Is your nonprofit on the right track?
The era of thinking that collection and management of data are only for the for-profit is gone. For any nonprofit to stay ahead and achieve social impact, it must use data to make informed decisions.
The word data is not a new phenomenon in the for-profit world but looks like a new language in the third sector. The reason is the knowledge that nonprofits are not for the gains, so no need for data.
Research has shown that only 40% of nonprofit professionals use data to make decisions. The remaining 60% do not use data. And the next question is - why are nonprofits or social enterprises not using data to make informed choices? In these challenging times, donors want accountability about their funds. The smart decision any nonprofit will make to be successful is to understand the role data plays and, managing it to make a social impact.
Why nonprofits cannot utilize data effectively
- Insufficient data collection
The importance of data for all sectors of the economy is to provide information for better decision-making. There are many sources of collecting data for nonprofits these includes; Annual Reports, Grants Reports, Donors Report, Trip Reports, Social Media, Emails and so on. Collecting this data is obviously important, but knowing the reason for collecting data is comparatively more important. Having the right data, your nonprofit will learn, monitor program impact and the needs of beneficiaries.
2. Personnel’s lack of knowledge to use data
Sometimes because of the use of different systems to manage data, some nonprofit professionals find it hard to use data from these systems. With this diverse knowledge, one can easily encourage open communication between teams to enable sharing, transfer, and training as the occasion demands.
3. Using different systems for data
The use of different software to manage data can be very time-consuming and confusing. Having all the data in a central location is a great way to save time. It also makes it easier to analyze trends and insights.
There are some very easy-to-use softwares, designed for nonprofits and social enterprises. Quantibly is one of them. It is a 360-degree data management solution, developed for Nonprofits and Social enterprises by nonprofit professionals. It also works as an Organizational Management System (OMS), made up of CRM+ERP and M&E. You can give it a try for free for 30 days.
4. Unavailable tools to analyze data
When you are stuck with what to do with the volume of data coming in, having the right tool to solve the complexity is necessary. Quantibly also helps nonprofits to analyze data.
5. Insufficient time to focus on data
After having a data management system installed, it is easier for you to focus on what matters. It is the system that will present you with useful data insight to improve processes. You will be able to access reports for better donor management and fundraising. When you get familiar with how the system works, you would have saved enough time and focused on what matters.
The power of data can only be useful when the right metrics are analyzed and interpreted. Tracking the right metrics to reviewing existing data helps uncover breakdown in performance and possible steps in fixing them. It also reflects the metrics that are performing and better ways to improve the process. When data are analyzed and better interpreted, businesses have insights on how to improve their operating procedures. It also helps create better customer experiences.
