Building strong data foundations before AI

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Artificial intelligence (AI) is the technology everyone is talking about, and the charity sector is no exception. The recent popularisation of Large Language Models (LLMs), like Open AI’s ChatGPT, has inspired many to ideate on its wider potential. For most not-for-profit organisations, this comes down to the core question “How can we leverage the power and scale of AI to improve people’s lives?”. 

Not only does AI enable these opportunities for society, but it can also transform the way people work, giving us back more time by automating arduous tasks at scale. For non-profits, any opportunity to ‘do more with less’, and make the most of available but limited resource, is worth exploring.   

AI is not a magical silver bullet. It relies on good data, just like an athlete needs good nutrition. Machine Learning (ML) models, the heart of AI, are only as good as the data they are trained on. With data regarded as the key ingredient, there are five fundamental questions that Simpson Associates, an accredited Microsoft data & AI partner, advise any organisation to address: 

Combining all of this information, a data strategy should capture all perspectives of an organisation in its vision. To be successful, every stakeholder must be able to understand three essential things from a data strategy, at any given time: 

The role of data in achieving charity objectives 

It’s clear that AI thrives on high quality data. Its success depends on the accuracy and completeness of the data it is fed. Data plays an instrumental part in the not-for-profit world, where it can be the backbone for personalising the individual journey of a donor, a volunteer, partner or beneficiary. Each funnel is unique to every charity and often requires connecting the dots from various systems to attain a single view. From which, key insights can help define appropriate segmentation, highlight areas to improve service delivery, optimise the allocation of resource, and identify new pathways to partner and extend reach. Charities are home to a wealth of data but struggle to make use of it effectively and therefore miss opportunities. 

According to the 2024 Charity Digital Skills report, a third of charities said they were poor at using data to inform decision making or not using it all. This statistic highlights a surprising gap between potential data-driven decision making and how charities are actually putting it into practice.  While 31% of charities are poor at or not engaging with collecting, managing, or using data, a significant proportion (34%) say using AI tools is a priority for them in the coming year.

This presents both an opportunity and a significant risk. Feeding AI models with inaccurate, incomplete, or biased data will inevitably lead to unreliable and potentially misleading outcomes.  Furthermore, 61% of charities are already using AI tools in their day-to-day work or operations, emphasizing the urgent need for robust data management practices across the sector.

Indeed, with the advent of AI making the matter only more urgent, it is time for charities to get their data strategy in order.  Simpson Associates, say that “data is a powerful tool for social good”, helping charities “connect the dots to transform data into actionable insights that can be relied upon”. While AI offers exciting possibilities for analysis and automation, it’s crucial to remember that a solid data strategy is the cornerstone for any successful AI Initiative. 
 

To find out more about data and best practice in 2025, join our in-person roundtable on 26 February, in partnership with Simpson Associates.  

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Why a data strategy is crucial 

Having a data strategy that is fit-for-purpose in 2025 is essential for harnessing the power of their data. As John Fox, former Associate Director of IT at Alzheimer’s Society points out: “All charities need is to make best use of the charitable funds that they have at their disposal. Leveraging the power of data is key to achieving this.”   

But what does a data strategy that is fit-for-purpose in 2025 involve? A modern data strategy should align with the goals of your organisation and set out guidance for how data is collected, stored, and maintained. AI should be thought of as an extension of data capabilities and a goal state to work towards. With so many charities already building familiarity AI, it should certainly include guidance on how to approach ethically and responsibly. 

Before embarking on full scale AI initiatives, Simpson Associates advises that organisations also address fundamental questions to understand data architecture, infrastructure and operating model.  This includes assessing: 

Simpson Associates provides a free Data Strategy Discovery workshop to help organisations improve how they collect, handle, and share data. For a more in-depth analysis their Data Strategy Assessment can help provide “a comprehensive roadmap for unlocking the full potential of your organisation’s data.  Guy Bebbington, Managing Director at Cameron Homes, who undertook the Data Strategy Assessment to develop a more modern approach to data.  

The organisation also provides expert guidance on data and infrastructure, data maturity, analytics and AI to support charities in making data-driven decisions that will enhance their impact and achieve their mission more effectively while ensuring data governance and security. Find out how the British Heart Foundation harnessed data science, leveraging Microsoft and Databricks technologies to achieve significant outcomes in their mission.