Cloud vs On-Prem Phones for Non-Profit Fundraising & Events

Managed Communications

There are many technologies non-profits use to communicate with vendors, staff, stakeholders, and donors alike. Especially if you've been tasked with improving fundraising for nonprofit programs, communication should be your top priority.

How you communicate with donors will set the tone of your brand and relationship with the community. The best fundraising programs include frequent outreach, so most non-profit organizations utilize phone systems to contact past, current, or prospective donors.

However, there are many different types of business phone systems to choose from. The two main categories include cloud platforms (also called Voice over Internet Protocol or VoIP) and traditional desk phones, also referred to as Private Branch Exchange (PBX).

To simplify the pros and cons of each of these phone types, here's an overview of non-profit communication technology and how can impact your success.

Traditional Phones & Non-Profit Communications

Many non-profits still use traditional desk phones. Some prefer familiar technology with simple equipment. Some cons of traditional PBX phones include the higher associated costs and fewer capabilities for collaboration.

Pro: Easy-to-use equipment

One of the main draws for PBX phones is how simple they are to use and train new employees on. With each employee equipped with a desk phone and an assigned extension, this traditional type of communication works well for places like hospitals, schools, or office buildings.

Pro: Familiar Technology

Many times, business owners keep their PBX systems because they have always worked well enough. However, this is one of the key barriers to innovation, which can hinder your organizational growth down the line.

To read more about barriers to technology adoption, read our blog: Are Businesses Innovating? See Key Barriers to Tech Adoption

Con: Pricing of PBX Systems

If your non-profit currently uses on-premises traditional phones, you likely know the costs associated with these services. Scaling can be tough when you bring in new hires, as additional equipment can be pricey.

Some costs can stack up, such as:

  • Equipment costs
  • Maintenance
  • Software upgrades
  • Company-paid cell phones

To read a more in-depth comparison of cloud vs traditional phone system pricing, read our blog: Cost of Cloud-Based Business Communications Solutions vs Traditional PBX

Con: Limited Tools Available for Collaboration

For staff that frequently interact with outside vendors or donors, traditional PBX phones may limit your communication capabilities. If you only have the ability to call stakeholders via voice calls, you could miss out on the face-to-face interactions offered by video conferencing.

Along with this drawback, on-premises phones are largely an outdated channel of communication. Modern workers tend to prefer SMS and email communications over phone calls. So, if your communications strategy doesn't include SMS or integrate well with email, it could prevent staff from collaborating to their full potential.

Cloud Communications Software For Non-Profit Organizations

Leveraging the cloud can offer several benefits for non-profits, although cloud migration can seem intimidating. A few pros of cloud communications for non-profits include enhanced capabilities, all-in-one pricing, and scalability, while cons include internet reliance and susceptibility to outages.

Pro: Enhanced Communications Capabilities with the Cloud

Face-to-face communication allows you to connect on a more personal level with donors, board members, vendors, and staff. This fosters trust and connection, which can translate to more frequent and larger donations. This is a major benefit of cloud platforms that include video conferencing.

Pro: Inclusive & Simple Pricing Structure

Cloud platforms tend to include a lot more in monthly costs, as opposed to on-premises phone systems that come with several fees and costly equipment.

For cloud platforms, one monthly per-user cost covers services such as:

  • Local and long-distance telecom
  • Administration
  • Maintenance
  • Software upgrades and patches
  • Web/video conferencing
  • SMS
  • File storage & backup

These services don't come with extra fees, making cloud communications an affordable and constantly evolving tool for non-profits to stay relevant. Learn more about the cost breakdown of unified communications solutions in our blog: Cost of Cloud-Based Business Communications Solutions vs Traditional PBX

Pro: Scalability & Easy Admin

As your non-profit grows, you want to be sure that you can scale with new users. Especially with growing fundraising and development teams, you want to ensure all of your staff are set up for success in fundraising efforts such as:

  • Spreading the word for event fundraising
  • Collecting donations over the phone
  • Managing donor data on CRMs
  • Leveraging cloud document filing systems

With the wide range of collaborative features offered by cloud technology, the possibilities are endless for pushing your organization forward in your mission.

Con: Reliance on Internet Connection

One drawback of cloud technology is its reliance on an internet connection. Most businesses have solid infrastructure to support these applications, but if you have a remote workforce it may pose complications.

If you experience an internet outage or if one of your remote team members doesn't have a reliable internet connection in their home, a cloud platform could be rendered obsolete. Because of this, unified cloud communications solutions are best for businesses with reliable internet resources to support them.

Con: Susceptibility to Server-Wide Outages and Issues

Opting for a cloud platform doesn't necessarily mean downtime is a thing of the past. Although it is rare for most major applications, sometimes there are server issues and technical problems that cause temporary outages for some or all users.

These outages are often swiftly resolved. However, it's important to have a good IT provider in your corner to contact in the event of an outage to help you get back up and running.

Tips for Using Technology in Your Fundraising Efforts

Your fundraising goals rely on modern technology to get the word out about your cause, and choosing the right unified communications solution. Some tips to find the best unified communications solutions include:

  1. Consider the size and scope of your fundraising operations. How many seats do you currently have? Is your organization growing rapidly and adding new users?
  2. Look at your current tech stack to determine compatibility with different cloud communications tools. What fundraising event management software do you use? What platforms could integrate into your nonprofit's fundraising software?
  3. Does your organization store credit card information and other sensitive data for things like recurring donations? What cybersecurity features do you need in a platform to protect this data?
  4. What level of flexibility does your team need for remote work? Are all workers in-person, remote, or do you have a mix of remote, hybrid, etc.?

Once you iron out these details, you can start to narrow down your options. To read more about different cloud platforms, check out our blog about it here.

How to Implement a New Cloud Platform for Your Non-Profit

Choosing and implementing a cloud platform is no small task. That's why many businesses hire managed communications companies to set them up with the necessary software, video conferencing hardware, and other equipment for optimal collaboration.

If you're looking to enhance your non-profit organization's communications strategy, click the button below to speak to a cloud solutions expert about your needs. 

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About Jada Sterling, Digital Content Manager

Jada Sterling is Usherwood's Content Manager. She is responsible for developing content that furthers the mission of Usherwood Office Technology by helping clients and prospective clients better understand how technology can help grow their business.