Top Tips on Data & Analytics for Nonprofits
Data and analytics are no longer optional, they are essential tools that empower social purpose organizations to make informed decisions, optimize their efforts, and maximize their impact. However, for many nonprofits, the idea of diving into data can feel overwhelming.
AI, analytics, new tools and machine learning can seem complex and intimidating, leaving organizations unsure of where to begin or how to use data effectively.
To help demystify these concepts, The Good Growth Company recently hosted 10 Things Social Purpose Organizations Need to Know About Data & Analytics, featuring Allen Davidov, Senior Vice President and Practice Leader at Environics Analytics. Allen brings over 20 years of experience in marketing, analytics, and fundraising and has worked with organizations of all sizes to unlock the value of data in driving strategy and impact.
Allen shared practical insights on how nonprofits can approach data strategically, avoid common pitfalls, and use data to strengthen donor relationships and enhance fundraising efforts.
Top Takeaways
One of the biggest takeaways from the session was the importance of starting small. Many organizations feel that they need to have sophisticated systems in place to begin working with data, but Allen emphasized that even simple steps — such as analyzing donor lists or tracking campaign performance — can provide valuable insights. Instead of feeling overwhelmed by the vast amount of available data, nonprofits should focus on asking the right questions:
Who are our best donors?
What motivates them to give?
What communication channels work best?
Allen also discussed the three main types of data that organizations can leverage: primary, secondary, and third-party data.
Primary data is collected directly by the organization, such as donor information and survey responses.
Secondary data is gathered by external organizations but can be useful for nonprofit planning.
Third-party data, such as demographic insights from analytics providers can complement an organization’s existing knowledge and help fill in gaps to provide a more comprehensive understanding of their audience.
A recurring theme throughout the session was the critical role of a well-defined data strategy. Before diving into analytics tools or AI, organizations should ensure they have a clear roadmap for data collection, storage, and usage. Allen stressed that a good data strategy outlines the types of data an organization collects, the purpose behind it, and who is responsible for managing and analyzing it. Having a strategic approach not only streamlines operations but also ensures that data is being used effectively to support mission-driven goals.
Data privacy and security were also top concerns during the discussion. Allen highlighted the importance of handling donor data responsibly, not only to comply with privacy regulations but also to maintain the trust and confidence of supporters. Nonprofits should be mindful of who has access to their data and implement best practices, such as avoiding the use of unsecured email for sharing sensitive information and regularly reviewing privacy policies to ensure compliance.
Artificial Intelligence (AI) and machine learning are becoming increasingly prevalent in the nonprofit sector, but Allen cautioned organizations against adopting these technologies without a clear understanding of their purpose. While AI can be incredibly useful for automating processes and identifying trends, it should be seen as a tool to enhance human decision-making, not replace it. He encouraged organizations to experiment with AI in small ways, such as using automation for donor outreach and segmentation, to see where it adds value before making larger investments.
We addressed the misconception that data-driven decision-making requires significant financial resources. Allen pointed out that there are many low-cost ways for nonprofits to start their data journey, such as analyzing past campaign results, leveraging free public datasets, and seeking partnerships with other organizations to share insights and resources. He emphasized that even with limited budgets, nonprofits can take meaningful steps toward becoming more data-informed.
Your Questions, Answered
During the session, attendees had the opportunity to ask Allen questions, leading to valuable insights on practical implementation. Here are a few highlights from our Q&A session.
What should be our top priority when it comes to data analytics?
Start with a well-defined data strategy that outlines what data you collect, where it's stored, and how it will be used to make informed decisions.
What are some low-cost ways to get started with data-driven decision-making?
Analyze past campaign data to identify trends and patterns. Utilize free public resources such as Statistics Canada for demographic insights and explore low-cost analytics tools that can help organize and interpret your data.
How can AI be practically applied to small nonprofits?
AI can be used to automate donor segmentation, personalize outreach efforts, and optimize fundraising campaigns. Start with small applications, such as automated email campaigns, to see the impact before scaling up.
What’s the best way to convince leadership to invest in data initiatives?
Demonstrate small, tangible wins by using data to improve donor engagement or campaign performance. Show how data insights can lead to more informed decisions and greater impact over time.
What’s next?
This session underscored that data and analytics don't have to be intimidating or overly complex. With a strategic approach and a commitment to asking the right questions, social purpose organizations can harness the power of data to drive meaningful change. Whether it's improving donor relationships, streamlining operations, or optimizing fundraising efforts, data can be a powerful ally in achieving an organization’s mission.
The Good Growth Company is committed to helping nonprofits and social-purpose organizations build capacity, scale their impact, and leverage the right tools to succeed.
Join our mailing list below for future sessions in this series, where we’ll continue to explore topics that matter most to social-purpose leaders. You can hire us for custom training.
