From a business perspective, non-profit organizations have similar functions and requirements as players in any other sector. They need to create campaigns that target potential donors, understand and leverage technology to streamline business processes, and get the most out of the offerings in hand. However, these organizations are not tech-savvy and have very little understanding of
Area of focus
Analytics has many different uses within a non-profit organization. Identified here are five areas where data analytics will create high impact.
- Budgeting is made easy as analytics offers better predictions through financial forecasting by studying spending and income inflow patterns.
- Fundraising requires strong communication channels as messaging plays a key role. Using analytics, understand the audience segments and their sentiments to align the organization's messaging. Studying previous donation data will help build a better connection and gain more support.
- Accountability is one of the primary focus areas for non-profit organizations. Organizations can get better insight into every transaction, spend, income, and more with data analytics. These analytics will directly impact creating transparency, improving the internal budget, and building stakeholders' support.
- A long-term strategy seemed challenging to plan due to the ambiguity that surrounds cash inflow. Analytics offers a clear view of data that helps plan all work areas, including staffing, asset management, donor management, and more.
- Innovation is no longer a luxury as data and analytics give non-profit organizations a broader perspective that will help uncover potential new relationships, donor opportunities, and areas that need further attention.
Types of data and business analytics for non-profits
Five different types of business analytics will help a non-profit organization. Each of these analyses is useful standalone. However, an organization will benefit the most when all five are done together with one another.
- Descriptive: Descriptive analytics summaries data to give an overview of the current situation. This analysis is usually done in the form of dashboards. Non-profits organizations can use this type of data analysis to understand current donor demographics, total contributions over time. This type of analysis helps streamline reporting and statistical modeling for charitable organizations as there is a growing need to meet compliance requirements.
- Diagnostic: This type of analysis helps dive deeper to understand the outcomes of the data at hand. With most donations and charity work happening online, diagnostic analysis helps understand a user's web page behavior and improve those underperforming areas.
- Prediction: Predictive analytics focuses on emerging trends through analysis of trends and patterns. These predictive tools help identify donation shifts across demographics, the right time to pitch to a new donor, and assess the potential of new marketing campaigns.
- Prescriptive: Leveraging actionable insight from previous analysis, prescriptive analytics provides businesses the best course of action to ensure that the efforts of the organizations are directed in favor of the cause and needs of the organization.
Microsoft Cloud for non-profit organizations
Microsoft Cloud for Nonprofit focuses on scalable and transformative mission impact. Products including Microsoft 365, Dynamics 365, Power Platform, Azure, and LinkedIn are now part of the non-profit common data model. With Microsoft cloud solution, non-profit organizations can
- Leverage data to get meaningful insights to improve donor interactions and charity campaigns
- Improve security for on-site directories and authentication, DDoS Protection, Advanced Threat Protection, secure VPN (Virtual Private Network) connectivity, and more
- Use web solutions such as a content delivery network that focuses on user experience and minimizes load time.
The technology evolution in the non-profit segment has allowed charitable organizations to take maximum advantage. Many cloud-based solution providers, including Microsoft, have reduced their pricing to adapt to the budget constraints of the players.