Imagine you’re a donor receiving an annual report from your favorite nonprofit. You just contributed a year-end gift and are looking forward to hearing how that donation will make an impact.
Instead, the organization simply attached its nonprofit financial statements and added several figures that are difficult to interpret. While you could spend the time trying to understand this data, you’re busy and decide to move on, frustrated that you still don’t know exactly how your funds will make a difference.
To avoid situations like this, you need to transform raw data into narratives that tell the story of your donors’ impact. Repackaging data into digestible, engaging formats empowers donors to grasp the necessary information quickly. This guide will provide tips on how to break down your nonprofit’s data and make it more accessible.
1. Lead with Donor Impact
Think like a donor. They don’t just want numbers that show what your nonprofit accomplished; they want to know why this data matters.
Attach mission impact to the data points you present. For example, telling donors you collected over 8,000 in-kind gifts of school supplies this year should just be a starting point. Go further by explaining that these contributions equipped 12,000 local students with the items they need to learn and expand their horizons.
Additionally, use donor-centric language whenever possible. Instead of saying, “We helped 12,000 kids using these contributions,” opt for wording that puts donors at the forefront, such as, “Thanks to your generosity, 12,000 students now have the supplies they need for a successful school year.”
2. Connect Statistics to Tangible Outcomes
Make impact data less abstract so donors can fully comprehend the outcomes they’ve supported. Leverage these tips to make this information more tangible for your constituents:
- Break down percentages. Donors understand what you mean when you say that 80% of their contributions went directly to programming. However, it’s more impactful to explain that four out of every five dollars they gave helped rescue more animals in need or supply health kits for under-resourced populations.
- Focus on real beneficiaries. After presenting large impact figures, zoom in on the people truly affected by your work. For example, after noting that your organization donated 700 blankets for children in cancer units, dive deeper into a specific child’s story and how your nonprofit has touched their life.
Before showcasing specific beneficiaries, collect consent for sharing their information publicly. Feature images and quotes to help donors form emotional connections to the people that your work is helping.
3. Illustrate Relative Impacts
Help donors skim your updates and still absorb all the necessary information by sharing the relative impacts of their gifts. For example, tiered gift impacts for an animal shelter may look like this:
- $5 = a new toy for a shelter animal
- $50 = a month’s supply of food for a shelter animal
- $200 = all vaccinations covered for an adoptable animal
Showing these relative impacts in your impact communications clearly demonstrates how you leverage donors’ contributions and shows how even small donations make a difference. Additionally, including this information on your donation page can entice donors to give and potentially contribute more than they anticipated due to the larger impact they could make.
You could also use pie charts to show how much of a typical donation goes to different areas. As YPTC’s nonprofit financial management guide explains, “Data visualizations allow you to convey complex financial data and trends in a way that stakeholders can understand at a glance.” For instance, you may create a pie chart to illustrate that out of a $100 donation, 75% goes to programming, 15% goes to management and general expenses, and 10% goes to fundraising costs. Clearly explain how each of these categories is necessary to make your organization run smoothly.
4. Highlight Efficiency
Donors want to know that you’re putting their gifts to good use. Not all statistics have to be directly tied to beneficiary outcomes. Instead, you may show how your nonprofit’s strategic spending enabled you to funnel more funds toward your mission.
For instance, you may use a combination of the following strategies to maximize the amount you allocate to mission-critical programming:
- Negotiating nonprofit vendor discounts
- Leveraging volunteer support
- Working with major donors or sponsors to cover overhead costs
- Automating administrative tasks
Give donors a behind-the-scenes look at how these choices empower you to accomplish more. For example, you may note that since acquiring a new sponsor to cover a significant portion of your overhead costs, you’ve been able to allocate $15,000 more to your environmental conservation program this year. Knowing that more of their dollars will go toward mission-oriented work will increase donors’ confidence in your organization.
5. Show Progress
When a donor has supported an organization for several years, they not only want to know that their funds are making a difference, but also that the nonprofit they’re contributing to is expanding its impact over time. Use data to demonstrate progress toward your mission-related objectives.
For example, you may say something like this in your annual report:
“Last year, our organization supported 20 mentorship pairs between local business leaders and high-achieving students. Thanks to your generosity, we were able to double that number this year, enrolling 40 mentorship pairs in our program and helping 100% more young adults in the community build leadership skills.”
Take this progress mindset even further by establishing your future goals. For instance, you may note that due to the continued growth you expect to see in the next year, you aim to support up to 90 mentorship pairs. This type of statement shows that your organization continuously strives for more and demonstrates why donors’ contributions will be crucial in the coming year.
6. Incorporate Comparisons to Regular Spending
Donors may not know how your budgeting process works or how much it costs to run a nonprofit, but they do know how much they spend on everyday items. Drawing comparisons between your data and regular spending metrics can help donors grasp their impact.
For instance, you may explain that for the price of one cup of coffee, a donor supplied a school lunch to a child in a low-income family. The juxtaposition between one simple coffee cup and an entire lunch puts donors’ contributions into perspective and shows how they can make large impacts, even with small donations.
To make these comparisons even more powerful, tailor them to your audience. Use your donor segments to identify specific expenses that might resonate with them.
Think of annual reports and donor updates as more than just data displays; they’re relationship-building stewardship tools. By making them accessible and tailoring them to your audience, these communications will engage donors, demonstrate their impact, and empower them to continue contributing to your organization.
