How charities can use data analytics

Data analysis is the process of transforming data into knowledge, sifting through information to uncover meaning that can help make informed, strategic decisions.

 

While data and analytics can seem intimidating or technical to a lot of charity organisations, they’ve revolutionised how charities plan, assess their impact, and improve their outcomes.

 

Most charities carry out basic data analysis on some level, but with the right approach they can turn this information into wisdom and ultimately into action.

 

In this article, we explain what charities can achieve with data and analytics.

 

 

The benefits of data and analytics for charities

 

Most charities have access to data on their service users, supporters, and the areas in which they work. Many are harnessing this valuable resource in numerous ways to progress in the work they do. 

 

Here are just a few of the reasons:

 

Efficiency

 

A clearer view of their service users and activities helps charities save time and resources on programmes and initiatives that aren’t working and understand why they aren’t working, which allows them to direct energy towards the service areas that are more likely to be effective.

 

Budgeting

 

Data and analytics can help charities understand where to allocate budgets and make better predictions with their financial forecasting.

 

Fundraising

 

Data and analytics can help charities better target their communications outreach and understand the platforms and audience segments they should focus on to increase donations. Data about impact can also be a powerful way for charities to tell their story and gain more support.

 

Accountability

 

A great data strategy helps charities be able to report accurately and in detail to stakeholders, and prove the effectiveness and impact of their work to gain more budget and support. Transparency is also a key factor in trust and bolstering a charity’s reputation.

 

Long-term strategy

 

A clear view on data can help them more confidently plan everything from staffing and asset management to their marketing, messaging, and meeting the needs of their service users.

 

Innovation

 

Data and analytics can give charities a wider perspective on everything their organisations does and the community they serve, uncovering hidden relationships and correlations that can take them in new or unexpected directions.

 

Read on for more examples from real life charities that have used data and analytics to drive change for their organisations and beneficiaries.