Nonprofit Data Analytics

Data analytics is the process of turning data into useful insights that lead to action. It involves analyzing data to discover trends, answer questions, and optimize efforts. The primary goal of data analytics for nonprofit organizations is to take the guesswork out of understanding donors and prospects so askers can maximize every ask opportunity.

There are four primary types of data analytics - descriptive, diagnostic, prescriptive, and predictive. Most nonprofits I work with are interested in predictive analytics which can help fundraising teams anticipate future outcomes based on trends uncovered in historical data.

Data screenings for things like propensity, affinity, and capacity help organizations begin to paint a picture of how donors or prospective donors might fit into its future. These types of services can certainly tell us a lot about people. However, data analytics should make your data actionable. If screenings aren't providing actionable insights and are instead muddying the fundraising waters, they aren't worth the cost.

My advice:

• Know exactly why you want your prospect data screened and what you're going to do with the information that comes out of data analytics. How are you going to act on what you learn? I've worked with more than a few organizations who have invested in screenings only to sit on the findings because they didn't have a plan for how to use them.
• Start with what you already have. Many modern, cloud-based donor management systems come with built in analytics that automatically screen your constituents for marks like next ask amount, online ask amount, and likelihood. When these are used next to lifetime giving, first, latest, and greatest gift amounts and dates (just to name a few) you have a powerful place from which to make strategic decisions.

Donor analytics are not a magic bullet and they won't make your asks for you. But they certainly can help with your asks when used strategically in tandem with what you and your team already know about supporters and future supporters.