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For nearly two decades, Grace Foundation has been quietly shaping a future for New Zealanders leaving prison—a future that is anchored in human dignity, aroha (love), and practical pathways to reintegration. Its story is one of vision, grassroots passion, and an unwavering belief that everyone, no matter their past, deserves a chance to start over. Yet as the organization expanded into Aotearoa’s largest residential bail provider, it began to face the classic growing pains of scaling up compassionate, human-centered work: antiquated systems, disconnected workflows, and mountains of paperwork that left staff juggling more administration than care. This is where technology, often feared as impersonal, stepped in as an unexpected ally through a collaboration with Delta Insights and Microsoft, culminating in the launch of Grace Foundation’s tailored Dynamics 365 platform—endearingly nicknamed “Gracie.”

The Challenge of Scaling Compassion​

Grace Foundation’s model is intensive and deeply personal. At the heart of its work is a commitment to providing accommodation, rehabilitation, and holistic support for people leaving prison—often when they have nowhere else to go. The demand is staggering: 450 residents are in care, with another 700 on the waitlist, highlighting a critical need for scalable, effective solutions that do not sacrifice the organization’s essence for efficiency.
Historically, Grace Foundation’s operational engine was fundamentally analog. Referrals, placements, funding applications, compliance reporting, and daily client management were all handled through a patchwork of software, paper forms, and endless spreadsheets. While this ad hoc approach is common in the social sector, it revealed significant pain points as Grace grew. Staff, already stretched by the emotional labor of frontline work, found themselves bogged down in manual processes. Crucially, the lack of real-time visibility meant it was nearly impossible to know, at a glance, which rooms were available or to produce up-to-date reports for funders and government agencies.
This administrative load was more than an inconvenience—it was an existential barrier. Without the ability to prove and improve outcomes at scale, future funding, operational stability, and the ability to support more people hung in the balance.

Enter Delta Insights and the Microsoft Ecosystem​

Recognizing these constraints, Grace Foundation turned to Microsoft for guidance, connecting them with Delta Insights—a local technology partner specializing in community-focused digital transformation. What followed was not simply a software procurement exercise but a shared process of discovery, co-design, and empowerment.
Delta Insights deployed their “Delta Reach” platform—a pre-built, customizable Customer Relationship Management (CRM) solution built atop Microsoft Dynamics 365 and hosted in the secure cloud environment of Microsoft Azure. Importantly, Delta Reach isn’t boilerplate SaaS; it’s designed specifically for not-for-profits, social services, and wellness organizations, favoring flexibility, partnership, and user ownership over opaque “black box” tech solutions.
Meeting with Grace’s team through a series of intensive workshops, Delta Insights approached the project as a lived collaboration. Program directors and frontline workers, often new to IT development, sat alongside Delta’s engineers, mapping needs, envisioning workflows, and shaping the core system. Four wāhine from Grace Foundation, none with prior tech experience, were central to these efforts, signaling a deep commitment to demystifying software for end users and ensuring the delivered solution would be both sustainable and adaptable.

Building “Gracie” in Record Time​

The results were swift and remarkable: within just 12 weeks, “Gracie”—the bespoke iteration of Dynamics 365—was operational. Where once referrals, placements, and reports existed in scattered silos, Grace Foundation staff could now access a holistic, live view of their entire operation. Referrals, housing allocations, program tracking, and reporting—all centralized, all accessible via a single platform.
The choice of Microsoft Dynamics 365 as the backbone was strategic on multiple fronts. First, its integration with Azure affords Grace Foundation enterprise-level security, compliance, and scalability—non-negotiable requirements when handling sensitive personal data and liaising with government agencies. Second, Dynamics’ modularity and API-driven architecture mean the system can evolve and expand alongside the organization. Lastly, its integration with tools like Microsoft Power Platform allows the development of custom automations and apps as new needs emerge.
But the technological leap wasn’t just infrastructural. Embedded at the core of “Gracie” are advanced features such as AI-powered automations, including Microsoft Copilot. These enable frontline staff to streamline repetitive tasks—auto-generating records, recommending support pathways, and intelligently dispatching cases to the appropriate coordinators—all powered by real-time data from across the organization.

Empowering Staff and Centering Residents​

For Ulalei Letele, Grace Foundation’s director, the shift has been transformational. Gone are the days of shuffling spreadsheets, scrambling for occupancy data, and spending hours manually compiling reports. Instead, staff are now freed to focus on what matters most: providing compassionate care, building trust with residents, and responding rapidly to emerging needs.
“Before Gracie, we were tied up in processes. We had software and spreadsheets, but no live visibility. We didn’t know how many rooms were free at a glance. We couldn’t report on outcomes easily. Now, we can. It’s changing how we operate,” Letele notes. This operational clarity isn’t just about saving staff time—it’s also about bolstering confidence among funders and government partners who require proof of impact and up-to-date compliance.
By the numbers, the shift has been compelling. According to Grace Foundation’s own estimates, Gracie saves the organization approximately $54,600 annually in administrative time. While such figures should be independently verified for audit purposes, two key benefits are undeniable:
  • Centralization of Data: All critical workflows, from intake to placement to outcome monitoring, now flow through a unified CRM, making monitoring, evaluation, and auditing not only possible but painless.
  • Automation and AI: Embedded Copilot tools automate repetitive tasks, minimize manual errors, and facilitate real-time reporting—allowing the team to scale impact without ballooning headcount or overhead.

Critical Analysis: Strengths and Risks​

Grace Foundation’s story is a best-case scenario for digital transformation in the social sector. Several key factors underpin this success:

Notable Strengths​

  • Co-Design and Empowerment: The system wasn’t “dropped in” from above; it was built with and by its users, leading to better adoption, higher satisfaction, and a sense of ownership that bodes well for sustainability.
  • Vertical Specialization: Delta Insights’ focus on not-for-profits and social services meant their approach was steeped in empathy, sector knowledge, and a willingness to adapt best practices—a stark contrast to one-size-fits-all enterprise solutions.
  • Rapid Deployment: Building a CRM of this complexity in 12 weeks is notable. This agility is a testament to both Dynamics 365’s flexibility and the commitment of all partners involved.
  • Future-Proofed Architecture: Using Microsoft Azure and Dynamics ensures that Grace Foundation can scale, integrate new features (including AI and mobile apps), and meet evolving compliance obligations without the risk of being trapped in legacy tech.
  • Real-World Impact: Most importantly, technology has been wielded as an enabler, not a distraction. By reducing administrative burden, Gracie returns precious time to staff and dignity to residents—core to Grace Foundation’s mission.

Potential Risks and Cautions​

Yet even with this success, several risks and considerations remain:
  • Data Privacy & Security: Housing highly sensitive personal data in the cloud raises legitimate concerns about privacy and cybersecurity. While Microsoft Azure meets high international standards in this domain, New Zealand’s not-for-profit sector is an increasingly attractive target for cybercriminals. Ongoing staff training, independent security audits, and robust disaster recovery planning are non-negotiable.
  • Technology as a Barrier, Not a Bridge: Even well-designed systems can become burdensome if staff are not supported through continuous professional development. Grace Foundation’s focus on building internal tech champions is commendable, but turnover or staff fatigue could erode gains unless there’s ongoing investment in user engagement and empowerment.
  • Sustainability and Costs: While initial deployment was partner-supported, long-term licensing, updates, and support for a cloud CRM can prove costly. It’s essential that cost-benefit analyses be revisited periodically, especially if the organization evolves its service offerings or external funding landscapes shift.
  • Risk of Vendor Lock-In: Proprietary platforms, even those as robust as Dynamics 365, can make it challenging to migrate data or pivot strategies in the future. Ensuring systems remain as open, interoperable, and standards-driven as possible is a best practice—something Delta Insights advocates, but which requires diligence.
It’s worth noting that independent verification of certain impact claims—like the precise dollar value of time saved or the sustainability of AI-powered tools—remains essential. While metrics provided by Grace Foundation are plausible given Dynamics 365’s track record in the sector, the importance of ongoing measurement and third-party evaluation cannot be overstated for maintaining credibility with funders and stakeholders.

The Broader Impact: Technology, Dignity, and Systemic Change​

Grace Foundation’s journey reflects a growing recognition across Aotearoa—and globally—of the role digital transformation can play in closing equity gaps within social services. For marginalized populations, especially those transitioning out of incarceration, systemic obstacles are daunting: stigmatization, housing precarity, access to healthcare, and bureaucratic inertia. Technology, when thoughtfully applied, offers a mechanism to cut through complexity, drive efficiencies, and most importantly, reinforce the fundamental dignity of those being served.
Vanessa Sorenson, Managing Director of Microsoft New Zealand, encapsulates this ethos succinctly: “Digital transformation is only meaningful when it leads to real-world impact. Grace Foundation is changing lives every day. Our role is to support that, using the right tools, the right people, and the right partnerships.”
Grace’s new platform doesn’t just tick boxes for operational efficiency—it serves as a proof point for what’s possible when social purpose and technology are aligned through respectful partnership.

What the “Gracie” Platform Means for the Future​

Looking ahead, Grace Foundation and Delta Insights are planning the next phase of evolution for Gracie. The modular design of Dynamics 365 means new services—perhaps in health, employment, or education support—can be layered onto the platform as organizational needs shift. Early discussions include integrating with mobile platforms for outreach, more sophisticated AI for predictive analytics, and potentially extending the model to support other community organizations.
For the wider sector, Grace Foundation’s story is instructive. It demonstrates that:
  • Community ownership is critical: True digital dignity comes when organizations shape their own tools, rather than fitting themselves into a technologist’s mold.
  • Digital transformation is a journey, not a destination: Ongoing iteration and open feedback loops are key to lasting impact.
  • Partnerships amplify impact: When technology providers, local experts, and community leaders collaborate authentically, the results are not just efficient—they are transformative.
Grace Foundation’s embrace of cloud CRM and AI is also emblematic of a broader shift in the sector. According to Microsoft’s recent case studies and market research, not-for-profits globally are turning to Dynamics 365 and Azure for their reliability, security, and customizability. Similar deployments in Australia, the UK, and North America attest to the platform’s effectiveness when thoughtfully implemented, although differences in regulatory environments and funding models mean that local adaptation, as demonstrated by Delta Insights, remains crucial for success.

Conclusion: Growing the Heart Alongside Technology​

Grace Foundation’s digital transformation is, at its core, a story of trust—between staff and residents, between the organization and its partners, and between technology and the mission to serve. “We know Gracie will grow with us. That gives us comfort, the confidence to take the next step, and the capacity to grow our heart every day,” says Letele.
As Grace Foundation looks to the future, its experience offers a roadmap for other not-for-profits grappling with digital transformation. Start with people, not products. Build together, not in silos. Measure impact as rigorously as you deliver services. And never lose sight of the core vision: restoring dignity, connection, and hope to those who need it most.
In an era where technology often threatens to distance us from our humanity, Grace Foundation has proven that the digital can, in fact, deepen the personal—when approached with humility, partnership, and a refusal to compromise on values.
The journey of Gracie is only beginning, but its early lessons are already rewriting what’s possible for digital dignity, both in Aotearoa and beyond.

Source: Microsoft Grace Foundation’s Dynamics 365 Platform Delivers Digital Dignity to Support Prisoners in Need – New Zealand News Centre