Recently, analytics professionals have begun assisting non-profit organizations in reaping the benefits of data-driven insights. One notable figure in this field is Ken Strasma, the founder of a consulting firm based in Washington, DC, named Strategic Telemetry. Strasma gained recognition for his expertise in data analysis while helping Barack Obama’s 2008 campaign engage with voters effectively. His contributions enabled the campaign to design targeted communications and strategies that highlighted issues important to specific segments of the electorate.
This success encouraged Strasma to broaden his focus to include non-profits. “The exciting aspect of our work with these organizations is that they possess a historical dataset of past donors,” Strasma explains. “We can provide them with insights about their current supporter base: Are these individuals the most likely to contribute, or have they just been selected for outreach?”
By examining the demographics (age, affiliations, income level) of those who have already contributed, Strasma can create a profile of potential supporters who may respond positively to tailored appeals.
The findings can often yield surprising revelations, he notes. For example, cultural organizations frequently miss the potential of less affluent donors. “They tend to think that their supporters are those arriving in luxury cars for opening nights, but in reality, many individuals may be willing to donate even modest amounts to back local arts.”
Strasma also requests lists of individuals who were approached for contributions but chose not to give. This provides non-profit leaders with insights into which prospective donors are the least likely to donate in the future, enabling them to concentrate their outreach efforts on more promising candidates. For instance, someone who contributed once as part of a corporate giving initiative may not be a reliable candidate for future donations. While many of Strasma’s projects remain under the radar, he notes that a consortium of non-profits in New York City saw a 10% increase in fundraising after implementing his statistical models.
When donor data is combined with the extensive information available from social media, predictive analytics regarding future giving behaviors can become remarkably precise. This is the approach Dan Mansoor aims to leverage with his Cleveland-based startup, GiveNext.com, which allows users to manage all their donations through a single online platform. Users can explore a vast database, contribute as they wish to over a million non-profits, and receive tax documentation for their contributions, with a nominal transaction fee applied to each donation.
Mansoor’s vision for GiveNext is to amass a rich repository of donor information that non-profits can utilize to enhance their fundraising efforts. In the coming months, users will be able to register through platforms like Facebook or LinkedIn, enabling GiveNext to gather a significant amount of user data. For example, if a user signs up via Facebook, the platform could gain insights into their preferences, interests, and other basic details. With the combination of social media data and internal donation records, Mansoor plans to conduct a targeted analysis of potential giving patterns.