The Average Nonprofit Overuses Averages
I’ve warned of the danger of averages before. Yet, I continue to see nonprofits defaulting to averages when they show data about their clients, participants, volunteers, fundraising, etc. So here’s another warning.
The visualization below (which, by the way, is called a bump chart), does a great job of illustrating the danger of averages. In this chart, average wealth is the wealth of a country’s people divided by the size of its population. The median is the middle value when everyone’s wealth is arranged in order. So billionaires have an outsized effect on the average, but the median is less affected by big outliers like billionaires. That’s why the U.S. ranks 4th in average wealth but 14th in median wealth.
Before you share an average with your board or on your website, consider what the median is. If it’s quite different from the average, you might consider showing both the average and the median or just the median.
To see past data tips, including those about other chart types, scroll down or click HERE.
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Got the feeling that you and your colleagues would use your data more effectively if you could see it better? Data Viz for Nonprofits (DVN) can help you get the ball rolling with an interactive data dashboard and beautiful charts, maps, and graphs for your next presentation, report, proposal, or webpage. Through a short-term consultation, we can help you to clarify the questions you want to answer and goals you want to track. DVN then visualizes your data to address those questions and track those goals.