Nine Tips for Navigating the RFP Research Phase

If your nonprofit is planning to outsource a complex or expensive technology initiative to a third-party vendor, you'll likely find yourself authoring a request for proposal ( RFP) — a comprehensive document that contains all of the project's business and technology requirements. In turn, you'll submit this document to a select group of vendors in the hopes of receiving a bid that fulfills all of the project's requirements, while staying within the allotted budget.

To help you expedite the process of finding the ideal technology vendor, we've compiled a list of general RFP research tips, places to look for advice, and people to talk to when building a pool of candidates. But with so many technology providers, how can your nonprofit conduct efficient, effective research without wasting weeks of valuable time searching the vast expanses of the Web?

Technology Considerations

Before you begin the vendor research phase, it helps to have a grasp on the types of technology solutions at your organization's disposal, which can be broadly classified into three categories: pre-built, from scratch, or a blend of the two.

Ideally, a vendor will sell you a pre-built solution, preferably one that will require minimal configuration on your organization's part. If you need a more tailored piece of technology, you might choose to blend a vendor solution by extensively customizing it; while this approach will ensure that you get exactly what you're looking for, it's likely to consume a lot of time. Finally, if you cannot locate an existing solution that will fulfill your organization's needs, you'll have to contract a firm to build it from scratch.

Once you have a basic idea of technology solutions available to your organization, begin your research by following our list of steps. And remember, the sooner your RFP hits the streets, the sooner that much-needed technology upgrade will come to fruition.

1. Reach out to other nonprofits in your sector.

Consulting with other organizations in your nonprofit's sector is one of the first steps you should take when researching a technology solutions and vendors, according to Anand Sethupathy, a senior manager at NPower, a national network of nonprofit organizations that provide technology assistance to other organizations. "They [similar nonprofits] may have gone through an extensive vendor vetting exercise," Sepupathy said, "and could share a lot of their knowledge on the topic." Besides conducting outreach via phone or email, attending regional or national conferences in your organization's sector of the nonprofit landscape provides you with a way to obtain face-to-face advice from other professionals.

2. Seek advice from internal staff members and funders.

Asking others at your organization about technology solutions and vendors they've used in the past can help you build an initial list of candidates. "You probably have people working within your organization who have used other products at comparable organizations before," said nonprofit technology consultant Robert Weiner, President of Robert L. Weiner Consulting. However, just because an internal staff member has used (or recommends) a particular vendor or solution doesn't necessarily mean it's the best choice for your nonprofit, so you should still conduct external research before making a decision.

NPower's Sepupathy believes that foundations funding your nonprofit can also be worthwhile sources of vendor information, as they may support similar organizations that may have implemented a comparable technology solution.

3. Consult message boards.

Specialized boards geared toward your professional community.

Internet message boards designed to serve your specific professional community can be a valuable resource when researching technology vendors. For example, if you're in charge of your organization's fundraising efforts and need to implement a new software solution, you can visit the Association of Fundraising Professionals' message boards (subscription required) to post questions or troll threads for advice.

Most professional organizations, like the Association of Fundraising Professionals, require a membership fee in order to access discussion forums and e-mail lists, but free resources exist, many of which may be geared toward your job title or sector. For instance, Philanthropy News Digest has a dedicated, free message board for discussing funding for the arts, as well as a general forum for philanthropists. When seeking advice in any Web forum, take care to provide details about your organization and the technology solution you seek, such as desired features and projected number of users.

General nonprofit or tech-related boards.

Although frequenting a message board geared toward your sector or job description will likely yield the most pertinent responses, don't rule out more general nonprofit or technology-related forums and email lists. Omidyar.net has a dedicated technology forum, while TechSoup's Community offers nearly 20 forums, each of which is devoted to a different aspect of the technology landscape. The Technology Planning message board, in particular, features discussions on creating RFPs and the research process.

4. Sign up for e-mail lists.

Specialized e-mail lists.

Specialized e-mail lists give you yet another outlet for asking others in your industry for recommendations regarding technology vendors and solutions. For example, if you're in charge of your organization's Web site and need to outsource a redesign, try DiscussionPro's .Org Webmaster, a list specifically aimed at Webmasters of nonprofits. You may also want to seek out e-mail lists that speak to other organizations like yours. For instance, if your organization works in the human-rights advocacy sector, subscribe to Fahamu's Pambazuka newsletter or send an email to join the email group and connect with other folks working in that particular field.

General e-mail lists.

As is the case with message boards, e-mail lists that take a broader view of nonprofits and technology are also worth consulting. Idealist's Nonprofit FAQ , for instance, lets subscribers ask any kind of question related to nonprofits, while the NPO Techies list at CompassPoint Groups is designed to facilitate discussion amongst technical staffers at nonprofits.

5. Browse online vendor directories.

In addition to conducting research by reading online and offline publications, take advantage of Web-based directories that supply a comprehensive list of technology vendors based on the services that they provide.

TechFinder, a Web portal developed by N-TEN and TechSoup, lists nearly 1,800 technology providers who deal in a variety of services, from database development to Web design. If choosing a vendor located in your organization's area is a priority, you can filter TechFinder results by entering your ZIP or postal code.

If your nonprofit seeks an application service provider (ASP), a site called The NonProfit Matrix may also prove to be a useful tool in your research. The NonProft Matrix lists a number of vendors who offer Web-based services such as building online community sites, setting up giving portals, and constructing content-management systems.

While vendor directories are indeed worth investigating, you should exercise a degree of caution when using them. Because the information in such directories is normally provided by the vendors themselves and does not undergo screening, some providers may list themselves in categories where they really don't belong or say they offer a service that is not really one of their strengths.

6. Network at conferences geared toward your organization's sector.

Attending conferences not only gives you the opportunity to seek advice from those employed at similar nonprofits, but it's also a good way to meet technology vendors in person. There may be a significant vendor presence at many conferences, so you can speak with service providers and observe product demos, which will help you determine which vendors should receive your RFP and which should be eliminated from consideration.

7. Read technology or nonprofit-related publications.

According to technology consultant Weiner, online and hard-copy publications can be valuable resources to tap when researching technology vendors and solutions, as many of them provide product reviews, roundups, and feature comparisons.

Publications geared directly towards your organization's sector or ones that focus on the specific technology you're researching can be excellent sources of relevant information. For example, if your nonprofit is trying to implement a fundraising solution, a site like Affinity Resources specializes in Web-based fundraising and publishes resources such as this chart comparing online donation engine fees. If, on the other hand, you work in the alumni-relations department of a university and don't have a subscription already, get your hands on a few copies of the Council for Advancement and Support of Education's bimonthly Currents magazine. Currents regularly publishes a matrix of alumni and donor management software products.

Generally focused nonprofit and technology publications also offer useful information when it comes to familiarizing yourself with the solutions and vendors at your disposal. Idealware routinely publishes articles and reports on technology products. TechSoup also offers resources to help with your research, such as this chart comparing donor-management software. Although product roundups and charts might not help you narrow the pool of potential vendors, use them to develop an initial list or compare features.

8. Use search engines creatively.

Even though surfing the Web to locate potential technology solutions and vendors isn't always the most efficient research medium, Weiner believes that search engines can be a worthwhile research tool if used creatively. "It's not that you just Google 'association-management software,'" said Weiner. "But you might Google 'association-management software rating' or 'comparison' or 'matrix' or some keywords that might help you find a publication, or a blog, or a bulletin board, or a Listserv that has already done some comparison of vendors in the market."

9. Hire a consultant.

If you've explored all the research options listed above and still haven't located a few potential vendors, consider hiring a consultant to do the heavy lifting for you. Eric Leland, Director of CompuMentor's TechCommons believes that a knowledgeable consultant can help your organization develop a more detailed RFP as well as selectively invite the most appropriate vendors to submit proposals. In turn, your nonprofit is more likely to receive bids that are closely aligned with its ideal solution.

From beginning to end, the RFP process can be a long and complicated affair, but the research phase doesn't have to be painful or overly time-consuming. If you use existing resources such as message boards, e-mail lists, and tech publications, you increase your chances of finding a few suitable vendors, which increases the chances that the project will ultimately be a success.

This article was created in partnership with NPower and supported by a grant from the Edna McConnell Clark Foundation.