The state of nonprofit data: Uh-oh!

The Nonprofit Technology Network (NTEN) has released a report prepared by Idealware on the current state of nonprofit data.  Highly recommended!

Some of the news it contains is scary.  In our sector, we currently aren’t very successful at collecting and analyzing the most crucial data.  For example, only 50% of the respondents reported that their nonprofit organizations are tracking data about the outcomes of clients/constituents.

According to the survey respondents, there are daunting barriers to tracking and using data:

  • issues related to collecting and working with data (27 percent of responses).
  • lack of expertise (24 percent of responses)
  • issues of time and prioritization (22 percent of responses).
  • challenges with technology (23 percent).

Page 13 of the report features a chart that I find especially worrisome.  It displays of types of data that nonprofit organizations should or could be using, with large chunks falling into three chilling categories:

  • we don’t know how to track this
  • we don’t have the technology to effectively track this
  • we don’t have the time/money to effectively track this

In the case of data about outcomes, 17% lack the knowledge, 20% lack the technology, and 22% lack the time or money (or both) to track it.

Are you scared yet?  I confess that I am.  Perhaps half of all nonprofits surveyed don’t know – and don’t have the resources to find out – whether there is any causal relationship between what their activities and the social good that they are in business to achieve.

And that’s just programmatic outcomes.  The news is also not very encouraging when it comes to capturing data about organizational budgets, constituent participation in programs, and external trends in the issue areas being addressed by nonprofit organizations.

So much for the bad news.  The good news is that now we know.

It takes some courage to acknowledge that the baseline is so low.  I applaud Idealware and NTEN for creating and publishing this report.  Now that we know, we can address the problem and take effective action.

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