Both for-profit and nonprofit organizations alike rely on data to operate. For nonprofits, this includes donor data, program data, participant and client information, and much more. This means your organization likely has thousands of data points on hand, especially if you provide social services or manage client caseloads.
To harness this data, it’s essential to organize, manage, and maintain a clean database. Effective data management and analytics allow your organization to quantify its impact on clients and the progress you’ve made toward your goals. But how do you manage it all?
In this guide, we’ll walk through some of the most important database management strategies, starting with why centralized data is vital to your organization’s success.
Why is centralized data important?
Small organizations with limited resources often start with what they have—paper forms, Excel spreadsheets, and other basic data collection tools. While this system may work in the beginning, it’s not sustainable. As your organization grows, you’ll only collect more data and struggle to locate or compile important information.
The solution: housing all your nonprofit’s data in a centralized, organized database. When you move your data out of silos and into a central solution, it’s much easier to see the full picture of your organization’s work. Ultimately, centralized data helps you:
- Accurately measure program impact and report on it to funders, donors, and other stakeholders.
- Strengthen donor relationships by quickly gleaning insight into their preferences and giving priorities.
- Analyze campaign performance and improve your fundraising strategies long-term.
- Win more grants and meet complex grant reporting requirements.
- Save staff time by reducing administrative work and automating some aspects of data collection.
With your data compiled in a centralized system, your nonprofit will be much better equipped to make data-backed decisions that lead to more funding, more time to focus on your work, and more impact. Now, let’s explore how to centralize your data and manage it effectively.
1. Use the right data management software.
The best way for busy organizations to manage the large amounts of data they accumulate is to invest in quality database software. The right software will make recording, referencing, analyzing, and visualizing data more convenient by providing secure storage and reporting tools.
Because there are different types of social good organizations, however, there are a few different types of database management software that serve different needs, from basic CRM software for smaller organizations to more robust data warehouses for larger nonprofits. Here are two examples of core platforms you might decide to invest in:
Case management software
Robust case management software allows nonprofits and human services agencies to track key information about the clients or program participants they serve to provide them with the best support possible. These platforms typically enable you to:
- Collect client contact information and other relevant details.
- Automatically populate your database with data from integrated forms.
- Schedule and manage appointments.
- Alert case managers about client risk factors and referrals.
- Securely communicate with clients and participants.
- Easily analyze and report on program outcomes.
This type of data management software houses all client data in one platform and helps organizations move away from cumbersome spreadsheets and paper forms. It should also include features like visual reporting pages, mobile capabilities, and compliance measures that meet legal regulations around client privacy.
CRM software
Constituent relationship management (CRM) software tracks donor data and allows organizations to leverage the insights they uncover through data in online marketing and fundraising efforts.
If you need a solution with out-of-the-box tools, key CRM software features to look for include the ability to:
- Create donor profiles.
- Track donations.
- Automate digital marketing activities.
- Send automated donation acknowledgments.
- Allow online event registration.
- Set up online petitions.
- Host peer-to-peer fundraising pages.
For many CRMs, you can continue to update and explore new features with applications and third-party integrations.
Depending on your organization’s needs, you may need both kinds of software to properly manage your data. If your nonprofit serves those struggling with mental health concerns, for example, you’ll need to track and grow your donor base to receive funding and record client data to drive positive mental health outcomes.
2. Audit and clean your database regularly.
As your organization grows, it will collect more and more data. In addition to optimizing the tools you use to manage large amounts of data, keeping that data clean is essential to ensuring you can understand and accurately report it.
Ensure your data stays updated, accurate, and well-organized by practicing good data hygiene. Data hygiene refers to any of the actions your organization takes to keep data formatted consistently and free of errors. A few basic data hygiene best practices include:
- Establishing specific procedures for data governance. Create policies that specify who is responsible for cleaning data, how often data should be reviewed, criteria for removing or updating data, and tools to use when reviewing data. Additionally, establish clear policies and procedures for staff to follow when entering data to ensure data entry is standardized and accurate.
- Removing irrelevant data. After years of data collection, some details naturally become outdated, inaccurate, or no longer useful to your organization. In these cases, it’s best to remove this data to reduce clutter and ensure your reports are as timely as possible.
- Updating and correcting data. Not all inaccurate or out-of-date data should be removed. Instead, take the time to correct inaccuracies such as typos, misspelled names, data entered in the wrong field, and inconsistent formatting.
- Appending your data. To update contact information, home addresses, last names, and other donor/client details that may change without your knowledge, consider conducting a data append. Data append services help you correct and supplement your data using more up-to-date external sources.
The best, most effective way to keep your data free of clutter and ensure reports accurately reflect your organization’s current standing is to commit to reviewing your data on a regular basis. A good rule of thumb is to check data for errors and inconsistencies at least every six months.
3. Leverage filters, segments, and automations.
Databases store vast amounts of information, and parsing through all of it to identify trends and patterns is difficult with raw, unfiltered data. Your database management system should provide tools that allow your organization to make that data more useful, including filters, automations, and donor segmentation tools.
Each of these tools will help you organize donors into subgroups based on specific shared characteristics and engage them more effectively. Creating and using these groups holds many benefits for your organization, helping you:
- Ask for the proper gift amounts.
- Reach out through donors’ preferred communication channels.
- Identify donors who are at risk of lapsing.
- Tailor marketing strategies and outreach efforts to donors’ preferences.
- Quickly generate more effective fundraising appeals.
- Share the most relevant engagement opportunities.
You can segment donors by any characteristics you find helpful, ranging from average gift amount to geographic location. For example, you could filter donors by which advocacy campaigns they supported in the past by referencing the petitions a donor previously signed. Then, target those donors with emails about supporting an upcoming campaign for the same cause since they previously demonstrated interest in it.
While data is an invaluable tool for almost every organization, it’s only useful when well organized. To take full advantage of the power of your data, follow these tips and reach out to technology consultants if needed. These experts can help you determine the best database software to invest in and tailor it to meet your nonprofit’s unique needs.