Why the digital Nonprofit of today needs to prioritize data to succeed
Nonprofits are a vital part of our society, working hard to make the world a better place. But as technology continues to evolve, it’s increasingly important for nonprofits to embrace digital transformation and use data to their advantage. Data is the backbone of any digital platform or application. It is the foundation upon which businesses, organizations, and individuals make decisions, understand their customers, and drive growth. In this blog, we'll explore the key reasons why data is so important and why it should be a top priority for any nonprofit organization looking to succeed in today's digital landscape.
Click to read Helping nonprofits deliver on their mission with FP&A and HCM - Blog - FG
The current state of the digital nonprofit
Not-for-profit organizations that plan for their technology needs have much better outcomes than those that don’t. The term ‘data reliance’ refers to an organization’s decision-making process being driven by accurate and timely information. By investing in a reliable data platform and gathering reliable insights, nonprofit organizations are able to make informed decisions on areas such as compliance and security. This gives them a single point of truth, which helps make sure there is consistency in how they present information and decisions.
Data reliance is key for any nonprofit looking to maximize its impact. By understanding the landscape in which they are operating, how their goals and objectives align with that landscape, and how best to measure and assess performance, reliable data provides them with an error-free source of information.
The value of collecting and capitalizing on your data
The advantages that nonprofits can gain when using accurate data are clear. When organizations have access to reliable, up-to-date information, they can make better-informed decisions, create better programs and services, and ultimately improve their chances for success. Data provides insight into trends, informs resource allocation decisions, and allows for more efficient usage.
With an accurate and comprehensive bank of data, it is possible for nonprofits to measure and evaluate their programs to maximize their impact. Having access to all relevant information from a single source allows them to identify problems and trends quickly, measure the success or failure of their programs, and make smarter decisions overall. Ultimately, by utilizing data effectively, nonprofits are able to maximize their impact and increase their chances for success.
The benefits of accurate data
Improved decision making
First and foremost, data allows for smart decision-making. In the past, businesses and organizations had to rely on spreadsheets and multiple versions of the truth, along with intuition and gut feelings, to make important decisions. Today, with the vast amounts of data available, if it is managed in the right solutions that ensure accuracy, decision-makers can rely on hard facts and numbers to guide their choices. This leads to more accurate and effective decisions, which can result in increased productivity, cost savings, and a competitive edge.
Increased customer satisfaction
Data also enables organizations to better understand their customers and target communities. By collecting and analyzing customer data, organizations can gain valuable insights into their preferences, behaviors, and pain points. This allows nonprofit organizations to tailor their services to better meet the needs of their customers and users, resulting in increased satisfaction and donor loyalty.
Drives innovation and growth
Data also plays a critical role in driving innovation and growth. By analyzing data, organizations can identify patterns and trends that can be leveraged to drive new products, services, and business models. Data can also be used to identify potential new donor markets and opportunities for expansion.
Compliance and security
Data is also essential for ensuring compliance and security. With the increasing amount of sensitive information being stored and shared online, it is more important than ever to ensure that data is protected from unauthorized access and breaches. Data security and compliance must be top priorities for any organization looking to succeed in today's digital landscape.
Customer Story
Save the Children International helps children stay safe, healthy, and learning. The nonprofit was looking to replace country-based silos of financial data and systems. They wanted to orchestrate financial management around a single, unified platform that simultaneously provides global granular insight and local configurability.
Using a single, connected Unit4 ERP platform, the global nonprofit benefits from complete, unified financial visibility and transparency.
“The global implementation of UNIT4 will allow us to be true to one of our five core values which is accountability – we take personal responsibility for using our resources efficiently, achieving measurable results, and being accountable to supporters, partners, and, most of all, children.” Pam Innes, Director for IPU Transition at Save the Children.
Save the Children now benefits from the consolidation of its global information onto a common finance platform that allows for increased agility and control. They can manage funding programs with comprehensive funding and expense reconciliation. And the common platform enables them to meet local in-country financial requirements easily and quickly.
“Unit4 is Save the Children International’s most critical application, underpinning funding, procurement, and staffing. It’s no exaggeration to say that, thanks to Unit4, we can now track the pound someone donates through a television appeal right through to it being used to improve literacy in Rwanda.” Julian McGovern, Chief Information Officer, Save the Children International.
How Unit4 can help nonprofits to capitalize on their data
With Unit4’s ERP, HCM, and FP&A software systems, you can adapt and optimize how your people work to help you manage complexity and focus on the things that matter. Unit4’s next-generation smart ERP software solutions are built for people in the business of helping people. With us, you can ‘Experience Real Purpose’ with an adaptable solution that’s right for you, now and in the future. We can help you quickly and easily consolidate financial data, carry out group reporting, and connect everybody in one single system.
To discover more, click here to book a demo and see what our ERP, HCM, and FP&A solutions can do for your nonprofit organization.
