Using Data Management to Raise Funds for Your Nonprofit

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.

For-Profit businesses measure key performance indicators closely to help them make better decisions and stay competitive in their respective industries. Startups are investing in data and technology to stay ahead of larger businesses.

Some of the roles of data for non-profits includes the following but are not limited with-

• Legacy Role — identifying what changes have occurred, and analyzing and documenting them in such a way that records the changes occurred and their impact;
• Communication Role — communicating achievements and long-term successes in such a way that motivates staff and stakeholders, and encourages others to adopt similar processes or make similar investments;
• Governance Role — ensuring a degree of accountability by monitoring investment into specific activities and outputs, and tracking their outcomes and impact in a systematic and transparent manner;
• Learning Role — generating information and perspectives on the changes, and analyzing and disseminating them in such a way that all stakeholders can learn from the relationships and processes involved and the mistakes made;
• Policy Role — generating data and analysis that can be used to reform policies, develop new strategies, improve government or donor practices, or strengthen advocacy campaigns.

Nonprofits can use data to help them scale up in achieving social impact. Operating your nonprofit like a business while still retaining your mission and goals will make your nonprofit stand out and stay competitive. Although, nonprofits do not have shareholders and are not profit oriented, but the ability of nonprofits to manage funds and focus on key financial metrics will help gain the trust of donors.

Managing Donor Reports

Financial Accountability and Transparency recently is becoming an issue. It is also a major key factor in retaining donors for your nonprofit and engaging potential ones. Donors and the public want to know what percent of donations support their mission and the number of donation dollars they use to pay for staff salaries and other administrative expenses. Therefore, Nonprofit organizations are requested to provide reports. With this information, donors can better decide which Nonprofit organizations, NGOs, or charities to give donations. Below are major donor management reports to be reviewed at least monthly so you can stay on track to fully funding your nonprofit’s good work;

Using the Right tools

Many tools are available for nonprofits to generate data to make informed decisions and set transparency for mission-driven work. There are donor management systems and constituent management software. A proper Constituent Management Software (CRM) has an inbuilt reporting system, which can also be customized based on individual priorities. Frequently used custom reporting format by nonprofits includes; Annual Reports, Impact Report, and Donor Reports. It also helps in forecasting and managing results better. Another feature of a CRM includes the ability to collect and manage data. It is to have all the contact information of staff, volunteers, donors, beneficiaries, and other contacts to form a database. The database should be easily accessible and regularly updated. It should also manage data, which is key to understanding how to use it for Fundraising, Volunteer recruitment, and Programs/Campaigns. And one SaaS that has this service developed by nonprofits for nonprofits is Quantibly. Quantibly is a 360-degree data management solution for nonprofits. It is an Organizational Management System(OMS) made up of CRM+ERP and M&E. You can give it a try for free for 30 days.

Engaging the same way of measuring financial metrics like the for-profit business will mean more money for your organization, which will help you achieve even more social impact and attract new donors. The more you can use data to measure and adapt, the more you can accelerate the growth of your nonprofits. The first step is to have the right tool to work with, such as an advanced cloud-based database management system.