“Why Data is the Most Overlooked Fundraising Strategy in Nonprofits”

By Eddie Allen | Pacific Northwest Fundraising

Nonprofits Don’t Have a Donor Problem, They Have a Data Problem

At Pacific Northwest Fundraising, we’ve seen it again and again: nonprofits chase new donors when the most powerful opportunities are already sitting in their database, quietly waiting to be discovered.

A recent Chronicle of Philanthropy report, “How to Make the Case for Investments in Data,” backs this up. UNICEF’s Lindsey Nadeau put it:

“The payoff you get from data is clarity — hard to quantify, but priceless.”

And that clarity is what separates organizations that guess from those that grow.

The Real Problem: We Don’t Trust Our Data

Most nonprofits are running on donor lists that are 40% outdated. Contacts are duplicated, addresses are wrong, and giving histories are incomplete. The result? Leaders are making decisions based on fragments rather than facts.

As the Chronicle article points out, “leaders have to be bold enough to invest in something that doesn’t always show an immediate ROI”, because the true return is long-term clarity and confidence in every fundraising action.

The Solution: Start Small, Get Specific

Data transformation doesn’t need to be overwhelming. Start small — as Northwell Health’s Jacqueline La Gamma advises — by running a capacity screening to segment your donors and discover your untapped potential.

That one step alone often reveals:

10–15 mid-level donors you’ve never asked personally.
3–5 major donors hiding in plain sight.
Dozens of reactivation opportunities that can be stewarded with care.

At PNWF, we call this a Donor Capacity Snapshot: a 30-day audit that shows exactly who’s in your file, what they’re capable of, and how to engage them meaningfully.

The Cost of Ignoring Data

As the Chronicle experts warn, poor data hygiene has a real cost:

“You can show how that lack of clarity leads to strategic missteps and failure to meet your objectives.”

Every hour wasted chasing the wrong prospects or mailing to the incorrect address is time and money lost. The irony? Fixing it costs far less than continuing to operate in the dark.