As a nonprofit — by definition, working for the greater good of society — you expect your organization to be liked by everyone. After all, who could be against a group working to improve the world around them?
Still, at the heart of a nonprofit’s mission is trust, and while a 2024 survey from Independent Sector with Edelman Data & Intelligence found that trust in nonprofits has rebounded to lead government, business, and the media, people’s trust in nonprofits sits at just 57 percent.
Trust and respect are central to people donating money to fuel your nonprofit’s mission. To help build and maintain the public’s trust in your nonprofit, consider the suggestions below.
What Drives the Public’s Trust of Nonprofits?
In “The Psychology of Trust,” Martha Peaslee Levine, director of the Office for Professional Mental Health at Penn State University, lists the following five drivers of trust in nonprofits:
- Promise of mission and values
- Organizational reputation
- Transparency and accountability
- Performance and social impact
- Use of contributions
Levine’s study of nonprofits shows your organization can improve trust through branding and accountability.
Ways to Win and Keep the Public’s Trust
The public’s trust in nonprofits can erode because of scandals in nonprofits, regulatory oversight, secret money in politics, and the blurring of lines between how nonprofit and for-profit businesses operate. But your nonprofit can combat those negative attitudes.
Maintain a High Level of Transparency and Accountability
The biggest distinction between accounting for nonprofits and for-profit businesses is the focus. Nonprofit accounting is geared toward demonstrating transparency and accountability. Staying on top of fundraising facts and figures, where the money is going, and what your nonprofit has achieved with donations can go a long way to keeping donors, the community, and regulators on your side.
Aside from publishing your financials, publish other information about your nonprofit, invite the public in, and carry on a regular dialogue instead of just when you are asking for money.
Prepare Your Entire Organization to Promote Your Nonprofit
In order to speak officially, your nonprofit should have a spokesperson. But train and prepare everyone in your organization to speak highly of your nonprofit and take advantage of public perception.
People will ask anyone associated with your nonprofit about the organization. Having them all prepared to respond helps boost the sense of transparency.
Anticipate Backlash
When one nonprofit is under fire, your nonprofit will feel the heat, too. Your organization’s values and ethical standards should be written down and known to all directors, staff, and volunteers.
Coupled with your systematic accounting and audits, being prepared for increased scrutiny helps you remain well-prepared to explain the checks and balances that keep your nonprofit out of trouble. You can point to your annual reports, audits, and other information published by your nonprofit.
Don’t Worry About What You Can’t Control
The media and some people in your community may deny your mission or public statements. That’s out of your hands. As long as your nonprofit is being open and honest with the public, that’s all you can do. Donors, the community, and regulators can decide for themselves based on the transparency and accountability shown in what you publish.
Showing transparency, demonstrating accountability, and building public trust are key to the success and impact of your nonprofit.
Find an Accountant and Auditor for Your Nonprofit
You know the public’s trust is key to your nonprofit’s fundraising. Building and maintaining that trust starts with your nonprofit accounting.
At Ernst Wintter & Associates LLP, we have deep experience helping nonprofits show transparency and accountability while remaining in compliance with their tax-exempt status. Give us a call today.