How Big Data Can Make Philanthropy More Effective
Corporations across America are already tapping into big data to analyze customer behavior, conduct market research at a whole new level, and seek out new revenue opportunities. There is no reason why philanthropic organizations — and donors — can’t do the same.
From reviewing an organization’s performance to determining where fundraising dollars are coming from, big data-based strategies could be a powerful addition to the nonprofit sector in upcoming years. With a wealth of data readily available in the digital space and the ease in which more can be collected from supporters, sponsors and other contacts in their network, many can formulate plans and initiatives that are largely data-driven.
Here are some insights about how big data can make philanthropy more effective:
Tracking Fund Allocation
Many philanthropic organizations and charities publish annual reports about their usage of funds and other financial information. While these financial reports are valuable to stakeholders and donors, it’s not always easy for the average donor to find this data when deciding which charity to donate to or when comparing worthy organizations.
With big data, we would be able to access a smartphone app or online dashboard to review this information in real-time. Imagine how much easier it would be to compare performance and review activities of a certain organization so that you could verify how funds are being allocated.
Marketing Planned Giving Programs
Attracting donors interested in planning giving initiatives can be easier and streamlined with big data. Organizations able to tap into market segments in a position to join a planned giving program — based on certain conditions or factors, such as age, occupation, retirement status, donation history, or similar — would have more information at their disposal for their marketing database.
Such organizations could coordinate more targeted marketing efforts to appeal to these potential donors, reaching out at just the right time and creating campaigns that resonate with their audience. This way donors would receive more valuable and impactful marketing materials from philanthropic organizations.
Identifying Supportive Markets
No matter what the organization’s cause, recruiting supporters is critical to success. Marketing teams may be able to identify the most responsive or supportive markets using big data analysis. For example, an organization could track the total number of dollars donated to the organization from every single state to see if there are any noticeable trends or patterns. Analyzing what may be causing these disparities can help the organization fine-tune their marketing and fundraising efforts so they are not wasting marketing dollars. This type of data analysis can also help unveil untapped markets or opportunities.
Increasing Reach via Digital Platforms
Another element of marketing that almost all nonprofits have already moved forward with is social media. While any organization can set up a Facebook Page or Twitter account to promote their cause and engage donors and related organizations, it takes some analytical muscle to dig through the data and determine what types of activities are most effective on social media, and who exactly the organization can reach through its efforts.
Whether they are coordinating online giving programs or simply making announcements about the latest activities, increasing reach to the ever-growing audience on social media platforms like Facebook, Twitter, and even Instagram, can be a valuable addition to an organization’s marketing efforts. Big data can tell us what this audience looks like, what their interests are and how likely they may be in a position to give. Nonprofits can explore a variety of social media marketing initiatives based on this data, making those advertisements and updates that much more impactful when connecting with potential supporters.
Maybe you’re a board member of your favorite charity or are thinking about joining forces with a philanthropic organization in some other capacity. No matter what your role may be, executing an effective fundraising strategy will be a high priority. In today’s data-driven world, there are numerous opportunities for fine-tuning fundraising strategy using big data. From accurately tracking fund usage in real-time to benefiting from planned giving programs, big data is opening new doors in the nonprofit sector — it will change things for good, both literally and figuratively.