Unlocking greater impact through centralised data

Written by Emily McHugh, Director of Strategic Initiatives, SQA Group

Nonprofit organisations today face increasing pressure to demonstrate impact, transparency, and efficiency. As a former fundraising professional and current board member of a grantmaking organisation, I’ve seen it firsthand on both sides. Donors and funders want organisations to do more and more, while keeping overhead low. And while critical missions and dedicated teams form the backbone of any nonprofit, data has quickly emerged as a differentiator that can make or break an organisation’s ability to have maximum impact, as well as share those stories of impact.

For nonprofits, centralised data is no longer a luxury — it’s a necessity as competition for funding continues to increase. Accessible data enables streamlined operations, better donor and funder engagement, enhanced program outcomes, and stronger storytelling around impact.

The challenge of decentralised data

It’s no secret that the nonprofit sector is under resourced, with many organisations relying on a patchwork of tools and systems to manage their operations. Oftentimes finance uses one platform, development another, and programs might be working off spreadsheets. All the while none of these systems talk to one another, requiring manual handoffs and entry of data. Such decentralisation poses several challenges:

Inefficient Operations: Disconnected and fragmented data systems require staff to manually consolidate information, leading to time-consuming processes and a higher likelihood of errors.
Data Silos: When departments or teams store data independently, it hinders collaboration and creates barriers to accessing critical information.
Inconsistent Reporting: Without a unified data source, generating accurate and timely reports becomes a daunting task, negatively impacting the ability to compete for larger grants with stricter reporting requirements, and affecting transparency and accountability.
Compliance Risks: Decentralised data can lead to non-compliance with data protection regulations, exposing the organisation to legal and financial risks.

The power of centralised data

Centralising data involves integrating all data sources into a single, cohesive system. Imagine that your development CRM flows directly into your finance platform, and vice versa. No exports of reports sent via email, or paper files traded between departments. Imagine all programmatic data is collected in one place, where it’s accessible and digestible by everyone in the organisation.

When I led fundraising for a statewide college access organisation, program data collection and aggregation was essential to our operations. We were able to collect student-level data on things like grades, absenteeism, grade promotion, and graduation and correlate them with our program participation. This data fed a longitudinal study, following cohorts of students into adulthood to analyse long-term program impact against a scientifically matched comparison group of non-participants. Without centralised data, we would not have been able to compete at a federal level for millions of dollars in annual funding.

But the impact of centralised data touches every corner of a nonprofit organisation. Let’s dive into a few of the benefits.

Improved Decision-Making: With centralised data, leaders have access to real-time, accurate information. This enables data-driven decisions that can enhance program effectiveness, allocate resources more efficiently, and ultimately increase the organisation’s impact.

Enhanced Collaboration: A unified data system fosters a collaborative environment where staff across departments can access and share information seamlessly. This eliminates redundancies and ensures everyone is working towards the same goals with the same information.

Strengthened Donor Relationships: A comprehensive view of donor and funder interactions, preferences, and ensures that a personalised touch is always possible, leading to stronger relationships and increased donor retention. I will never forget the day that I reached out to a donor who had made it abundantly clear to my predecessor that he would make his contribution every August, and did not want to be contacted otherwise. Because we weren’t using a reputable system to collect donor data at the time, this note fell through the cracks but could have been easily avoided.

Increased Efficiency and Cost Savings: By eliminating duplicate data entry and reducing manual processes, staff can focus on mission-critical activities rather than administrative tasks. This efficiency can lead to significant cost savings over time.

Enhanced Compliance and Security: A centralised system simplifies the implementation of data protection measures and compliance with regulations like GDPR or HIPAA. It also ensures that sensitive information is secured consistently across the organisation.