Top Challenges Faced by Nonprofits Due to Lack of Data Strategy

To accomplish social good, it is essential to understand the nature of the target audience and how each campaign might affect them. The combined efforts of an NGO or Nonprofit get enhanced tenfold by just recognising the patterns of social needs and their consequent reactions. Data analysis and data strategy for nonprofits are still not very prevalent despite being such a significant aspect.

A 2019 report stated that more than 90 percent of nonprofits collect data, but only 5% put it to use to increase maximum output and raise the stakes. If done correctly and with appropriate procedures, an effective data management for nonprofits can transform how a certain NGO works and how it is perceived among its beneficiaries. Read ahead to find out about some of the most common nonprofit challenges today and how nonprofits can use data to steer clear of them.

Challenges faced by Nonprofits Post Pandemic

Covid 19 has changed how NGOs and Nonprofits function and shaken their interactions and relationships with donors and beneficiaries. Organizations have finally realised the importance of data for nonprofits and that they need an extensive virtual data strategy in order to increase their reach.

Data analysis comes into play almost everywhere, from sending emails and hosting charity events to raising funds digitally and connecting with donors. But how nonprofits can use data and what data should nonprofits collect? Here’s everything you need to know regarding the same.


With the world freshly recovering from the aftermath of Covid19, the role of Nonprofits is seen now more than ever. People are constantly falling short of making ends meet and rely heavily on the donations made by Nonprofits. Nonprofits, in turn, rely on charitable and government donations to provide for their campaigns.

Almost 58% of these organisations recorded a decrease in revenue in 2020, but the pandemic paved the way for more exclusive government funding. What’s more? 44% of NGO leaders say they sought help from the government in those desperate times and were not disappointed. Social distancing has restricted in-person interaction to a minimum, affecting the fundraising capacity of these NGOs and increasing nonprofit challenges today.

Leveraging technology and nonprofit data management through implementing data strategy for nonprofits can aid in bringing this burden down. Using data points to identify potential donors and finding consecutive loopholes in the pre-existing mechanism is the way forward.

Constant Technological Changes

More and more Nonprofits are adopting a digital outlook toward expanding their services and enhancing nonprofit data management. Cloud technology and automation can drastically ramp up the impact of the schemes and programs offered by these organisations.

Some of the most common nonprofit challenges today identified by NGO leaders are –
● Lack of visibility and transparency
● Delay in overall working due to disjoint systems and departments
● A weak link between the financial and development strategies of the organisation
● Lack of efficiency

Data collection and automation are the two pillars of a more refined working process. Keeping data points regularly updated makes financial undertaking very easy and gives way to more nonprofit data management efficiency altogether. It is easier to build audits for an adverse situation, for example – Covid 19.

Lack of Volunteers

97 percent of nonprofit organisations have an annual budget of less than $5 million, so the most typical nonprofit entity is largely community-based. In fact, more than 80 percent of the revenue garnered by this sector is through private fees, charitable donations, and government grants and contracts.

Amidst all this, a very significant and real-time issue that usually pops up is the need for more volunteers. And because nonprofits are entirely based on the goodwill of people, there are a few instances where there’s a shortage of volunteers. Implementing specific data collection strategies can be of huge assistance here. By implementing effective data management for nonprofits, organizations can figure out some of the non-monetary incentives given to people to attract them to volunteer.

Final Verdict

NGOs and nonprofit organisations are gradually moving towards a more organised way of working. Keeping updated records, identifying new trends with the help of these data points and also using them to formulate better strategies in the future, a gamut of these marks a seamless social effort.

Top Challenges Faced by Nonprofits Due to Lack of Data Strategy

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