How to Increase Donor Trust By Unifying Data

For charities, the past few years have seen significant changes and challenges. The global pandemic and cost of living crisis has seen an increase in demand for services, and a decrease in fundraising. In response, organisations have had to find new ways to operate, turning to digital solutions to help them meet the needs of their beneficiaries and continue their work.?

Digital transformation has played a vital role in enabling charities to adapt and respond to these challenges. From increasing fundraising efforts and expanding trust and transparency to enhancing marketing and communications, digital solutions have helped charities to continue their vital work. It has also raised expectations from donors and other stakeholders.

Now more than ever, people who volunteer their time or donate to charitable causes want to understand how their contributions make a tangible difference. They care deeply about the causes they support and want to know about the actual outcomes achieved. In short, they want to see results.?

Yet different donor groups have varying expectations which adds to a sense of urgency for nonprofits to modernise, especially as many charities face a squeeze on resources, despite rising demand for their services.

The changing face of fundraising

In an increasingly digital and connected world, charities must do more than simply exist to be relevant. To survive, they need to be efficient, modern, and forward-thinking to appeal to a broad range of supporters and funders. This means investing in technology, using data analytics, and streamlining processes. Yet many smaller charities are making do with outdated CRM software or attempting to work wonders with basic tools like Excel.

This frequently results in a fractured landscape of solutions, patched-together manual processes, and custom workflows that create complexity and result in higher overhead costs as an organisation grows. Without common models and industry standards, charities can't achieve optimal levels of efficiency. The real danger is that their people get stuck maintaining legacy spreadsheets, bespoke solutions, antiquated CRM systems and processes that have grown along with them.

Data is crucial for charities and nonprofits. It allows them to track their progress, understand what is working and what is not, and decide where to allocate their resources. Unfortunately, data can also be a source of frustration for charities and nonprofits. Data residing in silos and multiple spreadsheets can be almost impossible to understand coherently and contextually.?

When data is unified, it can be easily accessed and understood. This allows organisations to uncover insights, increase their reach and make informed decisions about their fundraising, relationship-building, and social impact.?

How embracing data can transform your relationship with constituents

Charity Hub by Preact, built on the Microsoft cloud, helps with constituent management, including donation tracking and Gift Aid processes. With a centralised solution, you can capture the data to better understand and engage with donors and constituents. You can see how supporters and donors interact with your emails, website and other content channels. You may spot patterns and trends in how they learn about your programs and what steps they take as they prepare to give.

By utilising data, you can better understand donors’ interactions and preferences to tailor your appeals and communications, giving them a greater chance of resonating with your supporters. Understanding data also allows you to see how much and how often supporters interact with your organisation. All of this information is important to maintain strong relationships with your supporters. Organisations that don't frequently communicate with their supporters or only do so when asking for donations are less likely to grow a loyal and engaged supporter base. Therefore, it's essential to demonstrate an ability to use data appropriately by sharing the right information with supporters at the right time.?

Final thoughts

Today's donors look to support nonprofits that earn their trust, make it easy to give and invite long-term relationships. They want to be seen for what they are: individuals supporting a cause they care about deeply.?

Data is a potent tool for nonprofits and charities seeking to expand their supporter base and build strong relationships with their donors. By using data wisely, organisations can avoid common mistakes, like overloading donors with too much information or only communicating when asking for donations. Instead, data should be used to understand supporter interactions and preferences that will enrich communications.

Supporters want to see evidence that organisations are using data effectively. It starts with a modern CRM solution that allows charities to strategically use complete data to measure impact, inspire engagement and earn trust through effective communication.

Preact is celebrating 30 years of helping charities succeed with CRM technology. We support nonprofit organisations of all sizes in achieving efficiency through connected workflows and unlocking value from their data to advance their social purpose. Contact us speak to one of our consultants, and learn more.