Tech Impact and 501cTECH to Merge

News Release

 

Contact:

Stephanie Harnett

Olmstead Williams Communications

310-824-9000

sharnett@olmsteadwilliams.com



Tech Impact and 501cTECH to Merge to Provide Technology Support
and Services to Nonprofits Nationwide


PHILADELPHIA, May 24, 2016 – Tech Impact, the nation’s leading nonprofit technology services organization and the operator of an award-winning IT training program for underserved youth, announced they have signed a definitive agreement and plan of merger with 501cTECH, a nonprofit provider of technology support in the greater Washington, D.C. region. The merger is expected to become effective on or about July 1, 2016, subject to the satisfaction of customary closing conditions.

The two organizations have worked together for more than a dozen years and were original members of the NPower Network created by Microsoft to deliver affordable and sustainable solutions for community-based nonprofits. Together, they have provided technology support and services to thousands of nonprofits of varying sizes and missions across the country. Clients include Build, Boys and Girls Clubs of Delaware, Community of Hope, Friendship Place, Habitat for Humanity Philadelphia, Primary Care Coalition, Taproot, and YWCA of the National Capital. 

“We provided seed funding for Tech Impact and 501cTech over a decade ago, bringing much needed technology capacity to the nonprofit sector,” said Jane Meseck, director of Microsoft Philanthropies. “The combining of these organizations will not only bring efficiency to their own operations, but will provide greater scale to the nonprofit sector in the form of technology services and support needed to increase the effectiveness of thousands of organizations serving those who most need the benefits of technology.”

The expanded organization will be known as Tech Impact and will maintain all current offices.  Consolidating some back office functions will result in greater efficiency, reducing overhead expenses, and positions the organization for continued growth. “This merger brings executive and board capacity, as well as added technical depth, during a critical phase of program and services growth in our organization,” said Paul Jaskot, partner at Reed Smith LLP and current chair of Tech Impact’s board of directors, who will also serve as the chairman of the board for the combined organization.

Patrick Callihan, Tech Impact’s executive director, will serve as the chief executive officer of the combined organization, and Julie Chapman, 501cTECH’s president and chief executive officer, will become the executive director of Tech Impact’s D.C. office and operations.

“This collaboration is good for our business and good for the sector,” said Callihan. “By merging with 501cTECH, we will be able to serve more nonprofits with the critical technology support they need to do what they do best: focus on their missions that help the most vulnerable in our society. It also creates more opportunities to expand our workforce development programs, which enable individuals to reach their full economic potential.”

Tech Impact’s services for nonprofits include help desk/managed IT, Office 365 for Nonprofits, VoIP phone service, data management and analytics, cloud computing migration on various platforms, and social media and digital marketing consulting. The organizations direct service programs focus on workforce development, helping disconnected youth begin careers in technology.

“This merger really makes sense for both organizations. We have the same mission and vision, and very similar cultures. Together, we will have increased leverage in the market and we will be able to continue developing innovative services at a scale we could not have delivered on as individual organizations” said Chapman.

Tech Impact would like to thank the many corporations and foundations that support each of the individual organizations, including Accenture, AT&T, Barclays, Bank of America, Cafritz Foundation, Capital One, CenturyLink, Deloitte, E*TRADE, JPMorgan Chase, The Longwood Foundation, Marriott, Microsoft, Pew Charitable Trust, PNC, SAP America, Share Fund, and the William Penn Foundation.

Reed Smith LLP acted as pro bono counsel to Tech Impact in the transaction.

About Tech Impact

Tech Impact is a nonprofit that helps other nonprofits leverage technology to make a greater impact. The organization was founded in 2003 in Philadelphia, where its headquarters remain. Today, Tech Impact serves nonprofits across the country with additional offices in Washington, D.C., Wilmington, Delaware, and Las Vegas, Nevada. Learn more at techimpact.org.