This is a summary of the book titled “Technology for Good: How Nonprofit Leaders Are Using Software and Data to Solve Our Most Pressing Social Problems” written by Jim Fruchterman and published by MIT Press, 2025. This book piques my interest because bad ideas need to be abandoned fast and both startups and non-profits struggle with that until it becomes critical. In this book, the author explores why high-growth, profit-driven start-ups can and nonprofit technology ventures cannot. While the popular imagination tends to focus on for-profit start-ups capable of viral success and massive wealth creation, Fruchterman argues that nonprofit tech start-ups play an equally important role in shaping the future, particularly when it comes to addressing entrenched social problems. Drawing on his experience as a social entrepreneur, he offers a practical guide to building social enterprises, noting that while nonprofit and for-profit start-ups face similar challenges in developing ideas and raising capital, nonprofits benefit from a crucial advantage. Because they are not beholden to investors seeking financial returns, nonprofit founders have greater freedom to prioritize impact over profit.
Nonprofit organizations are chronically behind the technology curve. Tight budgets and donor expectations often leave charities and public agencies relying on outdated hardware and software, sometimes lagging a decade or more behind current standards. Although technology is essential to modern organizational effectiveness, donors frequently view technology spending as overhead rather than as a core part of the mission. Fruchterman challenges this mindset and emphasizes that the most effective way for nonprofits to modernize is often by adapting widely used, standard platforms rather than attempting to build custom solutions from scratch. Tools such as Microsoft Office or Slack can meet many needs, and large technology companies frequently offer discounted pricing to nonprofits, often coordinated through organizations like TechSoup Global. While custom software development is sometimes necessary, it is usually more cost-effective to purchase existing solutions, provided the organization has enough technical expertise to manage vendor relationships and protect its interests. In rare cases, nonprofits even form specifically to create technology that the commercial market has failed to address.
Fruchterman is particularly critical of the nonprofit sector’s tendency to incubate ill-fated technological innovations. Unlike the for-profit world, where start-ups are encouraged to test ideas quickly, gather feedback, and abandon bad concepts early, nonprofit leaders often cling to flawed ideas for too long. One common mistake is the assumption that every organization needs a mobile app simply because apps are ubiquitous in everyday life. In reality, most users do not want more apps, and many nonprofit apps fail to gain traction. The author also cautions against rushing into experimental or heavily hyped technologies. Blockchain, for example, attracted significant attention after the success of Bitcoin, leading many donors and nonprofits to assume it could be easily repurposed for social good. In practice, blockchain initiatives have often failed to deliver meaningful benefits, as illustrated by costly implementations that outweighed their promised savings. Fruchterman urges social leaders to remain skeptical and clear-eyed, especially when technologies are promoted by those more focused on ideology than sound technical design.
Despite these pitfalls, the book makes a strong case that thoughtfully deployed technology can dramatically increase the social sector’s impact. While for-profit companies often aim to eliminate human interaction through automation, nonprofits tend to emphasize person-to-person relationships. Fruchterman argues that technology should not replace human connection in the social sector, but rather support it, particularly by improving efficiency for frontline workers. When those closest to the people being served can work more effectively, the organization’s overall impact is amplified. He also highlights the potential of delivering well-designed tools directly to communities themselves.
One illustrative example is Medic, a social organization that builds tools specifically for community health workers. By replacing paper forms with digital data and linking frontline workers to local health systems, Medic created an app that succeeded precisely because it was narrowly targeted and deeply practical. Although most nonprofit apps add little value, Medic’s tool stands out because it was designed for a clearly defined audience and addressed real operational needs. The result was improved outcomes in areas such as maternal health, disease treatment, and vaccination tracking.
Fruchterman also challenges conventional nonprofit strategic planning. He argues that long-term strategic plans are often too rigid to survive in a rapidly changing world, a lesson underscored by the COVID-19 pandemic, which rendered many carefully crafted plans irrelevant almost overnight. Instead of producing static documents, nonprofits should adopt a more agile approach to strategy that remains grounded in mission while allowing for rapid adaptation. This means focusing on the organization’s core objectives—the “what”—rather than locking into specific tactics—the “how.” By collecting real-time data and learning continuously from results, nonprofits can test assumptions, adjust programs, and respond more effectively to changing conditions.
The book devotes significant attention to artificial intelligence, emphasizing both its promise and its limitations. Fruchterman stresses that AI systems are only as good as the data used to train them, and that bias is an unavoidable risk when datasets are incomplete or unrepresentative. Because many AI tools are developed primarily in English and rely on mainstream data sources, they often overlook the poor and underserved populations that nonprofits aim to support. The author illustrates this problem with examples of biased facial recognition systems that perform poorly on women and people of color due to skewed training data. Such cases underscore the importance of diverse development teams and careful scrutiny when deploying AI in social contexts.
Another key distinction Fruchterman draws is between the goals of nonprofit and for-profit start-ups. While commercial tech ventures are often driven by the promise of wealth, nonprofit start-ups exist to serve people who cannot pay for services. As a result, financial success is defined not by profits but by impact and sustainability. Although the motivations differ, the basic phases of launching a start-up are similar, beginning with exploration and user research, followed by development, growth, and eventual maturity. Throughout these stages, nonprofit founders must be disciplined about testing ideas, releasing imperfect products, and learning from feedback.
Funding and talent emerge as persistent challenges for nonprofit tech start-ups. Fruchterman estimates that early-stage funding typically ranges from modest six-figure sums to around a million dollars for more ambitious projects, with founders often contributing unpaid labor in the beginning. Philanthropic foundations, fellowship programs, accelerators, government agencies, and corporate social good initiatives all play important roles in supporting these ventures. Unlike for-profit start-ups, nonprofits aim simply to break even while maximizing the number of people they help. Although nonprofits cannot compete with the salaries offered by commercial tech firms, they can attract professionals motivated by purpose rather than profit, particularly when expectations around compensation are addressed transparently from the outset.
Fruchterman argues that social entrepreneurs should prioritize empowering communities and individuals rather than imposing top-down solutions. Access to healthcare, education, capital, and inclusion can transform lives, and technology can be a powerful enabler when used responsibly. He encourages nonprofit leaders to embrace data collection and cloud-based tools while remaining transparent about how data is used and firmly committed to protecting it from exploitation. The book closes with a call to use AI and other emerging technologies for good, capturing efficiency gains without surrendering human judgment or ethical responsibility. Fruchterman has a long career in social entrepreneurship and open-source development that gives authenticity to his message that when technology is guided by mission, humility and respect for the people it serves, it can become a powerful force for positive social change.