Many organizations I work with are trying to do as much as possible on a shoestring budget.
This is especially the case for newly founded groups that must find a way to balance process with mission—that is, to build the airplane while flying it. (You can read more about how I approach that challenge here and here.)
Having walked this path myself, I understand the desire to channel every dollar directly into one’s mission while avoiding administrative costs.
Yet I also find that “minor” limitations of free tools pile up, creating major obstacles for groups wanting to make a meaningful impact.
When it comes to getting work done, we face several forces:
- Pressure to do more with less—often far less, due to recent dramatic reductions in federal spending.
- A flood of free and low-cost digital apps that allow us to operate with minimal tech expertise.
- The rise in AI tools that promise to automate much of our work—as well as pressure to adopt them in the name of efficiency.
In my experience, free apps can be terrific to pilot, and they’re indispensable to new groups when they launch. But they rarely scale for long-term growth and often come with hidden costs.
Four costs of “free” digital tools
When should we settle for free and basic plans, and when is it worth the upgrades? Below are four hidden costs to consider.
Cost #1: Time
Small inefficiencies in free platforms often compound across people and over time.
For example, one organization I worked with relies on a basic Zoom plan to hold a regular one-hour call with ten participants. Each Zoom “reset” costs about two minutes in time and lost momentum. Over 40 meetings per year, that’s 800 minutes of total staff time, or 13 hours, wasted.
If you’re regularly restarting meetings, an annual $160 subscription becomes sensible.
Cost #2: Reputation
Funding and partnership decisions often depend on smooth, professional operations. Even if you are just getting your organization off the ground, first impressions matter. Anyone can set up a gmail address in minutes, but a custom domain name and email account project credibility, permanence, and better deliverability (messages are less likely to land in someone’s spam folder).
To take another example: Google sheets may be an easy way to organize contacts when you’re getting started, but they lack the ability to track whether key donors and stakeholders are receiving your communications. Since many e-mail marketing platforms start just at $10–15 per month for small organizations, upgrading quickly becomes a cost-effective way to keep every donor and stakeholder informed and engaged.
Ultimately, investing in these services signals to donors, partners, and beneficiaries that you take your mission seriously enough to protect your brand, your communications, and your operations.
Cost #3: Privacy
As the saying goes, “If you’re not paying for the product, then you are the product.” Free apps and digital services often profit by mining your personal data; free AI tools go further, using your content to train their models.
You might think, “That’s OK—I have nothing to hide.” But when you handle donor lists, beneficiary info, or sensitive program data, that mindset becomes risky.
In many cases, a bit of research will uncover privacy-focused alternatives—sometimes still free, sometimes worth a modest budget allocation for paid, encrypted solutions.
Cost #4: Innovation
AI tools can certainly help reduce your workload. But as I noted in my previous newsletter, relying on AI to take on core functions is a recipe for stagnation. Generating a donor appeal with AI may save you time, but you’re missing the opportunity to develop your own voice and craft a personal communication that connects with your stakeholders. In short, you may save minutes today while sacrificing the capacity to innovate tomorrow.
Final thoughts
Organizations evolve, and their needs change. By staying aware of the hidden costs of “free” solutions—time, reputation, privacy, and innovation—you can make smarter choices that let you serve your mission without imposing unnecessary obstacles.