How Can Public and Nonprofit Teams Overcome the Data Capacity Crisis?

Data work is still too hard, too manual, and too disconnected from action. That's the data capacity crisis—and in 2026, we're done just talking about it.

Whether it’s a planning department juggling strategy or reporting requests or a local nonprofit trying to tell a better story with their outcomes, the theme is the same: the time we have doesn’t yield the results we need. We don’t have time to waste.

Over the last 10–15 years, “data-informed decision-making” has been the rallying cry. Open data portals, dashboards, and performance metrics became the standard tools of innovation.

But in 2026, those tools are only part of the story. The conversation is shifting from transparency to enablement—from “look at the data” to “use the data to get things done.”

Public sector organizations and nonprofits are no longer investing in data just to check a box or report out. They’re investing in it because data powers service delivery. When used well, it reduces delays, uncovers insights, and accelerates the work.

The ability to use data can’t be a luxury. It should be a built-in capacity for anyone working to strengthen their community. And yet, too often, the people doing the most important work are the ones without the time, tools, or support to use data well.

That's why we're committing to this: 2026 is the year we stop talking about the data capacity crisis and start solving it. 

Ready to take it on? Read on to learn the challenges public serving teams are facing this year and five practical ways to start building capacity.

What are the biggest challenges nonprofit and government teams are facing now? 

We see it in every conversation with the changemakers we serve:

• Small teams managing data across multiple departments
• Manual tasks eating up time (cleaning spreadsheets, re-running reports)
• Important everyday choices being delayed because the right data isn't available fast enough

We recently ran a small survey with nonprofit and public sector leaders in our community to assess their current level of data capacity and found: 

• Most reported spending 10 to 40 hours per week on manual data tasks
• Over 60% reported struggling with data capacity, pointing to limited staff, outdated processes, and unclear ownership
• Nearly half reported having no formal process for managing or sharing data

These numbers reinforce what we see every day: small teams are expected to deliver high-impact insights without the infrastructure or support to do it efficiently.

The good news is, most public-serving teams already have what they need to start — a computer, a mission, and a list of problems to solve. You don’t need a big data team to build capacity. You just need the right support to unlock it.

It’s not about chasing AI or reinventing your strategy. It’s about helping the people closest to the work get the answers they need, faster.

How can nonprofit and government teams start building data capacity today? 

You don’t need a new department or a big budget. You need to start small with what you already have. Here are four practical, realistic ways to begin building data capacity in 2026.

1. Treat data literacy as a team sport

Here's a trap: the "data team" becomes the only ones who touch data. Everyone else waits in line. That doesn't scale—and it keeps data locked away from the people closest to the work.

Flip the model. Your data team shouldn't just run reports—they should build capability across the org. Find your "data explorers": the curious people in programs, operations, or finance who want to dig in. Give them access. Teach them the basics. Run a lunch-and-learn. Create templates they can use without asking for help.

Data capacity isn't about hiring more analysts. It's about more people feeling confident using data in their everyday work. Everyone touches the ball. That's how capacity compounds.

2. Inventory your high-value data 

Not all data is worth the same investment. Start by identifying the datasets that really matter—the ones tied to your core mission, your biggest decisions, or the questions you get asked most.

Where do those live? Are they reliable? Could someone else on your team find and use them without calling you? Are they structured to be easily readable and have you documented what they are good for? Think of the metadata for this (the data about the data), is there documentation about the what, where, when, and why of this data.

This isn't about cataloging everything. It's about choosing your starting point. Pick the data that, if it were cleaner, more accessible, and easier to use, would make the biggest difference. That's your first investment. Build your capacity there, and expand from it.

3. Structure your work for the tools that are coming 

You don't need to adopt AI today. But you can get ready for it—by doing things that are good practice anyway.

Document your workflows. Write down how decisions get made. Organize your files so a new team member (or a future tool) could follow the logic. When you structure your thinking, you're not just helping yourself. You're building the foundation for better support down the road.

This isn't about chasing technology. It's about making your own work clearer, more repeatable, and easier to hand off. The teams that do this now will be ready when the right tools show up.

4. Celebrate your data wins loudly 

Data work is often invisible. Someone spends a week pulling numbers, cleaning files, building a chart—and it disappears into a report that gets glanced at once.

That's demoralizing. And it makes it harder to justify investing in capacity.

So celebrate the wins. When data helps you land a grant, say so. When a report changes a decision, share the story. When someone saves 10 hours by improving a process, make it known.

Recognition isn't fluff. It's fuel. It shows your team—and your leadership—that this work matters.

Why this matters for mission-driven organizations 

Data capacity isn’t just a technical challenge. It’s a barrier to impact.

When public sector organizations and nonprofits are stuck in spreadsheets or chasing down reports, they lose valuable time—time that could be spent improving health, housing, safety, and opportunity in their communities.

Overcoming the data capacity crisis in 2026 starts with building smarter processes, focusing on what matters most, and giving teams tools they can trust. It’s about removing friction so people can focus on meaningful work, not manual tasks.

That’s what mySidewalk is built for - and that’s the work we’re doing alongside you in 2026.

To learn more about the Data Capacity Crisis - check out our hub for additional resources.