Charity Digital – Themes – Free e-book: How financial data can have an impact

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Download The Road to Nonprofit Success eBook

Driving your charity forward with data is like adding footnotes to an essay – although people may initially be convinced by your argument, the evidence is what seals the deal.

Charities host a lot of data, from donor details to information about service users. Financial data, in particular, can be very useful for organizations looking to better understand their impact. They can see the size of donations, revenue per donor, cost of services and number of services provided over different time periods, and much more.

Sage intact‘s eBook, which you can download below, explains how charities can use their financial data to make decisions and have the greatest impact. It also highlights barriers that organizations may face in doing so.

It reveals the internal frustrations of more than 500 nonprofit finance leaders, most of which relate to the inability to see or monitor their metrics. Delays due to disparate systems, lack of real-time visibility into key metrics and inability to measure their result metrics all fell into the top five challenges facing nonprofits.

Yet reviewing this real-time data can help you make critical decisions. This can help you be nimble with your fundraising strategy, by identifying early tactics that might not work, or alternatively, discovering what works instead.

Understanding all the financial variables can also determine how you talk about your charity to external audiences. You can talk about the amount of fundraising money spent on each service you provide or the amount needed to provide more. Simply put, you can use your data to justify why others should invest in your cause.

For example, you may notice a sudden increase in donations – once you notice the trend, you can start to find out why. Once you figure out why, you can capitalize on the momentum, post similar content that resonates, or double down on messaging.

Charities should not fear failure either. Failure can be a catalyst for innovation, when the reasons for it are understood. But charities need to be able to spot downward trends first, so they know exactly what areas they need to work on. Being able to spot these trends at an early stage is key to detecting problems before they become too entrenched.

Ultimately, the Road to Nonprofit Finance Success eBook concludes that financial visibility saves more lives. NATCOthe American Organization of Donor and Transplant Professionals, believes that because their board of directors can see what they are doing well and what they need to correct through their financial management system, they remain solvent where they were not before.

“[The Board’s] the whole attitude towards the future of the organization changed once they had valuable financial information, with which they could actually make decisions,” commented Donna Dickt, Executive Director of NATCO . “Ultimately, Sage Intacct helps us save lives.”

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