Non Profits Analyzing Data to Gain Support
Business analytics is commonplace in for-profit entities. Gathering data, crunching numbers and spotting trends can improve operations and increase profits. Increasingly, nonprofits are using analytics to determine what they are doing well and what needs to be improved.
At the same time, government agencies, charitable and corporate foundations, and individuals have been taking more care with their donations, asking for evidence that nonprofits are fulfilling their missions, and are therefore worthy of support. Analytics enables nonprofits to provide the data that proves their success.
Keeping detailed databases on clients served and their outcomes are helping nonprofits approach their missions in a more business-like fashion. Where once paper records sufficed, now sophisticated software is tracking clients, measuring progress and assessing impact.
Data systems capable of delivering such insights are not cheap; nor is the staff required to run them and interpret the results. Similarly, independent impact studies can cost more than many nonprofit agencies can spare. However, knowing whether or not your agency is meeting its objectives is fundamental to its existence.
Plus, discovering the hidden gems in data can help re-establish an agency’s focus. For example, if data shows that access to low-cost or free child increases the success rate of parents pursuing GEDs, then an organization can focus on putting together a child care program, as well as preparing students for exams.
Data can also attract new investment from donors. It’s essential to show donors that the work you’re doing is making a real difference. In terms of hard numbers, giving them a black-and-white picture of the return on their investment can make a huge difference.
To attract donors and improve performance, nonprofits need to act more like businesses and demonstrate tangible results. While it may be more difficult to measure social change than corporate profits, it can be done. Tracking participation and results can be accomplished through simple databases, like Microsoft Access, or through more sophisticated database management systems. Give it a try, and you may be surprised at the results you see over the next six months or year.