28 Nov 2012 1 Comment

4 Ways you can use data to optimize your nonprofit strategy

In April, NTEN surveyed 398 nonprofits for its State of Data Report.  They published the results last week and they are interesting.  It found that while most nonprofits are collecting data, there is a wide disparity between those that use it and those that do not.

Collecting data is useful because it allows you to help reach your mission statement, track donor tendencies and growth, measure the perception and reach of your organization, and set reachable goals.  Yet, as most of the nonprofits surveyed reported, the problem is how to put it to good use.  In fact, 51% of nonprofits surveyed reported having issues working with data and lacking the expertise to understand how to link it with their goals.  An additional 23% said they had difficulty with the technology that measures data.

We understand that a slew of data is overwhelming and difficult to understand.  However, the merits of integrating the data that nonprofit organizations collect cannot be understated.  To help those still struggling with the task of how to use their data effectively, we’ve put together a few suggestions:

  • Start Small.  Sometimes the amount of data is so much that you don’t know where to begin.  Rather than giving up on it, take small steps in approaching the data.  For example, take a look at some past successes and look at the data corresponding with it to see how and why it was successful.  This can serve as a benchmark for using statistics as a guide for future projects.
  • Quantify your mission statement.  If you can define your success in numbers, the data you collect can measure your progress.  For example, if your goal is to enlist a specified amount of volunteers for the year, data collected for the last 5 years of volunteer participation can serve as a guide to reaching that goal.  You can also see how your organization attempted to reach volunteers and measure which strategies will be successful.
  • Invest in technology and human resources.  It is necessary to think of technology as a tool of capacity building.  It can develop networks, track progress, and make your organization more efficient.  However, technology can’t be invested into on its own.  It needs the right people to put it to good use.  If your organization doesn’t have someone who knows how to use data measuring tools such as Google Analytics, it’s time to bring someone on board who can.  They could be a full-time worker, a consultant, or even an intern.  Regardless of who takes up these responsibilities, make sure that they work with everyone on staff to stress the importance of data and how to use the technology that allows you to measure it.
  • Change the culture.  If you see data measurement as useful, you must lead the cause to make everyone see a need for change.  You must stress the value of data measurement in everything from reaching goals and tracking donor tendencies to understanding your reach in the nonprofit community.  Begin with a top-down approach by convincing your board members by demonstrating the need for measurable facts to answer such questions as “where are we under-investing?”

What are your data measuring challenges?  We encourage you to join the conversation.

Photo Courtesy of Mashable

by John Jarowski in Fundraising Ideas, Nonprofit Resources Tags: , ,