By Jessica Sarowitz | Philanthropy News Digest | REPOST

When we philanthropists donate to a cause, we do so with impact in mind. When we see our investment come to fruition—whether it be a ribbon-cutting for a new building, a large donation of vital supplies, or new equipment for a school—we know that our contributions are being well used. Seeing the faces of those affected and learning their stories inspires us to give more.

However, it’s also imperative not to lose sight of the importance of funding under-the-radar causes that lay the foundation for evidence-based, sustained impact. That is why the organization that I co-founded, the Julian Grace Foundation, invests in data-driven projects. Data is crucial to the future of philanthropy.

It’s simple: Data ensure that our contributions—not only dollars but also time and effort—are actually doing what we intend: positively impacting an organization’s ability to assess and address the community’s needs while also considering how best to utilize their resources. Data help provide concrete information about where the needs are, what works and what doesn’t, and where there are gaps in services—and bring attention to previously invisible struggles. With that vital information, the organizations we support and advocate for are better equipped to respond with both heart and mind.

One such data project we invested in was Change InSight, an initiative of the Chinese American Service League (CASL) that partners with multiple community-based organizations to build a deeper understanding of the nation’s Asian American, Native Hawaiian, and Pacific Islander (AANHPI) communities. Change InSight has already demonstrated its immense value with the January 2023 release of its inaugural report, which outlines risk profiles for Chicago-area Asian Indian, Chinese, Pakistani, Korean, and Filipino communities.

Change InSight’s report provides critical data to help funders, social service organizations, and policy makers see where these communities need the most assistance. For example, 27 percent of Chinese survey respondents reported unstable housing situations. The report reveals striking needs, both unique and shared, among the surveyed communities, and I fully believe that its release will make a real difference for AANHPI communities in need.

Through this project, we helped create an unprecedented opportunity for organizations serving these communities, especially smaller nonprofits that lack in-house researchers and analysts, to make the case for data-driven, tailored solutions. Partner organizations can use this data to advocate with policy makers, open dialogues with stakeholders such as local businesses and healthcare leaders, and—perhaps most critically—pursue funding to ensure that the work continues.

We know that a project like Change InSight can make a significant difference for AANHPI communities, which receive just 20 cents of every $100 of foundation funding, according to a study released in 2021 by Asian Americans/Pacific Islanders In Philanthropy. As funders, we know that it doesn’t have to be that way.

Just imagine a service agency being able to secure more funding to help local residents find and stay in homes because it was able to demonstrate a real and urgent evidence-based need thanks to Change InSight’s data infrastructure. Now, apply that thinking to any problem philanthropists routinely address, and the possibilities are endless.

The beauty of such data-driven efforts is that they will prove themselves over time. In future annual reports, we will be able to see demonstrable success in the very data points we are helping to highlight. Imagine the growth an organization could achieve with such vital information to drive its strategies.

Contributing to evidence-based projects, especially those that link and use data across multiple community partners, is critical to philanthropy in the 21st century. I am not alone in my thinking. Some of the largest philanthropic organizations in the world—from Bloomberg Philanthropies to the Rockefeller Foundation—have been investing in data to make the world a better place.

Researchers at the University of Texas at Austin wrote in 2018 that data is causing an “evolutionary shift” in philanthropy, causing organizations and individual donors to increasingly view data “as the fuel for innovation and social change.”

We witnessed this in real time. The pandemic and related shutdowns disproportionately impacted communities of color and people who lacked adequate broadband access. As philanthropists, we were made aware of these disparities and used the data to act without hesitation, contributing where needed to address the problem.

I envision a future where this type of quick and decisive action will enable philanthropists to help fight any issue.

Our foundation has always sought to hear as many perspectives as possible to ensure that our dollars are making the greatest impact, and we know that the best way forward is to leverage data infrastructure to lay bare previously invisible areas of need. Once we know where needs exist, we can act more effectively to address the root causes of a problem.

While we cannot solve every problem overnight, work like this will be passed on to future generations of philanthropists and problem solvers. By building an evidence base with data, we can ensure that we never lose sight of the necessary solutions.

Philanthropy News Digest. (n.d.). To make the biggest impact, philanthropists must invest in data. Philanthropy News Digest. https://philanthropynewsdigest.org/features/commentary-and-opinion/to-make-the-biggest-impact-philanthropists-must-invest-in-data