WASHINGTON, D.C., December 13, 2001 - A study released today shows that information technology has enhanced the work of human service nonprofit organizations, saving time and increasing productivity.

"Wired, Willing and Ready: Nonprofit Human Service Organizations' Adoption of Information Technology," a Princeton Survey Research Associates study conducted for INDEPENDENT SECTOR and Cisco Systems Inc., examines the attitudes and usage of information technology by a national sample of more than 200 executives in human service organizations.

Eight in 10 executives see Information Technology as a time-saving and productivity-enhancing tool. According to most executives, IT has changed their daily operations at least a little in the last five years, with half saying their operations have changed a great deal.

Types of Information Technology Used By Nonprofits A majority of human service nonprofits use some form of information technology. While email and the Internet are the most common forms used, many organizations also have websites or office networks.

• 86% of nonprofits utilize some form of information technology.
• 79% have email and 63% percent use it everyday.
• 77% provide Internet access to staff.
• 49% of nonprofits have websites and 52% of nonprofits have an office network.

"Nonprofit organizations recognize the value of information technology. As they cope with various challenges to their programs such as the effectiveness of direct mail and communications, nonprofit organizations will continue to look to information technology as the one resource that allows them to conduct their mission efficiently and effectively," said Sara E. Melindez, president and CEO, INDEPENDENT SECTOR.

"As the demand for the essential services from nonprofit organizations increases, information technology is enabling them to stretch their time and dollars. Whether they're highly successful already or just getting started, nonprofits are using Internet technology to make time-consuming administrative functions - such as purchasing and payroll - more efficient and effective, and enabling their staffs and volunteers to spend more time on their core mission," said Tae Yoo, Cisco's director of corporate philanthropy.

Key Findings

Human service nonprofits use IT in a variety of applications from conducting research, day-to-day operations, to education. Ninety-nine percent (99%) of nonprofits with email use it to communicate with outside individuals and organizations. Ninety-one percent (91%) use the Internet for research on how other organizations carry out their programs. Seventy-seven percent (77%) use the Internet to conduct day-to-day operations such as budgeting and buying office supplies. Forty-four percent (44%) use the Internet to recruit employees and volunteers.

Of the 49% of nonprofits with websites, 96% use them to explain their mission and 83% use their webpages to help carry-out their missions and programs. Forty-three percent (43%) use their websites to fundraise and 49% recruit employees and volunteers through their websites.

"Wired, Willing and Ready" also reveals the difference in usage of IT by small, medium and large human service nonprofit organizations and finds that large nonprofits are more willing to embrace information technology. Nonprofits that do not use the Internet, webpages, email or office networks say they don't because they don't need them, they have more important priorities or they cost too much.

"Wired, Willing and Ready" also notes that a minority of human service nonprofit executives believes that information technology will not help them fulfill their missions and perceive that it may even side-track them from their missions. Forty-three (43%) did not believe that increased usage of IT would give them more time to focus on their programs and missions and 29% said that their staff and volunteers would feel too far removed from their mission if they relied on more information technology.

A majority of human service nonprofit executives also express concern about their capability to keep up with technological advances. Forty-one percent say they are keeping up but find it challenging to do so. Even though nonprofits value IT, only a minority (28%) has an IT strategic plan and 39% have a budget.

Most human service nonprofits possess the tools to use information technology but staffing and support to utilize it paints a different picture. Most human service nonprofits (80%) have at least one staff member who oversees IT but 86% say the staff member(s) works on IT as part of their responsibilities. Only 13% have a staff member who works on IT full time. Eighty-six percent (86%) rate the competency of the IT staff as somewhat or very competent.

"This study gives companies and other organizations a better feel for where nonprofits are in their use of technology and where there are opportunities to partner with nonprofits using Internet technology to further their mission," Yoo said.

"Wired, Willing and Ready: Nonprofit Human Service Organizations' Adoption of Information Technology" is available on the web at www.IndependentSector.org and at http://newsroom.cisco.com. The survey has a margin error of +/- 7 percent.

About INDEPENDENT SECTOR

INDEPENDENT SECTOR is a nonprofit coalition of more than 700 national nonprofit organizations, foundations and corporate philanthropy programs.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Information on Cisco can be found at http://www.cisco.com.

Cisco, Cisco Systems, PIX, IOS and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. or its affiliates in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (0005R)