A few years ago, I came across this quote:

Not everything that is faced can be changed, but nothing can be changed until it is faced.”

—James Baldwin

It immediately struck a chord. In my personal life, I think of this often for everything from my health to my relationships. In my professional life, I’m an analyst at GuideStar. I keep this quote framed on my desk to remind me why analyzing and improving nonprofit data is so important. The data that nonprofits collect and report isn’t just information in a database. It has the power to shape decisions.

In recent years, the sector has begun to focus on data collection for organizational diversity, equity, and inclusion (DEI).

Transparency and accountability are great goals but without data, it is like a stool with two legs. Good luck with that. Consistent, visible data and goals keep us on a stable platform, and allows organizations and leaders to learn, build and improve. Data about who is leading and working in organizations is just as important as financials and environmental or social change indicators to understanding how an NGO or foundation works and its responsiveness to community needs.