Budgeting for Impact: Why and How to Include Measurement Software in Your Nonprofit’s Budget

Every nonprofit approaches budget season a little differently. For some, June marks the end of the fiscal year. For others, December closes out financial activity. And then there are the organizations that wrap up in March, September, or some other off-month. Regardless of your timing, budget season should not just be about closing gaps and reviewing spreadsheets. It is a time to set priorities.

This includes preparing your organization for something funders are increasingly asking of you: proof that your programs work.

Measurement is no longer optional. It is expected. But here’s the good news. Funders will pay for measurement tools like outcomes tracking software. They will include those costs in grant awards and capacity-building funds. The catch is that you have to plan for it. That starts with your budget.

Your Budget Reflects Your Values

A nonprofit budget is more than a list of income and expenses. It is a financial plan that tells your board, staff, and community what matters most. It reflects your strategy, your capacity, and your vision for the future.

According to the National Council of Nonprofits, budgeting should be based on real needs and aligned with organizational goals. That means your budget should include the tools and resources that allow you to evaluate and improve your programs.

Outcomes measurement software often gets lumped into the category of overhead or “nice to have” tools. In reality, it is foundational infrastructure. You would not try to run a program without a trained staff member. Why try to assess impact without a system built for the job?

Funders Want to See Outcomes

Funders want to know that their dollars are making a difference. The demand for transparency has never been higher. Grant reports are more detailed. Renewal decisions are increasingly based on results, not just relationships.

This means organizations that can measure and report on their impact have a real advantage. When you can show how your programs improve lives and strengthen communities, you build trust with funders. You also build a stronger case for future investment.

Some nonprofits assume they have to fund this kind of technology on their own. That is not the case. Many foundations are actively supporting data and technology investments. But only if the organization takes the initiative to include it in their proposal and budget.

What Foundations Are Looking For

The Frist Foundation is one example of a funder that supports technology as a path to impact. Their Technology Grant Program helps nonprofits adopt systems that improve service delivery. They do not just ask for a list of hardware and software. They ask:

• Who will benefit from this investment?

• What changes will you be able to measure?

• How will your organization be stronger as a result?

These are the same questions you should be asking yourself during budget planning. If you can connect technology to outcomes, you can build a strong case for support.

Step One: Assess Where You Are

Before you can ask for funding or add a new line item, you need to understand your current state. That includes your systems, your processes, and your pain points.

Ask yourself:

• Are we able to track participant progress over time?

• Can we report on outcomes by demographic group?

• How long does it take to produce a funder report?

• Are we using multiple spreadsheets that require manual updates?

If you are seeing delays, inconsistencies, or limited insights, that is a sign you are outgrowing your current systems. An assessment like this also helps you prioritize which features matter most in a new solution.

Step Two: Frame Technology as a Program Expense

One of the most effective ways to fund measurement tools is by incorporating them into your program budgets. When you treat software as a direct program cost, not as overhead, you align your request with the funder’s expectations.

Here is a simple approach. Take your total annual software cost and divide it by the number of people you serve. If your outcomes tracking system costs $15,000 per year and you serve 1,500 clients, the per-client cost is $10.

Now you can show funders that for just $10 per participant, you can improve service quality, monitor progress, and evaluate long-term outcomes. That is a clear and reasonable investment in accountability.

Step Three: Use Available Funds Strategically

If your organization has unallocated funds left at year-end, consider using them to begin your outcomes measurement strategy. That could include the purchase of a platform like SureImpact, a training engagement, or a short-term pilot.

Spending your remaining budget on tools that strengthen your infrastructure is a strategic move. Amy Hooper, writing for TechSoup, encourages nonprofits to think about technology investments as ways to advance the mission, not just modernize operations.

When you use unspent dollars to test and implement new tools, you gain early wins, reduce reliance on grants for startup costs, and show your board that you are serious about learning and improvement.

Step Four: Make the Case to Internal Stakeholders

Sometimes, the resistance to funding measurement tools comes from inside the organization. Program teams may be concerned about adding more work. Finance staff may hesitate to commit to a new expense. Board members may see software as a lower priority than direct service.

This is where clear communication is critical. Impact measurement is not just about data collection. It helps you improve services, make better decisions, and raise more money. It shows that your organization is willing to learn, adapt, and grow.

When stakeholders understand that measurement is part of the mission - not separate from it - they are more likely to support the investment.

Step Five: Align Your Request with Funder Goals

When preparing grant applications, align your technology funding requests with the funder’s stated priorities. If they care about education, show how better data will improve student outcomes. If they are focused on equity, highlight how your system will track progress across different population groups.

Funders are more likely to say yes when they see how a technology investment helps them achieve their own impact goals.

You can also strengthen your request by showing how you plan to sustain the investment. For example, outline how future budgets will include ongoing costs or how you plan to train staff for long-term use.

Understand True Program Costs

A budget that leaves out core infrastructure like outcomes measurement is incomplete. As the National Council of Nonprofits notes, nonprofits need to understand and plan for the true costs of delivering services. That includes the systems required to measure and manage those services effectively.

When you build these costs into your initial budget, you avoid the need for emergency requests later. You also avoid the risk of falling behind funder expectations.

Your Budget Is a Statement of Readiness

Including impact measurement tools in your budget signals that your organization is serious about effectiveness. It tells funders, board members, and community partners that you are not guessing; you are measuring.

It also positions you for future growth. Organizations with strong data systems can make the case for larger grants, better partnerships, and more strategic decisions. Those without them face an uphill climb every time they need to report on results.

Planning Ahead Builds Confidence

Budgeting is not about guessing what the year might bring. It is about preparing for what your mission requires. Outcomes measurement software is no longer a luxury. It is part of what makes your programs credible, fundable, and sustainable.

So whether you are closing out your year in June, December, or some other time, this is your window. Take the time to assess, plan, and include what matters. Show your board and funders that you are building not just programs, but an organization ready to learn and lead.

If you are ready to include impact measurement in your upcoming budget, SureImpact can help. We provide tools designed specifically for the nonprofit sector and a team that understands the day-to-day work of measuring what matters.

Reach out for a consultation, or watch our short video tour to see the platform in action. This year, make impact part of the plan.