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Every year, Masterworks lays out our convictions for what we see in the ever-evolving fundraising landscape. Here’s our second conviction…
Conviction #2: All fundraising efforts should be data guided
The hottest word right now is AI.
The good news is that because donations are tax-deductible, the nonprofit space lives in a data-rich environment. And fundraising professionals have been using data modeling and machine learning before it was buzzworthy.
Take the Masterworks Response Index (MRI), which is our custom donor segmentation model that uses machine learning and AI to pick the right person to communicate with at the right time.
MRI uses hundreds of data points from our client's data and appended information. Then it evaluates over 1,000 statistical models before identifying the most predictive and reliable combination of factors to construct the best algorithm.
And because Masterworks has been using predictive modeling for over a decade in our everyday course of business, we can attest to the importance of clean data. The saying “garbage in, garbage out” has never been more relevant than in this age.
We don’t have Amazon-level resources. But we are constantly building relationships with the creators of future technology. And, the real issue we face is not desire or resource, it's that client data is “unclassified,” messy, and disorganized.
Our conviction is that all efforts should be data guided, and the steps to get there start with clean, organized, and consistent data.
Machine learning is going to power the post-cookie world, but the quality depends on the quality of the data being used. Think about your CRM — is the story your data tells consistent, organized, and accurate?
A great first step when it comes to leaning into data guided fundraising is first starting with a demographic append. Demographic appending augments your existing donor database with additional demographic details. Demographics on your donor file provide insight into understanding your donors that can provide effective strategies for targeting, marketing, and fundraising to acquire, retain, and reactivate donors.
This year, we (and our ministry partners) are committed to cultivating a culture of data-guided strategies, ensuring that every action we take is informed by valuable insights. Would you join us?
