Connected Giving orgs are transparent about the good they’re doing and proactively answer questions before they are asked, engendering donor trust.
What is Transparency?
Donors are asking questions about the impact their donations are having. How much impact will my dollar have? How does the nonprofit operate? (Fidelity Charitable)
Nonprofits have an obligation to be both accountable and transparent.
Accountability is an obligation or willingness by a charity to explain its actions to its stakeholders. (Charity Navigator)
Transparency is an obligation or willingness by a charity to publish and make available critical data about the organization to the donor population. (Charity Navigator)
The Impact of Transparency
People trust brands they recognize and know. Trust plays a key role in the purchasing decisions people make and the decision to share with their friends.
Globally, 64% of nonprofits have seen an increase in demand for transparent funding over the past five years.
(Salesforce Nonprofits 2020)
Affluent donors give 82% more when fundraising messages focus on their personal agency and give a sense of control. (Plos One)
56% say they are most likely to give repeatedly to an organization if they receive regular communication about the work the organization is doing and the impact that their donation is making. (Nonprofit Tech for Good)
Over 50% of a charity campaign’s donation volume is the direct result of social sharing from donor and visitor shares. (Philanthropy Journal)
The use of blockchain and cryptocurrencies is boosting transparency and trust in the nonprofit sector; the number of organizations that accept cryptocurrency donations has increased by 100% in the past year. (Yahoo Finance)
45% say NPOs should email updates quarterly. (Nonprofit Tech for Good)
Transparency In Action:
charity: water provides their donors with information up front that reinforces the good they are doing. As a result, the donor never has to guess where their money is used and they automatically feel involved in a larger story.
- Photos and GPS map to show where the well was built
- Number of projects funded
- Financials are available for donors to see
- Private donors cover the operating costs so 100% of all donated money goes to fund water projects