Data is an essential tool for small organizations. When it is collected and managed correctly it can help your organization make data-driven decisions and remove the guesswork. It allows your organization to assess your past fundraising strategies to determine what worked, what was ineffective, and what could be improved going forward. And finally, analyzing trends over time can help an organization anticipate future challenges and opportunities, allowing them to take corrective action in advance instead of responding to a setback after it happens.
For nonprofit organizations that are new to data analysis, there might be a sense of hesitation among team members because they lack the expertise in this area. However, lack of experience should not deter your team. It is not about being an expert in data analysis; it is about understanding your decisions and how they align with your fundraising goals. By questioning the ‘why’ behind your decisions, you can better align your strategy with your mission and potentially boost your fundraising effectiveness.
Small organizations often find data analysis challenging, leading to missed insights. Here, we will examine five reasons this may be happening to your small team and provide strategies to overcome these challenges.
1. Limited staff and resources. Operating with a small team and limited resources can be challenging, especially when much of your time is spent delivering programs and services. Furthermore, an organization may not have enough people to perform the tasks necessary to run its organization’s operations effectively.
However, this can be tackled by emphasizing ongoing learning and professional development. Nonprofit organizations rely heavily on their team members, and by prioritizing their professional development, an organization can create an environment for learning and growth. This approach not only keeps your team updated with the latest nonprofit trends, but also helps retain experienced staff and volunteers. Regardless of your budget, there are many options if your team would like to learn more about data analysis and how it can help your team. There are free webinars, workshops, and online courses which are widely accessible, ensuring convenience and affordability.
2. Lack of a data-driven culture. Adopting a data culture within an organization can significantly improve fundraising performance. However, sometimes team members may be hesitant to create a data-focused culture which involves using data in decision-making by all members, including staff, board, and volunteers. Team members can be reluctant to make this change due to concerns over its perceived usefulness, or the effort that may be involved to implement a data strategy. Furthermore, there may be team members who simply feel comfortable with the way things are even if making this change will benefit the organization.
By demonstrating the benefits of data, such as enhanced efficiency, or strengthened relationships with those that support your cause, you can address concerns with your leadership. Once people understand the benefits, it will be much easier to convince them to buy into a culture of data.
3. Lack of clear fundraising goals. Fundraising goals are important because they act as a compass that guides your organization. Unclear or undefined goals can lead to confusion about how to use your data, missed opportunities, and most importantly can lead to decreased productivity. When team members are uncertain where to focus their efforts, it becomes nearly impossible to maximize your nonprofit’s resources, so your team can work more efficiently.
To address this, start by clearly defining what it is your organization wants to achieve first. This will help guide you when you are analyzing your data, and you will know what to look for. For example, if your team’s goal is to convert five existing donors into monthly donors, then your team understands that your data will be used to identify those in your donor database who are most likely to be good candidates for monthly giving based on certain characteristics.
4. Poor data quality. For your organization to fully benefit from your data it must be clean and accurate. Without clean data, you may make decisions based on false information, which may lead you to focus on activities that will not yield the results that you are looking for.
Ensure that all staff members who use your data understand the importance of clean data and are trained in data entry best practices. For example, ensuring individual records are accurate, duplicates are removed, records are formatted properly, and that overall your data makes sense. Cleaning a small dataset with minor issues might take a few hours. However, for large, complex datasets, it can take days or even weeks. If this is too large of a job for your small team you may consider hiring a fundraising consultant that has expertise in data.
5. Insufficient tools. One of the most important aspects of data analysis is data management. Without the proper tools, your data can become difficult to maintain as your list of prospects and supporters will grow. Additionally, it may take more time to validate and to make sure that it is error-free, and that the data makes sense. And lastly, without the correct tools, it can be challenging to summarize how a donor has interacted with the organization over a period of time.
Using a donor management software can ensure that your data is stored safely and easy to reach. It can help streamline your donor data, which will help save your team countless hours. By managing your donor data in one central location, you can effectively analyze giving trends and help you understand your donors better.
By considering some of these challenges, small nonprofits can become better at effectively analyzing their data to find opportunities that will help them with their fundraising strategies. When your organization has the ability to find key insights in your data, your team can find opportunities that lead your cause toward stronger and more sustainable fundraising success.
As someone who loves numbers, video games and fantasy fiction Rochelle can be found playing video games or watching an action or fantasy fiction movie with her family. As the Co-founder of Story Point Consulting, she helps people working or volunteering at small nonprofits and charities find the right donors, effectively communicate with supporters, and strengthen relationships with them once they generously give their support. If you are a small Canadian organization looking for an affordable, easy to use solution to manage your donor data, book a live demo for our donor management software Chronicle to support your fundraising efforts.