How data can help your nonprofit succeed

What’s measured is treasured. What’s measured is improved.   

Data is vital for the success of every organisation; in a sector that’s concerned with powering positive change, it becomes all the more imperative. In the bid to do good, your nonprofit organisation engages in a variety of activities and deals with different people. Tracking the metrics of its efforts and interactions is crucial for it to thrive. 

And, there is much data to collect, across your organisation. This can include: 

• Financial data in the form of income and expenses
• Marketing and website data such as site traffic, traffic source, social media engagement, bounce rates, email open rates, click-through rates and subscriptions
• Donor demographic data like the name, age, occupation, background, contact details, participation and donation history of the various donors
• Field-related data such as the extent of the challenges in the community and the population of the community 
• Campaign data in the form of event attendance, generated revenue, supporter engagement and satisfaction
• Donor retention rates

Data collection and analysis have room to improve in the nonprofit sector; only 40% of nonprofit professionals say they use data when making their decisions. Without mincing words, many are missing out because there are different ways data can help your nonprofit succeed.  

4 Proven ways data can help nonprofits excel

Let’s unpack the various ways nonprofits can benefit from using data science.

1. Data ensures operating efficiency

Charitable organisations involve multiple moving parts; working with data guarantees that your nonprofit runs optimally. Data analysis uncovers the procedures that need adjustment. Detailed information on the organisation’s administration methods and their outcomes compel the team to decide on what should be changed or continued.

With respect to your nonprofit’s finances, data collection and analysis come in handy too. Accurate financial information guides your organisation’s budget and expenses, leading to greater cost efficiency. 

Thankfully, it doesn’t end there. Such data make it possible to accurately report to grantmakers, other donors, regulators and the general public. The accountability demonstrated by clear financial reporting improves your nonprofit’s credibility and keeps it on the right side of the law.

Data can help your nonprofit succeed through performance assessment and the evaluation of the organisation’s culture. With data, you can set standards for the organisation. Also, insight into the prevalent practices in your nonprofit and how your employees feel about them will foster positive cultural change, helping you build an organisational culture of respect, communication and inclusion.

These will lead to steady progress over time.                

2. Data drives marketing and communication strategies

Data collection and analysis can help nonprofit organisations refine their marketing and communication strategies. Firstly, it pinpoints the schemes and types of messages and content that connect better with your nonprofit’s community. With such insight, you can drop the least effective ones and channel your resources to those that yield results.  

Also, proper use of data makes for better storytelling. When communicating your nonprofit’s efforts and impact, weaving in first-person accounts boosts relatability. It clearly illustrates how far your nonprofit has come and how much ground there is to be covered. When such content is published, it easily triggers emotions which encourage support in the form of contributions and re-shares to enhance the reach of the message.

Data-powered marketing and communication ensure a balance of quantitative and qualitative information. A fine blend of both kinds of detail in written and visual content efficiently contextualises your organisation’s efforts and corroborates its claims. The outcome is a better brand reputation for your nonprofit as a trustworthy organisation.

3. Data provides actionable insights for better-informed decisions

In an industry as delicate as the nonprofit sector, you don’t want to throw spaghetti against the wall to see what sticks. Instead, you want to take targeted steps to achieve your goals despite limited resources. 

Data makes that possible in the form of

• Smarter decision making which boosts productivity
• Details of your donor database which help you make smarter decisions about donor retention
• Insight into the efficiency of your nonprofit’s campaigns which can help make necessary tweaks

Data collection and analysis helps nonprofit organisations gather intelligence on what’s hot in the nonprofit sector. The latest industry trends are usually worth exploring; they can help charitable organisations expand their reach, uncover better fundraising models or reveal better ways for nonprofits to harness their capabilities. 

Also, the industry scoop shows how your community and key stakeholders interact with various kinds of messaging. This will help you polish your communication to effortlessly move them along the conversion funnel.     

4. Data strengthens relationships and fundraising efforts  

The strength of a nonprofit organisation truly lies in its relationships and the success of its fundraising campaigns. Data makes it easy for charitable organisations to build meaningful relationships and win at fundraising. By collecting relevant data, your nonprofit can gain greater insight into what matters to its community and those it serves. 

Equipped with such knowledge, your organisation can effectively assess its programs and amend them to align with the concerns of your key stakeholders. This will better reinforce their support for you. Data also enhances relationship-building because it makes personalised interactions a reality. With the details of your audience, you can tailor your messaging to each of them – a move that boosts engagement.   

Accurate facts and figures make fundraising a breeze. They throw in high relief your organisation’s offerings and strategies, showcase the impact of your efforts and demonstrate transparency. Sharing such information with previous and potential donors and grantmakers authenticates your solicitation for funds; support in the form of subsequent donations and recurring grants usually follow!

Simply put, it pays to focus, analyse and manage data related to your organisation and its impact. Gathering and evaluating data will guarantee that your nonprofit builds stronger relationships, wins at marketing and fundraising and makes data-fueled decisions that leave little room for error. 

Learn more about collecting demographic data and the different ways funding organisations can collect demographic data for their funding programs.