In many organizations, the data problem does not stem from a lack of numbers, but from the overwhelming mass of data surrounding immature questions. Data is collected, organized into tables, displayed in reports, and then remains distant from the moment of decision; as if it were a neat archive with no live operational memory.

From this standpoint, the value of this article becomes clear; it is a limited translation of material published on Charity Digital, presenting a practical introduction to understanding the difference between owning data and using it. It does not treat analysis as a technical exercise, but as an organizational capability to read what is happening, understand the reasons behind it, anticipate its trajectories, and then choose the most appropriate action.

“The Third Bank” publishes this material while preserving the moral rights of the original source, and without claiming exclusive translation rights, believing that the maturity of non-profit organizations is not measured solely by the resources they possess, but by their ability to turn available knowledge into more accurate, fair, and accountable decisions.

Data analysis is the process of transforming data into knowledge by sifting through information and searching for meanings that can help in making informed and strategic decisions. Although data and analytics may seem intimidating or technical to many charitable organizations, they have significantly transformed how these organizations plan, measure their impact, and improve their outcomes.

Most charitable organizations conduct some form of basic data analysis at some level, but with the right approach, they can transform this information into wisdom, and eventually into action.

In this article, we clarify what charitable organizations can achieve through data and analytics.

Benefits of Data and Analytics for Charitable Organizations

Most charitable organizations have access to data about their service beneficiaries, their supporters, and the fields in which they operate. Many of these organizations have begun to employ this valuable resource in various ways to make progress in their work.

Here are some reasons:

Efficiency

Having a clearer picture of the beneficiaries of the services and activities provided by the charitable organization helps save time and resources by reducing investment in programs and initiatives that do not yield the desired results, and understanding the reasons for their ineffectiveness. This allows the organization to direct its energy towards areas of service that are likely to have more significant impact and effectiveness.

Budget Preparation

Data and analytics can help charitable organizations understand the best places to allocate budgets, as well as provide better forecasts for future financial planning.

Fundraising

Data and analytics enable charitable organizations to tailor their communication messages more accurately, understand the platforms and audience segments to focus on to increase donations, and impact data can be a powerful tool that allows charitable organizations to tell their story and gain more support.

Accountability

A good data strategy helps charitable organizations provide accurate and detailed reports to stakeholders, demonstrate the effectiveness of their work and impact in order to obtain larger budgets and support, and transparency is a key factor in building trust and enhancing the reputation of the charitable organization.

Long-term Strategy

A clear vision of data can help charitable organizations plan with greater confidence for everything from recruitment and asset management to marketing, messaging, and meeting the needs of their service beneficiaries.

Innovation

Data and analytics can give charitable organizations a broader perspective on all they do and the community they serve by revealing hidden relationships and connections that may lead them to new or unexpected trends.

In this context, continue reading for more real-life examples of charitable organizations that have used data and analytics to drive change within their organizations for the benefit of their beneficiaries.

Types of Data Analysis

There are four types of data analysis:

Descriptive Analysis: “What happened?”

Descriptive analysis is the simplest and most common form of data analysis, posing a fundamental question: “What happened?” by summarizing past data, often in the form of dashboards. Examples include:

Who is using the service?

What are people's impressions of the charitable organization on social media through sentiment analysis?

How many donors interact with a particular page on the website?

Diagnostic Analysis: “Why did it happen?”

The next step is to dig deeper to understand the reasons behind the results observed, examples include:

1. Identifying factors such as age, gender, employment status, etc., that drive people to become repeat users of the charitable organization's services.

2. Identifying communication activities, in terms of timing, formats, audience segments, etc., that achieved the highest volume of donations.

3. Investigating reasons why some individuals leave the donation page without completing any action.

Predictive Analysis: “What will happen next?”

This type of analysis seeks to understand potential future outcomes based on statistical analysis of trends and previous patterns, and here the required techniques begin to become more complex. Examples include:

1. Predicting which beneficiaries of the charitable organization's services are likely to use another of its services, allowing for targeted intervention.

2. Estimating periods that may see an increase or decrease in donation activity, and thus knowing the best times to maximize fundraising opportunities.

3. Predicting who may want to attend a specific event so that resources are not wasted emailing or mailing hundreds of people ineffectively.

Prescriptive Analysis: “How should we act?”

Prescriptive data analysis takes insights derived from previous analyses and attempts to determine the best course of action. This type is the most advanced in terms of complexity and requires more sophisticated algorithms. However, charitable organizations that do not have significant resources can apply a basic form of this analysis manually by evaluating the next logical steps.

How do charitable organizations use data and analytics?

There are numerous examples of charitable organizations that have successfully employed data and analytics in various ways. Here are a few models:

Macmillan Macmillan: A large charity

Macmillan, a national organization supporting cancer patients, used data analysis related to previous donors and the amounts they donated to forecast its income over a long period. The organization sought to increase its return on investment in its “World's Biggest Coffee Morning” campaign by uncovering participants' motivations through surveys and research templates.

Through this data and analysis, the organization reformulated its messaging to address its core audience segment, ultimately exceeding its fundraising goal by millions.

Prior’s Court Prior’s Court: A medium-sized charity

Prior’s Court charity, located in Berkshire, operates a school, a supported living center, and a training and development center for young people with autism, learning difficulties, and complex needs.

The organization collected over 10,000 “daily” postings weekly about the activities the young people participated in, such as watching TV, playing a game, going for a walk, or eating and drinking, and then analyzed this data through a dedicated digital platform. The data analysis enabled it to understand which activities provided the greatest benefits, as well as predict when seizures might occur based on certain triggers.

The Cart Shed The Cart Shed: A small charity

The Cart Shed charity, specializing in outdoor and nature activities in Herefordshire, wanted to show its impact more clearly, and thanks to a comprehensive reevaluation of its data strategy over a year, it became better able to effectively tell its story and measure its activities against clearer performance indicators.

The organization was able to develop a three-to-five-year plan that included adopting a new customer relationship management system, and a roadmap for collecting, managing, and using data to achieve meaningful results.

How can charitable organizations start using data and analytics?

Getting started in data and analytics may seem daunting at first; however, even small charitable organizations often have untapped data resources that can help them grow and tackle their specific challenges, provided they have the right systems and capabilities.

It often comes down to returning to basics and knowing the questions that need to be asked, and charitable organizations can immediately begin by conducting descriptive analysis to find out who uses their services, who engages with their communications, and who donates to them.

Survey tools like SurveyMonkey, website data from Google Analytics, or even a simple spreadsheet of donor data serve as free starting points for collecting data and experimenting with its use.

Subsequently, the organization may wish to take initial steps toward establishing a data and analytics strategy by:

1. Identifying what it needs to know and spending some time formulating questions accurately.

2. Understanding what types of data it currently has and where it is located.

3. Assessing the accuracy and quality of the data and whether it needs preparation, merging, or conversion to a different format to become usable.

4. Understanding the data needed to fill the gaps and identifying the appropriate tools and methods for collecting it, as well as whether there is existing data that can be leveraged, such as open datasets.

5. Determining the best way to store and manage data, and whether the organization needs to invest in specialized data and analytics software, like a customer relationship management system.

6. Accessing experts who can help with data analysis, whether through hiring skilled individuals, participating in a training program, or enlisting a volunteer with specialized skills.

7. Fostering a culture of data sharing and questioning so that staff continue to make evidence-based decisions.

Where can foreign charitable organizations seek help in the data field?

Charitable organizations can reach out to the following entities for specialized assistance:

DataKind UK

DataKind UK is a community of volunteers who specialize in data science, dedicating their efforts to help charitable organizations integrate into the data revolution.

DataKind UK's community events allow charitable organizations to connect with experts and ask quick questions, while DataDive and DataCorps programs enable organizations to work on their strategy over a weekend or receive longer-term support on a specific challenge.

Data Orchard

The Data Orchard Foundation's team offers research and data evaluation services, as well as tailored training for charitable organizations to improve their skills.

They also have a free tool that helps charitable organizations assess their “data maturity,” understand their position in the data and analytics journey, and what they may need to do next.

NPC

NPC, a think tank and consultancy specializing in the charitable sector, helps organizations collect, analyze, and report on data related to their impact, along with the Data Labs project that aims to open government data for use by charitable organizations. Their website contains many guides and practical resources, such as the Data with Destiny report on turning charitable organizations' data into meaningful action.

Charitable organizations do not need to embark on the data journey alone. In the local context, they can rely on a broad ecosystem of supporting entities, starting with the National Center for Non-Profit Sector Development as a regulatory and enabling reference, extending to the General Authority for Statistics as a source of official data, and Sdata and its academy as a pathway for building capacity in data and artificial intelligence. Organizations can also benefit from universities, research centers, solution providers, and digital transformation companies, as long as they start with a clear question: what decision do we want to improve? Not what system do we want to buy?

An organization that does not know how to ask its data will remain captive to impressions, even if it has the latest systems, while an organization that builds a conscious relationship with its data does not collect numbers to adorn reports, but to review hypotheses, reveal waste, understand the behaviors of beneficiaries and supporters, and redirect its resources towards what makes a real difference.

Starting out is not always about buying a new platform or building a complex dashboard, but about a simple yet profound management question: what decision do we want data to help us improve?

When this question becomes present in planning, communication, fundraising, and impact measurement, data transitions from the margins of work to its core, and then the organization is not only more knowledgeable but also more capable of being accountable for its choices to its beneficiaries, supporters, and the community.

Legal Notice: This article has been translated with limited alterations from material published on Charity Digital titled How charities can use data analytics, with editorial adjustments to suit the readers of “The Third Bank.” This translation does not represent an exclusive publication, and the moral and intellectual rights remain preserved for the original source and its author.