Selecting Software for Your Nonprofit to learn the steps you need to plan for, find, review, negotiate the contract for, and prepare to migrate to your organization’s next software.
And if you’d like to take the next steps toward selecting and implementing new software for your nonprofit, contact Cathexis Partners today. We’re ready to help you find the right technology to move your nonprofit forward.
