The value in data for charities – fundraising and beyond

For many charities, the obvious dataset with value is contact data for donors and potential donors. Having an accurate, up-to-date database of donors will understandably be a key priority for many charities. How personal data is used in fundraising has high reputational stakes. Think, for example, of the fundraising scandals that led to the establishment of the Fundraising Regulator in 2016. An investigation at the time found that excessive data sharing and insufficient opportunities to opt out of contact led to some people, including vulnerable individuals, feeling overwhelmed by requests for donations.

Fundraising data aside, recording and analysing data about the impact of their work can help charities to achieve the best outcomes and target interventions in the most effective way. Charities are increasingly becoming aware of opportunities to maximise not just the impact of their fundraising campaigns, but also the effectiveness of the interventions that they make using those funds.

The Trussell Trust is a high profile charity that has used data in this way. The charity supports a network of food banks throughout the UK and campaigns to end the need for food banks by addressing the underlying causes of hunger and poverty. In 2016, the Trussell Trust reported on how it was using data technology such as heat maps to understand demand for its food banks, identify areas of unmet need, and predict where future demand for its food banks might arise.

Donor data – fundraising 

The value for a fundraising charity of having a substantial dataset of contact details for donors and potential donors is self-evident. This data supports the important work of fundraisers. Aside from the data itself, understanding the nature of its fundraising base can help a charity to gain insights into the effectiveness of its fundraising approach. Such insights may include the extent to which there is a high turnover of individuals asking not to be contacted or which types of campaign have been most successful and effective in eliciting donations.

Of course, there is little value in having a great database of donor contact details if it’s not fit for purpose because of how it has been obtained. Using donor (or potential donor) contact details insensitively or illegally can quickly result in reputational and compliance risks. It’s therefore vital to understand and follow legal requirements and guidance from the Information Commissioner’s Office and from the Fundraising Regulator. Otherwise, charities risk the data becoming a liability rather than an asset.

As well as thinking about the charity’s own collection and handling of personal data, it is also crucial to think about what controls are in place when working with others, such as third party fundraisers (for example, professional fundraising agencies). It is evident from past fundraising scandals that the behaviour of third party fundraisers can affect public trust and confidence in charities (and also potentially impact on the charity’s own legal compliance). It is therefore imperative to put in place clear and appropriate contracts with third party fundraisers (and any other service providers with access to personal data) with sufficient controls to moderate these risks.

Impact data – targeting effective interventions 

Data analysis can help a charity to understand whether the way it is applying its funds is achieving its goals as effectively as possible such as whether groups of potential beneficiaries (whether by geographic area or some other demographic) are being reached. For example, data analysis could help a charity to see that it is reaching teenage boys who are intended beneficiaries, but not teenage girls It might also enable a charity to identify emerging and unmet needs among its beneficiaries, thereby enabling it to modify or embellish its interventions.

Of course, not having the right data in the first place may detract from the value of the data in the hands of a charity. Can different data be collected? Another challenge to realising the value of data might be a need for specialist technical expertise to design and carry out data analysis – is that readily available to the charity? It is also possible that concerns about regulatory compliance might impact a charity’s ability to make the most of the insights contained within data. As an example, the charity might need help to understand whether it’s necessary to anonymise any personal data to be used in analysis and, if so, how that can be done effectively.  

Charities can and do partner with academics and data analysis consultants to help them identify and use the right data analysis tools. The Trussell Trust, for example, has reported that it has worked with academic researchers and data science consultants. Similarly, taking professional advice can also help charities to navigate the legal landscape in which they operate and extract value from their data in a legally compliant manner (taking into account, for example, confidentiality, anonymity and use of personal data). Ultimately, the real value in data is realised in the action taken by a charity to address issues or opportunities highlighted by data analysis.