Fractional CTO Services

Some of the most outstanding organizations that make the greatest impact on the world are nonprofits. Unfortunately, it tends to be the nature of the beast that nonprofits are underfunded and understaffed in crucial positions, perhaps none more than the role of the chief technology officer (CTO). The impact that technology can have in empowering nonprofit organizations cannot be understated, which makes the task of finding a fractional executive all the more difficult. 

This is what has inspired our team at Computers in Ministry (CIM) to create this guide for all nonprofits. Throughout this piece, we will answer questions like:

• What is a CTO? 
• What is a fractional CTO?
• How can you find someone to be a fractional CTO?

Join us on this journey as we break down fractional executive services and how they can benefit your nonprofit. 

What Is a Fractional Leader? 

It can be helpful to think of a fractional leader as a part-time C-suite executive (these are the senior leaders at an organization). Why would anyone want a position like a chief technology officer (CTO), chief finance officer (CFO), or chief information officer (CIO) to be a part-time commitment? For nonprofits, the answer can be as simple as freeing up time and energy for the CEO, who is likely performing the tasks reserved for other executives at a for-profit business. As your organization grows, the need for more C-suite executive roles must grow in order to keep up with expanding demands. 

That moves us to another common question around this topic, what are fractional services? In essence, fractional services are everything we have just described above and the third party that provides those services to a nonprofit (or other organizations). This third-party organization could be a “middle-man” contractor and is typically used when it would not make sense for a nonprofit to hire someone full-time. 

Our team at CIM has a wealth of experience in fractional services, and it is not from pairing a nonprofit with the next available CTO. No, we design a custom partnership agreement that perfectly fits your model and is alongside you throughout the entire process of hiring and working with a fractional CTO. We want CIM to feel like a new branch of your existing team, not some external nuisance.  

What Is a Fractional CTO?

Based on the previous section, we can now identify a fractional CTO as an experienced individual brought on to perform the full-time duties of a technology officer for a “fraction” of the time. It is important to understand that while the time a fractional CTO is able to dedicate to your team is limited, the general responsibilities will be the same. Let’s go further to answer,  “What does a fractional CTO do?”

• Establish a thorough technology strategy
• Decide which technologies will be used (i.e., what software you will use for payroll)
• Create and manage a roadmap for products and technology
• Manage the partnership with technology vendors
• Assist in solving high-level problems for IT members if possible
• Oversee the development of IT operations within the organization

There are plenty more responsibilities associated with this role. The idea is that the CTO will head any major projects or changes that involve the technology that directly impacts the business. It should also be said that when you have a fractional executive of any kind, there will need to be teamwork from the other high-level team members when the CTO is not in. Now that we know what a fractional leader and CTO are, we can dive into the world of fractional services.

What Are the Types of CTO?

During your research, you may have come across a variety of archetypes for this position. For our sake, we are going to discuss four types that should encompass any other varieties you may find. They are the infrastructure, planner, consumer-focused, and thinker CTO. You may find different names for each type online, but for the sake of this guide, we will use these terms. The importance of understanding the different types of CTO is to ensure that you bring the right individual into the organization. All the experience in the world will not make a difference if both parties are not the right fit for each other. 

1. Infrastructure: This type of CTO’s main duties revolve around the organization’s data, security, and maintenance of its current network. These networks can range from quite simple to complex, depending on the size of the nonprofit and the space they operate in.
2. Planner: Think of the planner CTO as the captain of the IT ship for a nonprofit. They map out and then assist with determining how technology will be used for the organization. Unlike the infrastructure archetype, this CTO will normally be in charge of or have a significant say in the overall technology strategy for the company. 
3. Consumer-Focused: For nonprofits, it is helpful to think of this type of CTO as a liaison between you and your donors, volunteers, and community. They will be more focused on the relationship that your team has with its audience by understanding their needs. For example, if a nonprofit helps with medical information through a database, the consumer-focused CTO may work to ensure that what you are delivering to your audience is what they need and easy to use.
4. Thinker: The thinker and planner CTO archetypes are similar, with the major difference being that the thinker is less hands-on. They deal with major strategies for the future. It is also common for this type to work extremely closely with the founder or CEO of the organization to plan the next steps for the organization’s future. If you are a nonprofit that works in a space that has heavy competition, this type of CTO will also analyze that market to see where innovations to products or processes can be made. 

The world of nonprofits is wholly unique compared to for-profit organizations. After breaking down all of the responsibilities and roles that a CTO may play for an organization, it is not uncommon for nonprofits (especially smaller ones) to wonder if they need a CTO at all. 

Why Do You Need a CTO?

The most straightforward answer is to bring in some extra expertise to take the organization to new heights. Most nonprofit leaders are swamped with their daily responsibilities, so other strategic needs can end up falling to the wayside. As we briefly mentioned earlier, bringing on another leader can alleviate the pressure and catapult the organization into a new digital age with that extra help. Let’s take a look at a list of just a handful of things that a fractional CTO could bring to a nonprofit. 

• Greater Awareness/Reach: Both clients and donors are using the internet to research reviews, testimonials, and other general information before connecting with nonprofits. This means your organization needs to be discoverable across a variety of platforms and provide useful information to your audience in an easy-to-access way. The right CTO will have the expertise to evaluate your existing systems, understand the organizational needs, and develop a comprehensive plan to ensure goals are met. 
• Improved Operation: From changing the way you are able to connect with donors to allowing members of a team to work from across the globe, the technological benefits that a CTO can bring have the potential to improve all aspects of your organization. If part of your operation involves sending items (physically or virtually) , improvements to the logistical side of getting orders placed and shipped can improve efficiency, thus allowing a nonprofit to help more people. 
• Better Security: Cyber attacks and ransomware may feel like concerns that only large for-profit organizations need to worry about, but nonprofits are also at risk. A 2021 report from Philanthropy News Digest found that more than 50% of nonprofits have fallen victim to a cyber attack. No nonprofit wants to make calls to donors and volunteers to inform them that their personal data was stolen from their database. Hiring a CTO with experience in cyber defense can help significantly reduce these risks. 

A better understanding of what a fractional CTO is and what they can bring to a nonprofit is only half of the battle. The next part of the process can easily become the most expensive and exhausting part. It is finding the perfect match.

How Do I Hire a Good CTO?

Easier said than done, but any organization can start the process off on the right foot to help ensure they find the best fit. First, you need to decide how you will conduct this search. The three most common methods are in-person interviews, job boards, and talent agencies. Each of these options are viable but have issues that may prove to be less than ideal. In-person interviews take time and limit your potential talent pool to the local community for the most part. Job boards suffer for the opposite reason. Posting to a site like this can result in tens of thousands of responses that can be exhausting to comb through, where more than likely, your next CTO won’t be in the bunch. Finally, talent agencies can be biased towards one of their clients and end up not pairing you with the best fit. 

While your organization attempts to figure out how to find a CTO, we feel that it would be beneficial to cover what you need to keep an eye out for in your search. Here are some of the elements you may need. 

What to Look for in a CTO

• Industry Experience: Bringing in a fractional CTO with extensive industry experience means you are getting someone who has likely solved many of the problems your organization is dealing with. If you are a smaller nonprofit or just starting out, hiring someone with experience at a large organization can make scaling your impact that much easier.
•  Vendor Negotiation Skills: It is not uncommon for a majority of employees working at a nonprofit to have little or no experience dealing with technology vendors. Not only can the right CTO get you the best possible deals on necessary software, but they will also be able to determine precisely what the organization needs to succeed. 
• Knowledge of Your Current System: While a new CTO might want to bring about sweeping changes to the technical side of the operation, it will make everything more difficult if they have to learn how to use all of the things that your team utilizes on a daily basis from scratch. 

All of these options allow an organization to cast a wide net for its search. This can come around and end up being negative, as you can fall into the trap of quantity over quality. One way to circumnavigate this issue is to go through a source that specializes in technology needs for nonprofits. 

A company like CIM is a match made in heaven for a nonprofit looking for a solution to its tech woes. Any of our three packages can boost the technological power of a nonprofit depending on its needs. 

Fractional CTO Challenges for a Nonprofit

Acquiring a fractional CTO is not without its hurdles, and we want to make sure your organization is aware of these potential barriers before making the investment. 

• Lack of Consistency: By the nature of the role, a fractional executive is not going to be there 100% of the time. This means a strategy must be in place in order to ensure that the goals they were brought on to accomplish are met. 
• Feeling like an Outsider: As someone who will not be full-time with your team, there is a challenge if that individual feels distant from the culture of the organization. To help avoid this obstacle, it is helpful to have as many consistent face-to-face (or screen-to-screen) meetings with necessary team members so that everyone feels like they are a part of the same organization. However, in some instances, this could be a benefit as they miss out on internal politics. It is a delicate balance that you will need to work through with your CTO

The challenges all come down to the right person being a fit for the organization and vice versa. However, your options are not limited to a single new addition to your team. What if you were able to bring on an entire organization that was able to function as your fractional CTO? 

CIM: The Nonprofit Partner That is Part of the Team

Learn, Build, and Scale. These are the three tent poles supporting the fractional services we provide for all of our customers. We understand all the challenges that nonprofits must go through in order to function, and we want to help because we believe organizational mission should drive technology, not the other way around. 

Depending on your organizational need, our team can function as trainers on all things related to IT. We can also help serve alongside the current leadership team to ensure that all your technological needs are accounted for. 
If you want to take your nonprofit to the next level, contact us today!