The Clarion Call for Nonprofit Transparency

The nature of charitable giving has changed, and there are four primary reasons for this:

• Technology has made it not only easier to give to charities, but to know about charities and how efficiently they perform.
• Changes in the U.S. tax code have created a disincentive for giving, especially for those who gave strictly for purposes of a tax deduction.
• The rise of Donor Advised Funds (DAF) has made it easier for donors to contribute meaningfully to a cause.
• Concerns for transparency and organizational efficiency have driven the need for increased disclosure and external oversight.

High profile scandals have eroded public trust in corporations as well as not-for-profit organizations. This has led charitable givers to reward organizations that provide full organizational transparency.

It Pays to be Open

A recent study published by GIVE.ORG has highlighted several important statistics related to donors' behaviors:

- Donors give 54% more to organizations that have received endorsement from a third-party

- 73% of donors say it's very important to trust a charity before giving

- Only 19% of donors say they highly trust charities

- 44% of donors say they choose a charity to support based on their accomplishments

- 39% of donors rely on third-party evaluations to choose which charity they support

- 35% of donors say they rely on the charity's efficiency (measured as the percentage of charitable monies that reach their intended constituency)

Donor's Age Impacts How/Why they Donate

 - Senior Citizens are much more likely to give to a charity based on third-party evaluations (56%)

- Senior Citizens place far less value in an appealing story (6%)

- Generation Z places less value on third-party evaluations (19%)

- Generation Z places the greatest weight on the organization's passion for a specific cause that the donor believes in (46%)

Being transparent can help your organization yield more donors and higher donations. Are you wondering what information you should be sharing with the public and your prospective donors? Zinner's Not-for-Profit Team can help you improve your reporting and help drive more donations! Let's talk!