The charity sector is not yet taking full advantage of the opportunities presented by data, NPC has said in a new report published today.

In The power of data: Is the charity sector ready to plug in? the charity think tank and consultancy finds that charities are not making the most of the different types of data sets available to them— including open data and big data— despite their potential to help them understand the issues they work on better, operate more effectively, and improve their understanding of results and impact.

NPC has identified key factors which are preventing charities from tapping into the potential of data.

On the supply side, more progress needs to be made around making data available, particularly in a way that is useful and accessible to charities.

The picture on the demand side is more complex, and the key barriers outlined in The power of data are:

Awareness: charities and funders need to be aware of the potential of data sets that are relevant to their work and publically available (or that could be requested), and how to access these.

Capability: Most charities don’t have specialised analysts or research departments, so making the most of data can be difficult as at the minimum it requires someone with an aptitude for, and interest in, analysis.

Capacity: Data analysis is difficult and requires resource. Frontline charities rarely have the time and money for this, or the funding to bring it in externally.

The report also highlights that some charities are wary of the disruption that unexpected findings can cause, for example, information on outcomes delivered or the context that they are working in.

To combat this, charities need to have the desire to learn and the appetite to embrace the results, and there is a role for funders and commissioners in requiring charities to use data effectively.

Dan Corry, chief executive of NPC, said: "Charities are not yet engaging with data as much as they could be for three main reasons: it can be disruptive, difficult and time-consuming.

"In the current climate it is understandable that these three things encourage charities to kick data into the long grass. Yet the data revolution has such exciting potential to help the charity sector improve what it does and demonstrate its impact, that to ignore it would be a dereliction of duty.

"Producing a step-change in the way that the sector uses data to improve effectiveness will require an approach that tackles barriers to supply and demand, though particular focus is required on the latter.

"The power of data: Is the charity sector ready to plug in? makes a range of recommendations to Government, charities and funders, which if implemented together would result in huge progress.

"For example, charities should be encouraged and incentivised to use what data already exists, and should be supported to develop the analytic skills needed to make the most of this."

The power of data: Is the charity sector ready to plug in? is launching on the same day that NPC announces the next phase of its Data Labs project. Building on NPC’s work with the Ministry of Justice on the Justice Data Lab the project is now looking at opportunities for further data labs, which would enable charities to understand the outcome of their services and refine their approach.

NPC’s research into demand and existing data sets has highlighted employment and benefits, and physical health, as areas for further exploration with charities and data-holders, including the relevant government departments.

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