Parting with money is a huge decision. Parting with money without receiving something tangible in return is even more challenging. Donors who decide to support your nonprofit need to know their money is making a social impact. Let them see that they are not just giving money – they are giving hope to individuals, families, and entire communities. You can show them stories, charts, photos, and statistics with an impact report.
Your impact reports will inspire donors to continue or increase donations. Donors are more data-driven than ever when making financial decisions. Data plays a critical role in driving social impact and creating meaningful change.
Why? Because data builds trust.
Data tells your donors why, how, and where their money is being spent and, more importantly, the results. Providing data that fosters trust enables your nonprofit to drive more revenue. Good news – there are simple strategies your nonprofit can apply to satisfy your donors.
What Does Social Impact Mean and Why is it Powerful?
Impact measures the direct and indirect effect on your organization’s programs and initiatives. Data can attribute positive social outcomes to your nonprofit’s actions and initiatives. Donors should be able to see, at a glance, what their money has funded and how it has changed lives.
Impact is exactly what your donors want from their contributions. Measuring impact and presenting it to your donors can motivate donors to continue giving (and possibly increase their contributions). Additionally, engaged donors are your nonprofit’s best ambassadors, potentially increasing your donor base.
Examples of Successfully Quantifying Impact
You’re probably familiar with organizations like St. Jude Children’s Hospital, Make a Wish Foundation, and Special Olympics. For many reasons, these organizations have landed on the Top Ten Most Trusted Nonprofits list. Without question, one of those reasons is how well they have inspired trust through data and transparency.
These organizations present their information clearly and use visuals like photos, stories, charts, videos, and statistics. Social proof is a powerful and persuasive tool – it’s why consumers read reviews before purchasing a product. Similarly, impact data allows donors to feel confident in supporting your organization.
Not only do they see how their money is being used, they see how it benefits the community, and that helps build trust.
Make-A-Wish: Impact of a Wish
The Make-A-Wish Foundation ensures that impact stories and data are front and center for site visitors. Not only are visitors immediately greeted with stories of Wish Kids, but they are also confronted with data on the home page. Visitors don’t have to dig for information and can quickly understand the importance of Make-A-Wish’s work.
The Make-A-Wish Foundation’s “Impact of a Wish” information is crucial in helping donors understand how their contributions impact recipients’ lives. By providing insights into the wish-granting process, donors are given a deeper understanding of the real-world impact of their generosity.
When visitors navigate to the “Impact of a Wish” page, a vivid picture of hope, joy, and resilience is painted for them. Make-A-Wish illustrates how wishes foster emotional healing, strength, and resilience in the face of adversity.
Visitors are met with stories from Wish Kids, their families, doctors, and community members. Transparency fosters a sense of connection and purpose for donors, motivating them to continue supporting the Foundation’s mission.
Reach Hearts Through Data-Driven Stories
Few tools are more powerful than stories for motivating people to donate or do almost anything. Combining numbers and stories helps nonprofits and their donors connect better. It shows donors that their gifts make a real impact and that your organization uses donations wisely.
It’s great to tell your donors exactly how their money will be used, but it’s also important to show them past success. Instead of a laundry list of statistics, weave in – with permission – the stories of beneficiaries. Go from “[Our Nonprofit’s] Family Nutrition Program, which began in 2019, has reduced the child food insecurity rate by 48%,” to something like this:
Tanya, a single mother to three children, lost her job during a round of layoffs. Trying to find a job in the current market proved to be very difficult for Tanta. Without any income, Tanya burned through her savings in just a few months while trying to keep up with rent, utilities, and groceries.
Though food banks helped fill the gaps initially, it became harder and harder for Tanya to get there after her car was repossessed. As her children became less active and playful, she felt the gut-wrenching pain that no parent ever wants to feel: that you cannot provide for your children. Tanya began to look for alternative ways to feed her children and was directed to [Our Nonprofit].
We began delivering two meals a day to Tanya’s family. Now, her children are thriving – their energy is back, and they are doing well in school. [Our Nonprofit’s] Family Nutrition Program, which began in 2019, has reduced the child food insecurity rate by 48%. Tanya eventually found a new job – as a token of her appreciation, she helps us pack meals a couple times a month. Tanya is among the 57 mothers and 206 children in the [XYZ] Community whose families have been nourished thanks to donors like you.
Like the example above, stories should be included in impact reports, donor emails, letters, and social media. Remember to make your donors the heroes when sharing your social impact data. It is their money, their willingness to give, that allows you to do life-changing work
As you consider how best to relay your social impact to donors and the general public, consider what donors want to know about the work your organization is doing.
Tools & Techniques for Data Collection and Analysis
Measuring your social impact based on data provides today’s donors with information they can trust. This data will also provide your organization with valuable information, allowing you to make changes where necessary.
Here are a few practical tools for collecting and analyzing data.
- Impact Metrics: A set of measurements that evaluate the effectiveness of your nonprofit’s activities, programs, and projects. Statistics that illustrate whether a project has achieved the desired results. Examples include the number of people reached by your organization’s programs, participating volunteers, the quality-of-life percentage increase, reductions in child mortality, etc.
- Process Improvement: With the GiveWP Google Analytics Donation Tracking Add-On, your organization can assess the site experience of donors by tracking donation initiations, donation conversion and completion, and more. It’s lightweight, won’t slow your site, and works alongside your existing GA4 implementation.
- Data Collection w/ Surveys: This popular tool for measuring impact is inexpensive and easy. Use surveys to collect data on how your work has positively impacted people’s lives and for how long, to help you understand donor churn, and to accurately predict what donors want to know about your organization.
- Outside Research: Outside research is a critical component that too many organizations neglect. Ensure that you are doing your own research to understand what is happening in the nonprofit sector, including giving data from the last year and current trends. If you’re unsure where to start, you can hire a third party to help you research, analyze, and assess trends in giving and nonprofit marketing.
Using these methods can make your processes faster and better over time, and it helps you understand the difference your organization is making. Plus, it gives your donors clear and vital information. But for some groups, learning new techniques and using new tools can be tricky and take time away from the work they love doing. If that is the case, consider hiring a company with the expertise and technology to help you execute these strategies.
Join us for a Give LIVE
John Mark Vanderpool joins us to talk about impact data and how to use it to maximize your fundraising success. We’ll be live on September 20th at 2 p.m. EST to discuss using impact data to keep your current donors and expand your donor pool.
In Conclusion
Using data to show how you’re making a difference in society is really important. It helps donors see why they should support your organization’s projects and efforts. People want to know exactly how their money will be spent and its quantifiable impact on individuals and communities. Nonprofits can do this by using tools, technology, and methods to collect data about their social impact, which is critical for growth and cultivating greater impact.
At Social Impact Solutions, we assist nonprofits in raising funds by offering clear communication strategies and useful impact measurements. Our mission is to give nonprofits the best marketing and impact resources. Social impact data is just one of the tools we harness to drive change and help nonprofits create a positive impact in communities.
Our team of experts would be happy to talk with you about ways to communicate your nonprofit’s value, inspire your stakeholders, and grow your nonprofit.
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