5 Tips on How to be Transparent With Donors

Making sure you know how to be transparent with donors is essential to building trust. While every organization is different, many nonprofits rely heavily — sometimes exclusively — on donor support. In 2021, overall

charitable giving

in the United States increased 8.5% compared to the previous year. While you may be used to considering factors such as

donor churn

and

donor retention

, there’s another area to consider: donors and trust.

As a nonprofit organization, you thrive when your donors trust that their gifts are being spent wisely and effectively. But how do you communicate the impact that donations have in order to meet that gap between donors and trust? The answer is simple — transparency.

Donors and Trust, by the Numbers

The Independent Sector’s

Trust in Civil Society

report explores factors that drive trust in American nonprofits and philanthropy. As part of their key findings, they share that there appears to be a two-way street between trust and civic action. 

Donors and volunteers both indicate they have higher trust for nonprofit organizations, while also identifying trust as a necessary factor for them to support the organization. 

From the survey:

  • 63% agreed that “many factors, including how much I trust a nonprofit to do what is right, determine whether or not I support it financially, or through volunteering.”
  • 83% agreed that “nonprofits must earn my trust before I support them.”

According to the report, there are four primary dimensions that comprise trust capital: ability, dependability, integrity and purpose. For nonprofits, statistical modeling indicates that the latter two dimensions, integrity and purpose, contribute the most to building or reducing trust.

Transparency demonstrates both of these facets, even when it means admitting failure. In the article, “

Why Failing Transparently Is a Good Thing

,” author Wayne Elsey, founder and CEO of Funds2Orgs, explains that discussing failure, and the learnings from it, can be a pathway to earning trust. 

Here are Elsey’s quick tips for being more transparent with your donors and supporters.

Publish your nonprofit financials. 

Even if you have a small organization, place your audited financials on your website. This action alone can significantly help bridge the gap between donors and trust.

Consider getting a Guidestar Seal of Transparency. 

With a

Seal of Transparency

from Guidestar, you may be able to increase your donations by 53%. Guidestar is an independent organization, and having their approval can showcase the dependability and credibility of your nonprofit.

Publish your outcomes and impact. 

Donors want to know what your organization does and your metrics for success. Be clear and transparent. For all of your programs, give regular updates via a newsletter or email blast. Always publish an annual report of achievements from the past year.

Make sure to have whistleblower and conflict-of-interest policies. 

Have policies in place to discourage illegal or corrupt activities and promote speaking up. Not only is this tenet vital to maintaining your organization’s integrity, but it also demonstrates to donors that you understand best practices in these arenas and take corruption seriously.

Experiment and create pilot programs or initiatives. 

Finally, nonprofit leaders must develop their organizations. Thinking outside the box with vision and transparency shows you want to be a better nonprofit leader and expand your outcomes and impact. 

Want to learn more? Donate is one of the nine elements in the

Points of Light Civic Circle

, your system for changing systems. Our Civic Life Today issue on

Donate

explores the act of donating, thoughtfully encourages individuals to understand the power of their donations and shows people how to approach donating through a thoughtful lens in order to have the greatest impact.

Learn How to Spot Social Intrapreneurs Within Organizations

Social entrepreneurship is one of nine elements in Points of Light’s

Civic Circle

, a framework to help people understand how doing good can come in many forms. (If you haven’t read the Civic Life Today issue on

social entrepreneurship

, we highly recommend it!) 

Social entrepreneurs get to the root causes of today’s issues and work to find innovative solutions. They identify a need that has not been met by traditional structures, research the existing landscape and then lead the charge to solve the issue in a new way.

While social entrepreneurs operate outside of organizations, did you know that they can exist within organizations too? Social “intrapreneurship” has a few definitions, but generally, it is the “Successful adaptation of entrepreneurial attitudes and strategies inside of a bureaucratic organization.”

Think about your own organization – do you know any intrapreneurs? They could be existing leaders at your organization or even highly-engaged volunteers that serve with you. Or maybe you are one yourself. There are many different qualities you might expect from an intrapreneur, but here are a few common ones.

Qualities of Social Intrapreneurs

Social intrapreneurs are passionate about the cause or issue they are supporting. Like any successful social entrepreneur, they take the time to understand the issue they are seeking to address. (By the way,

listening and learning

about issues before acting on them is another element of Points of Light’s Civic Circle!)

They’re also willing to take risks. They don’t see the status quo or any traditional approaches as limiting to their potential, and they’re comfortable with taking data and their broader lived experiences to try different ways of solving issues. 

Social intrapreneurs are resilient and driven, helping them to be more adaptable to adversity. Beyond resiliency though, there is a hopeful optimism they possess. They truly believe change is possible and that they have the passion to make it happen!

Intrapreneurs are also able to understand and work within existing organizational structures, while also seeing opportunities to adapt them in order to foster change. Intrapreneurial talent can be a significant benefit to your organization in moving your mission forward and serving your community. Instead of forcing these individuals into a box, it’s a good idea to cultivate their creative solutions and encourage idea sharing.

Supporting Your Social Intrapreneurs

If you read through that list of qualities and have one person or a few people in mind, read on for a few ways your organization can help support and cultivate their intrapreneurship (ideas adapted from

The Innovators Handbook

.)

First, create a culture of learning. This may come as no surprise, but an organizational culture that is unwilling or unable to adapt and learn will likely not be able to support new, entrepreneurial ideas. A culture that values creativity and future thinking will better fit intrapreneurs seeking to create change. 

Next, recognize biases. We all have them; no one is exempt. Fostering a culture or system that avoids biases isn’t possible unless you can recognize them in the first place. Three to be particularly aware of: 

  • Authority bias: Our tendency to attribute greater accuracy to anyone in a higher position. Also known as the HiPPO effect – or the Highest Paid Person’s Opinion.
  • Bandwagon bias: Our predisposition to replicate and emulate what others are doing.
  • Law of the instrument: Our habit of becoming unquestioningly enamored with a methodology, process or tool. Hence the well-known idiom, “if you have a hammer, everything looks like a nail.”

Finally, try to see innovation as an opportunity, not a requirement. Great ideas can come from anywhere, but they shouldn’t just be more criteria on a job description. Ideas are opportunities and leaders should assume that there is already much untapped potential throughout their organizations. Organizational structures should invite everyone to the innovation table.

What other ways can your organization foster innovation and creativity to support social intrapreneurs? Do you have any particular intrapreneurs who have inspired you? Share with us on

Facebook

,

Instagram

,

LinkedIn

and

Twitter

!

Use Your Voice During Elections: Tips for Employees and Organizations

Pr

eviously in this series centered around voting as a way to engage in your community, we covered how employers can support their employees to

vote

, as well as to

listen and learn

ab

out the candidates and issues during election season. 

As Election Day approaches on Tuesday, November 8, 2022, we’re diving into ways that you can use your corporation’s voice during elections, as well as encourage employees to use their voices, throughout the election season.

According to Points of Light’s research on

the state of Civic Engagement in the United States

, 40% of respondents said they posted or shared content on a social media platform, making their voices heard. There’s no doubt that your employees will likely be posting their individual opinions on the issues and candidates this year.

But as companies are often limited in what they can publicly support, what are some other ways – outside of social media – that you can make your corporate voice heard, and encourage your workforce to make theirs heard, too?

Appoint Democracy Champions

One way to ensure that messaging is consistent across the organization is to appoint a “democracy champion” – or a task force of multiple team members, depending on the size of your organization – to spread the word about the upcoming election.  Provide them with tools and goals and connect them to your Government Affairs team for training and counsel. 

Not only will this model provide a leadership development opportunity, it will help you plan for local and state elections, and stay abreast of legislative proposals that might impact the communities in which your company operates. Make sure these champions understand this is a nonpartisan role meant to lift up the power of the vote, educate and inform fellow colleagues. Be consistent with messaging, and be clear on when these champions can make commitments on behalf of the company.

Voice Perspectives on Crucial Legislation

Encourage employees to engage individually in civic action by voicing perspectives on hot topics, especially legislation that could impact your workforce. Not only can you use your corporate voice to thoughtfully voice the company stance on these issues, but you can encourage your employees to contact their representatives to advocate for the causes they care about.

“Gen Z and millennial workers are looking for more than just a paycheck – they want to work for an employer that provides ways for them to use their voice and strengthen communities through the democratic process. ” – Katy Elder, vice president, Business Innovation, Points of Light

Partner With Voter Advocacy Organizations

One of the most powerful ways for your employees to use their voices, especially if you’re being mindful of maintaining a nonpartisan stance at your company, is to advocate for election turnout. Partner with voter advocacy organizations like

Vote Forward

to write letters or make phone calls to registered voters. Vote Forward has seen over 245,000 volunteers write 27.4 million letters since 2018, educating people on how to show up to the polls on Election Day, how to vote by mail and where to check their voter registration status.

A great place to start learning about the power of voice is in our

Civic Life Today issue on Voice

. This digital magazine shares first-hand accounts from contributors who are using their own voices to change conversations, and provides tools and resources for you to learn more and take action.

 

Don’t miss our first two posts in this four-part series that cover ways to activate around

voting

and

listening and learning

. Our

fourth and final piece

covers how you can encourage employees to volunteer this election season, from helping with transportation in the community to staffing the polls.