Can you think of a more valuable asset today than data? Other than money, of course. We can’t!
Since we’ve been working closely with nonprofits for two decades, we know that they rarely leverage their data to the fullest. So today, we’re exploring data strategy best practices for nonprofits.
Did you know that 78% of nonprofits don’t have a data strategy? Worse yet, 56% of nonprofits say they lack the tools needed to analyze data effectively.
We understand this better than you know. 12% of nonprofits can’t make it past their fifth year, and 30% of them don’t make it to 10 years because of insufficient funding.
This happens even though nonprofits hire more than 10% of the US workforce.
At a glance, the nonprofit industry looks promising. However, if you’re a small nonprofit, chances are you will struggle, no matter how big the issue you are solving is.
Let’s end the nonprofit starvation cycle together.
Starting with data strategy best practices for nonprofits that don’t cost an arm and a leg!
But first, a quick primer:
A solid data strategy provides the framework for how your organization will collect, manage, analyze, and use data to meet your objectives.
It allows nonprofits to make better, data-driven decisions that can significantly impact their ability to fulfill their mission. Whether it’s optimizing fundraising campaigns, improving donor retention, or measuring program effectiveness, data plays a critical role in a nonprofit’s success.
Nonprofits are increasingly being judged not just on their mission, but on their impact. Funders, donors, and stakeholders now demand transparency, measurable outcomes, and accountability. GuideStar highlights that donors are increasingly scrutinizing transparency, data, and impact reports before contributing.
Without an effective data strategy, nonprofits struggle to provide this kind of visibility and risk losing out on crucial funding.
While a solid data strategy is crucial for nonprofit success, it’s not without its challenges. Many nonprofits, especially smaller ones, encounter obstacles when implementing and maintaining a data-driven approach.
Let’s explore some of the most common data challenges nonprofits face and practical ways to address them.
Nonprofits often operate with limited budgets and small teams, which can make it difficult to invest in sophisticated data management tools or hire dedicated data experts.
Solution: start small and prioritize. Focus on collecting and analyzing only the most important data types that directly impact your goals. Additionally, use cost-effective tools like SyncApps to integrate data across platforms without the need for a large IT team.
Like SyncApps, many other software providers offer discounted or free versions of their tools for nonprofits, allowing even small organizations to adopt powerful data management systems.
Data silos occur when different departments within a nonprofit use separate systems that don’t communicate with each other. This can lead to fragmented data and a lack of transparency across the organization.
For example, the marketing team might use an email marketing tool to track campaign success, while the fundraising team uses a different system to track donor interactions. Without integration, it’s difficult to get a complete view of donor engagement and program effectiveness.
Solution: Break down silos by integrating systems. Use tools like SyncApps to connect your CRM, marketing automation, and financial software so that all data flows seamlessly between platforms.
Poor data quality is a common problem for nonprofits, leading to inaccurate reports, inefficient operations, and missed opportunities.
Plus, you pay for each contact you have, whether it’s a higher subscription fee to your CRM or higher postage fees if you send regular mail. Why not make sure your data is clean?
Solution: Implement data cleaning protocols and regular audits to ensure the accuracy of your data. Encourage staff to follow consistent data entry practices, and consider using software that can automatically detect and merge duplicate records.
Many CRMs, including Salesforce, offer built-in tools for data cleaning and validation.
Nonprofits handle sensitive data, including donor information, financial records, and program participant details. A breach of this data can damage your organization’s reputation and lead to legal consequences.
NTEN found multiple problems with nonprofit data, including how it’s stored and shared (or not shared) among nonprofits.
Solution: Invest in secure cloud-based data management systems that offer encryption and other security features. Ensure that your organization complies with data privacy laws such as GDPR and CCPA, and train staff on best practices for data security. Regularly update your security protocols and use password management tools to protect sensitive information.
Given the resource constraints many nonprofits face, developing and implementing a data strategy can seem like an overwhelming task.
However, with the right approach and tools, even small nonprofits can build a successful data strategy that maximizes the value of the data they collect.
There is a huge push for nonprofits to go more digital — and many of them have already done it. Let’s see how you can join them without spending a fortune on your data strategy and its implementation.
One of the first steps in building a data strategy is to identify the types of data that will have the biggest impact on your nonprofit’s mission. Too often, nonprofits collect a lot of data, but not all of it is useful.
In fact, too much data can harm your operations. So let’s make sure you collect and analyze the right data.
Here are some of the most important data types nonprofits should consider:
Struggling with your marketing data? Level up your campaigns with data-driven insights and avoid costly data silos. Integrate your marketing automation platform (Constant Contact or Mailchimp) and Salesforce NPSP.
Your data strategy should be directly aligned with your organization’s goals. This means setting clear objectives that data collection will support. Common objectives for nonprofits might include:
By having specific goals in place, your data strategy becomes more targeted and actionable. Additionally, measurable objectives give your team a way to assess the success of your data efforts and make adjustments as necessary.
One of the main concerns for nonprofits is the cost associated with implementing sophisticated data management systems. Fortunately, many solutions offer discounted or free tools for nonprofits.
Here are some key categories of tools to consider:
One of the most common data challenges for nonprofits is dealing with data silos—when different departments or systems don’t communicate with each other. For example, donor data might be housed in a CRM, while marketing data is siloed in email marketing tools or social media platforms.
This lack of integration makes it difficult for nonprofits to get a complete picture of their performance.
Data integration is crucial for nonprofits that want to streamline their operations and maximize their impact. Integration solutions like SyncApps allow nonprofits to connect systems like Salesforce, Mailchimp, NetSuite, and more.
By syncing marketing, donor, and financial data, nonprofits can gain deeper insights into their organization’s performance and identify opportunities for improvement.
Want to increase your funding through hyper-targeted campaigns that open donor wallets?
Start integrating your critical data with SyncApps!
A data strategy is only as effective as the people who use it. To get the most out of your data, it’s crucial to foster a data-driven culture within your organization. This means training staff on how to collect, interpret, and act on data in their day-to-day activities.
Invest in data literacy training for your team. Organizations like DataKind offer pro bono data science services specifically for nonprofits, helping them train staff and volunteers on how to use data to inform decisions.
Encourage collaboration across departments to ensure that everyone has access to the data they need. Make data accessible through dashboards, reports, and regular meetings to ensure the team remains aligned with the organization’s goals.
More importantly, make sure that everyone has access to data. Integration is your safest bet in making sure that your data is not siloed by department.
Once you’ve implemented your data strategy, it’s crucial to continuously monitor its performance and make adjustments as needed. Set up regular intervals (quarterly or semi-annually) to assess whether your data strategy is meeting its objectives.
Monitoring KPIs (Key Performance Indicators) will help you determine whether your strategy is on track or if there are areas that need improvement.
Some common KPIs for nonprofits include
By regularly reviewing these KPIs, you can identify trends and make data-driven adjustments to their strategy.
For example, if donor retention rates are lower than expected, you can investigate and implement new engagement strategies, such as personalized emails or outreach campaigns.
Personalization is the lifeblood of modern marketing. It can reduce donor acquisition costs by 50% and improve marketing spend by 30%.
The easiest and most accurate way to personalize your communication with donors, stakeholders, and volunteers is data integration.
Here’s why:
The easiest way to build the foundation of your nonprofit data strategy is integration. Want to integrate your mission-critical data but don’t know where to start?
That’s why we offer a 28-day, no-obligation trial of SyncApps. We are the preferred integration solution for nonprofits, as proven by our G2 reviews and multiple partnerships with nonprofit advisory companies.
Here’s why nonprofits love us:
We’ve got dozens of other reasons, but we’ll let you discover them yourself.
Get instant access to data integration here!
As technology continues to evolve, so too will the role of data in the nonprofit sector. Here are some key trends that nonprofits should watch for in the coming years:
AI is already transforming the way nonprofits analyze and use data. AI tools can automate data analysis, provide predictive insights, and even personalize donor outreach based on past behavior.
You can already do all of these things on SyncApps, with and without AI, and we estimate that, in the future, AI will play an ever bigger part in personalization.
Nonprofits are increasingly using data to tell compelling stories about their impact. Data visualization tools like Tableau and Google Data Studio make it easier for organizations to present their data in a visually appealing way.
This trend will continue to grow as more nonprofits realize the power of data-driven storytelling in fundraising and donor engagement.
As nonprofits collect more data, they must also consider the ethical implications of how they use and store it. Issues like data privacy, consent, and transparency will become even more important as donors and program participants demand more accountability from organizations.
Nonprofits will need to adopt strong ethical guidelines for data collection and use.
“Data strategy” may sound intimidating, especially if you’re already operating on a skeleton crew and with limited resources — as most nonprofits are. Hopefully, this article showed you that data strategy doesn’t have to be too complex or out of reach.
Besides these data strategy best practices for nonprofits, we can help you make the most out of your data. Claim your SyncApps free trial and schedule a call with our consultants. It’s completely free, so what have you got to lose?
