Rethinking Data: From Application-Centric to Data-Centric Strategy
Nonprofits, associations, and foundations are experiencing a pivotal shift in how they manage and leverage data. Traditionally, organizations have centered their operations around software applications—CRMs, ERP and accounting systems, donor databases—that functioned as isolated silos. But this model is increasingly inadequate for today’s strategic needs.
Instead, a new approach is emerging: treating data as the central hub of technology strategy. This shift empowers nonprofits to break down silos, improve collaboration, and unlock deeper insights that drive mission success.
As Derek Drockelman noted in a recent Build Consulting podcast, this shift is not just technical—it’s transformational. For nonprofit professionals and consultants, embracing data as a strategic asset is the key to unlocking the next era of impact.
Why Application-Centricity No Longer Works
For years, applications were the backbone of nonprofit operations. Each department had its own system, and data was often trapped within those boundaries. This led to:
- Fragmented data and information across departments
- Manual processes or inefficient operations, hampered by challenges  sharing or analyzing data
- Limited visibility into organizational performance
- Difficulty responding to emerging needs or trends
When data is viewed as a valuable asset, and a byproduct of software or technology, organizations miss opportunities to use it strategically.
The Rise of the Data Platform
The modern solution can be to flip the model: make data the hub, not the spoke. A centralized data platform connects all systems, enabling seamless data flow and real-time insights. Think of your data in a cloud, lake or house at the center – whatever metaphor you prefer for a large collection of all your data – and the applications including your CRM, ERP, etc all dip into the data for the information they need. Even more importantly, with AI, you can ask for insights using natural language, without having to learn to code or make requests of your analytics team.
This approach:
- Integrates data from multiple applications
- Improves data quality through governance and validation
- Supports analytics and decision-making across departments
- Enables innovation by making data accessible for new tools
This isn’t just a technical upgrade—it’s a strategic transformation.
Benefits of a Data-Centric Strategy
When nonprofits adopt a data-first mindset, they unlock significant advantages:
- Deeper constituent relationships through personalized engagement
- Better program evaluation with accurate, cross-functional data
- Smarter fundraising based on behavioral insights and trends
- Faster decision-making with real-time dashboards and analytics
- Greater agility in responding to community needs or external changes
Data becomes a driver of mission delivery, not just a record of past activity.
Key Steps to Get Started
Transitioning to a data-centric strategy doesn’t happen overnight. Here are practical steps nonprofit leaders can take:
- Assess your current data landscape
Identify existing systems, data silos, and critical information gaps. - Ask: what would we like to know?Â
Don’t start from what you know you track. Bluesky something that has been eluding your team and formulate it as a data question. - Start with an ask that will demonstrate value immediately. Bring this to the stakeholders as a test case.
“If you knew X about retaining sustained givers you could increase retention and increase donations by Y%.” - Engage cross-functional stakeholders
Include fundraising, programs, finance, and leadership in data strategy discussions. - Establish data governance
Define ownership, validation processes, and standards for data quality. Establish security guidance and training. - Select the right platform
Choose solutions that prioritize integration, scalability, and user-friendly analytics. - Invest in training and change management
Build a culture of data literacy and support staff through the transition.
Leadership’s Role in the Shift
This transformation requires more than IT support—it demands executive leadership. Leaders must:
- Champion data as a strategic asset
- Align teams around shared data goals
- Allocate resources for infrastructure and training
- Model data-informed decision-making
When leadership embraces data, the entire organization follows.
Looking Ahead
As technology continues to evolve—through AI, predictive analytics, and automation—nonprofits must be prepared to adapt. A data-centric foundation positions organizations to:
- Adopt emerging tools with confidence
- Scale impact through smarter resource allocation
- Collaborate more effectively across teams and sectors
This shift isn’t just about efficiency—it’s about finding opportunities to reimagine operations and mission delivery.
In Summary
The move from application-centric to data-centric strategy marks a turning point for nonprofits. By treating data as the hub of operations, organizations can:
- Break down silos
- Improve decision-making
- Deepen constituent engagement
- Drive sustainable growth
By placing data at the heart of operations, organizations can break down silos, enhance decision-making, and amplify their impact. This transformation requires thoughtful leadership, strategic planning, and the right technology partners.
