The art of fundraising is largely based on the relationships a charity builds with its donors. Some relationships may be less developed than others, but have potential as a fundraiser works to know their donors better in order to gain long-term support.

There is an undisputed science to this endeavour, as well. We can’t forget that fundraising is an information-rich enterprise. The success of a fundraising program relies heavily on the quality of the data and information you have to work with. But as interactions with a given donor increase in number and scope, and fundraisers come and go, what happens with the information and knowledge relevant to a given donor? And what is the consequence of losing that information?

Many organizations, and many more than we would like to think, have not managed their donor information well or with an eye to the future. In fact, they have placed their organization at risk due to the loss of valuable data.

Consider the following examples of information that never makes it into a donor database:

• Spreadsheets of contact lists or attendees at events
• Lack of donor profile data
• No research data on potential funders
• Notes kept by various staff in a variety of forms
• A staff member who considers themselves invincible and retains vast amounts of information by memory alone

Do any of these situations sound familiar?

Executive managers need to think about data

Often the problem starts at the top of an organization, as executive managers defer donor management standards to every new fundraiser hired. In many cases, fundraisers view handling data as a clerical function. As a result, they show little interest in its management and consequently, defer decision making to the data-entry level.

The use of a database to manage what has been learned about donors, along with donation history, gives the fundraiser a major advantage, as information is captured in one place versus the usual and often idiosyncratic methods…notes, multiple spreadsheets, word documents and more. There are neither secrets nor short cuts to managing this high-value resource, which gives financial support to an organization. The question is, do you have standards and procedures in place to manage it well and make full use of the information at your disposal?

What makes data mine-able?

Think of a bank. You are creating a bank account of information about how your donors have invested in your charity. Determining first and last gift, as well as accumulated donations, requires accuracy. One of the biggest perils is duplicate donor records where multiple entries for a given donor makes getting this information neither attainable or reliable. Imagine contacting a donor only to have them point out inaccuracies. It’s not only a personal embarrassment, but it exposes poor methods inherent in how the charity manages its business.

Complete information is essential. Surprising as it may be, poor data management is more prevalent than one would think. A basic tenet of successful fundraising is knowing when and how a donor has interacted with a charity. This only occurs with meticulous recording methods.

A well-run charity will want to know the following information about each donor:

• What donations have been given
• Which events they have attended
• If the donor has volunteered
• Did they spend money on auction items at an event
• Did they donate an auction item
• Have they been an event sponsor
• Were they a participant in a walk or a run

When all these questions reside in a donor database, the data is mine-able.

Ensure good handling of data

Every member of the fund development team needs to record their transactions accurately and in a timely manner. Gift information, when well recorded, provides further depth about a donor’s interest in a charity. For example, recording a donation as a “designated” gift, does not provide the same impact as using a fund account that establishes a specific interest. Knowing that a donor supports a particular program, service, facility or equipment purchase enables the development department to engage the donor in future support or interaction with the charity. These activities build commitment, which is exactly what fundraisers are looking for.

The other information that makes data mine-able is donor characteristics. For example, type of business, special interests, family and friend relationships. These are just a few ideas that would benefit a charity. The possibilities are endless, but they must be relevant.

Something as simple as a correctly formed address, phone number(s) and email address gives access to donors based on special criteria that a charity has captured. When we discuss data capture for essential pieces of information, notes do not work well as a primary method. Notes are useful as a secondary resource, but they do not provide accurate access. Spelling mistakes, typos and inconsistencies in how information is recorded will also make it more difficult to mine your data effectively. For example, categorizing donors by type of business enables trend reporting. The use of a code like Business: Oil & Gas can easily and accurately identify all donors who fall into this category.

Implement and teach standard procedures

A system can be developed that is in the best interest of the charity. This system supports data capture and management, where staff members become accountable for the completeness and quality of what they record. Compliance is then necessary. Charities are just beginning to understand that standards need to be developed at an organizational level and not at the whim of each staff member. There is a serious risk to any organization when the quality of their information is marginalized.

Training is also essential; however, training budgets are often minimal. Ask yourself, would you give a multi-million dollar asset to someone who simply thought they could manage it, or would your preference be someone who is trained and competent? Boards and senior management have to support training and skill sharing, if a charity is to work effectively.

If you choose to have mine-able data, it will be up to you and your organization. Poor donor data management provides low quality data and gives poor results. It erodes staff time and diminishes morale as the same problems crop up continuously. When the responsibility for managing a charity’s financial future rests with hands-off managers, procrastinators, and those who are too busy, the net result will, more often than not, be a loss of money.

Start looking at how your organization records donor interactions and how you’re managing the information you learn about them. Remember the database is just the tool — it’s the responsibility of the charity and its staff to manage the invaluable asset of information.

Sharron Batsch is a partner at Batsch Group Inc., the developer of @EASE Fund Development Software. Sharron has 35 years of experience in information management, teaching software design for the Southern Alberta Institute of Technology and the Northern Alberta Institute of Technology. She has worked with nonprofit organizations for 20 years and brings a pragmatic business approach to fund development.