Imagine this: A small nonprofit, HopeWorks Community Services, just received a generous donation to upgrade its office with brand-new business-class PCs. The team is excited—finally, no more slow, outdated computers that crash mid-task. They purchase ten high-quality business-class machines at $1,350 each, confident this will be a long-term investment.
But what they didn’t anticipate was the true cost of ownership.
Beyond the Sticker Price
Like many organizations, HopeWorks assumed that once they bought the PCs, the major expense was behind them. What they didn’t realize was that purchasing the hardware was just the beginning. The cost of owning and maintaining these machines would continue to grow year after year, far beyond the initial purchase price.
Here’s what that looks like:
1️⃣ Software Licensing: The team needed professional tools to keep things running smoothly. Even with nonprofit discounts, the costs added up:
- Windows 11 Professional: $69 per PC.
- Microsoft 365 Business Premium: $66 annually per PC.
- Adobe Acrobat Pro DC: $15 annually per PC.
2️⃣ IT Support and Maintenance: HopeWorks quickly discovered that without dedicated IT staff, minor issues snowballed into major productivity losses. They decided to invest in outsourced IT support, costing $81 per month per PC to ensure quick troubleshooting and maintenance.
3️⃣ Hardware Replacements: Over five years, components like hard drives and batteries failed. Even with careful use, replacing these parts added an extra $100 per PC.
4️⃣ Energy Consumption & Disposal: The electricity to power each machine cost an estimated $50 per year, and proper disposal at the end of the lifecycle added another $20 per unit.
The Full 5-Year Breakdown
| Cost Component | Annual Cost | 5-Year Total |
|---|---|---|
| Initial Purchase | N/A | $1,350 |
| Windows License | N/A | $69 |
| Microsoft Office License | $66 | $330 |
| Adobe Acrobat License | $15 | $75 |
| IT Support | $972 | $4,860 |
| Hardware Replacements | N/A | $100 |
| Energy Consumption | $50 | $250 |
| Disposal | N/A | $20 |
| Total Cost | $7,054 |
After five years, the total cost per PC was $7,054—far more than the initial $1,350 purchase price.
On average, HopeWorks spent $1,410.80 per PC per year. Across ten PCs, that’s $14,108 annually—a significant cost for a nonprofit trying to stretch its budget.
But That’s Just the Beginning…
While this breakdown captures the cost of a single PC, there’s more to an IT budget than just computers. HopeWorks—and many nonprofits like it—also had to think about:
- Network infrastructure – Routers, firewalls, and internet costs aren’t included here.
- Phone systems – Many nonprofits need VoIP or landline services to stay connected.
- IT administration of email and connective services – Someone has to manage all of this, and that means additional labor costs for in-house or outsourced IT staff.
A nonprofit leader thinking about their IT budget needs to take all of this into account. And even beyond that, there are hidden costs that aren’t always obvious:
- Training: Staff need time to learn new software and workflows.
- Downtime: A single PC failure can mean hours—or even days—of lost productivity.
- Insurance & Security: Protecting against theft or cyber threats adds another layer of cost.
Why This Matters
The reality is that nonprofits often secure funding to purchase IT equipment, but very few think beyond the initial cost. HopeWorks learned an important lesson: Technology isn’t just a one-time purchase—it’s an ongoing investment. And without proper planning, IT costs can become an unexpected burden, leading to inefficiencies, downtime, and increased expenses over time.
But what if nonprofits didn’t have to figure this out alone?
The Solution? Smarter IT Planning
Organizations that take a proactive approach to IT budgeting—factoring in long-term costs—can avoid surprise expenses and maximize efficiency. By understanding the Total Cost of Ownership (TCO), nonprofits can make better financial decisions, ensuring they have the tools they need without being caught off guard by hidden expenses.
If this sounds overwhelming, that’s where IT consultation comes in. Rather than guessing, nonprofits can work with IT experts to build a realistic budget—one that includes support, maintenance, and long-term sustainability.
By planning ahead, organizations can make smarter tech decisions, reduce inefficiencies, and focus on what matters most—their mission.
