I want to be clear about something: there is no one right way to do data. Data strategy is a journey, and (contrary many, many blog posts) there aren't 2 or 5 or [insert number here] metrics your nonprofit absolutely must track to be successful.
Nonprofits vary widely in goals, values and business model, and their analytical needs differ, too. For small nonprofits developing a data strategy for the first time, my number one piece of advice is simply this: start where you are. Think about what you want to accomplish and the capacity you have. Then, choose a meaningful and manageable first step.
Here are some questions to consider as you are getting started:
GOALS: What do you want to be able to do that you can't now? Think about your current goals. Are you trying to reach more constituents? Attract more donations? Tell your impact story? Whatever is most important to you right now, that's probably a good place to start.
DATA SOURCES: Do you have the information you need to achieve your goals? If not, what pieces of data are you missing? And, most importantly, how will you use that data once you have it? For instance, what decision will it allow you to make? Keep it simple, and make sure the data you plan to collect or analyze ties back to your goals.
CAPACITY: Be honest -- do you have the time and expertise on your team to collect and analyze the data you want? If not, is there a way you can scale back or break the work down into manageable pieces? It's important that your data strategy is sustainable for your organization over the long-term.
And, remember -- it is completely OK to start small. While a big shiny data tool can be enticing, it won't do your team any good unless you have the capacity to learn and manage it. For small organizations it is usually more effective (and less overwhelming) to set a few clear goals and take small steps toward a data strategy that supports your mission.
Take it one step at a time and you will get there!