Why Fragmented Data Is Holding NFPs Back

Australian not‑for‑profits are under more pressure than ever.

Demand for services is rising. Funders want clearer evidence of impact. Boards expect sharper insight. Donors and supporters expect relevant, timely engagement - not generic communications.

And yet, many NFP leaders are trying to lead with one hand tied behind their back.

The culprit is rarely a lack of commitment or vision. More often, it’s fragmented data: information scattered across CRMs, finance systems, fundraising platforms, marketing tools, spreadsheets and legacy systems that don’t talk to each other.

When data is fragmented, decision‑making slows, opportunities are missed, and the true impact of your work becomes harder to see - and harder to prove.

The good news? This is a solvable problem. And when NFPs get their data foundations right, the benefits compound quickly.

The reality of fragmented data in Australian NFPs

For many Australian charities and NFP organisations, fragmented data shows up in very practical, everyday ways:

• Donor and supporter data lives in one CRM, while program outcomes sit in a separate system.

• Finance teams maintain parallel spreadsheets to reconcile grants, donations and acquittals.

• Fundraising platforms hold rich engagement data that never makes it back into core systems.

• Board and ACNC reporting relies on manual data extraction, re‑keying and last‑minute workarounds.

This isn’t a niche problem. It’s widespread across the sector.

According to Infoxchange’s Digital Technology in the Not‑for‑Profit Sector Report, only one‑third of Australian NFPs agree their IT systems work well together, and just 22% believe they can effectively measure the impact of their services. That means the majority of organisations are operating with disconnected systems and limited visibility of outcomes.

The impact becomes particularly acute at moments that matter most: preparing a board pack, responding to a government acquittal, or trying to understand why a fundraising campaign under‑ or over‑performed.

Fragmented data doesn’t just create inconvenience. It erodes confidence - internally and externally.

How fragmentation holds NFPs back

When data is siloed, the consequences ripple across the organisation.

Fundraising and supporter engagement suffer: Without a single, reliable view of supporters, it’s difficult to personalise journeys, identify high‑potential donors or build long‑term relationships. Campaigns become broad rather than targeted, and opportunities for stewardship are missed.

Teams carry a heavy administrative burden: Manual reconciliation, duplicate data entry and spreadsheet‑based reporting consume time that could be spent on mission‑critical work. These inefficiencies are especially costly for resource‑constrained organisations.

Impact measurement becomes fragile: Funders, philanthropic partners and regulators increasingly expect evidence‑based reporting. Yet global research including Australian organisations shows 57% of NFPs say their data is not complete, accurate or up to date, and fewer than half analyse data in meaningful ways beyond basic reporting.

Governance and compliance risks increase: Disparate systems make it harder to apply consistent controls, manage privacy obligations, and ensure confidence in board‑level reporting. This is particularly challenging in the Australian regulatory environment, where ACNC reporting and grant compliance are non‑negotiable.

Perhaps most importantly, fragmented data makes it harder to answer the strategic questions leaders care about most: What’s really working? Where should we invest next? And how do we create more impact with the resources we have?

Reframing “monetising data” for NFPs

The phrase “monetising data” can feel uncomfortable in a not‑for‑profit context. It shouldn’t.

For Australian NFPs, monetising data is not about selling information or exploiting communities. It’s about using data more intelligently to unlock value in service of your mission.

That includes:

• Improving fundraising efficiency by focusing effort where it delivers the greatest return.

• Deepening donor and supporter relationships through relevance and trust.

• Making stronger, evidence‑based decisions about programs and resource allocation.

• Providing transparent, credible reporting to boards, funders and regulators.

Digitally mature organisations consistently see better outcomes. The Status of ANZ Fundraising Benchmark Report shows that digitally mature NFPs are more likely to meet or exceed fundraising targets and report income growth, regardless of organisational size.

Used ethically and governed well, data becomes a force multiplier for impact - not a distraction from it.

What “good” looks like: building the right foundations

Modernising data doesn’t require a big‑bang transformation or enterprise‑scale budgets. In fact, the most successful NFPs take a staged, outcomes‑led approach.

From Solentive’s perspective, strong foundations typically include:

1. Start with strategy, not systems

Clarify the outcomes that matter most. What questions does leadership, the board and funders need answered - consistently and confidently?

2. Map the current reality

Identify where data lives today, how it flows (or doesn’t), and where duplication, gaps and risks exist.

3. Prioritise integration and data quality

Focus first on connecting the systems that unlock near‑term value - often fundraising, finance and core program data.

4. Establish simple governance and reporting

Define ownership, standards and repeatable reporting aligned to ACNC, board and funding requirements.

5. Build capability incrementally

Only once foundations are in place should organisations move toward advanced segmentation, forecasting or predictive insights.

This approach makes progress achievable for NFPs of different sizes and maturity levels, while delivering value early and safely.

How Solentive partners with NFPs

At Solentive, we work with Australian NFPs as long‑term partners - not just technology implementers.

Our work typically starts with collaborative discovery: listening to leaders, fundraisers, program teams and finance stakeholders to understand what success truly looks like.

From there, we co‑design clear, practical roadmaps that balance ambition with funding and capability constraints. Delivery happens in stages, reducing risk and helping organisations realise benefits early - whether that’s improved reporting, better fundraising insight or stronger governance.

Throughout, our focus stays the same: human‑centered, outcomes‑led technology that helps organisations do more good, more effectively.

Moving forward - and joining the conversation

Australian NFPs cannot afford to let fragmented data quietly limit their impact. The organisations that thrive over the next decade will be those that treat data as a strategic asset - building strong foundations, using insights responsibly, and aligning technology investment with mission outcomes.

If this resonates, we’d love to continue the conversation.

On 18th March 2026, Solentive & Microsoft are hosting “Monetising Data & Leveraging Technology for NFP Growth”, a practical session focused on real‑world examples, frameworks and lessons from the Australian NFP sector.

👉 Register here: Monetising Data for NFPs Breakfast Panel | Solentive