Making the Case for Investing in Data: Why Clarity Is Worth the Cost

By Sheri Chaney Jones, Founder and CEO of SureImpact

When budgets are tight, investments in data systems often fall to the bottom of the priority list. Many nonprofit leaders still see them as “nice-to-have” tools for larger organizations. But as The Chronicle of Philanthropy Key Taykeaways report “How to Make the Case for Investments in Data: Experts Weigh In” points out, unpredictable times are exactly when accurate data matters most.

At SureImpact, we’ve seen how data (especially outcomes data) transforms organizations. Donor data helps teams understand who gives and why. Outcomes data shows the difference an organization actually makes. Together, they form the foundation of a compelling story about mission and results. Without both, leaders are left making guesses, and donors are left wondering whether their investments make a difference.

The Real ROI of Data Is Clarity

Lindsey Nadeau of UNICEF USA captured this idea clearly in The Chronicle of Philanthropy report:

“Leaders really have to be bold enough to invest in something that doesn’t always show an immediate ROI, because the payoff you get from data is clarity. And clarity is priceless—hard to quantify but priceless.”

That word, clarity, says everything. Data brings clarity to every level of an organization. It shows what works, what needs to change, and where limited resources can have the greatest effect. Clarity means the ability to make decisions based on real-time information instead of instinct. It means understanding which programs truly move the needle toward the mission.

At SureImpact, we often remind clients that data serves as more than a reporting tool. It is a decision-making tool. When organizations measure outcomes consistently, they can adjust programs faster, communicate success to funders, and build trust through transparency. The real ROI of data is not immediate financial return but insight. Over time, that insight strengthens fundraising, increases impact, and supports long-term sustainability.

What a Strong Data Foundation Looks Like

According to The Chronicle of Philanthropy, a strong data foundation includes:

“Having technology and staff to manage and analyze data, good data-hygiene practices across the organization, and regular audits to ensure high-quality information. Once this baseline is in place, leaders can trust the data to help them make strategic decisions based on what they’re seeing in real time.”

This applies as much to outcomes data as to donor data. Counting activities or satisfaction surveys is not enough. Systems must connect efforts to measurable results and make it possible to see, in real time, how programs improve lives.

That is the purpose behind SureImpact. We give nonprofits a way to manage, analyze, and share outcomes data with the same accuracy development teams already apply to donor data. Clients often describe this shift as moving from “reporting what we did” to “proving what we achieved.”

Once organizations establish this kind of data infrastructure, they gain the confidence to make evidence-based decisions. They can direct funding to the most effective programs, demonstrate accountability to funders, and use data to advocate for policy improvements.

The Cost of Not Investing in Data

The Chronicle of Philanthropy highlights an important point:

“It’s also smart to say what your organization is losing by not investing in data... staff time spent doing things manually, ineffective campaigns because of poor targeting, or money wasted on mailings sent to deceased donors.”

This same logic applies to outcomes data. Nonprofits that neglect outcome measurement lose time and money in other ways, such as ineffective programs, duplicated work, or services that fail to reach the intended populations. Without clear data, leaders may continue with approaches that feel right but do not produce results.

That lack of clarity has real consequences. As the report notes:

“You can just really show how that lack of data hygiene or clarity can really lead to some strategic missteps and failure to meet your objectives as an organization.”

At SureImpact, many leaders reach out to us after experiencing those missteps. They may have completed a major grant cycle only to find their data insufficient to prove impact. Others discover that, after years of collecting information, they still cannot answer the funder’s most basic question: What difference are you making?

Failing to invest in data carries risk. Without it, organizations lose credibility with donors, board members, and the communities they serve.

Building Momentum with Small Wins

The Chronicle of Philanthropy report recommends starting small and building over time. That same approach applies to outcomes data. Becoming data-driven does not happen all at once, and it does not require a massive upfront investment.

Begin with a small, achievable project that demonstrates results. Examples include:

• Tracking one outcome that aligns with your strategic plan

• Automating a single manual data process that drains staff time

• Using a dashboard to visualize progress for one program

Each small success builds momentum and strengthens the case for larger investments. Once leaders see the benefits - time saved, insight gained, impact demonstrated - they are more likely to allocate future resources for data systems and training.

We encourage SureImpact clients to start by defining the success metrics that matter most to their mission. Once those are clear, technology can support and expand the process.

Outcomes Data Strengthens Donor Relationships

While The Chronicle of Philanthropy report focuses on donor data, outcomes data plays an equally important role in fundraising. Donors expect proof of impact. They want confidence that their gifts create measurable change.

When fundraisers have access to real-time outcomes data, they can:

• Personalize donor communication with evidence of success

• Show progress toward mission goals

• Report back with concrete results that build trust and loyalty

Donor data and outcomes data work together. Donor data identifies who to reach and how. Outcomes data gives those communications meaning. Together, they help organizations tell credible stories that inspire continued giving.

Data Clarity Builds Organizational Confidence

One of the most insightful ideas in The Chronicle of Philanthropy report is the courage required to invest in data. Nadeau noted that leaders must be “bold enough to invest in something that doesn’t always show an immediate ROI.” This perspective applies across every type of nonprofit.

Data investments may not yield instant results, but they create lasting benefits. Clarity allows leaders to act with confidence. It improves collaboration, strengthens culture, and aligns staff around shared goals.

At SureImpact, we’ve seen that when leaders can visualize their impact, everything else improves. Donors become more engaged, staff feel more motivated, and decisions become more strategic. Data provides the clarity that drives progress.

Moving from Reporting to Learning

A data-driven culture focuses on learning and improvement. When information guides day-to-day decisions, data collection becomes part of continuous growth rather than an exercise in compliance.

That is the goal: not perfection, but progress. Data allows organizations to adjust in real time, experiment with new approaches, and improve outcomes for the communities they serve.

Investing in data takes commitment, but the payoff is clear. The organizations that do it gain something invaluable: clarity. And clarity, as Nadeau said, is priceless.

Want to earn funders’ trust? Start by investing in outcomes data—because speaking their language begins with showing measurable impact.

Check out “What Funders Want: The Ultimate Guide to Communicating Outcomes, Building Trust, and Securing Revenue” to learn why outcomes data is essential. This guide shows you how to calculate cost per success, communicate measurable impact, and build lasting relationships through transparency.