How Nonprofits Build Donor Trust: Be Transparent!
This week two of my most trusted sources of information (GuideStar and Give.org), shared essentially the same story: nonprofit organizations garner more donations when they are transparent. We’re talking on your website, social media, marketing communications, etc. Potential donors are interested in the facts. They want to see healthy financial information. They want to know how their money is utilized for the greater good.
The numbers nerd in me would like to share a few statistics from both studies:
35% of people surveyed said that shared financial ratios signal trust. (Give.org)
The top 3 reasons people distrust charities: (1) Greed and High Overhead, (2) Bad Reputation and Negative Media, (3) Lack of Honesty & Transparency. (Give.org)
Organizations with a GuideStar Seal of Transparency received 53% more in contributions. (GuideStar)
At Blue Fox, we dig deep with our clients to build a roadmap of actionable financial data. Information to aid and support our clients on a strategic level. We believe the numbers tell an important story. And, we second the motion of these industry leaders. It’s time to share that story with your constituents. Be more transparent. Your donation revenue depends on it!
Our team at Blue Fox provides customized, boutique financial and back office services for social impact organizations. Services range from standard bookkeeping and payroll services, to coaching and consulting, to full-blown virtual CFO services. Our mission is to disrupt the traditional accounting model through technology, innovation, and a radically client-focused approach that truly empowers nonprofits and social enterprises. For more information call (321) 233-3311, email hello@yourbluefox.com, and visit www.YourBlueFox.com.
Author: Founder & CEO, the Original Blue Fox, Chantal Sheehan, MS, CFP(r)
Resources:
GuideStar, New Research Shows Nonprofit Transparency Matters, By Jacob Harold
