Can NPOs increase their donations using data?

December 10, 2019 12:00 AM
  • Can NPOs increase their donations using data

Data are units of information that forms various sources to collectively provide references and analysis. 

How can one utilise Data?

Often, data is found to be raw or unprocessed. Using data mining techniques, one can cleanse the data and make it representative, processed for the user to use it. Data Mining helps in extracting undiscovered patterns, characteristics and insights from the data that can help the user proceed with deriving their desired outputs. 

Usually, raw data tends to be confusing. NPOs normally work with large amounts of data like donor data, transaction information etc.  However, there are dynamic and innovative ways by which one can work with and leverage such data

One such way is ‘Donor Profiling’ through which donor type can be analyzed and assessed, from which insights can be derived like: how likely are donors to donate again, to donate to a particular cause, and group of donees, etc. NGOs tries to capitalize on these data to identify potential organizations and individuals that will aid them in donations. Also, the same data can be reanalyzed under different filters and categorizations to identify comprehensive traits and profiles. This increases efficiency as well as the process to find potential donors.

Let us see how Donor Profiling works - 

1: Cultivate Current Donors - 

It is important to identify current and potential donors who share the same principles and vision the organization firmly believes in. NPOs could motivate donors to donate if it can be understood why they give and what they’re most likely to support.

Data can help NPOs to better segment donor audiences. Once these donors are identified, NPOs can release targeted emails, personalized website experiences, missions goals etc.

Another method is to apply predictive modelling to match donors with different donation products to increase the likelihood to contribute. Think of it like Amazon’s recommendation engine, but for a charitable program. As always, such solutions would need to be checked and tests would need to be run to analyze donor conversions to find more about the factors that will be required for achieving greater results.

This gives a better understanding of the data, donor/donee perspective and maximizes a non profit organization’s name.

2: Know and Grow Donors.

Now by understanding current donors, NPOs can adopt a similar model to find new donors using historical data. By creating a database, a customer demographic, psychographic and behavioural data can be used to develop new prospects and work on future engagement strategy.

Also, prospect modelling can help test audiences and analyze data based campaigns. Initially, new donors can be targeted based on current donor data and work, then this can be continued to refine models and audiences based on results and interactions. NPOs will need to target people accurately based on the data and the results of old donations.

3: Long Term Impact - 

Once current donors are reached out to, data mining can be used to segment best prospects and target them. Then the NPO can focus on expanding its activities and talking about it online. The more donors are shown prospects that the NPO delivers results and fulfils its mission, the more likely they are to fund its initiatives.

NPOs often have data scattered all over the place — may be in spreadsheets, databases, reports, presentations, and more. This variety of data sources and formats enables the option to prepare reports on  different operations and programs. Many nonprofit organizations don’t work on their statistics regularly, hence donors lack the backing of steady reliable information on how the money is being utilized and accounted. This could result in donors showing no interest in donating again for the same cause, to the same NPO. 

Applying data visualization and representation techniques to develop a well-designed, user-friendly, automated dashboard will help NPOs elaborate their success stories as well as secure the data of the organization. Implementing a dashboard will require clean and processed data, accurate figures and data sources for a smooth execution and ease in reporting. 

Once the teams  concerned works on data efficiently, they can format and regulate the data on a more regular and consistent manner. When an NPO works on its goals and mission, it will have more to talk about to its target audience, across emailers, social media, blogs, press releases and website. The more the success of the program is promoted, the more likely the NPO is to attract new donors and increase giving from current donors.

As a company that seeks to make a difference in the world, we hope these ideas support your organization do the same. 

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