This chapter explains the purpose and benefits of information systems for nonprofit organizations. Information technology refers to the means of access to information and related services that combine various support and devices, such as telephone, computer, software, and the Internet. Information technology includes all computer-based information systems and related technology used by organizations in the operation of their programs, activities, or services. The chapter discusses the dimensions of information systems and also discusses the most common types of information systems in organizations. Some organizations develop and maintain: executive information systems, management information systems (MIS), and transaction processing systems. Effective information system must meet at least five criteria such as accuracy, completeness, consistency, relevance, and timeliness. The chapter presents the relationship between information technology and the financial sustainability of nonprofit organizations.