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:
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.
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:
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.
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:
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.
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:
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.
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:
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.
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:
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.