Can data management – or CRM (customer relationship management) – really improve your fundraising results? Isn’t it just one more thing to do – especially if you are a small organization, or a large one facing budget constraints? Maybe you’re thinking that what you’re doing is okay, so why invest in this area when there are “more important” things that require your attention, time, and money? Is implementing and updating your CRM a colossal waste of time?
But maybe your experience is different. Maybe you know that you and your team are able to build stronger relationships and partnerships because of how you update, segment, and analyze data related to donors, funders, partners, and supporters. Perhaps you are frustrated by your team’s unwillingness to use the tools available, knowing that if your data were up to date, you could use your time more effectively and focus your messaging and work more strategically.
When it comes to data you can’t hide your head in the sand. Collecting, updating, analyzing, segmenting, and using data to influence decision making is part of life. You have to build your data infrastructure, and you have to be careful not to let data take over your responsibilities. Your team needs to understand what data you are collecting, how, and why. You need cross training in use of the platform, checking for data integrity, and running reports. It’s a balance, and here’s how a balanced focus on data can benefit you and your organization or institution.
Accurate data helps you honestly answer the question, “did we have a good year?” You may have raised more money than last year, but what if 30% was a one-time gift that came from a bequest from a former board member who recently passed? You may think you had a good year, but maybe you also experienced a high number of donors who didn’t give this year, but who in past years made $500 gifts. How would you know these things? Using data can help you determine where your gifts and grants are coming from – or not coming from. And this can inform how you set overall goals, and goals from specific sources or segments. You don’t want to be pulling numbers out of the sky, are feeling stressed mid-year when you aren’t seeing progress.
Here are the types of information that you want to be able to track and understand: new donors, recurring donors, and lapsed donors; donor giving history; and your attrition rate (those who gave in prior years but are no longer giving). You want to know your progress towards financial milestones, as well as your progress towards goals in the areas of volunteerism and event attendance. You want to be able to compare year-over-year progress in general and within specific categories. This can help you see where your money is coming from and shifts in those sources. Your data management makes you competitive. It is your lifeblood and north star – it points the way for you. Take the time to find a balanced approach and evaluate the results.
© 2025 Mel and Pearl Shaw, authors of “Prerequisites for Fundraising Success.” We provide fundraising counsel to higher education, nonprofits, and philanthropy. Video conferencing always available. Visit www.saadandshaw.com.
