Donor trust isn’t a nice-to-have – it’s critical to the success and longevity of any nonprofit organization.
But, earning this trust is becoming more difficult. According to the Edelman Trust Barometer, only 58% of the world’s population trusts nonprofits to do the right thing. This is down from 59% in 2024.
Let’s take a look at why building donor trust is so important, and what you can do to make it happen.
Why Establishing Donor Trust is Critical
Think about it – would you give your money to a person or business you didn’t trust?
It’s the same for donors and nonprofits.
Nonprofits often come under scrutiny for how they use the donations and grants entrusted to them. Supporters and grant-making organizations are turning over their hard-earned dollars, and they want to be sure these funds are being used as intended.
This makes it important that your nonprofit does everything in its power to boost donor trust by being good stewards of all gifts, and showing how you are doing so.
8 Ways to Boost Trust in Your Nonprofit
Luckily, there are several steps you can take to improve donor trust in your nonprofit organization.
1. Be transparent.
The most important thing you can do to build donor trust? Always, always, always be transparent.
According to the BBB Wise Giving Alliance, donors most value an independent review of how a nonprofit spends its money when considering a donation.
So, make this information readily available and easy to understand.
Post your IRS Form 990 on your website. Report every dollar raised and spent – and how – in your annual report.
Be ready to share details like the percentage of each dollar raised that was spent on fundraising. Use visuals like pie charts to get your point across.
Showing that you have nothing to hide increases confidence that you’ll use donations for their intended purpose – serving your mission.
2. Demonstrate accountability.
This one goes hand-in-hand with transparency. Don’t just be open about your data, make sure it honestly reflects the good you’re going as an organization!
Show that your nonprofit follows through on what you say you’re going to do. Ensure your budget, fundraising, services, and programs truly align with your mission, and share this information with the public.
Tip from the Playbook: To show your nonprofit’s transparency and accountability at a glance, create profiles on sites such as GuideStar and Charity Navigator. Many donors will check these sites for nonprofit ratings before making a donation.
Receive a seal or award from one of these organizations? Display it prominently on your website – particularly on your donation page – to further boost donor trust.
3. Create a unique value proposition.
Every potential donor will have one question on their mind when it comes to interacting with your nonprofit: “Why should I give to this organization?”
Your job is to answer this question in every piece of marketing or fundraising outreach by sharing how your nonprofit solves a problem. This should be an issue that your ideal donors care about, and you should solve it in a unique way when compared to similar organizations.
Showing how your nonprofit is providing a real solution to a real problem will help your donors see the value in trusting your organization with their donations.
NextAfter has a great exercise to help you create a value proposition of your own!
4. Showcase impact.
To demonstrate that your nonprofit can be counted on to follow through on this value proposition and further build donor trust, showcase the impact your organization has on the community you serve or the problem you aim to solve.
This can be done through data, such as the number of people helped or goods delivered. You can also showcase impact through storytelling, with featured stories about the real people, animals, or places you serve.
5. Focus on authenticity.
Your nonprofit should strive to be as authentic as possible in all things.
First of all, establish a voice that can be used throughout your outreach, creating a cohesive message as well as a relatable personality for your brand. This voice should align with the mission and values of your organization – donor trust may decline if you send conflicting messages.
In addition, use real impact stories that truthfully show the work your nonprofit has done.
In fundraising appeals, also steer clear of false urgency. You should only request urgent donations if there is a need that must be addressed right away. Otherwise, focus on the long-term effects of your mission.
Finally, find ways to create real connections and build solid relationships with your supporters. Give them a phone call, reach out with a personal email, or set up a time to meet one-on-one. Your donors are much more likely to trust you as a person than they are to trust a faceless organization.
6. Prioritize security.
With the very real threats of cyber attacks and identity theft, many potential donors first check to see how a nonprofit will ensure the security of their data.
Put policies in place – and update them regularly – that put security at the forefront. Check that every tool you use, from fundraising platforms to CRM software, has high security standards.
Share these policies and efforts on your website to give donors the confidence they need to support your nonprofit.
7. Show your appreciation.
To build donor trust further, always say thank you! This includes sending an automated receipt following every donation, but you should be taking your gratitude at least one step further.
Send personalized acknowledgement letters to your donors for every gift. Include a handwritten note as well as details specific to their donation and how it will make an impact.
A few times a year, set aside time to make thank-you phone calls and send thank-you notes – do not include an ask, instead ensure your donor feels like they are a valued part of your organization.
8. Explain what you mean.
Never assume that your supporters know what you’re talking about. Avoid jargon and take the time to explain what you mean by those terms you do need to use.
For example, when the BBB Wise Giving Alliance asked survey participants about the meaning of the phrase “charity impact,” they were split among how to define it. When you talk about impact, let readers know that you’re speaking to the difference your nonprofit makes for your beneficiaries.
In the same study, it was found that many people do not understand what “overhead” is at a nonprofit. Taking the space to explain this in your annual report will clear up any confusion and help donors better understand where their donations go.
Start Building Donor Trust in Your Nonprofit
Building donor trust is a must-do for today’s nonprofits.
Use the advice shared here to help as you earn and keep this trust, boosting donations by giving your donors the confidence that you will use their donations wisely.