From Cost to Catalyst: Why Non Profits Must Properly Invest in Data and Tech

Deniz Hassan

January 20th, 2025

Last week I had to descend into the lower basement to meet the Chief Technical Officer of a huge organisation. It was a bit grim. Two hours later, I met the comms team upstairs on a beautiful, bright and newly refurbished floor. It felt very 'IT Crowd' (couldn't find the box with the internet in it though).

In a bit of a different take to my usual fundraising point of view, this time I'm thinking about things from a finance angle.

In the non-profit sector, technology and data are often relegated to the shadows, not just in terms of location but viewed as necessary but costly overheads.

This perception needs to change. For senior finance leaders, particularly in organisations with complex, multi-channel, and multi-product portfolios, technology and data are not just tools; they are enablers of financial sustainability and mission-driven success. It’s time to bring them into the light.

From Expense to Investment

For too long, technology has been considered a cost centre rather than a strategic asset. But the benefits are so clear (when communicated in the right way) - with the right infrastructure and insights, technology empowers finance leaders to achieve clarity in fundraising operations, predict financial outcomes, and measure the true ROI of every facet of an income generation programme. Imagine having the ability to precisely calculate the cost-to-income ratio of a specific appeal across digital, direct mail, and events—and knowing where to double down for future success.

Data and technology provide this clarity, eliminating guesswork and enabling informed decisions. The right investments in data and technology means finance teams can actually do things such as compare historical performance against current strategies with confidence rather than the standard opaque conversations that seem to drive some of the most important decisions - imagine that!

Better Relationships Through Better Data

Over the years as a fundraiser, I've made sure I've spent the right amount of money buying coffees for my finance people. But the relationship between finance and fundraising teams can sometimes be a bit tetchy, especially in large organisations where teams work in silos.

Technology bridges this gap by making the right sort of data available. Data, at the correct level of granularity and transparency ensures finance teams have a comprehensive view of income generation programmes. This transparency allows for more collaborative planning and the ability to forecast more accurately.

When finance teams have access to 'proper' data, they can better understand donor behaviours, campaign lifecycles, and the financial impact of different fundraising initiatives. This shared understanding fosters trust and strengthens relationships across the organisation. The intangible ROI is off the chart.

Predictive Power for the Future

In addition to understanding past performance, technology enables organisations to look forward. Predictive analytics, powered by robust data sets, allow finance leaders to model different scenarios and determine where future investments will be most effective. For example, what happens if we invest more in digital fundraising versus face-to-face? Technology can provide the answer, helping to allocate resources with precision. Again, doesn't really sound like a 'cost', no?

The Cost of Inaction

Failing to invest in technology and data because it's expensive is a fool's errand. You're investing in ignorance and uncertainty while potentially pouring millions into a media plan. And all because one has a 'direct ROI'. But step back and consider the cost your organisation risks when making inefficient decisions in our income generation programmes ("Let's pour more money into DRTV"), wasting resources ("It'll take us 2 weeks to pull together a report that shows our returns"), and falling behind in an increasingly competitive landscape ("We'll learn the lessons and have another crack before I decide to get a new job").

Non-profits must view technology not as a cost but as a catalyst for growth. It’s the foundation upon which better decisions are made, better relationships are built, and better outcomes are achieved for both your organisation and the people you serve

Leading the Way

For senior finance leaders, embracing technology and data isn’t about keeping up with trends; it’s about leading their organisations into a sustainable future. By investing in the right systems and fostering a data-driven culture, they can ensure that every pound spent is a pound well invested.

It’s time to step out of the shadows. Data and technology are no longer optional extras—they are the backbone of modern, impactful, and financially sustainable non-profits.