Why Your Data Strategy is Just as Important as Your Technology Choice
When was the last time your organization made a major technology selection decision? Maybe it was a CRM, marketing tool, or ERP system. Now, ask yourself—how much of that conversation focused on data? For most nonprofits, associations, and foundations, the answer is probably “not enough.”
The truth is, selecting a technology solution is only part of the puzzle. To truly harness the potential of technology, your organization must focus on its data strategy. Without accessible, high-quality data, even the most advanced solutions can fall short of meeting your longer term, strategic data needs.
With the rise of Artificial Intelligence (AI) in the nonprofit sector, this distinction is becoming even more critical. According to a study in 2022, from CIO Vision, 72% of technology executives say that if their organizations were to fail to reach their AI goals by 2025, data issues will likely be the primary reason. From what I’ve seen, in 2025, meaningful progress continues to be elusive.
This underscores a key challenge many organizations face today: technology can capture data, but it’s your strategy for managing and leveraging that data that truly drives impact.
The Evolving Role of Data in Nonprofit Operations
For years, nonprofits have focused heavily on choosing systems that “connect.” Think of the endless conversations about APIs, software customizations, and integrations to ensure various platforms can “talk” to each other. And yet, despite all this effort, many organizations still struggle to access their data in a way that informs decision-making, fuels growth, and demonstrates impact.
At Build Consulting, I often see nonprofits drowning in data silos, where critical information is locked away, accessible only through patchwork solutions. The result? Missed opportunities for data-driven insights, limited capacity to grow, and frustration among stakeholders.
It’s time to rethink the narrative. Instead of emphasizing system-to-system connectivity, organizations need to ask two foundational questions during technology selection:
- How well does this system align with our stakeholders’ needs?
- How capable is this solution of seamlessly integrating with a centralized data repository?
By shifting the focus from interoperability to data-centricity, your organization sets the stage for long-term success.
What Does a Strong Data Strategy Look Like?
A robust data strategy is the compass guiding your organization through the complexities of modern technology implementation. It ensures that your systems don’t just work—but work for you.
Here’s what I think it involves:
1. Aligning Data with Organizational Strategy
Every nonprofit has unique goals, and your data strategy should reflect that. Start by asking how data integrates into the fabric of your work. What insights do you need to measure success? How should data inform decision-making across departments? Aligning these elements ensures your tech investments serve your broader organizational objectives.
2. Planning for AI’s Impact on Data Management
The growth of AI has elevated the importance of data quality and accessibility. High-quality data doesn’t just enable reporting; it’s the raw material that AI relies on to deliver meaningful insights. Organizations need to invest in data literacy, ensuring that staff at all levels understand how to capture, manage, and leverage data effectively.
3. Building a Centralized Data Repository
Centralizing your data in a warehouse or lake can eliminate silos, ensuring all departments have access to the same high-quality information. This doesn’t mean every organization needs to invest in a massive overhaul today—but it’s crucial to plant the seeds for future growth. I recently wrote a summary of the types of options available to nonprofits when thinking about data repositories.
4. Developing Sustainable Processes
Technology alone can’t transform an organization. Establish clear, documented processes for capturing, managing, and reporting data. This might include adopting shared standards for data entry, building workflows to solve recurring challenges, or conducting regular data health assessments. It raises key questions, for me, about how this impacts your staff of today, and the team(s) of tomorrow.
5. Setting the Stage for Integration
Modern systems are designed to integrate. Your role during technology selection is to ensure the tools you choose can seamlessly feed your centralized data repository. This means prioritizing solutions with strong API compatibility and flexible data export options.
Why Nonprofits Can’t Afford to Wait
The nonprofit sector can be slow adaptation. Limited budgets, competing priorities, and reticence to embrace change often mean innovations arrive late to the sector. But in the case of data strategy, the stakes are higher.
Organizations that lack a clearly defined data strategy risk falling behind—not just technologically, but strategically. AI and other emerging technologies are becoming essential tools for creating meaningful impact. Without clean, accessible data, these tools are less effective, leaving organizations unable to capitalize on opportunities.
Furthermore, the cost of “fixing” bad data later is far greater than investing in a strong data foundation now. Think of it this way—would you build a house on a shaky foundation?
A Call to Action for Nonprofits
If you’re a nonprofit leader, the opportunity to redefine your approach to technology and data is now. Don’t wait until your organization hits a wall to start addressing these issues and realizing your data strategy is just as important as your technology choice.
Here’s where to start:
- Evaluate Your Current Systems. Are they truly meeting your needs? Do they allow you to extract meaningful data for reporting and decision-making?
- Define a Clear Data Vision. Work with your leadership team to establish what role data should play in achieving your mission over the next 5–10 years.
- Find Meaningful Partnerships. Engaging a partner like Build Consulting can help you create a technology and data roadmap tailored to your needs.
Ultimately, the organizations that succeed in this rapidly changing landscape are those that treat their data as a strategic asset—not just a byproduct of their technology.
