This post was originally published June 16th, 2015 on Inside Management, a blog maintained by the New York Community Trust Nonprofit Excellence Awards, where I serve as a selection committee member.
One of the primary reasons nonprofits collect data is to report back to their funders. In fact, it is probably the only reason that many nonprofits collect data at all. But this is equivalent to stashing your money under your mattress – sure you are saving money, but you are missing out on much better ways of accomplishing your financial goals. One axiom of personal finance is to not merely work for your money, but instead to make your money work for you. The same goes for your data.