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Nonprofits get more value from data when they start with a decision, not a new tool. Identify the choice that needs better evidence, decide who is responsible for the information, and collect only what can help the organization act. A data inventory, clear stewardship rules, and staff capacity to interpret findings are practical foundations for that work.
Why data matters—and why collecting more is not the goal
Data can help leaders decide how to improve a program, allocate resources, understand fundraising, or respond to community needs. But information does not create value simply because it is collected or stored in a new system. It needs to be relevant to a real decision, reliable enough to inform it, and available in time for people with authority to act.
Sector surveys suggest growing attention alongside uneven use. Infoxchange reported that 44% of organisations in the Australian not-for-profit sector prioritized data and reporting for evidence-based decision-making in 2025, up from 17% in 2023. In a separate report, Sage’s 2025 Nonprofit Technology Impact Report categorized 9% of respondents as highly data-driven, 27% as moderately data-informed, 34% as collecting data without fully leveraging it, 23% as using it only in limited or reactive ways, and 7% as having manual, siloed data. These are findings from different surveys, not directly comparable measures or a census of nonprofits. Infoxchange’s 2025 report and Sage’s report provide their respective sector perspectives.
How to build a data practice around decisions
A workable approach can begin with existing systems and a small number of useful questions. The sequence below connects mission, data stewardship, safeguards, and staff capacity.
#1 Best Overall
1. Name the decision
Start by stating the choice the organization needs to make: for example, whether to adapt a service, change outreach, direct limited funds, or adjust staffing. Identify who will make that decision and when. Then ask what evidence could reasonably inform it and whose experience may be missing from that evidence.
This step prevents a common mismatch: collecting information because a form or system makes it easy, without knowing who will use it or what action it might support. If no decision, learning question, or accountable owner can be named, reconsider the collection burden.
2. Inventory what the organization already holds
Before adding a platform or requesting new fields, map the information already collected. An inventory can record what is held, why it is collected, where it lives, who is responsible for it, who uses it, whether it is sensitive, and how long it is retained. It can also reveal duplicated collection, information no longer needed, and data that staff cannot readily access.
Rank #2
NTEN describes an inventory as a foundation for data policy and provides a sample inventory and policy resources through its Data Empowerment for Nonprofits page.
3. Assign stewardship and decision rights
Governance is the practical allocation of responsibility for information throughout its lifecycle. Leadership should establish who can approve collection and use; staff should know who maintains definitions, checks quality, grants access, and handles concerns. A written policy can clarify these roles, the purpose of collection, retention expectations, and escalation routes.
NetHope’s Nonprofit Data Governance Toolkit Guide offers implementation resources such as roles, template policies, roadmaps, and key performance indicators. A separate framework for nonprofit data strategies, developed by Real X Change and Community Living Essex County, likewise treats governance as central to responsibility, standards, privacy, security, and quality assurance.
Rank #3
4. Make privacy, security, and trust part of the design
People should be able to understand why information is requested and how it will be used. Collect only what serves a clear purpose, restrict access according to role, document how information moves between systems or teams, and set retention and deletion practices appropriate to the data. The right safeguards depend on the sensitivity of the information and the people represented, not just the size of the organization.
Amy Sample Ward of NTEN has emphasized the stakes: “Nonprofit organizations are often the most trusted service, support, and information providers for vulnerable communities. Organizations need to operate with care and security in the stewardship of community data every day.” The quote appears on the Better Deal for Data site. Its standard and implementation playbook can be considered as resources, not as legal requirements.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchThe Charity Digital Code of Practice 2025 discusses responsible data use and governance for UK-registered charities. It distinguishes small charities, defined there as having annual income of £1 million or under, from larger charities above that threshold. This is UK-specific guidance and definition; it should not be treated as a rule for charities elsewhere. Privacy-law obligations also vary by jurisdiction, data type, and organization, so general good practice is not a substitute for determining applicable legal requirements. Read the Charity Digital Code of Practice 2025.
Rank #4
5. Choose measures that answer the question
For each decision, choose a manageable set of indicators and document their definitions, source, collection frequency, and any useful disaggregation. A measure should be precise enough to help with the choice at hand without creating unnecessary work or collecting more personal information than needed.
When reviewing a measure, ask whether its data is valid, intact, precise enough, reliable, and timely. These dimensions appear in the U.S. Department of State’s monitoring and evaluation guidance; they are a useful reference, not a nonprofit-specific mandate. See 18 FAM 301.4.
6. Build the capacity to learn and act
Data work requires time, skills, and leadership attention as well as systems. Staff need to understand definitions and processes, interpret results in context, and know how to raise concerns. Involve the people who collect and use the information, and, where appropriate, the communities represented in it. Training or outside support may help organizations establish practices they cannot yet maintain internally.
Review the approach as programs, risks, and organizational needs change. Ask whether information is helping the intended decision, whether its quality remains adequate, and whether the process imposes a fair and manageable burden. Use what is learned to revise measures, access rules, workflows, or collection practices.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to assess a proposed tool or data initiative
A new platform, integration, or measurement project should be judged against the problem it is meant to solve—not against the number of features it offers. Consider these factors before committing resources:
- Decision fit: Which mission or management choice will this support, and who will act on the information?
- Information quality and timing: Can the data be trusted and delivered when a decision is made?
- Privacy and security: Are access, retention, and safeguards proportionate to the information and the people represented?
- Accessibility and equity: Could the collection method exclude people, increase burden, or leave important experiences out?
- Integration: How will information move between existing systems, and who will maintain those connections?
- Capacity and workload: Do staff have the time and skills to use the tool and sustain its processes?
- Sustainability: Can the organization support the initiative’s full costs and operating needs over time?
These considerations are a practical synthesis of guidance on strategy, governance, risk, systems, and organizational capacity—not a published scoring standard. A tool is useful only when the organization can govern it, use its outputs, and sustain the work around it.
Quick Recap
Resources for nonprofit teams
- NTEN’s Data Empowerment for Nonprofits includes policy and inventory resources.
- NetHope’s Nonprofit Data Governance Toolkit Guide supports implementation with roles, policies, roadmaps, and KPIs.
- Better Deal for Data provides a standard and an implementation playbook. The site states that Standard version 1.1 was released on September 14, 2026; consider it a resource rather than a legal requirement.
- The Charity Digital Code of Practice 2025 is intended for UK-registered charities.
- The U.S. Department of State’s 18 FAM 301.4 sets out monitoring and evaluation guidance, including data-quality dimensions.
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