State of the Sector: Data Maturity in the Nonprofit Sector 2024
Our latest report into data maturity in the nonprofit sector is based on more data than ever. In the last four years, almost 12,000 people from more than 1,000 organisations have completed our data maturity assessment.
In this report we review how nonprofit organisations are doing with data and what is changing over time, and take a deep dive into the strengths and weaknesses of not-for-profit organisations (such as charities, social enterprises and NGOs), as compared with the public sector.
Read the executive summary below, or download the full report as a pdf.
State of the Sector: Data Maturity in the Nonprofit Sector 2024
Written and researched by Hannah Khwaja and Libby Harkins, October 2024
Executive Summary
Data Orchard has been measuring and benchmarking organisational data maturity using our Data Maturity Assessment tool since 2019. This year we’ve seen our highest growth in user numbers and reach, taking our total to almost 12,000 from 56 countries around the world. Now with a rich dataset of 1,039 validated organisations in our benchmark, the time is ripe for sharing what the latest data says.
Our framework scores organisational data maturity across a five-stage journey, starting from Unaware and progressing through Emerging, Learning and Developing to Mastering. Based on usage of our Data Maturity Assessment Tool since October 2019, we’ve found most organisations are in the Learning and early Developing stages.
The analysis in this report focuses on data from the four complete financial years (2020-21 to 2023-24) and explores how different sectors are doing across seven themes of data maturity: Uses, Data, Analysis, Leadership, Culture, Tools, and Skills. We focus on not-for-profit organisations such as charities, social enterprises, and not-for-profits as well as the public sector, which we collectively describe as the nonprofit sector.
Key insights
1. There’s no significant difference between not-for-profit, public and commercial sectors in data maturity. However, there are some differences in their strengths and weaknesses. There are leaders and laggers in every sector.
2. Whilst, from a historic perspective, there’s an apparent technological revolution happening in digital and data, for most organisations change is fairly slow. The average score has shifted from 2.7 to 3 out of 5 in four years. Findings suggest there’s a huge gulf between what’s possible with data and AI, and the readiness of organisations to embrace the opportunities.
3. Culture and Uses have seen the biggest improvement over the past four years. Organisations are improving in aspects of data security and using data to measure and improve their impact, design services and support decision-making.
4. Skills remains the worst scoring theme for all sectors and hasn’t shifted in the last four years. Most organisations don’t have the right skills, capabilities and resources to maximise the use of their data, and many do not know what they need. Data literacy is a challenge for over 75% of organisations.
5. Not-for-profit organisations feel that their leadership are more engaged than the public sector when it comes to actively harnessing the power of data and planning for the future. They are also more confident in the quality of their data and are more likely to use their data to evidence their impact.
6. Public sector organisations are performing more complex analysis and using more specialist tools than not-for-profits. They also score much more highly on aspects of data security and protection in Culture and Skills.
7. Everyone needs to learn about data. Regardless of their job role, everyone is spending a lot of time working with data – on average around 50% of their time. As a proportion of salary expenditure, this represents a huge (and likely hidden) cost. This means data skills are relevant to EVERYONE in an organisation.
REFLECTIONS
Undoubtedly data presents challenges for every organisation. It is encouraging that so many are taking an interest in understanding their organisation’s current state so they can focus on improvement.
On the back of the rapid adoption of digital tools, and in the face of mass availability of AI technology, there’s a clear need for leaders to understand the opportunities, risks and responsibilities around data for their organisations.
It is exciting that there’s been progress in data maturity and there are pioneering organisations working at advanced stages. Many of these tell us they have been working on improving with data for a long time.
Organisations are complex and data is complex – change takes time and a lot of learning. Doing so together and taking collaborative approaches around data towards addressing the needs of society presents exciting prospects for the future.
Data Orchard will continue to focus on building capacity and skills around data and work with partners to address the challenges of the nonprofit sector. Do get in touch if you would like to support us or collaborate on our mission.
Calls to action
Policy-makers/funders: We hope this research will stimulate policy makers and funders to channel resources into advancing data maturity across all sectors. In particular, to urgently invest in learning and skills development, especially for leaders.
Capacity builders/infrastructure organisations: For infrastructure organisations, membership bodies, and those who have a role in supporting and strengthening sectors and/or sub-sectors: we urge you to raise awareness and build understanding around data maturity and offer support to your members with this. You may want to explore how you can develop data maturity at scale and at speed. Our data maturity assessments for cohorts of organisations could help.
Nonprofits (charities, social enterprises, social housing providers, public sector organisations, universities): Assess your organisation’s data maturity, talk about data in your organisation and keep learning. You can find out more about how to engage, educate and motivate your teams through our data maturity assessments for organisations, cohorts, and partners and our leadership courses.
Data people: For those rare and wonderful data people out there working in the nonprofit sector (often the lone data person in the organisation), do come along to our Nonprofit Datafolk Club to meet peers, share and learn together.