7 Donor Database Tips to Optimize Nonprofit Fundraising

I had the chance to attend a data analytics session that was aimed at optimizing nonprofit fundraising opportunities at Association of Fundraising Professionals (AFP) Greater Toronto Chapter 2012 Fundraising Day. The session presented some interesting tips on how nonprofits can maximize fundraising revenue by establishing a centralized high quality donor database. The session got me thinking about how nonprofits are focused on the fundraising aspect when investing time on internal data collection and maintenance strategies may yield stronger results. The following are some of the tips I learned from the seminar and a few of my own:

1. Audit. Audit may be a scary word to use, but in fact an audit of your data will result in highlighting areas for improvement and help you understand the state of the data you are working with before pursuing data perfection. A simple flow chart of the various systems where the data is housed, the data source, available fields and field metrics is an excellent starting point towards developing a data improvement plan.
2. Centralize. There are times when data is housed across multiple systems and this can become a barrier to achieving superior data quality. When possible, centralizing all your data sources to one system helps streamline data collection and integration. When that is not possible, ensuring that the multiple platforms contain the same data, coding, data types and layout will reduce confusion amongst users and ultimately improve quality.
3. Policy. Formalize your database structure by writing a Policy & Procedures document that outlines data sources, the respective fields with clear definitions, the procedures when handling new data and how quality will be enforced. Including a protocol of reviewing new donor data that is integrated into the system will help reduce future data problems and having to work through periods of poor data quality.
4. Cleanse. Unavoidably, donors may appear multiple times in your database. Donors often change contact information, i.e. email address, home address and phone number or the data collector may have entered a variation of their contact information causing a duplicate record on your database. To avoid unnecessary marketing, delivery and administrative costs on these duplicated records, it’s highly recommended to cleanse your data regularly purging duplicates, DNC’s and other removals by request.
5. Assign. To ensure that your data quality is maintained, it’s important to assign responsibility and limit access to specific individuals or departments in your organization who enter new donor information. Thorough training and adherence to the Data Policy & Procedure will ensure that all team members are using the same guidelines when handling data and keeping everyone on the same page.
6. Demographics. Tracking donor demographics is essential to a high quality database. The more robust the information contained in your donor database, the more the database will work for you. Tracking all interactions with the donor, gifts, revenue, age, gender, interests, pledges and relationships will help you personalize your interactions.
7. Metrics. Ultimately the quality of your data will help to determine your organization’s results. It’s important to establish 5-10 metrics which are important to your nonprofit to leverage data to further fundraising success. These can include response rates, attrition, life-time value and cost of acquisition. Measuring these results in the future against the metrics you have set, should demonstrate the improvements in data quality that have been made.

Building databases and data management can be challenging for a nonprofit organization. Investing time and resources on centralizing and streamlining donor data that respects the privacy of the individual donor and caters to their preference can be very beneficial in the long run. These benefits include: increased efficiencies, lowered costs, greater donor loyalty, extended lifecycle and a better understanding of who your donors are to help find new ones.
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Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional fundraising services including telephone fundraising, online fundraising, lottery services, donation caging, donation processing and other donor management services. We are committed to our CSR business values in all contact centre services and mail house operations and advancing the missions of the nonprofits we proudly serve.