ARTICLE
How Nonprofits Are Using Data To Do More Good
Beyond Donations
Topics -
Updated - 08/14/2024
Have you ever wondered how charities and nonprofits know if they’re really making a difference? It’s not just about how much money they raise anymore. Donors and supporters want to see proof that their hard-earned money is having a real impact. This has led to a new trend in the nonprofit world called “impact measurement.”
What’s impact measurement all about?
In the past, nonprofits mainly focused on counting things like the number of people they helped or the amount of money they collected. Now, they’re digging deeper. They want to measure the long-term changes that happen because of their work. This could be anything from a student improving their grades thanks to a tutoring program to a family finding a safe home because of a housing charity.
Impact measurement helps nonprofits see what’s working and what’s not. It helps them improve their programs, show their supporters how their donations are making a difference, and ultimately raise more money to do even more good.
How technology is helping
Nonprofits have a secret weapon in their quest to market impact: technology. Special software called CRM (Customer Relationship Management) can help them track and analyze all sorts of data, from how often a donor gives money to telling donors how a person’s life has changed because of the nonprofit’s work.
Think of it like a super-organized notebook where nonprofits can keep track of everything they do. They can use this data to see what’s working, what needs to be changed, and how they can make the biggest difference possible. Bloomerang is one example of a CRM that nonprofits can use to do this. It has features that help track donor information, donor communication preferences, and volunteer contributions. It even has special tools to create reports and see how everything connects.
Real-life examples
- A summer camp for kids with special needs tracked how kids’ confidence and social skills improved over the summer. This data helped the camp show donors the real impact of its program and raise more money for scholarships. This nonprofit was able to segment its donors based on their interests in this program and tell them how their donations changed lives.
- An organization that helps people find jobs tracked to see which job training programs were most successful. This helped it improve its services and find jobs for even more people. Since they tracked their impact, they were able to raise more money from donors and grantors and expand their program.
The building blocks of impact measurement: Theory of change and needs assessment
Nonprofits are increasingly recognizing the value of a Theory of Change (ToC) approach to guide their work. A ToC is like a roadmap that shows how a nonprofit’s actions lead to the changes they want to see in the world. It helps them understand the steps they need to take and what assumptions they’re making along the way. By having a clear ToC, nonprofits can work more effectively and also show their supporters exactly how their donations are making a difference.
But before creating a Theory of Change, nonprofits need to do their homework. They need to understand the real needs of the people and communities they serve. This is where a Needs Assessment comes in. By carefully studying the problems they want to solve, nonprofits can ensure that their programs are actually helping. This also strengthens and makes their Theory of Change more convincing to potential donors.
For nonprofits who need help with all of this, there are experts called social impact consultants. They can help organizations figure out their goals, decide what to measure, and create a solid plan for showing their impact. It’s like having a guide to help them navigate the sometimes tricky world of impact measurement.
The bottom line
Impact measurement isn’t just a buzzword; it’s a game-changer for nonprofits. It’s about using data to understand how their work is changing lives and making the world a better place. By embracing impact measurement and using the right tools, nonprofits can do more good than ever before.
At Social Impact Solutions, we’re experts at helping nonprofits measure and market their impact. Our team of social impact consultants can help you figure out what to track, create plans to collect the right data, and use technology to make sense of it all. If you’re ready to take your nonprofit’s impact to the next level, we’re here to help!
Learn more about how Social Impact Solutions can help you measure and maximize your impact by taking our fundraising quiz!
Get a Database Health Check with Bloomerang!
Comments