Engaging Donors Through Impact: Strategies for Using Data to Build Stronger Relationships
On this episode of A Modern Nonprofit Podcast, host Tosha Anderson welcomed Sheri Chaney Jones, CEO and Founder of SureImpact, to discuss how nonprofits can leverage data to better engage donors and stakeholders.
The Shift Towards Impact Investing
Sheri highlighted a significant shift in the nonprofit world over the past two decades. What was once seen as a luxury – the ability to measure and evaluate program impact – has now become an expectation. Donors across the board, from individual philanthropists to government funders, are thinking more like impact investors. They want to see quantifiable evidence of how their contributions are creating social change.
This shift has real consequences for nonprofits seeking funding. According to Sheri’s research, organizations that can quantify and communicate how they’re changing lives are 68% more likely to win grants compared to those who only report on outputs (e.g. number of people served).
See the full Youtube video here:
Debunking the Size Myth
One of the most enlightening parts of the conversation was Sheri debunking a common misconception – that only large organizations have the ability to effectively collect and analyze impact data. In reality, her research has shown no correlation between an organization’s size/budget and their capacity for impact measurement.
The number one factor predicting success in this area is the willingness and commitment of leadership to prioritize impact measurement. This means even small, grassroots organizations can excel at quantifying their impact if they make it a priority.
Key Metrics Every Nonprofit Should Track
Sheri emphasized that nonprofits don’t need to track endless amounts of data. She recommends focusing on three key areas:
- Who you’re serving (demographics)
- What you’re doing with them (services provided)
- How they’re better off as a result (outcomes)
To determine what specific outcomes to measure, Sheri suggests nonprofits ask themselves three key questions:
- Why does your organization do what it does?
- Why do participants seek out your services?
- Why do funders support your work?
The answers to these questions should guide what outcomes you measure and report on.
Overcoming Data Hesitancy
The conversation touched on why some nonprofits might be hesitant to fully embrace data-driven decision making. There can be fear around what the data might reveal – perhaps programs aren’t as effective as believed. Sheri emphasized that while confronting these “brutal truths” can be difficult, it’s essential for truly mission-driven organizations to know if they’re having the intended impact.
A Holistic Approach to Organizational Metrics
While the discussion focused heavily on programmatic impact data, Sheri noted the importance of taking a holistic approach to organizational metrics. Just as for-profit businesses use balanced scorecards, nonprofits should have data-driven goals for every department – from finance to marketing to programs.
Practical Steps for Getting Started
For organizations feeling overwhelmed by the prospect of implementing robust impact measurement, Sheri offered some practical advice:
- Start small – focus on those three key metrics mentioned earlier
- Utilize user-friendly tools – from simple spreadsheets to more robust platforms like SureImpact
- Have a clear purpose for each metric you track – know how you’ll use the information to improve programs, communicate with funders, etc.
The Power of Leadership
A key takeaway threaded throughout the conversation was the critical role of leadership in creating a data-driven culture. As Tosha noted, “it all goes back to leadership” – whether it’s fundraising success, financial management, or program quality.
While the task of creating a culture of excellence across all these areas can feel daunting for nonprofit leaders, embracing data and KPIs is crucial for any successful organization.
Take the Next Step
As the nonprofit sector continues to evolve, the ability to effectively measure and communicate impact is becoming increasingly important. By embracing impact measurement, even small organizations can better engage donors, improve programs, and ultimately scale their impact.
For those interested in learning more about implementing impact measurement in their organization, Sheri invited listeners to visit sureimpact.com or connect with her on LinkedIn.
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