Data is at the heart of successful fundraising, and charities are increasingly recognising the value of data-driven decision-making. However, with payroll costs rising by 3% and climbing, it’s essential for charities to carefully consider how they allocate resources to maximise their impact.
This is particularly pressing as staff costs represent a significant portion of expenses. In fact, payroll is by far the most substantial expense for hospices, accounting for 71% of total costs, according to the Hospice UK Hospice Financial Benchmarking Report 2024. This trend is consistent across the charity sector, where managing operational expenses is a constant challenge.
Hiring a data analyst can be transformative, but it’s not the only option. Tools like the Fundraising Fitness Test (FFT) allow charities to harness the power of data without significantly increasing overhead. So, how do you decide which approach is best for your organisation?
The Case for Hiring a Data Analyst
Data analysts bring a wealth of expertise, providing insights beyond numbers. They can:
- Uncover hidden trends in your donor data.
- Design sophisticated models.
- Build bespoke solutions.
A data analyst can deliver significant long-term value for larger organisations with complex datasets or diverse portfolios. Their ability to analyse, interpret, and apply insights strategically can significantly shape your fundraising strategy.
However, hiring comes with challenges:
- Cost: Salaries, benefits, and training add up, particularly as competition for skilled data professionals grows.
- Time: Recruitment and onboarding can be time-intensive.
These hurdles may make hiring a data analyst less feasible for some charities, particularly smaller or medium-sized ones.
When a Tool Like FFT Makes Sense
The FFT provides a powerful alternative for charities looking for actionable insights without adding headcount. It’s designed to empower teams with:
- Unlimited Data Analysis: Upload and analyse data from multiple campaigns without restrictions.
- Actionable Insights: Identify growth opportunities, optimise campaigns, and maximise ROI.
- Ease of Use: A straightforward platform that doesn’t require advanced data expertise.
- Cost-Effectiveness: Access all of these capabilities for a fraction of the cost of hiring additional staff.
The FFT complements the strategic insights a data analyst can provide. However, for charities without the capacity to hire these additional staff, it offers a practical way to access powerful data analysis tools and actionable insights.
Ultimately, it’s not about choosing between a data analyst and an FFT—it’s about understanding your organisation’s needs and resources.
The core question to consider is:
What’s your budget for data-driven decision-making?
With staff costs representing a significant percentage of expenses, tools like FFT can provide high-value insights at a lower price.
Whether hiring a data analyst or investing in tools like FFT, the goal remains the same: using data to drive smarter decisions, improve donor engagement, and increase fundraising ROI. By carefully evaluating your needs, you can ensure your charity invests in the right solution at the right time.
With tools like FFT, charities can maximise their resources without increasing their already significant staff costs.
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