Analyzing Your Fundraising Data

To better understand the importance of analyzing your data, let's delve into a real-life scenario. Imagine a typical day at a recreation centre where a staff member and a volunteer are discussing a news article they have recently read. The article reveals how a music program for kids, located near the recreation centre, received a generous $5,000 donation from a local benefactor. The volunteer recalls that this donor has previously donated a modest amount to their own organization. 

Feeling hopeful, they decide to connect with this donor, aiming for a significant donation. They manage to secure a meeting and, after a positive discussion, they receive a donation, but it's only for $500. Confused, they wonder why their donation is smaller compared to the one received by the music program. The missing piece of the puzzle is their lack of knowledge about the donor's passion for the creative arts, and his strong connection with the other organization.

It is best to have as much information as you can about someone, prior to asking them to provide major support for your organization. While there is always a possibility that they might give, your time would be better spent approaching someone who already has an interest in your cause. 

Being armed with enough information is not just for asking for major support, but for any strategic fundraising decision. And one way we can make more thoughtful decisions, and move our organizations forward is by analyzing our donor data.

Getting started with nonprofit data analysis

Data analysis is a crucial aspect of fundraising. It involves collecting, organizing, and analyzing your fundraising data to gain a more in-depth understanding of your donors. The goal of analyzing your data is to gather sufficient information that will guide your organization's decision-making process.

If your organization is new to data-driven fundraising, data analysis can be challenging. Whether your nonprofit uses donor management software, or you use a simple spreadsheet to manage your donor data, it can be difficult to determine which information you should focus on. But, the key to using fundraising analytics is to understand what your organization is trying to achieve, and let that guide your process.

Clean your donor data

Before diving into data analysis, it is important that your donor data is clean. This is especially true when it comes to your donor contact information. This means ensuring all the names are spelled accurately, and addresses, phone numbers, and emails are in a uniform format. 

Furthermore, it is essential to keep your records free of duplicates. Imagine the thrill of seeing a donor's name pop up multiple times in your database, leading you to believe they are a loyal supporter. But then, you realize these are just duplicate entries, not multiple donations. So, in order to maintain an accurate view of your donor's contributions, keeping your records free of duplicates is key.

What are the benefits of analyzing your donor data?

There are many benefits to analyzing your data. It can provide you valuable insight as to which fundraising activities work best for your organization, or which communications resonate best with your supporters. This could range from a large fundraising event such as a gala, or a silent auction, depending on your specific audience and fundraising goals. Similarly, data analysis can shed light on the type of communications that your supporters engage with the most, whether that be social media posts, or emails, facilitating better connections with your supporters. 

Additionally, this process is not just about highlighting what works, but can show areas in your fundraising strategy where improvement is needed. Perhaps a fundraising initiative is not reaching its potential, or recently developed messaging for a fundraising campaign is not yielding the desired results. By analyzing your data, you can identify these areas, and make the necessary improvements.

Asking questions about your nonprofit data

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, a lack of experience in analyzing donor data should not deter you. The initial step is to simply ask questions. 

It is important to understand the reasoning behind the actions your organization is taking. For example, why is your nonprofit undertaking specific fundraising activities? Is it due to a tradition of following a certain fundraising method? Alternatively, is it because your organization is influenced by the fundraising activities of similar organizations? The key is questioning the rationale behind choosing certain fundraising activities and then ensuring that these choices are in sync with your nonprofit's fundraising goals. By doing so, you can ensure your efforts are aligned with your mission, potentially improving your fundraising strategy and effectiveness.

Investing time in understanding your data is critical. It allows you to get a clear picture of your supporters, and identify which strategies are yielding the best results. Starting your data analysis now will lay a strong foundation for your organization's future success. Make sure to take this step, as it may be simpler than you might think, and the rewards can be immense.