4 Best Practices for Nonprofit Data Collection and Storage
In an age where data is transforming the way organizations operate, nonprofits are no exception. The ability to collect, manage, and utilize data effectively has become crucial for nonprofits in achieving their missions and making a meaningful impact in the communities they serve.
In this guide, we’ll cover four best practices for nonprofit data collection and storage. Whether you're building your data management strategies from scratch or refining your existing practices, these insights will help you make informed decisions.
1. Use a centralized database.
A constituent relationship management system (CRM) allows you to collect and store vast amounts of information about your donors for later access, task automation, and reporting.
Whether you currently use Salesforce, Blackbaud, or another CRM provider, ensure that the solution allows you to:
Create and maintain donor profiles.
Automate marketing communications.
Plan and track fundraising campaigns.
Generate automatic reports.
If your nonprofit requires a new CRM solution or upgrade, look at online reviews, consider your technology budget, and request demos to pinpoint the right option for your organization. Think beyond your immediate needs and look for a CRM that can scale alongside your nonprofit. Doing so will lead to a better long-term investment, ensuring that your software can handle increases in data demands and store more important donor details as you grow.
Furthermore, consider the CRM’s integration capabilities. You want to be able to apply the wealth of data you collect and store by selecting a solution that integrates with your existing technology, including your fundraising tools, event software, and payment processors.
Key types of nonprofit data to collect
After investing in a robust CRM, use it to collect relevant and useful information, such as:
Donor demographics: Note basic personal details about each donor, such as their name, age, location, and interests. This data empowers your team to better create your ideal donor profile and understand what inspires them to give. You can use this information to tailor your messages in ways that are meaningful to each individual.
Communication preferences: Your donors have varying preferences when it comes to hearing from your nonprofit. Some may appreciate a simple email, while others would rather receive updates on social media. Record their preferences and adjust your outreach accordingly to get in front of as many donors as possible.
Past involvement with your nonprofit: Keep track of each supporter’s involvement in your nonprofit’s activities and campaigns. Were they a key contributor during your last grassroots campaign? Are they regular attendees of your events? Did they launch a birthday fundraiser on your behalf? These details allow you to recognize your supporters for all their contributions and cultivate strong, lasting relationships with them over time.
Employment details: Gather data about your donors’ employment status and the companies for which they work. That way, you can tap into corporate giving opportunities, such as matching gifts or volunteer grants, by reaching out to eligible donors.
Consider your nonprofit’s goals and priorities to determine what other types of data you should prioritize. Then, update your online forms and surveys to include fields for gathering these details.
2. Establish data entry procedures.
Your nonprofit’s data is a powerful resource for segmenting donors and creating strategic communications that best appeal to them. However, to make the most of your data, you must ensure that everything is as clean and standardized as possible.
Since you’ll likely have multiple staff members interacting with your CRM, it’s important to create data entry procedures to keep everyone on the same page. For instance, you might specify:
Which staff members are authorized to make changes in the CRM. Setting controls and permissions in your CRM limits the number of users who access and interact with your data. This allows you to minimize potential data errors and increase security over the sensitive donor information you’ve collected.
Any naming conventions, abbreviations, or formatting standards the data should comply with. Consistent data entries make it easier to organize your information and track down specific details later. For instance, you might require users to input phone numbers as (123) 456-7890 instead of 123-456-7890. Then, if a staff member needs to find a record based on a phone number, they can search in this format to do so.
Relevant criteria for updating or removing data points from profiles. For example, make sure that your staff members understand who is responsible for making what updates in the CRM. If your system has built-in automation tools, use them to automatically update outdated information or send out reminders for data review.
Share these procedures with staff members and volunteers to keep your database accurate and organized. Additionally, offer training sessions to answer any questions and walk through the process in more detail.
3. Prioritize nonprofit data security.
Strong, healthy donor relationships are built on trust and transparency. When your supporters provide you with their information, they’re entrusting you with sensitive details such as their address and financial data. It’s up to your nonprofit to safeguard these records.
However, nonprofits often have limited time and funds to invest in cybersecurity. As a result, 27% of nonprofits around the world have experienced a cyberattack. To prevent a security breach, consider these basic tips:
Install an SSL certificate on your website.
Ensure that your online payment software is PCI-compliant.
Create strong password protocols.
Leverage antivirus software.
Train staff members on cybersecurity basics, such as safe internet browsing, malware, and phishing.
To combat this, online resources and training courses have emerged to support nonprofits in their data collection, management, and usage. If you need more specialized guidance, consider reaching out to a nonprofit technology consultant. These experts can review your CRM setup to ensure that it’s both secure and customized to your needs.
4. Maintain regular nonprofit data hygiene.
As your nonprofit continues to collect and leverage data, take regular steps to keep your records clean and up to date. Doing so ensures that you glean accurate insights from your CRM and trim unnecessary information from your database.
Take these steps to maintain data hygiene:
Schedule routine reviews and cleanups to correct errors, merge duplicate data points, and update outdated information.
Document major data updates and changes to keep a running record for later reference.
Implement regular data backups to keep all your records safe in case of any software crashes.
If you identify any glaring gaps in your data, consider investing in a data append. Data appending is the process of using third-party data to supplement an existing dataset. For instance, as you prepare for a capital campaign, you may append missing philanthropic and wealth information to identify potential major donors.
Nonprofit data collection and storage are more than just administrative tasks; they are tools for creating positive change. By following these guidelines, you can harness the power of data to better understand your beneficiaries, measure your impact, and ultimately advance your mission.