Data:
Quality and Security Over Quantity
When analyzing trends impacting nonprofits' technology strategies, data has always been an important consideration.
However, this year, we have decided to give extra attention to data as we see significant shifts in how organizations approach it.
Technology and people factors are just as critical as data strategy. But, the changes in how nonprofits are managing and utilizing data our first item of note.
Let's dive into the data topics for 2023.
To start, imagine you are about to move into a new house.
Do you pack and move every single belonging, only to wonder later why you brought over that dusty trinket?
Or do you take the move as an opportunity to declutter and let go of items you no longer need?
Data management is much the same.
It may be tempting to hold on to every piece of data your organization has ever collected just in case. But nonprofits are realizing the drawbacks, including increased effort and cost. Many nonprofit technology experts are taking a more strategic approach to data migration.
Heller Tip:
Even if you are not changing your systems, these principles are still applicable. Consider conducting an audit and cleaning your data to realize these same benefits.
Key Trends:
- There is a greater emphasis on data certainty and accuracy over volume.
- Clean data is usable data. It may be tempting to put off data cleanup, but we encourage nonprofits and educational institutions to tackle this task before bringing data over into the new system.
- Organizations have been collecting more data than ever about their donors, volunteers, and other stakeholders. This “more is more” approach to data collection resulted in massive amounts of information. But even if this data is reliable and tidy, it may not be relevant to your goals. Consider how you plan to use the information to make the best decisions about what data to retain.
- Data security and compliance continue to be a top priority for organizations – special consideration should be given to anything that could be considered sensitive information.
Benefits of Strategic Data Management
Lower costs. As nonprofits continue to look for ways to do more with less and cut unnecessary costs, strategic data management is an attractive promise for leadership. Depending on a CRM system’s fee structure, organizations could end up paying a considerable amount for data storage. By cleaning your data and thinking intentionally about what data you keep, you can save valuable dollars for your organization.
Better performance. Bogging down your new system with an overwhelming amount of data can lead to sluggish performance. Running reports may take longer. Thinking “clean and lean” will help to ensure that your systems are running optimally.
Greater results. We encourage our clients to tidy their data before moving it into a new system and establish ongoing data maintenance protocols to ensure that systems are supporting organizational goals.
Storage and Security
Storing and Accessing Data
When it comes to managing and storing large amounts of data, the key is to have data available to the right people at the right time to do their jobs and make decisions. Right now, organizations have several options to choose from when storing data. A caveat to this, however, is that data does not necessarily need to be stored in one place or in a single system.
A popular method is to use data warehouses and data lakes for long-term storage. A data lake is a vast repository of raw data that can be stored for future use. A data warehouse is a more structured approach, where data is cleaned and processed, ready for analysis.
But what if you need quick access to your constituent data for personalized marketing and fundraising efforts? This is where a customer data platform (CDP) could come into play. CDPs aggregate data from various systems within an organization to create a centralized profile of each constituent, making it easily accessible for highly personalized marketing and fundraising campaigns.
Security & Privacy: Protecting Stakeholders’ Data
If you are concerned about data security for your nonprofit organization, you are not alone. With cybercrime on the rise, nonprofits are increasingly becoming targets due to the sensitive data they store. However, here are steps you can take to protect your data and safeguard your organization’s reputation.
- Prioritize security when making technology decisions. Choosing commercial-grade products from reputable providers can ensure that your data is well-protected. Additionally, by being strategic about which data you retain, you can reduce the risk of sensitive information falling into the wrong hands.
- Privacy and consent are also crucial considerations for nonprofits. With stricter regulations and increased public awareness of data privacy, it is essential to have strict processes in place to protect personal information and comply with regulations.
- To ensure data security, it is important to establish a strong data governance policy that defines what data is being collected, how it is stored, and what information is considered personal. This is especially important when using multiple systems that may be collecting different data points, as it ensures that stakeholders’ preferences are observed across all platforms.