Successfully financing technology projects is a major balancing act for human services. Agency leaders have to juggle managing the cost-effective use of resources, demonstrating that funding has a measurable impact on agency outcomes, and sustaining support for technology investments from contributors, commissioners, state officials, and other key stakeholders. The problem is compounded by ever rising costs to manage— and ever decreasing dollars to fund—expensive technology-related projects.

In addition, many agencies are still operating under the assumption that technology must be an outright “one and done” purchase, even though payment options have become more flexible. For example, many programs are shifting to cloud-hosted, software-as-a-service (SaaS) models that allow them to pay smaller amounts over time. Similarly, some counties are taking a regional or “consortium” approach to purchasing to reduce costs.

Agencies need to apply a combination of strategic and creative thinking to overcome financing hurdles, from diversifying funding sources to spreading out payments over multiple fiscal years. We put together this guide to help agencies better understand and start searching for various options available.

FUNDING TECHNOLOGY PROJECTS IN HUMAN SERVICES

Reimbursements. Work internally to better manage federal and/or state money that’s coming in. Set up programs to maximize reimbursement rates, which will vary by state and program, and then use other sources to fill in the gaps.

Grants. Look for national, state, and local grants available—both federal and non-federal—to support your initiatives. Many grants focus specifically on technology or digitizing government.

For-Profit Partners. Businesses understand the importance of technology in ways grant-makers and foundations may not. Consider asking a for-profit company—one with a mission that aligns with yours—to support an IT project.

Innovation Funds. Many states have developed innovation funds to match local programs and organizations investing in technology and modernizing the delivery of services.

Foundations. Both community-based and private foundations often manage several funding streams, grant programs, and other resources to assist local organizations.

Financial Institutions. See if your local bank will work with you to create a long-term payment plan. You may need to get permission from your county’s CFO/treasurer before approaching the bank. Additionally, the county and bank could have pre-arranged financing options available.

What Financial Options Should We Consider?Agencies we work with have used some or all of the following sources to successfully finance IT projects:

Copyright © 2017, Northwoods Consulting Partners, Inc., All Rights Reserved 2017-06-V1-L

Who Can Help Us Through the Process?Funding isn’t a problem you have to solve by yourself. Engage these groups when starting to search for options:

Where Can We Find More Information?Visit these websites for additional funding advice, as well as state- and program-specific grant opportunities:

Budget and Finance (APHSA)Read APHSA’s advice for agencies to address common financing questions and concerns.

Community Foundation LocatorSearch by state to find community foundations.

Foundation Directory OnlineIdentify local foundations and other potential funding sources through this online database of grant makers.

Grants.govExplore and apply for various federal and non-federal grants, funding, and benefit programs.

HHS.govLearn about official Health & Human Services (HHS) grant programs and grant management.

National Association of State Chief Information Officers (NASCIO)NASCIO’s Resource Center has a procurement section to help you understand state-level priorities.

National Association of State Procurement Officials (NASPO)Learn about your state’s procurement programs and staff, and how you can work together.

Northwoods’ Research LibraryGet notified when we publish new funding research or data.

18FSee how 18F can help HHS programs navigate the complicated state and local procurement process.

Peer Agencies. Ask other counties what options they considered, what questions they asked/received, and what funding they applied for/received when financing similar projects. Neighboring counties can consider coordinating procurement to drive down implementation costs.

County Administration. Your county’s Commissioning Board or Director’s Association likely has a Finance, Budgeting, or IT committee that can provide recommendations and local resources.

State Procurement Officers. Many states have an ombudsman, concierge, or agency-specific procurement/purchasing officer who can help you identify state resources (e.g., an Innovation Fund).

Board Members. Involve your board from the very beginning (after all, that’s what they’re there for!) to suggest options and facilitate connections with local foundations and other potential funding sources.

Advocacy Groups. Local and state advocacy networks (e.g., PCSAO, NYPWA, or NC Child’s Advocacy Network) can provide guidance to counties on how to get funding, plus rally state officials for more financial support to help counties get access to the tools they need.

Northwoods. Our team can help your program build a business case that demonstrates the potential ROI of a major technology project. Providing your county commissioners and/or administrators with this information can help you overcome roadblocks in the local procurement process.

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About NorthwoodsNorthwoods’ only focus is helping state and county human services agencies increase client service levels and productivity while cutting costs—allowing them to do more with less. By providing all the right tools in the office and the field, Northwoods’ solutions eliminate duplicative work and reduce stress. Time-consuming tasks are automated, helping social workers have more time to accomplish their mission: protecting families.

Copyright © 2017, Northwoods Consulting Partners, Inc., All Rights Reserved 2017-06-V1-L

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