If you use a database to maintain an organizational structure and to track donor data, you are doing things that will help the team be more efficient. But what if every year, data from a wide range of sources is being collected and analyzed? How can you be sure that you are getting the most from the information you collect? It has largely to do with how you manage and store all of the information that you collect. Creating a database in which every record is accurate and well-structured is crucial to maximizing the value of donor information. It also protects against potential liability issues. This guide examines how you can make sure that all of the information in the donor relationship management systems that you use is accurate and current.

What are the top priorities as staff members work to organize and maintain a valuable database?

1. Keep up-to-date with new donor data and maintain consistent data management and maintenance practices. Data quality requires having information in a database which is up to date and correct. You can increase the accuracy of the information in the database by performing a thorough database audit. This involves cleaning up existing data, identifying and correcting errors in data entry and data entry procedures, and removing duplicate information from records. It is important to have a data entry process that allows data to be checked for accuracy before it is entered into any database. A data entry process manager is needed to oversee the data entry tasks that staff members perform.

2. Ensure that all members of the team have a clear understanding of how to use the information that you have collected. As data continues to be added to and used, it will become increasingly useful as a tool to guide fundraising and other operations. A properly organized and fully populated donor management system helps everyone on staff, but having a well-designed process for managing and storing donor information is crucial to managing donor relationships well. Since the job roles in many organizations are evolving quickly, it may be necessary for a team member to stay on for an extra day or two to adjust to the changes. Some organizations have established processes and procedures for how their team members must behave while managing or updating their databases. Here are some practical tips:

• When possible, update all the contact data that you currently maintain to include all the information that you currently need.
• When necessary, if there are multiple entries in your database, you can quickly restructure them to make them more efficient and thereby save you money and effort.
• Delete the information in inactivated databases if donors have not volunteered with you in the last two years.
• Backup and backup frequently.
• Set up a system to periodically audit your donor database for errors.

3. Pay attention to the laws and regulations that affect how your organization manages donor information. It is important to be concerned with the issues that pertain to the use and security of the information that donors provide to us. It will be much harder for nonprofits to gain trust by displaying clearly what types of information you are asking donors to provide. You can also let donors know if you are collecting information from them and if you are using that information in a manner that is fair. Keep what information you request from donors as brief as possible, including names and email addresses. Donors want to know if they can change their preferences at any time, and if so, they can choose to unsubscribe from the records that are kept about them. Do not forget that you need to have a donor management tool that is highly protected to protect the personal data that you collect. Having a reliable software to manage donations is vital to helping nonprofit organizations collect information that is safe.

4. Keep tabs on the donor information that your team has by collecting and storing donation receipts. Getting a tax-exempt, official confirmation from donors when they give their contributions helps to maintain control and avoid potential legal issues. Donors receive a donation receipt that allows them to verify that they have a donation from them and claim the appropriate 501(c)(3) charitable status. Organizations that send a receipt when people give a donation to them natively help build trust with that donor. Be sure to have a good donor database that helps keep tabs on receipts like MyDonors.

5. Stay focused on the data that will help you to achieve your goals. Nonprofits collect data, but a lot do not take the time to truly analyze it. It is extremely important to prioritize and focus on the data elements that align with your organization’s priorities. Work with your staff in identifying the data and performance indicators necessary to track goal progress. If every single data point and metric in relation to what all good nonprofits do is based on clear objectives, greater focus can be obtained from this data.

6. Pick the best database management software for your organization. It will not be sufficient just to gather data for a while; you must analyze and act on that data in order to improve your organization. It is important that your database management software reflects the real-time information about the opportunities and challenges that nonprofit organizations face. Having a process in place that allows you to analyze and interpret the information you have collected is incredibly important. Rather than relying solely on what people say, look into the information in the databases that other organizations manage and predict what will happen. Data you get from donors enables you to be even better at helping them.

It’s extremely useful to use a database or a CRM like MyDonors to manage all the necessary information about how donors behave and what information you need to provide to improve the work of the organization. MyDonors is part of MyCommunity, which exists to build relationships and tools that equip organizations so that they can maximize their impact. Our suite of tools is designed to help organizations of all sizes focus on their mission without worrying about the logistics. We understand the importance of building strong relationships, so we provide the necessary tools to maximize impact and make a difference like our easy-to-use platforms MyDonors and MyVolunteers. Likewise, MyNonprofitCoach equips nonprofits with the training they need to be successful. Schedule a demo for any of our solutions here.

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Source: https://labyrinthinc.com/nonprofit-database-management-best-practices/