Essentials for trust-building.
Transparency and clarity are key factors when it comes to building trust for nonprofit organizations. Donors want to know more than how their money was spent. They want to know the impact that their donation makes and how it relates to the stated mission of your organization.
Find out how RBP Methods can help you build trust through financial transparency with your AccuFund or Abila MIP software. Contact RBP Methods online or call us directly at (503) 548-9051.
To enhance the trust factor with donors, there are three areas where you should pay particular attention. These areas can make or break trust. They include:
- Trust in the numbers: Donors and other constituents must feel that they can trust the accuracy of your numbers. Automated reporting using nonprofit accounting software can enhance trust in the numbers, as can published reports from independent auditors who review the reported information and verify it.
- Trust in reporting: Numbers can be manipulated using statistical representation and other calculations to build varying narratives in your reports. Readers, donors, and others must believe in the narrative and must trust the way in which numbers are reported. Timely reporting is also vital. If reports are delayed by weeks or months, questions arise as to how carefully the nonprofit manages its funds. AccuFund software can help you provide accurate, timely reports that will answer donors’ questions and build trust.
- Trust in outcomes: People give money in the hopes of affecting the outcome of the problem that your nonprofit hopes to solve. They give because they believe in your mission and want to see positive changes. They must trust that the outcomes reported by your organization. But not only must they see good outcomes, they must see constant improvement. How you are building, improving, and evolving is as important as quantifying the outcomes of your work. All must be reported with accuracy and clarity to evoke and build trust.
Trust Builders, Trust Destroyers
Just as these three factors build trust, there are other factors which can destroy the trust built in your organization. And unfortunately, it’s easier to tear down than to build up trust. Here are things to avoid when trying to build trust among your constituents:
- Status quo: Organizational inertia or maintaining the status quo can actually degrade trust over time. Although the steadiness of the status quo may seem trustworthy, it actually makes people wonder how well you are fulfilling your mission. If you always do what you’ve always done, you get the same results. Donors want to see you trying new and innovative methods of reaching the people you help.
- Mistakes in the numbers: Manually entering nonprofit financial information inevitably leads to mistakes. Spreadsheets and reports written from scratch can include mistakes, problematic information, and other issues that detract from trust. Switching to AccuFund software can improve your ability to provide accurate numbers. The way to build trust is through transparency of financial information, and you can’t do that without accurate numbers.
- Fraud: How many times have you heard about a business under investigation due to fraud? Fraud allegations can erode all of the efforts you’ve made to build your nonprofit’s reputation. To prevent fraud, you need multiple steps in place to secure cash, receivables, checks and other items. Documenting processes and following written steps to keep financial information safe and secure goes a long way towards preventing fraud and the problems it brings.
Is it time to take trust-building to the next level for your organization? Download this free whitepaper, “Nonprofit Trust Factor.”
AccuFund Software offers accuracy, easy reporting, and more to help you build trust through transparency and credibility. By using nonprofit accounting software, you will reduce the likelihood of mistakes that can lead to problems. AccuFund Accounting Suite, CRM, and other tools provide the basis upon which you can build a fiscally responsible organization.
RBP Methods helps right-brained people navigate a left-brained world. We offer nonprofit software and consulting services including AccuFund and more. We’d love to talk to you about your online fundraising or other needs, and we hope to see you at the forthcoming webinar. Contact us today or call 503-648-9051.