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.
●A review of some of the BI tools
available on the market — including guidance on pricing, complexity, and
experience in the nonprofit sector.
Business Intelligence can be an incredibly useful way to turn data into
useful insights to help build strategies and make informed decisions. And with
the increasing attention in the sector to CRM and constituent engagement, it’s
never been a better time to find out more about BI.
BJ Cortis is vice president of client service
for Heller Consulting. He began
working in the nonprofit sector in 1997. Prior to joining Heller Consulting, he
held a variety of positions including Director of Development at Society for
Science and the Public and Principal Consultant at Blackbaud.
Labels: analysis, BJ Cortis, Blackbaud, business intelligence, CRM, decision making, metrics, nonprofit tools, strategic insight, technology