Your nonprofit’s database is a gold mine of useful information. When you create rich constituent profiles, you get to know who your supporters are and can create more valuable experiences for them.

Data enrichment for nonprofits enhances the data collection process and makes the information you’ve gathered organically even more valuable. That way, you can connect with prospects on a deeper level and drive greater outcomes for your cause.

By filling in gaps within your CRM, you’ll be on your way to stronger supporter relationships in no time. In this quick guide, we’ll cover the essentials of nonprofit data enrichment, so you can get started at your organization!

What Is Data Enrichment for Nonprofits?

Nonprofit data enrichment is the process of combining first-party information from internal sources (such as donation forms) with disparate data from external, third-party sources. Also known as data enhancement or appending, data enrichment allows you to add supplemental information like contact details, demographics, and financial data to your CRM.

The goal of nonprofit data enrichment is to build rich supporter profiles by filling in missing information. That way, you can gain a holistic understanding of who your supporters are and how you can best connect with them.

Often, the term “data enrichment” is often confused with “data cleansing.” While related, these processes serve different purposes. While data enrichment involves building upon existing data, data cleansing removes inaccurate or outdated information.

Types of Nonprofit Data Enrichment

When practicing data enrichment, you’ll need to decide what information will be most valuable for cultivating deeper relationships. Some of the most helpful types of data you can pull for your supporters include:

• Contact information. Stay in touch with your supporters by finding their email addresses, phone numbers, postal addresses, and any other details that are missing from your database.
• Demographics. NPOInfo’s demographic appends guide explains that you can pull information like each supporter’s net worth, geographic location, age, gender, religion, ethnicity, and race. This allows you to eliminate generic outreach and instead send relevant appeals that align with their specific characteristics.
• Employer details. Knowing where your supporters work allows you to find available corporate giving opportunities by appending employer data. If someone shares their company email address when filling out a form, you can use that information to find the guidelines for their employer’s program.

While you can pull other details, these are often the easiest, most valuable types of details nonprofits pull for their supporters.

Benefits of Nonprofit Data Enrichment

As a nonprofit marketer, you understand the power of organically-collected data. Nonprofit data enrichment can take the data you’ve already collected and make it even more valuable by filling in any missing pieces. Regularly doing so will empower you to:

• Strengthen your outreach. The more you know about your supporters, the better you can advance your nonprofit’s marketing and send tailored appeals. In addition, you’ll be able to stay in contact with supporters with multiple contact options and personalize your communications by understanding their demographics and interests.
• Cultivate stronger relationships. At its core, data enhancement empowers nonprofits to foster more meaningful relationships with supporters. You’ll understand what motivates them to support your cause, helping you to cater your programs and appeals to what matters most to them.
• Save time and money. Gathering data organically through surveys and similar activities can take time. Data enrichment can provide that information almost instantly. Plus, you won’t waste time or resources by sending communications to invalid email addresses, phone numbers, or postal addresses.

What it all boils down to is that nonprofit data enrichment will provide your team with the resources it needs to understand supporters and drive its mission forward.

Quick Tips for Using Data Enrichment for Nonprofits

Data enrichment is not a one-and-done process. Constituent data is always changing, even if you’ve implemented careful data collection processes. You need a plan for consistently collecting and enriching your data. Otherwise, your nonprofit might miss out on offering valuable offers and experiences.

Here are some ways you can get started improving your nonprofit data enrichment processes:

• Append the data that will be most beneficial. While it can be tempting to append as much data as possible, that can quickly add up and muddle your organization’s CRM with unnecessary details. Think about your marketing goals before investing in nonprofit data enrichment services. For example, if you work for an advocacy organization, details like age, location, and political affiliation will let you know if people are of voting age, in your target area, and open to your outreach.
• Prioritize security. Your nonprofit should always prioritize privacy and compliance, especially when dealing with sensitive information. Throw third-party data into the mix, and privacy gets even more crucial. Make sure you entrust a nonprofit data enrichment provider that uses trustworthy data sources and practices proper data management protocol.
• Create data hygiene guidelines. Before and after appending new data, your team should have nonprofit data hygiene procedures in place. Cleaning up your database beforehand will allow you to add supplemental data with more confidence that it’s accurate, whereas continuing to keep a clean database will make sure your newly-appended data doesn’t go to waste. For instance, you might create rules to standardize data entry and handle errors like duplicate or inaccurate entries.

Effective data enrichment for nonprofits is more than investing in new data. You’ll need a solid strategy for leveraging your data. Otherwise, your enhanced data might go to waste. These tips will give you a solid start!

Additional Resources

Nonprofit Catalog – Read up on more nonprofit essentials by exploring our Nonprofit Catalog.

Donor Data Management: A Quick Guide for Nonprofits – Data enhancement for nonprofits is just one piece of the data management puzzle. Learn more about managing donor data with this guide.

What Is an Address Append? Ultimate Guide for Nonprofits – Postal appending is a specific type of data enrichment for nonprofits. Learn how conducting an address append can enhance your direct mail outreach.

A nonprofit investment policy is the first step your organization should take before investing its reserve money. Creating a comprehensive investment plan will provide a clear roadmap and create continuity between your teams, ensuring that everyone’s on the same page about how to grow your funds.

If you’re creating a new investment policy or want to overhaul your existing document, we’ll make sure you understand the basic building blocks first!

What Is a Nonprofit Investment Policy?

A nonprofit investment policy is a document that outlines how an organization can invest the funds it raises responsibly. Think of it as a roadmap for your investment portfolio, guiding you toward smarter and more ethical financial management. It specifies the risks you’re willing to take, delegates responsibilities, and establishes investment objectives and guidelines.

An investment policy is not a set-it-and-forget-it type of document. Rather, you’ll need to regularly revisit it, making sure it continues to reflect your nonprofit’s priorities and needs year after year.

Why Do You Need a Nonprofit Investment Policy?

Just as there are several components to investing your reserve funds, there are also several reasons why you should invest them. For one, charitable giving is on the rise and increased an incredible 4.2% last year, according to fundraising research. Now more than ever, your nonprofit needs to curate strategies for making the most of those funds. That way, you’ll be in great shape to save what you need to take your mission to the next level.

More specifically, Infinite Giving’s guide to nonprofit investing outlines three primary reasons why nonprofits should invest their reserves and create a foolproof policy to guide their investments.

A solid nonprofit investment policy can help you:

1. Save for the long term. Your reserves may be actively losing value if they’re sitting in a simple money market, CD, or savings account. Having an investment account along with a strong policy can allow you to grow your rainy-day funds. In other words, you don’t have to spend the money right away and won’t have to worry about inflation impacting your revenue. Then, when you do need to tap into these funds, they’ll be right there waiting for you.
2. Build your nonprofit’s assets. Maybe you have a large project, like a capital campaign or a new program, that needs financial backing. Growing your reserves is a smart way to increase your spending power.
3. Secure large gifts and grants. Grants Plus’ guide to grant management explains that “funders want and need to ensure that the grants they award will actually be put to their intended uses, create sustainable changes, and follow their stipulated requirements.” In other words, grantmakers and major donors want to make sure your nonprofit is a responsible steward of money. A strong investment plan can indicate that your organization’s financial standing is in good health and that you have a solid strategy for achieving your mission. Plus, an investment account will make it easier for you to accept large non-cash donations, like stocks, endowments, and cryptocurrency.

As you can see, there are multiple reasons why nonprofits should create an investment policy and open an investment account. Sound financial management practices can ultimately empower you to pursue your mission more effectively over the long run.

The Core Components of Nonprofit Investment Policies

As we mentioned, creating an official policy is vital before you actually start investing your funds. Note that your specific approach to creating your investment policy can vary based on your timeline, risk tolerance, and current assets. However, there are several components that any nonprofit investment policy should have, including:

• Delegated responsibilities. List the specific roles, responsibilities, and limitations of anyone responsible for overseeing and handling your investment portfolio. This might pertain to your executive director, board of directors, oversight committee, and other stakeholders.
• Goals. Clearly define your investment portfolio’s objectives, including factors like potential risk allowed.
• Guidelines for investing. Cover which types of investment vehicles are allowed, as well as which ones are prohibited. You’ll also want to include target percentages for each type.
• Reserve expenditures. Add guidelines for how your nonprofit reserve funds can be spent, reasons why funds can be withdrawn, and how much can be withdrawn.
• Donor restrictions. Include a statement expressing that the investment committee agrees to any stipulations donors give regarding how their donations can be invested.
• Reporting standards. Define the metrics and frequency at which your board members will measure performance.

A lot goes into creating an investment policy for your nonprofit. Fitting these puzzle pieces together will give you a solid foundation for moving forward. Just make sure to treat your policy as a living document that you regularly revisit and update based on organizational changes.

Additional Resources

Nonprofit Catalog – Read up on more nonprofit essentials by exploring our Nonprofit Catalog.

How to Accept Stock Donations: The Ultimate Nonprofit Guide – Thinking of accepting stock donations to strengthen your sources of revenue? Check out this guide to learn how to accept stock donations and why it’s worthwhile.

Nonprofit Fundraising Training: FAQs and 8 Top Resources – Improve your financial literacy and strengthen your fundraising strategies with these training tips and suggestions!

For many nonprofit professionals, endowments can seem like a tricky subject, causing them to veer away from creating this type of fund.

And though they’re often managed by universities and other large organizations with sizable donor pools, nonprofit endowments aren’t just for wealthy organizations. In fact, professionals at small and mid-sized nonprofits can also boost the sustainability of their work when they take the time to learn about smart fundraising strategies like managing an endowment.

We’ll explore the basics of developing and managing a nonprofit endowment fund for any-sized nonprofit.

What Is a Nonprofit Endowment?

A nonprofit endowment is a pool of donations set aside and invested, allowing it to grow and financially support the work of a philanthropic organization. After the seed money (i.e. the principal) is invested, part of the earnings is paid out as an annual distribution.

Educational institutions, religious organizations, and social-service organizations all use this type of investment fundraising to grow their assets. These funds can be used for a range of purposes, such as:

• Supporting your general operational budget
• Providing scholarships
• Marketing events and projects
• Funding major projects and initiatives

Unlike your reserve fund, endowments are planned to be grown rather than spent in full. With an endowment, your initial investment amount will stay intact and growing.

Types of Nonprofit Endowments

We can categorize nonprofit endowments into different types depending on how they can be used. Infinite Giving’s guide to nonprofit endowments breaks them down into these five categories:

• Unrestricted endowments aren’t subject to any restrictions regarding how and when they can be used. As the most common type of endowment, unrestricted endowments allow you to use funds whenever and wherever it’s needed most.
• Permanently restricted (or true) endowments are subject to restrictions that never end. The principal and its earnings can only be used for the specific purpose the donor defines.
• Temporarily restricted (or term) endowments are similar to true endowments, except that restrictions only exist for a limited period of time. During that time, funds from these endowments are subject to conditions the donor places, such as what it can be spent on. After the term expires, the principal and interest money may be used without restrictions.
• Quasi endowments are created by the organization’s board of directors via a transfer of reserve funds. The board sets stipulations regarding when the principal amount and any earnings can be withdrawn.
• Micro-endowments are small endowments that make endowment giving more accessible to donors. When managed effectively, micro-endowments can grow substantially and fund salaries and programs just like any other endowment.

When looking at these options, consider which types will best support your nonprofit’s needs. For instance, smaller organizations may lean into micro-endowments, attracting a range of donors.

What to Consider Before Starting a Nonprofit Endowment

Smart investment strategies can strengthen your nonprofit’s sustainability. However, there are a few aspects you’ll want to consider before committing to this approach to investing.

Benefits of Endowments for Nonprofits

Organizations of all sizes turn to this type of fundraising and for good reason. Creating an endowment for your nonprofit provides you with a stable source of income, taking the pressure off your team to meet your minimum budgetary needs. You’ll be able to grow your assets alongside your general annual fundraising practices.

Benefits of Endowments for Donors

Just as organizations are drawn to this type of fundraising, nonprofit endowments attract major donors as well. For one, it gives donors a way to stay connected with your cause over time.

What’s more, micro-endowments are a great way to attract low and mid-level donors who want to deepen their engagement with your cause. As with any donation, donors can also typically claim their endowment gift on their tax deductions.

When it comes to true and term endowments, donors have more control over their gifts. They can be confident that their funds are going to the programs they’re most passionate about.

Challenges

As with any fundraising strategy, there are some challenges you’ll want to think through before diving headfirst into endowment fundraising, including:

• Managing a nonprofit endowment might not be financially viable if you have an immediate need for funds.
• There’s an inherent risk when it comes to investing, so you might choose to keep part of your endowment as cash reserves.
• You might need to outsource management to a professional investment manager or invest in in-depth fundraising training.

Luckily, modern tools that streamline investment processes have revolutionized the nonprofit world, making it easy to overcome these challenges without breaking the bank. Backed by the right tools, you can accept and manage your endowment donations with confidence.

How to Start an Endowment for Nonprofits

You’ve weighed the pros and cons of starting a nonprofit endowment and decided it’s a smart move for your team. Great!

Now, it’s time to take the next step and actually create your endowment. To make sure that it meets your organization’s needs and goals, follow these steps:

1. Craft your endowment policies. Define the endowment’s purpose, what it’ll be used for, what type of endowment it is, how it’ll be funded, and how funds will be invested and managed.
2. Gain buy-in from your board. Your board is responsible for setting your organization’s strategic direction and ensuring proper fund management. Present your policies and explain how a nonprofit endowment can fit into your financial strategies.
3. Choose an investment platform. An investment platform can simplify endowments significantly, enabling you to accept and invest endowment donations. Choose a provider with secure management tools, an easy-to-use interface, and trustworthy services from a Registered Investment Advisor (RIA).
4. Set up an endowment fund. Create an account with your provider. You’ll likely need to share your application, Articles of Incorporation, and 501(c)(3) IRS Determination Letter. Once they activate your account, you can select a portfolio and your annual disbursement.

From here, you’re ready to market the opportunity to donors and start accepting donations. Your giving platform will handle the heavy lifting, so you can focus on engaging donors and soliciting gifts.

Additional Resources

Nonprofit Catalog – Read up on more nonprofit essentials by exploring our Nonprofit Catalog.

How to Accept Stock Donations: The Ultimate Nonprofit Guide – Investment fundraising is an incredible opportunity for nonprofits. Start accepting stock donations by following the guidance in this article!

Managing Nonprofit Reserve Funds: The Ultimate Guide – Explore this guide to make sure you’re prepared to weather financial setbacks by properly managing your reserve funds.

Nonprofits are challenged to do more with less. For marketers in particular, you’re tasked with finding the proper channels and developing powerful messages to amplify your organization’s work — all while battling limited resources. A formal nonprofit marketing plan gives you clear guidance on achieving that.

We’ll look at the components of a nonprofit marketing plan, giving you exact steps for outlining your own. You’ll have everything you need to develop a holistic marketing strategy. That way, you can form and cultivate meaningful supporter relationships through efficient communication.

What Is A Nonprofit Marketing Plan?

A nonprofit marketing plan is a document that outlines the promotional channels, strategies, and metrics your team will use to spread your mission. This document acts as a roadmap for promoting your initiatives. It provides specific branding guidelines to ensure every piece of marketing collateral is consistent and accurately reflects your organization.

Everyone working at the organization should have access to your nonprofit marketing plan. This allows them to refer to your objectives and align their activities accordingly.

How to Create a Nonprofit Marketing Plan

Especially if you’re a smaller organization, you’re up against established organizations. In other words, you have to go above and beyond to stand out and strengthen brand awareness. So let’s look at five key steps you should take when crafting your nonprofit marketing plan.

1. Conduct a marketing audit.

Unless you’re just now launching your nonprofit, you likely already have marketing experience. That means you have a foundation to build off. Start crafting your nonprofit marketing plan by assessing your past campaigns. Getting Attention’s nonprofit marketing plan guide suggests that you answer questions such as:

• Did you achieve the goals you set? If not, how far short did you fall?
• What platforms did you use?
• What key performance metrics (KPIs) did you track? Did they accurately gauge success?
• What strategies should you use again, and what should you do differently next time?
• Can you reuse any of the marketing materials for future campaigns?

These questions will help you understand where you’re currently excelling and falling short with your marketing efforts.

2. Define your brand.

You’ll want to create a brand style guide as part of your nonprofit marketing plan. This will keep your marketing assets consistent, helping to establish your brand identity. Define elements such as your:

• Narrative and voice: Ask yourself what you want your nonprofit to be known for. Do you want to come across as a warm and compassionate nonprofit that provides families with a haven in their time of need? Or maybe you want to come across as a headstrong, no-nonsense team that will fight for families when they need it most. Choose your narrative and a voice that communicates that.
• Colors: Kwala’s nonprofit branding guide explains that most organizations use 2-3 colors, including one primary color and one or two neutral accent colors. Think carefully about what colors are associated with your cause and will elicit the appropriate emotions. For instance, red can symbolize urgency and is commonly used with health and humanitarian relief organizations.
• Typography: You’ll want to select specific fonts to use in your marketing materials and define in which contexts to use each one. Similar to colors, different fonts elicit different emotions depending on whether they look more playful or sophisticated.

Staying consistent will help supporters remember your brand, making it easier for them to recognize your marketing materials.

3. Define your audience.

Knowing who you’re trying to reach with your promotional materials will help you choose the right channels and messages for them. Based on your current audience, create personas that explain your typical supporters’:

• Age range
• Traits and motivations
• Preferred communication methods
• Giving preferences

Ideally, you’ll want to create a persona for your average donor, volunteer, advocate, and other supporters. Doing so will empower you to craft messages that resonate with different groups of people more meaningfully.

4. Choose your marketing channels.

Once you know who you’re trying to reach, figure out how you’ll reach them. Your nonprofit marketing plan should define the channels you’ll use to spread your message. While there are plenty out there to choose from, here are a few common ones you might employ:

• Social media. A share button is a powerful tool. Determine which platforms your audience actively uses. Within your nonprofit marketing plan, lay out which platforms your marketing team should use and the types of messages that should be shared on each one. You’ll also want to set ground rules for interacting with followers. If you’re crafting a plan for a specific campaign, you can even include a posting schedule.
• Google Ad Grants and Microsoft Grants. Paid search engine marketing is a powerful tool. Programs like Microsoft Ad Grants and Google Grants provide these typically-expensive resources to nonprofits free of charge. Through these programs, you’ll receive free funding to spend on paid search ads and amplify content from your website.
• Direct mail. An awful lot of people still prefer handwritten postcards and letters. It provides a personal touch that can’t be replicated in the digital space. Include guidelines for what types of outreach you’ll send via direct mail, such as thank-you letters, campaign flyers, and project brochures.
• Email. This is a go-to platform for nonprofit marketers because it lets you simultaneously connect with all types of supporters. Plus, most email marketing platforms allow you to segment your email lists, so you can craft more personalized outreach for each type of supporter. Define guidelines for your newsletter and any other outreach you’ll send via email.

With the expanding digital marketing space, the list of marketing platforms never stops growing! And while you’ll certainly want to use multiple channels, be selective in the ones you choose. Otherwise, you risk spreading yourself too thin. Instead of posting the same generic appeal across all platforms, you’ll need to adjust your messages based on each platform.

5. Select key performance indicators.

Your nonprofit marketing plan isn’t quite complete yet! You should include which KPIs you’ll use to measure your success. Note that you’ll want to break down your nonprofit’s metrics for each platform. Here are some common ones you might include:

• Conversions. This is the number of desired actions someone takes to support your work. Great for any platform, this metric might include donations, volunteer registrations, or email newsletter sign-ups.
• Click-through rate (CTR). Specific to search engine ads and email marketing, your CTR measures the ratio of users who click a specific link to the total number of users who viewed it.
• Social media engagement. Get specific with these metrics by monitoring your likes, shares, and comments. Some social media platforms will even provide you with additional metrics like impressions to gauge your digital reach.

Tracking the right analytics will take the guesswork out of your performance. In your nonprofit marketing plan, list out the exact metrics you want to monitor, so you’re not scrambling to correct your strategies if your outreach underperforms.

Additional Resources

Nonprofit Catalog – Read up on more nonprofit essentials by exploring our Nonprofit Catalog.

Nonprofit Marketing Ideas: Promote Your Cause Effectively – Dive into the basics of nonprofit marketing and learn unique strategies for promoting your mission with this guide.

40+ Marketing Ideas for Nonprofits to Spread Your Mission – Fold these ideas into your strategies and create a more robust nonprofit marketing plan.