The Importance of Data-Driven Decision-Making for Nonprofits

In order for nonprofit organizations to thrive, it is of utmost importance that they adopt data-driven decision-making strategies for managing their operations—which involves making decisions based on the information they have and know to be true. Not only does data-driven decision-making allow nonprofits to make smart, informed decisions, it can also turn their hard work and good intentions into long-term, sustainable impact.

Implementing a current database presents nonprofits with ample benefits, such as:

• The ability to honestly predict income and make positive strategic decisions during fundraisers

• The ability to improve productivity

• The ability to enhance their Marketing, Communications, Finance and Operations

• The ability to dramatically reduce the amount of time it takes to continue collecting and analyzing new, ongoing data

• The ability to shorten the amount of time spent operating beneath false assumptions

• The ability to stop wasting resources on ineffective involvement and track and measure failure, not just success

Funders Look to Data

If you’re still not convinced of the importance of data-driven decision-making for non-profits, think about it from a funder’s perspective. Would you rather donate to an organization that lacks a list of statistics as part of its impact and results reporting or one that helps you define and identify the social return on your investment?

Without data, it’s difficult for outcome-oriented philanthropists to ensure their donations are going to affect long-term social change. For this reason, funders are much more likely to donate to organizations that can accurately tell them about their performance.

All said, as a nonprofit leader, it is in your best interest to verify important data metrics and analyze the results to increase both effectiveness and efficiency within your organization.

Create a Data-Driven Culture

According to a 2012 Harvard Business Review study titled “The Evolution of Decision Making: How Leading Organizations are Adopting a Data-Driven Culture,” analytical leaders have “refined their decision-making processes as part of a data-driven culture and achieved superior financial results.”

With a great need for donations and change in our communities, establishing and maintaining a data-driven culture right now should be a top priority in your nonprofit organizations. At Resilia, we’re here to help power your cause. Ensuring transparency and trust, you can turn to our software to track and measure your social impact and in turn, raise positive results.