Nonprofit data management best practices
The implementation of data management best practices is primarily a matter of people management, not technology. At Heller Consulting, we believe that before you buy a new tool, you need to determine workflows that will govern it. Here are the six pillars of a mature data strategy:
1. Establish data governance policies
Data governance policies create your nonprofit’s unique data management rules. It’s essential for keeping the entire team on the same page and maintaining best practices over time. Here are some elements to include in your policies:
Assign ownership
Often, individuals within the organization do not feel responsible for maintaining and updating data, leading to inconsistencies and inaccuracies. Tech leaders can cultivate a culture where clean and accurate data is seen as everyone’s responsibility. Assigning business owners to individual technologies or stacks ensures someone is responsible for each system.
Form a committee
Creating a working group can foster a sense of ownership and improve communication across the org. This committee should include representatives from various departments, such as technology, programs, fundraising, and operations. For larger orgs, involving leaders can provide additional buy-in and support. The committee’s role is to:
- Align data practices across the org with the nonprofit’s goals
- Facilitate the adoption and training of new technologies
- Support change leadership
- Ensure the company makes the right decisions with its technology and critical data
2. Address and fix data silos
Data fragmentation is almost always the result of a team adopting a platform that meets a particular business need without considering how the data integrates with the rest of the org’s data model. Here’s how to solve data silo issues:
- Develop cross-functional data goals. Silos often persist because no one has defined why the data needs to be shared. We lead clients to develop specific, cross-functional goals that articulate exactly which data points need to be accessible across the whole organization versus what can remain local.
- Create a roadmap for integration. Once you’ve set your goals and assessed utility, you need a plan for how the disparate systems will actually connect. This roadmap should prioritize integrations based on organizational impact and technical feasibility, ensuring a structured approach to breaking down silos.
- Evaluate utility against organizational impact. Not every dataset needs to be integrated into the central CRM. You must determine if a specific dataset is actually useful to other departments. It all comes back to the organization’s broader goals—if the data doesn’t drive a shared goal, it may not need to move.
3. Strategically minimize data
There is a common misconception that more data is better. In reality, quality trumps quantity here, and hoarded data is a liability. It slows down your system, confuses your reporting, and exposes you to risk. Streamline your data collection policies by:
- Articulating a clear policy for how long data should be kept and when it should be deleted.
- Balancing the need to retain historical data with the costs and responsibilities associated with data storage.
- Collecting only necessary data.
To decide which data is really needed, analyze your current priorities and determine which metrics actually demonstrate your progress. Work across various departments to ensure that everyone still has the data they need to succeed.
4. Invest in training and culture
Implementing new systems is technically challenging, which can feel daunting for your staff. That’s why investing in comprehensive training processes can make a big difference in your implementation success. The best training cadences are:
- Rooted in accuracy and accountability. Stress the importance of handling data responsibly across fundraising, communications, programs, and other departments.
- Continuous. Training is not a one-and-done process. Your nonprofit has to keep up with training so staff turnover or new software updates don’t derail your progress.
- Supported by strong governance. The governance committee should support change management, which are intentional strategies that guide the staff through the emotional and tactical shifts that come with new technology adoption. Core pillars of tech change management are strong communication, thorough support resources, and hands-on involvement across the nonprofit.
