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Every day humanity adds approximately 2.5 quintillion bytes of data to our collective store of knowledge. Looking over this treasure trove, scientists, financiers, and business leaders are justifiably giddy about the potential of Big Data. For the nonprofit community, Big Data also offers immense potential. But with our mere billions of data points we’re not quite ready for it. Instead, we need to get “medium data” right first.

Big Data is the search for meaning in the haystacks of massive databases of transactions, sensor readings, and records. For nonprofits, medium data is a humbler but essential prerequisite: structured information about who you are, what you’re trying to do, and what’s happening.

This may seem like a low bar but nonprofits face legitimate challenges in gathering, organizing, and using even basic data. First, most nonprofits are simply too cash-strapped to invest in cutting-edge information systems to track their activities, engage with their stakeholders and understand their context. Second, the diversity of organizations makes comparison difficult: how could we possibly compare the work of the University of Chicago to a homeless shelter in Albuquerque or to Greenpeace? Third, it isn’t easy to know which are the most effective programs for battling climate change or child slavery or homelessness. Finally, the unique economics of the nonprofit sector — the buyer (donor) is frequently a different person from the user (beneficiary) — interrupt the direct feedback loop that often drives innovation in business.

These are not just abstract problems; they have very real consequences.Ìý