Today’s donors are very discerning when it comes to their relationships with nonprofit organizations.
Above all, they seek personal alignment with the mission, values, and goals of the organizations they support. They want evidence that their support results in outcomes and lasting impact. While they expect to see facts and metrics that substantiate impact, they especially appreciate well-crafted stories that illustrate how real people and communities are benefiting.
Alongside these expectations, donors assume the organizations they support will be transparent and accountable, especially regarding financial matters.
The responsibility for ensuring transparency and accountability originates with the board of directors and extends to the chief executive officer and other senior staff. Donors expect that these organizational leaders will proactively assume these responsibilities and provide information to donors and prospective donors before they are asked.Generally, nonprofit organizations can address transparency and accountability by taking the initiatives and actions listed below. At the same time, organizations would be wise to consult with their specific donors and tailor their transparency and accountability practices to meet their donors’ expectations.