Using Data Analytics to Propel Not-For-Profits Forward
Not-for-profit organizations often have lean budgets, which can impact in-house IT resources and investments in technology, including data analytics solutions. As a result, NFPs may not be fully leveraging the data, and ultimately insights, at their fingertips. The continual advancement of technology is another factor that makes it difficult for these organizations to keep up with its evolution.
This doesn’t mean that your not-for-profit can’t adopt innovative technologies. Although your nonprofit may not ever be considered cutting-edge, modern technologies offer greater potential payoffs for your organization and allow you to keep up with stakeholder expectations. Some assume data analytics requires heavy upfront investment, but that’s not the case. Solutions can be rolled out in phases, expanded as your organization grows, and often implemented without the need for expensive, enterprise-level software. It’s a good starting point, presenting opportunities to streamline operations, increase funding, and enhance client services.
Why Not-for-profits Need Data Analytics Now
Nearly every not-for-profit sits on mounds of untapped data. Harnessing this data might seem overwhelming, but that’s where data analytics can prove invaluable. It offers the tools you need to gather data and convert it into actionable intelligence your leaders can use to make more informed decisions.
Data analytics has now been around long enough that various subsets have developed, for example:
Descriptive: Identifying trends and analyzing behavior.
Predictive: Forecasting the behavior of donors, volunteers, or constituents.
Prescriptive: Providing advice on how to pursue strategic goals.
Not surprisingly, the rapid spread of artificial intelligence (AI) has also transformed data analytics. “Augmented” analytics involves using machine learning and AI to enhance data preparation, analysis, and insight generation.
The numerous benefits of data analytics make it a strategic advantage for any organization. One advantage it presents to nonprofits is advancing data accuracy. These organizations often have data that accumulates in silos and doesn’t communicate with one another. This can result in errors when staff try to manually collect and organize information. Data analytics can preempt this risk while fostering stronger organization-wide collaboration.
Data analytics can also facilitate a forward-looking perspective that leads to better strategic planning. Financial statements, for example, provide a wealth of information (though they are backward-looking by nature). With data analysis, you can access real-time financial information presented on easy-to-understand dashboards. Armed with objective and current data, board members and executives can identify impending challenges earlier and respond with more agility to unexpected issues.
Key Analytics Strategies for Not-for-profit Success
Data analytics can increase efficiency and effectiveness in various ways:
Regular wealth screening to quickly identify likely donor prospects and their preferred communication methods.
Market segmentation or fundraising, membership recruitment, or other purposes by recognizing trends and patterns.
AI Chatbots that automate routine communications and customer service requests, freeing up staff to focus on more complex tasks. Chatbots can process smaller donations while routing larger or more complicated gifts to human staff.
Interactive storytelling with dashboards: Although emotional appeals have their place, nonprofit supporters increasingly focus on outcomes. If your nonprofit has a data analytics dashboard, it can be embedded directly into presentations or even your public website, allowing stakeholders to see outcomes in real-time, with stories and impact metrics that automatically update themselves.
Tracking key performance indicators (KPIs): With dynamic updates, leaders can evaluate programs, fundraising campaigns, and website and social media activity, adjusting as needed.
Bring Your Data to Life
Stop wrestling with scattered data. Our experts help nonprofits and businesses turn complex information into actionable insights. From dashboards that update automatically to AI-driven analytics, we make it easy to track outcomes, improve decision-making, and tell your story in real-time. Best of all, these solutions can be designed to fit your budget, whether you’re starting small and building over time or are ready for more advanced capabilities right away.
Contact Clark Schaefer Consulting today to see how smarter data drives more informed decisions.
Expert Contributors
