For an organization to retain donors who donate their funds, a certain level of trust should be created. Most donors would not donate to an organization that misuses their funds, underwhelming their course. Here are some reasons why transparency is essential to donors.
Donors look forward to donating and getting involved with organizations with good rapport. However, trust should be fostered between the donor and organization; otherwise, they may not donate a second time. They need to confirm that the non-profit is authentic and forthcoming. For an organization to establish this trust, they must make sure they give them the correct information while also being transparent with their use of donations.
Most donors prefer causes they can connect to and relate to on a deeper level. They like when a cause can relate to their values. For example, most donors value strong ethics, honesty and financial responsibility. The organization should make sure it is built on these values to attract and keep its donors.
For an organization to be trusted and maintain donor loyalty, it should:
- Publish all its tax forms, such as the IRS Form 990, on their website. The tax forms are necessary to prove they comply with all the tax rules.
- Provisioning an annual report. The reports should have client stories, basic financial outlines, and the organization’s impact on its cause. The report should have correct publications with no inconsistencies.
- Constantly updated information on the Charity navigators and Guidestar. Keeping the organization’s information up to date allows donors to follow through with the practices and operations, which bring about a sense of honesty and transparency.
- The organization should get endorsements from a public figure in the community and organizations like the Better Business Bureau. Endorsements always prove that the organization is legit, as most public figures would not involve themselves with shady organizations.
- Publishing all the names of the board of directors with their roles on the site. They should not hide anyone’s names as they may appear shady.
- The organization should also update their donors on the results of their programs through different platforms.
Keeping donor loyalty is essential to the growth of a non-profit organization as they depend on them to operate. Therefore, an organization should foster honesty and transparency in its operations.