“Just Trust Us”: 4 Reasons Nonprofits Must Embrace Data-Driven Impact
I sat across from a nonprofit organization I knew was doing incredible work. I read testimonies from people they had served saying their programs and resources were life-changing. I saw Instagram pictures from volunteers at their resource fairs sharing how excited they were to volunteer for such a great nonprofit. I knew some of their board members who said how grateful they were to help guide this amazing organization's growth.
However, after listening to the executive director and the program manager speak about their work, two things became apparent: First, after 45 minutes of listening to them give me their elevator pitch, I still couldn't summarize what they did, and second, I needed a cup of coffee to keep me awake because the way they talked about their work could not hold my attention.
When I asked them their biggest need, they said without missing a beat that if people only knew about their work, they could increase their donations and grants.
I have been working with nonprofits for the past twenty years and have heard that same sentence repeatedly. It's the assumption that if a nonprofit provides a service and can describe what it does, then it must be making a significant impact on the population or cause it serves. I've even heard several people say they were surprised that people didn't just mail them checks because they are a nonprofit.
The problem with these assumptions is that their services are often outputs, not impacts, and how they talk about them is uninspiring.
“It’s the assumption that if a nonprofit provides a service and can describe what it does, then it must be making a significant impact on the population or cause it serves.”
To remedy this, nonprofits need to focus on why they do their work. This is impact, and this is where movement and inspiration exist. The "why" is created when nonprofits are able to share stories informed by the narratives their beneficiaries tell and the data found in the services they provide.
Data exists everywhere
Where do you find the resources and capacity to gather the necessary narratives and data when you are a small nonprofit with limited resources, perhaps with a volunteer staff or a donated office space? It's easier than you think and can be gathered through the existing practices that many nonprofits already employ.
When conducting a program evaluation, always ask program participants not only to check evaluation boxes but also to reflect on their experiences.
When encouraging social media coverage during an event, ask participants and volunteers to use specific hashtags when they post their experience and then capture what they say. (Of course, consider privacy and ask to use quotes and photos.)
Think about the long-term impact of your work. Many nonprofit services provide immediate output with the hope they produce a greater impact. Schedule time three months, six months, or even a year later to send out a follow-up evaluation or interview to ask participants how they are doing, what they are working on, and whether anything they are doing relates to their experience with your programs, services, or events.
Finally, utilize your board to help you gather narratives from program participants. This will help create inspiration for the organization's work while also producing quotes for marketing material and data to support your mission.
Stories Build Credibility
Utah has more than 11,000 registered 501(c)3 nonprofits, with the majority of philanthropy supported by a few family foundations. Utah's major business sector is still in its infancy, with no Fortune 500 companies and only three Fortune 1000 companies. Additionally, most individual donations are given to churches, hospitals, and universities, leaving very little funding being donated to charitable organizations.
Credibility is your greatest asset in a landscape saturated with causes and competition for funding. Solid data supported by storytelling proves that impact is meaningful and effective. "Just trust us" is no longer an acceptable default answer; it's something earned through transparency and evidence.
Stories Give Data Life
While numbers validate your effectiveness, stories give your work meaning. A single testimonial from someone whose life has been changed by your organization brings emotion to your data.
Furthermore, stories mobilize change and community support. These stories create a toolbox that educates, inspires, and creates movement around your cause. They are the fuel for advocacy and awareness, whether it's to an elected official, a business owner, a donor, or a volunteer.
“While numbers validate your effectiveness, stories give your work meaning. A single testimonial from someone whose life has been changed by your organization brings emotion to your data.”
Stories Create Data-Driven Evidence to Make Smarter Decisions
As an anthropologist, I am fascinated by the common thread connecting the human experience. When you start paying attention to the stories people tell about their experience with your programs, services, or mission, you can hear the common themes of what's working, what's not, and where to pivot. This is data that maximizes resources and deliverables, makes smart business decisions, and drives change. Because, at the end of the day, being a nonprofit is simply a tax status, it's not a business model.
Nonprofits don't need to choose between mission and measurement—they need both. By collecting solid data and weaving in human stories, we move from pleading for trust to proving our value. And that, more than anything, inspires people to give, engage, and believe.
Socio is a research and strategy consultancy that specializes in helping nonprofits and other mission-driven organizations find data in find and use important data, tell compelling stories, and measure impact. If you would like help creating, measuring, and communicating positive social impact, reach out to us here for a free consultation.
