Build vs. Buy: Choosing the Right Software Solution for Your Non-profit

As a non-profit organization, you are constantly looking for ways to maximize your resources and make the greatest impact with your programs and services. One crucial decision you may face is whether to build custom software in-house or purchase pre-existing software from a vendor. Both options come with their own set of benefits and drawbacks, making it essential to carefully consider which one is right for your organization.

Defining "Build" and "Buy"

Before delving into the pros and cons of each option, let us define the terms "build" and "buy." "Build" refers to creating custom software in-house, while "buy" refers to purchasing pre-existing software from a vendor.

Benefits of Building Custom Software

There are several reasons why a non-profit might choose to build custom software:

1. Tailored to your needs: One key benefit is the ability to tailor the software to the specific needs and goals of your organization. If you have a unique program or service that requires specialized software functionality, building custom software may be the best option.
2. Potential cost savings: Building software in-house can potentially save money in the long run, as you will not have to pay ongoing licensing fees or subscription costs.
3. Ownership and control: By building custom software, you will own and control the software, which can be a major advantage. You can make updates and modifications as needed without relying on a third-party vendor.
4. Competitive edge: Some proponents of building custom software argue that in today's digital world, organizations that do not have control over their own software systems are at risk of becoming obsolete. This is often referred to as the "build vs. die" argument – that is, organizations must build their own software to stay relevant and competitive. While there is certainly some truth to this argument, it is important to remember that building custom software is not a one-size-fits-all solution and may not be the best approach for every organization.

Drawbacks of Building Custom Software

However, it is important to also consider the challenges and drawbacks of building software. Building custom software requires a significant investment of time and resources, including in-house technical expertise. There is also a risk of delays and budget overruns, and the ongoing maintenance and support of the software will be your responsibility.

Benefits of Buying Pre-existing Software

On the other hand, purchasing pre-existing software from a vendor can offer some key benefits as well. For one, you can start using the software more quickly, as you will not have to wait for it to be built from scratch. The upfront costs of buying software may also be lower than building it in-house. And, the vendor will typically provide support and updates for the software, which can be a major advantage for non-profits with limited technical resources.

Drawbacks of Buying Pre-existing Software

However, there are also potential drawbacks to buying software. One key consideration is the level of customization available – you may have to compromise on certain features or functionality if you buy software that is already built. Additionally, there is a risk of vendor lock-in, where you become dependent on the vendor for updates and support and may face challenges if you decide to switch to a different software solution.

The Hybrid Approach: Building and Buying

Another option to consider is a hybrid approach of both building and buying software. This can allow organizations to build custom software for their unique needs and goals while also taking advantage of pre-existing software for more standardized or off-the-shelf functionality. This approach can potentially offer the best of both worlds, but it is important to carefully evaluate the costs and benefits of each component to ensure it makes sense for your organization.

Deciding Between Build or Buy: Tips to Consider

So, how do you decide whether to build or buy software for your non-profit? Here are a few tips to consider:

1. Evaluate the long-term costs and benefits: Consider both the upfront and ongoing costs of building vs. buying software, and weigh them against the long-term benefits each option offers.
2. Consider your in-house technical resources: Do you have the expertise and capacity to build custom software in-house, or would it be more practical to purchase pre-existing software and rely on the vendor for support and updates?
3. Seek input from stakeholders: Involve key stakeholders in the decision-making process, including staff, board members, and clients. They may have valuable insights and perspectives on the best approach for your organization.

Examples of Non-profits Benefiting from Building Custom Software

Here are three different examples of non-profit organizations that have chosen to build custom software and have seen long-term benefits as a result:

1. Environmental Non-profit: An environmental non-profit organization was using a third-party software solution to manage and analyze their research data. However, the existing software could not accommodate the specific data formats and analysis tools they required. They decided to build their own custom software solution in-house, enabling them to better analyze data, monitor environmental changes, and create more targeted conservation strategies.
2. Educational Non-profit: An educational non-profit organization aimed at providing personalized learning experiences to underprivileged students was using an off-the-shelf learning management system (LMS) that lacked the customization options they needed. They decided to build their own custom LMS in-house, allowing them to tailor the platform to their unique curriculum and provide a more engaging and personalized learning experience for their students.
3. Humanitarian Relief Non-profit: A non-profit organization focused on providing humanitarian relief during natural disasters found that existing project management and logistics software solutions were not suitable for the rapidly changing conditions and unique challenges they faced. They decided to build their own custom software in-house, which enabled them to efficiently manage resources, coordinate efforts, and quickly respond to the needs of affected communities during disaster situations.

Final Thoughts

Of course, it is important to note that building custom software is not always the most cost-effective option and requires a significant investment of time and resources. It is important for organizations to carefully evaluate the costs and benefits of both building and buying software to determine the best approach for their specific needs and goals.

Ultimately, the build vs. buy decision will depend on the specific needs and goals of your non-profit organization. By carefully evaluating the pros and cons of each option, you can make an informed decision that will help your organization make the most impact and efficiently utilize your resources.