5 Best Practices to Secure Donors' Trust in Your Nonprofit

Research shows that donors commonly stop giving to a nonprofit because they weren’t informed how the organization used their gift or the nonprofit didn’t take their wishes into account. Both of these situations represent a lack of trust between donors and the nonprofits they support. 

Securing donors’ trust isn’t a one-time process; it’s an ongoing journey that requires consistent effort from your nonprofit. This guide will help you get started with best practices to build more trust with your audience: 

1. Use donations as you said you would. 
2. Maintain compliance and communicate about it.
3. Make impact information readily available. 
4. Build personal relationships with donors.
5. Set clear technology and privacy policies.

Nonprofits remain among the most trusted institutions in American society, but trust in nonprofits declined by 4 points in 2023, which the Independent Sector called “the largest year-over-year change in trust of any institution tested.” These tips will help you regain trust this year and exceed your supporters’ expectations.

1. Use donations as you said you would. 

Donors want to know that their gifts will directly fund your nonprofit’s charitable activities. Plus, they want to know they can trust you to use their donation exactly as you promised. Reassure donors that your nonprofit is a responsible steward of donations by: 

• Only using donations for the purposes outlined in your donation request. For example, if you told donors their gifts to your GivingTuesday campaign would benefit your children’s after-school program, don’t use their donations to fund your staff lounge renovation. 
• Providing ongoing updates about how donations are furthering your mission. Don’t just tell donors that you’re using their gifts as expected—prove it. Share photos, videos, and statistics that reveal how you’ve put donors' gifts to work to benefit your mission. 

For example, the Doctors Without Borders website shares how the organization uses donations in a fixed footer at the bottom of the site:

Supporters can see that a majority of funding goes directly to the organization’s programs, with much smaller amounts dedicated to fundraising and general administration. 

2. Maintain compliance and communicate about it.

As a nonprofit, your organization is subject to a variety of fundraising requirements and regulations to ensure you’re operating legally and transparently. Maintaining compliance with these rules ensures that your nonprofit can continue operating and also helps foster trust with your stakeholders. 

Be proactive about taking the following steps to maintain compliance: 

• File your Form 990 yearly to maintain tax-exempt status. 
• Renew your charitable solicitation registration in the states where you conduct fundraising activities.
• Maintain organized records to comply with tax requirements and enable transparency. 

Your nonprofit might have unique restrictions based on your field. For example, healthcare nonprofits must comply with HIPAA regulations that protect patient privacy. Be aware of these specific conditions to ensure all fundraising initiatives align with legal requirements. 

3. Make impact information readily available. 

Empower supporters and build a more engaged donor community by providing them with need-to-know financial and impact information. 

Don’t stop at just filing your Form 990—make financial information available on your website and in your annual report. According to Double the Donation’s guide to nonprofit annual reports, these resources should: 

• Be branded to your nonprofit. Seeing your familiar branding will help foster brand recognition and credibility. Design the report with your nonprofit’s logo, colors, and typography.  
• Incorporate data into your storytelling. Tell a compelling story by combining narrative and facts. Illustrate the concrete impact your organization has had by sharing data about your total volunteer hours, fundraising totals for the full year as well as totals for different campaigns, and the number of beneficiaries you helped.
• Be downloadable. Make your report fully accessible and downloadable on your nonprofit’s website by creating a web page where donors can read annual reports from every year. 

For example, take a look at this page from Feeding America’s 2023 annual report: 

The page uses on-brand typography, creative graphic design, and eye-catching statistics to describe the nonprofit’s financial situation. Donors can easily see the organization's revenue, revenue sources, total operating expenses, and specific costs. 

4. Build personal relationships with donors.

Think of the personal relationships you have with family and friends—these relationships all require you to invest in the other person’s life. Relationships are built on sharing information about yourselves to foster connections. 

The same goes for your donor relationships. When you spend time getting to know donors as people, you can increase their trust in your nonprofit and build relationships that feel authentic. 

Focus on stronger relationship-building by taking these steps: 

• Invite donors to get involved in other ways besides donating. Encourage donors to engage in other aspects of your nonprofit’s operations, including volunteering, social events, and advocacy opportunities. According to BWF’s donor experience guide, “fostering community among donors and your nonprofit’s staff makes supporters feel like true partners in your success.” Plus, donors can find opportunities that appeal to their unique interests and passions, helping them form stronger ties to your mission. 
• Store donor information in your constituent relationship management system (CRM). Capture donor information, like their interests, job titles, and giving motivations, using sources like your online donation page, surveys, and in-person conversations. Use these details to personalize your communications and alert donors about opportunities that align with their interests. For example, if you know a certain donor wants to get more involved in your volunteer opportunities but has a full-time job, send them information about your weekend volunteer opportunities. 
• Share your challenges as well as your wins. Emphasizing your organization’s wins is a great way to maintain a positive, uplifting tone. However, overreliance on sharing wins can sometimes come off as inauthentic. Share your nonprofit’s challenges alongside your wins to build a stronger bond with supporters and show that you’re being fully transparent. 
• Ask for feedback. Create two-way communication with donors by asking for their input. Use surveys or in-person interviews to gather feedback about everything from your annual reporting process to your fundraising transparency. Follow up with donors to outline your plans for acting on their feedback.

Plan time for in-person, face-to-face interactions with donors as much as you can. For example, invite donors to a meet and greet with your nonprofit’s staff or an in-person networking event. Forming personal connections with donors will go a long way toward proving that your nonprofit is genuinely invested in them as people. 

5. Set clear technology and privacy policies.

Many organizations have adopted new technology tools over this past year, such as artificial intelligence (AI) for nonprofits, that help streamline fundraising and donor engagement. While these solutions offer many benefits for nonprofits, they also come with some hesitancy from supporters. 

Clearly communicate the following policies to stakeholders to reassure them that you’re using new technology responsibly: 

• AI usage. A Pew Research survey found that 37% of Americans are “more concerned than excited” about the increase of AI in daily life, and 45% are “equally excited and concerned.” Alleviate donors’ concerns by establishing and sticking to clear AI policies. Follow relevant laws regulating AI usage in your state and create ethical guidelines for your organization to follow, such as using equitable and inclusive data practices. 
• Privacy policy. Include a privacy policy on your nonprofit’s website with information about how your nonprofit collects supporter data, what you use the information for, and how supporters can opt out of having their information used. 
• Implementation plans for new technology. For example, perhaps you’re upgrading your CRM to a more robust platform that better fits your needs. Create a migration plan that prioritizes keeping donor information secure during the migration process. 

In addition, set policies for responding quickly when there is a security breach or privacy violation. Establish an accountability structure and roles for your staff members, such as notifying the public, containing the breach, and investigating why the lapse occurred. 

Trust is your nonprofit’s most essential currency. Encouraging donors to continue giving or increase their donation amounts starts with showing them why your nonprofit is worthy of their support. When your supporters trust you, you can call on them in times of urgent need or crisis, giving your nonprofit the foundation it needs to manage obstacles.