Big Data: Big Hype or Big Opportunity for Nonprofits?
	Posted by Chris McKinley at Nov 07, 2013 07:04 AM CST

Is “Big Data” worthy of all the hype, and can it be used in the nonprofit space? The economy says yes! According to a DMA study released a couple of weeks ago, Big Data-driven marketing drove an added $156 billion of revenue and added more than 675,000 jobs. Big Data is creating a new industry, and nonprofits should take note.

Big Data is a reference to the vast volumes of data being created by consumer behavior. This data is captured, aggregated and analyzed to produce more effective marketing solutions.

In order for nonprofits to begin to navigate the possibilities of Big Data, they’ll need to integrate information from multiple data sources, often from third parties.  This will be very expensive, especially for nonprofits working with tight budgets already. And it requires talent, resources and time to discover how Big Data can work to their benefits. Currently, many other industry sectors are struggling with success.

The challenge I see within the fundraising arena is that nonprofits are not exploring the possibilities of their own data already available. This “low hanging fruit” presents a huge opportunity for nonprofits right now.

Weighing the responsibility of being the best stewards of our donors’ contributions against the need to invest in new approaches is difficult. Yet
I do think nonprofits should acknowledge the trend to collect more data. We should be evaluating it, and testing its potential to create more relevant communications and donor-focused strategies.

Quick wins are to begin capturing data already available to nonprofits. Some examples:

• Age and gender
• Supporter activities such as volunteer, event sponsor/participant, inbound phone call and donor preferences
• Supporter value assessment based on non-monetary activities
• Household relationships of supporters – wife, husband, son and daughter
• Phone, mobile, email address

Basic information can be used in innovative ways, and I feel many nonprofits are not fully realizing the current opportunities. What I’m taking away from the Big Data trend is that data is important. We need to capture data being offered by our constituents, and we need to have a practical plan for using it. This will strengthen our relationships with donors, and it will move us down the path to cashing in on the Big Data trend.