To track and analyze vast amounts of data, your nonprofit probably relies heavily on software and internal systems. Sorting through the less important numbers and focusing on key metrics can help you make smarter business and budgeting decisions when planning for upcoming years.
The 4 Types of Data All Nonprofits Should Be Tracking
The following 4 factors are strong contributors to a nonprofit organization’s financial health, and reporting on these key performance indicators facilitates effective decision making.
- Donor Channels – Determining which donor channel is the most effective can help make smarter marketing investments. Email, online marketing, direct mail, and phone lists are tactics that will differ in cost and success rate.
- Quantity of Donors vs. Size of Donations – If you are finding that you have a large quantity of people who give small donations, you may be stuck in the expensive cycle of constantly having to find new donors. On the other hand, having small amounts of large donors may lead you to become too dependent on certain people. In this situation, it may be more logical to diversify and focus on finding new donors.
- ROI – Analyzing the resources and expenses used to generate funds can give you a clear picture of ROI. How much are you spending on labor and software? It can additionally be helpful to break down how much each resource costs per dollar of funds raised.
- Time Management – With the Final Overtime Rule, nonprofit organizations will need to be extra careful to analyze time spent on projects. This will help determine staffing needs and make salary decisions to fit into budgets in the upcoming years.
Capital Business Solutions offers several software options to help analyze decision making data. MIP Fund Accounting helps nonprofit organizations manage budgets, maximize grants, and produce customized reports.