How do you use data and technology to plan your nonprofit budget?

1 Benefits of data and technology

Using data and technology to plan your nonprofit budget can help you improve your efficiency, transparency, and accountability. You can use data to track your income and expenses, monitor your performance indicators, identify trends and patterns, and forecast your future needs and opportunities. You can also use technology to automate your budgeting process, reduce human errors, simplify your reporting, and communicate your impact to your stakeholders. Data and technology can also help you align your budget with your strategic plan, your theory of change, and your desired outcomes.

2 Challenges of data and technology

Using data and technology to plan your nonprofit budget comes with some challenges that need to be addressed. Data quality is one of the most important considerations, as accuracy, completeness, consistency, and reliability must be ensured. Additionally, data security is paramount; make sure to protect your data from unauthorized access and comply with relevant laws and regulations. Data literacy is also essential; you need to have the skills and knowledge to collect, analyze, interpret, and use data effectively. Lastly, a data-driven culture must be fostered in your organization. This includes engaging stakeholders in your initiatives and soliciting their feedback.

3 Tips for using data and technology

To leverage the benefits of data and technology to plan your nonprofit budget, it's important to start with a clear purpose and select the right tools for your needs, budget, and capacity. Utilizing best practices for data and technology management, such as setting SMART goals, creating data governance policies, documenting processes, testing systems, and backing up data can help you reach your desired outcome. Additionally, seeking advice and guidance from other nonprofits that have used data and technology to plan their budgets can be beneficial. You can also join online communities or networks that share resources and experiences on nonprofit data and technology.

4 Examples of tools

Using data and technology to plan your nonprofit budget can be a rewarding and empowering experience that can help you achieve your mission and goals. To get you started, here are some tools to explore: Aplos, a cloud-based software that offers accounting, budgeting, fundraising, and reporting; Budget Builder, a free online tool for creating and editing budgets; Propel Nonprofits, which provides budget templates, calculators, guides, webinars, and workshops; and Tableau, a data visualization software for analyzing and communicating data. We hope this article has given you some insights and inspiration to start or improve your data and technology journey.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?