Congressional hearings last year surrounding the lack of regulation on social media companies, the Facebook Fallout, and self-imposed requirements from companies such as Apple are changing the way data is shared and used.
The European Union’s General Data Protection Regulation (GDPR) has helped to pave the way for more consumer privacy protection across the globe. In the US, states like California, Colorado, and Virginia already, or soon will, have updated privacy laws.
Nonprofits should be transparent about their current data policies and should ensure that they adhere to the most stringent protocols. It’s just good business to do so.
This creates greater focus on data acquisition from current constituents, both donors and prospects. One of the most critical items nonprofits may face in the next few years is the need for first-party data.
Organizations that invest in these processes and strategies now will be that much further ahead as the world continues to migrate toward stricter regulation of data.
Collecting information directly from donors and prospects also tells a lot about brand affinity and the relationship you have with them.
When a person is willing to give you personal data, it means they trust that you will use it well. Nonprofits would do well to continually earn that trust and build donor loyalty and value through a smart data strategy.