It’s no secret that data has become one of the most sought-after and mission-critical digital commodities in today’s world. Whether its end use is targeted marketing, informed product development, or tracking consumer trends, one thing is clear — everyone wants (and needs) good data. For nonprofit organizations, this is no different. As much as any other industry, fundraising organizations need good data to be both effective and efficient as they look to raise money from both existing and new donors. Despite this being the case, many nonprofits find it difficult to procure and maintain meaningful, high-quality data. Let’s take a look at a few of the reasons why this may be the case, why it’s important to prioritize data strategy, and a few practical ways to do so.
WHY GATHERING GOOD DATA IS IMPORTANT
Data gathering and analytics can be overwhelming, but it is certainly worth your team’s time and money, as you will almost certainly see a significant return on your investment. There are several reasons collecting good data is important, but we’ll hit on just a couple. First, holistic data will allow you to get a holistic understanding of your donors. Philanthropy News Digest says this about what you will gain through a better understanding of your donors:
“Successful engagements are predicated on knowing who donates to your nonprofit and why. This enables you, in turn, to target the right audience, at the right time, and increases your organization’s efficiency.”
With new data, you also unlock the potential to reach new donors and new markets.
“As you learn more about your donor community and how they respond to your fundraising campaigns, you’ll be able to see which marketing strategies are effective and which should be tweaked or even abandoned. The more data you have on your donors, the easier it is to optimize your strategies to target the desired audience segment and achieve a positive outcome.”
So, there are clear reasons why data can be quite helpful to your organization — but why, then, do so many nonprofits struggle to prioritize and keep up with their donor databases?
WHY GOOD DATA IS TOUGH TO GET
Though each organization may have its own unique challenges when it comes to data collection, analytics, and use, the most common seems to be a lack of resources (perceived or real) — whether those be staffing resources, technological resources, or something else. Staff at nonprofits are often stretched thin and feel as if there is no margin in their workdays to add another thing to their plates, and very few of these organizations have the capacity to hire a dedicated, data-focused team member. So, data becomes an afterthought.
Other organizations do collect data, but then struggle to maintain or utilize it effectively. Sometimes this is due to an underestimation of the power of the data they hold and resulting lack of prioritization, and other times it may be a case of overwhelm — nonprofits having so much data that they aren’t even sure where to start.
Whatever the reason may be, it’s important for nonprofits to begin to shift their mindset around the importance and prioritization of collecting, maintaining, and utilizing good data.
Once the need has been recognized, organizations should then spend some time diving into exactly what data it is that they, specifically, will need and why. In short, they’ll need to develop a clear data strategy. This strategy, however, will be different for every organization, but the information below may give you a place to start.
WHAT KIND OF DATA NONPROFITS SHOULD COLLECT
For organizations that have not historically focused their energy on data, beginning this process can be overwhelming, so where should you start? First, spend some time familiarizing yourself with and digging into what you do have. Sure, this may be very basic donor information or it may be messy, but understanding what you’re working with is a great place to start. If your organization’s data falls into that “messy” category, spend a bit of time cleaning it up — removing duplicates, making sure all fields are completed, etc.
Next, put a process in place for capturing data any new contacts you encounter (and consider sending the same form or request to existing contacts to gain updated information). To begin, the information you collect can be simple: name, address, phone number, and email. Over time, though, you’ll want to consider gathering more specific information, such as social media handles, birthdays, and employment.
WHAT DO YOU DO WITH ALL THIS DATA?
Spending the time and energy to collect all of this data will only benefit your organization if you then have a plan for how to use it. The end goal, of course, is to better engage with new and existing supporters and donors for your nonprofit, and this is where Atticus comes in.
Atticus uses the data you’ve collected to tell you even more about your existing donors and help you make connections to new ones. We’re able to take the information you have to surface new donor details that indicate signals and readiness to give. From there, we’ll use your data and our platform to tell you who to target in your fundraising efforts and find connections between those people and your organization (making blind cold calls a thing of the past).
At Atticus, we love data and we can help you use it to make a meaningful and impactful difference for your nonprofit. With the power of your data and our technology, we have a smarter way to do good.
