For nonprofits with 5–50 employees, outsourcing IT to a Managed Service Provider (MSP) is often the most practical and cost-effective choice. Hiring a full-time IT employee typically costs $70,000–$100,000+ per year before benefits, training, and taxes. By comparison, managed IT services generally range from $150–$250 per user, per month, giving your organization access to an entire team of technology professionals instead of relying on one person.
The right decision isn’t just about cost. It’s about protecting your organization’s mission, supporting your staff, and ensuring your technology works reliably every day.
Understanding the Two Options
As nonprofits grow, many Executive Directors and boards eventually ask the same question:
“Should we hire someone in-house, or should we partner with an IT company?”
The answer depends on your organization’s size, technology complexity, and long-term goals.
Let’s compare both approaches.
Option 1: Hiring an Internal IT Employee
Hiring an IT employee can make sense for larger organizations with extensive technology environments and enough work to keep a full-time technician busy every day.
Advantages
An internal employee can provide:
- Immediate on-site support
- Familiarity with your staff and operations
- Consistent day-to-day presence
- Institutional knowledge over time
These are valuable benefits—but they also come with challenges.
The Reality
Today’s technology requires expertise in many specialized areas, including:
- Microsoft 365
- Cybersecurity
- Network administration
- Cloud services
- Backup & disaster recovery
- Vendor management
- Strategic IT planning
- Compliance
- User support
It’s difficult for one person to be an expert in every discipline.
Additionally, nonprofits must budget for:
- Salary
- Payroll taxes
- Health insurance
- Retirement contributions
- Paid time off
- Continuing education
- Certification costs
- Recruiting expenses
And when that person is on vacation, out sick, or leaves the organization, who supports your staff?
Option 2: Partnering with a Managed IT Provider
A Managed Service Provider gives your nonprofit access to an entire team of specialists.
Instead of relying on one individual, you gain expertise across multiple disciplines.
A quality MSP typically provides:
- Unlimited help desk support
- Cybersecurity monitoring
- Microsoft 365 administration
- Device management
- Backup monitoring
- Strategic technology planning
- Vendor coordination
- Ongoing technology reviews
Most importantly, support doesn’t stop when one person is unavailable.
Side-by-Side Comparison
| Category | Internal IT Employee | Managed IT Provider |
|---|---|---|
| Cost | Salary + benefits | Predictable monthly investment |
| Team | One person | Team of specialists |
| Vacation Coverage | Limited | Continuous support |
| Cybersecurity Expertise | Depends on experience | Dedicated security expertise |
| Microsoft 365 Management | May vary | Included |
| Strategic Planning | Limited | Regular reviews |
| Vendor Management | Employee responsibility | Included |
| Scalability | Additional hiring required | Easily scales with your growth |
For many nonprofits with fewer than 50 employees, outsourcing provides broader expertise without increasing staffing costs.
Four Questions Every Nonprofit Should Ask
1. How Complex Is Our Technology?
Do you have:
- Remote employees?
- Multiple offices?
- Microsoft 365?
- Cloud applications?
- Specialized nonprofit software?
- Compliance requirements?
More complexity usually means you’ll benefit from a broader range of expertise.
2. How Important Is Cybersecurity?
Your nonprofit likely stores:
- Donor information
- Employee records
- Financial data
- Grant documentation
- Volunteer information
Protecting this information requires proactive security—not simply fixing computers after something breaks.
3. Can One Person Handle Everything?
Modern IT requires specialists.
No single individual can realistically be an expert in:
- Security
- Networking
- Cloud computing
- Microsoft licensing
- Compliance
- Backup systems
- End-user support
- Strategic planning
A team approach often delivers more consistent results.
4. What Lets Our Staff Focus on the Mission?
Technology should make your team more productive—not become another responsibility for already busy nonprofit leaders.
The best IT solution allows your staff to spend less time solving technology problems and more time serving your community.
Why Nonprofits Choose NextX
Technology should never be a barrier to serving your community.
At NextX, we build long-term partnerships based on four principles.
Customized IT Solutions
Every nonprofit has unique goals, funding, staffing, and technology requirements. We tailor our recommendations to fit your organization.
No Geek-Speak
We explain technology in plain English, helping Executive Directors, board members, and staff make informed decisions without feeling overwhelmed.
100% No-Small-Print Satisfaction Guarantee
We believe trust comes from transparency, honesty, and consistently delivering on our commitments.
Peace of Mind
Our mission is simple:
Keep your technology secure, reliable, and running smoothly so you can stay focused on your mission.
Frequently Asked Questions
Is managed IT less expensive than hiring an employee?
For nonprofits with 5–50 employees, managed IT is often the more economical option because it provides access to an entire team of specialists without the overhead of hiring, training, and retaining full-time staff.
What if we already have someone who helps with technology?
Many organizations successfully combine an internal technology coordinator with a Managed Service Provider. Your employee focuses on day-to-day operations while the MSP provides cybersecurity, infrastructure management, strategic planning, and specialized expertise.
Can we switch from another IT provider?
Yes. A well-managed transition typically includes documentation, account transfers, security reviews, onboarding, and user support. Most nonprofit organizations can complete the transition in 2–4 weeks, depending on the complexity of their environment.
Is It Time to Rethink Your IT Strategy?
Choosing between hiring an IT employee and partnering with a Managed Service Provider isn’t just a technology decision—it’s a business decision that affects your organization’s productivity, security, and ability to fulfill its mission.
If your nonprofit serves Billings, Montana or Yellowstone County, NextX can help you evaluate your current technology, compare your options, and develop a strategy that supports your mission today and as your organization grows.
Schedule a complimentary Technology Assessment to learn how NextX can help your nonprofit gain stronger security, dependable support, and the peace of mind to focus on what matters most—serving your community.