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The Age Of (Too Much) Data Posted on : Feb 14 - 2019

I recently went to a restaurant with a few friends for lunch. They offered a very large buffet and had large signs that said to “eat as much as you can." I was amazed to see people pile massive amounts of food on their plates, but I was even more amazed by the abundance of leftovers and the waste.

Too many nonprofit organizations are bringing that “eat as much as you can” approach to their data collection policies. They grab as much information as possible about their constituents and even come back for more if their board members have the appetite. Just like eating a poor-quality diet, collecting too much data could have an impact on your organization’s health. Rather than focusing on achieving your mission, you will spend time developing meaningless dashboards with a focus on non-critical items.

Collecting Meaningful Data

This isn’t to say that data is not important — it's critical for nonprofit organizations to thrive in the digital age. The question is what kind of matrices are important for your work. The end goal should not be more data; it should be engaging with your constituents in a more meaningful way.

The idea of collecting data on your constituents might be a paradigm shift for many organizations that depend mainly on direct mail marketing practices. Until recent years, organizations segmented their donor lists based mainly on their previous contributions and their ability and inclination to give. Donors were treated as passive audiences that may have attended events but were mainly sending checks in response to massive appeals.

While technology has opened the floodgates of data, things don't always work out the way organizations hope they will. According to Big Data Executive Survey, more than 85% of executives say that their organizations are trying to be data-driven, while only 37% report that they have been successful.

How can your organization make better use of data?

1. Start with the ‘why.’

Before you start collecting data, ask yourself these questions to help you focus on mission-critical data collection.

• Will this data help me build a stronger relationship with the individual or company?

• How will this information help me refine my “ask” for a gift?

• Is this information necessary to evaluate the success of my programs?

• Will the data help me improve my services?

I recommend taking a scientific approach to data collection. Form a hypothesis. Conduct experiments, and constantly evaluate and analyze the results. If they are not what you expected, redefine your hypothesis and evaluate whether you are collecting the right information. View More