Introduction
In this four part series, on how and why to increase your investment in data and analytics, we'll examine:
- How not for profit organisations (NFPs) are investing in data and analytics
- Why intentional strategic data and analytics planning is essential
- How to get funding to invest in data and analytics systems
- How Audienceware is helping clients to increase their investment in data and analytics projects
PART 1. HOW ARE NFPs INVESTING IN DATA AND ANALYTICS?
For two decades the US-based The Nonprofit Technology Enterprise Network, now known as NTEN, has surveyed hundreds of NFPs to understand where nonprofits spend their IT money.
We think the key take-aways from their 2024 Nonprofit Digital Investments Report resonate the experience of NFPs in Australia and provide a good foundation for this series of blogs on "How and why to increase your investment in data and analytics".
NTEN's key findings in 2024 were as follows:
1. Organizations are funding their own tech budgets
The only significant contributor to nonprofit budgets for technology projects and maintenance are their own general operating funds. This means that staff will see technology budgets change and shift depending on the financial position of the organization, likely with short-term windows for both confirming and using available funds.
2. Training is an insignificant portion of tech budgets
Looking at nonprofit technology budgets as a whole, training is roughly 1%. It doesn’t matter how much an organization may spend on the latest and greatest technology products, if staff aren’t trained to adequately use those tools in their work the tech investment will not matter. Training needs to be a strategic and intentional area of both budgeting and practice.
3. Little to no external reporting on tech spending
When the funding for tech is coming from within the organization’s own budget, it is understandable that specific reporting isn’t provided on tech spending to funders or donors. However, if nonprofits do not (ever, as is the case with many of them) share with external stakeholders the necessary technology spending and investments, those outside the organization are in the dark. While external parties might be passionate about supporting the missions, the interest in funding technology budgets specifically will not change.
4. Data and data systems are the highest focus for current tech investments
With more and more organizations considering the use of artificial intelligence, it is not a surprise to see the prioritization of data right now. Before most organizations will be in a position to build or integrate powerful mission-supporting AI tools, they will need to improve the data systems, practices, security policies, and data sets in the organization already.