The Dilemma of Turning Data Into Major Gifts

In 2025, you can't open an app or device that doesn't now have artificial intelligence (AI) integrated into it. In turn, this has created immense data everywhere, including for nonprofits. However, specific to those organizations, it's also created a dilemma: how to translate data into dollars.
At a recent conference, a nonprofit tech executive confided to me that nonprofits are investing a lot of money to discover donor insights. One data company hired several major gifts officers to help nonprofits determine how best to use the great data the business is providing them. There's not a lot of expertise in transforming that data into fundraising revenue. As a result, there's growing frustration because nonprofits don't have the knowledge to act on the data.
Candidly, I foresaw this issue some time ago. While data and technology are great things that can transform what nonprofits do, they are not intended to be used without fundraising knowledge and expertise. In other words, if an excellent major gifts officer knows how to use data insights, they will raise money. But, if they don't have relational fundraising skills, the data is just data.
The Data Deluge
The platforms available to nonprofits allow fundraisers to access what could be an overwhelming amount of data. That in and of itself could be a challenge. But then you compound the challenge with siloed systems on different platforms, as is often done in nonprofits. It's not unheard of for many nonprofits to have a CRM system and then email or event registration tools that are not integrated into a cohesive tech stack.
That alone can lead to missed opportunities, but then you have other challenges, particularly with smaller nonprofits that don’t have a lot of financial or human bandwidth. Those challenges can include:
- Too much data.
- Siloed systems.
- Lack of data literacy.
- Generic messaging.
- Inability to accurately segment donors.
- ROI failure.
- Not converting data into relationships.
The most significant issue lies in the lack of expertise to interpret the data and convert it into fundraising results. For instance, teams may spend a lot of time looking into data and any perceived discrepancies because they simply don't have one of two skills:
- Data analytics knowledge.
- Major gifts knowledge.
So, they may spend significant time trying to figure things out, which continues to perpetuate the high turnover in the sector — albeit for more nuanced reasons than in the past.
The Human Element for Data and Tech Upskilling
While data and tech are great, as I’ve mentioned, there are two significant pieces to the data and technology puzzle where nonprofits should focus. First, they need to ensure the training and upskilling of their teams concerning data analytics and quality relational fundraising. Second, they need to ensure at least one fundraiser and the leader understand how to cultivate high-quality fundraising relationships with donors.
I understand and realize that many nonprofits, particularly smaller ones, operate with limited budgets. As we know, the competitive landscape as a result of technology means that it’s only going to get tougher for organizations to raise funds without the learned use of data and tech. Therefore, communicating this need, particularly with major donors, is essential. Nonprofits need to tell a compelling narrative of why they must train their teams on data and tech.
Donors love to give to programs, and suggesting that donors support data and technology learning is not exactly what every donor wants to do. However, there will be donors who understand the importance of investing. If you invest in learning how to synthesize and action data properly, you can support the mission. But you have to understand which data points are relevant — and which aren't.
The Human Element for Relational Fundraising
Not all data is relevant to individual gift fundraising. For instance, fundraisers likely don’t need social media insights for major donors. Instead, major gifts officers care about their giving patterns and behaviors, like when they gave, how much they gave, for how many years, their attendance at events, their relationships and involvements with nonprofit constituents, etc. In short, not every data point is relevant to fundraising.
That said, it's also essential to train fundraisers in relational fundraising. One of the primary reasons there's so much turnover in fundraising positions is that many fundraisers want to do good for their organizations but don't have the skills to build the relationships they need with individual donors. Investing in their learning is essential if an organization sees potential in a fundraiser. That investment will reap rewards.
Fundraisers should have the knowledge not only to move donors up the fundraising ladder but also to develop people and human-centered people skills to create meaningful relationships in the age of short attention spans. Active listening is one of the biggest skills that I see as critical to relational fundraising, and it is in short supply. When fundraisers actively listen to donors and prospects, that's where they can connect the dots.
Collaborative Approaches
Training and preparing fundraising teams should prioritize not only the data and technical abilities to use new and ever-changing software tools but also people skills. Technology company leaders realize that the best skills people can have are no longer data analysis or technical engineering. At a time when continuous change is baked into the DNA of our worlds, it’s vital for nonprofits to get back to basics — people knowledge.
As I've stated, a focus on continuous training is essential for all nonprofits. This can be accomplished in a variety of ways, not only through professional and paid-for training. For instance, nonprofit leaders can invite board members with human resources management or marketing skills to present how to engage with people at their organizations. Another approach is to invite speakers from leading nonprofits for workshops about people and empathy-driven nonprofit storytelling, including role-playing.
Still, it's increasingly difficult for nonprofits to avoid paying experienced professionals to help them analyze the right data and learn about relational fundraising. It’s essential to remember that consultants and experts have a broad perspective. They understand how to meld the right data with how to make the right ask of the right donor at the right time. When I started in the business, we often said individual fundraising was an art and science. It still is.
Smaller nonprofits should remember that data and how to do relational fundraising aren’t mutually exclusive. Nonprofits need to make investments with the right team of experts. Yes, leaders need to ensure they hire professionals with proven credentials. But not investing is not the answer. The answer is to invest in both and ask for donor support to ensure the mission. Data and relational expertise, together, are vital.
The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.
Related story: How to Leverage AI to Enhance Major Gift Fundraising
- Categories:
- Analytics
- Major Gifts
- Software/Technology

Paul D’Alessandro, J.D., CFRE, is a vice president at Innovest Portfolio Solutions. He is also the founder of High Impact Nonprofit Advisors (HNA), and D’Alessandro Inc. (DAI), which is a fundraising and strategic management consulting company. With more than 30 years of experience in the philanthropic sector, he’s the author of “The Future of Fundraising: How Philanthropy’s Future is Here with Donors Dictating the Terms.”
He has worked with hundreds of nonprofits to raise more than $1 billion dollars for his clients in the U.S. and abroad. In addition, as a nonprofit and business expert — who is also a practicing attorney — Paul has worked with high-level global philanthropists, vetting and negotiating their strategic gifts to charitable causes. Paul understands that today’s environment requires innovation and fresh thinking, which is why he launched HNA to train and coach leaders who want to make a difference in the world.