Special to Philanthropy Journal
BJ Cortis
In the nonprofit sector, technology is often about using the best tool for the job. Nonprofits often have a primary fundraising system that reconciles with the general ledger. Their online systems often add transactional data to the mix.
Still other systems may power certain fundraising strategies, or manage volunteers, grants or program areas. But, a limited amount of data flows between the systems, and integration is often limited to reconciliation ? understanding where revenue came from in the broadest sense of when and how much.
The challenge of this approach is that it often lacks the depth needed to give nonprofits more strategic insight into what is working and what is not. Does participation in an event, as a volunteer, or in social media engagement drive fundraising? If so, which messages are most effective when delivered through which media? Can you plot a course of engagement across channels and programs that not only increases involvement, but also clearly demonstrate the programmatic impact in your communities?
Too often, the answer is ?no? or ?maybe, but not quite.? Cross-organizational analysis can be elusive if sufficient information is not shared between the systems or is unable to be presented for meaningful analysis.
Taking a Cue from the Commercial Sector
When it comes to analyzing data to make decisions and inform strategies, nonprofits can take a cue from the commercial sector. Over the past few years, the commercial sector has proven the value of Business Intelligence (BI) ? the processes and technologies that transform data into meaningful information that helps move a business forward. Companies have used BI to:
?Unify disparate data sets and create historical analysis and predictive modeling to guide strategic decision-making
?Supplement standard customer data with social media content, including customers? interests, purchasing activity, and social circles
?Identify key metrics that will determine their overall effectiveness and progress toward goals
The Time is Right for BI in the Nonprofit Sector
Today, the nonprofit sector is in a unique position to reap similar benefits from BI. More nonprofits are understanding the value of Constituent Relationship Management (CRM) to their organizations, have started to plan for a CRM system implementation, and have discovered that a CRM system lays a solid foundation for BI. At the same time, the cost of BI solutions has come down, and BI technology has become more accessible.
The time is right for BI not simply because the sector can now access these tools. The time is right because today?s constituents expect a more custom, user-centric experience. In order to create this type of content and interaction ? to be able to appeal to and engage with constituents in the most effective way ? nonprofits must better understand their constituents. And, filtering rich CRM data with BI tools is the most effective way to gain this understanding.
How Does a Nonprofit Get Started with BI?
?An introduction to BI: what it is, key terms associated with BI, and why the time is right for nonprofits to seek the value of BI.
?An overview of the strategy, business alignment, and technical foundation that should precede a BI effort.