The world's largest software company has announced a five-year, $25 million effort to help nonprofits around the country not only boost their technological capabilities, but help these groups use this technology to improve their operations, the San Jose (Calif.) Mercury News reports.

The new program -- part of Seattle-based Microsoft's 25th anniversary celebration -- will include a record $10 million in cash and $15 million in software donations. The effort also will help expand the reach of the NPower nonprofit group to major cities around the nation, the newspaper reports.

"By supporting the expansion of NPower, we are providing nonprofits nationwide with the ability to do amazing things in the next 25 years," said Steve Ballmer, Microsoft's president and chief executive officer.

The program may eventually include up to a dozen cities, but initial efforts will focus on nonprofits in Dallas and New York.

Microsoft will provide funds and/or needed software to selected groups. These funds must be matched by the communities, however, and NPower personnel will help these nonprofits plan and launch their tech efforts.

NPower originally formed to help nonprofit groups in the three-county Seattle area "use technology to better serve their communities." It continues this mission and also offers such help as technology needs assessment and planning, hands-on aid, tech classes and training, printed and online reference material, and volunteer "matchmaking."

"Nonprofits serve and give voice to the communities of the digital divide -- communities that typically lack access to technology," said Jane Meseck, Microsoft community affairs program manager. "A strong nonprofit community helps to ensure that everyone participates in the Internet age. So it makes sense for us to help nonprofits be more effective and build their capacity through technology."

Microsoft gave more than $34 million in cash and $200 million in products to an estimated 5,000 nonprofits last year, but this new effort will mean direct tech training and followup by the company, the Mercury News reports.

The program may be coming at a good time for the sector, as many groups have computer systems in place but need help using these systems to their full potential, one observer stated.

"The idea that non-profits are fearful and not really into technology is off the mark now. Most non-profits have embraced technology. One of the challenges is resources," Nelson Layag, technology director for San Francisco's CompassPoint Nonprofit Services, told the newspaper.

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