Nonprofit data best practices in 2025

Here at Heller, we talk a lot about databases—fundraising and engagement platforms and CRMs. We also talk about people, processes, workflows, and workarounds. Today, I want to talk about the bedrock of your fundraising program: data itself.

Data governance has always been important for nonprofits because it ensures accuracy, security, and compliance with relevant (and evolving) regulations. But this year especially, tech leaders are looking to develop data  management practices that allow them to take advantage of the proliferation of AI and automation tools that help them achieve their missions faster.

Good governance practices help nonprofits maintain trust with donors, stakeholders, and beneficiaries, and allow them to leverage data effectively for strategic planning, improving program outcomes, and demonstrating impact. They mitigate the risks associated with data breaches and ensure that sensitive information is handled responsibly.

Here are some of the data best practices Heller recommends to nonprofit clients.

Understand who owns and is responsible for your data

One of the primary challenges nonprofits face is the lack of ownership over their data. 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, across fundraising, communications, programs, and other departments.

Assigning business owners to individual technologies or stacks will ensure there’s someone responsible for the system, how it runs, and how it integrates with other systems.

Identify what’s important with key fields

To effectively manage data, it’s essential to identify what is most important to your org. This involves understanding what data is necessary for a comprehensive view of your constituents and ensuring that these fields are consistently reviewed and updated. At Heller, we work with clients to list key fields and identify their purposes, and then regularly audit them to maintain data quality.

Foster ownership with a data governance 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/development, and operations. For larger orgs, involving leaders can provide additional buy-in and support. The committee’s role is to:

1. Align data practices across the org with the nonprofit’s goals,
2. Facilitate the adoption and training of new technologies,
3. Support change leadership, and
4. Ensure the company makes the right decisions with their technology and critical data.

Address data silos with cross-team goals

Data fragmentation doesn’t happen on purpose. It’s almost always the result of a team adopting a platform that meets a particular business need without regard for how the data integrates (or doesn’t) with the rest of the org’s data model. At Heller, we lead clients to develop cross-functional goals to articulate which data needs to be shared across the whole org.

My unpopular opinion is that sometimes it’s completely fine to have siloed data, provided it doesn’t impact cross-functional goals. For example, if the programs team needs a particular dataset for reporting to a partner but that data isn’t useful to the rest of the org, it’s OK for it to live in a single tool. It all comes back to what the org’s goals are.

Let it die with data retention policies

Your data governance committee should consider and articulate how long data should be kept and when it should be deleted. For many orgs, it’s hard to balance the need to retain historical data with the costs and responsibilities associated with data storage. More important, old data is less reliable, and your CRM can fill up with red herrings. Regularly reviewing and updating your data retention policies can help ensure that you are compliant with regulations and effectively managing your data.

Build a cleanup practice

Data maintenance requires regular attention. I recommend periodic data audits to identify and address issues such as duplicate records, outdated information, and incomplete fields. And it doesn’t have to be boring! I like to run cleanup events like “data-athons” and set up automations for routine data maintenance tasks.

Prepare your org for the future

In 2025, the importance of robust data governance practices for nonprofits cannot be overstated. As technology continues to evolve, nonprofits must adapt to new data models and management practices to leverage AI and automation tools effectively. These advancements can help orgs meet their missions faster and more efficiently.

By understanding ownership, identifying key fields, addressing siloing and retention, and fostering a good cleanup culture, tech leaders can navigate the complexities of data management and harness the power of data to meet their missions.

About the Author

Natalie Harvey

Natalie has had the privilege of creating dynamic content, leading digital engagement strategies, and facilitating knowledge sharing by conveying organizational thought leadership for nationally renowned nonprofits, including Wave Hill, The Nature Conservancy, The Trust for Public Land, and Mission Investors... Read More