In one study, 50% of the people surveyed said they were “put off when they didn’t know exactly how the money was being spent,” and 45% were concerned that a charity might be associated with a political party or religion.
Beyond what the law requires, nonprofits can boost donor confidence by becoming as transparent as possible with financial and fundraising information.
Organizations should also strive to create practices that show respect and accountability in all areas. Small actions, like sending gift acknowledgments on time, respecting restrictions on donors’ gifts, and providing accurate reports to foundations and government agencies (where applicable) go a long way to build trust.
Pursuing integrity in these small areas demonstrates that your organization is trustworthy in larger areas–like your finances.