Aug 23, 2013
As nonprofits attempt to gain new donors and boost fundraising totals, they often need to adopt new strategies to run successful campaigns. Transparency can be useful for organizations that accept donations online, The Nonprofit Times stated. This approach builds trust in the organization.
Transparency for nonprofits means being open about programs, where finances are going and sharing information with donors, regulators and the public. Some organizations can use transparency as a competitive differentiator. Charities that are transparent about their fundraising initiatives can attract a higher number of interested donors because it is easier to find organizations that match their personal values, according to an article by Custom Development Solutions.
Donors can make a stronger emotional connection with a nonprofit when the charity provides information about its mission and programs, including fundraising goals, activities and accomplishments. Since many donors are becoming more motivated by causes than by ties to specific organizations, it is important for nonprofits to use transparency to stand out from other groups that support the same causes. Donors want to give charitable dollars to reputable organizations, and transparency can convince them the nonprofit is trustworthy.
It's also worth noting that a nonprofit can demonstrate transparency on its website in general and on an online donation form, in particular.
Donors want to be able to access online resources with the knowledge that what they're reading is factual, up-to-date, and true. By posting regular updates and keeping supporters in the loop, you increase the chances that donors will be willing to give to your campaigns.
Similarly, if you are upfront on your online donation page and succinctly explain where the funds will be going, donors are far more likely to continue (and finish!) the donation process, boosting your donation page conversion rate (i.e., the number of people who land on your donation page and complete the transaction).
People have different motivations for giving to organizations, and nonprofits need to establish a personal connection with donors to gain insight into how to communicate with them and encourage contributions. Some donors want to be thanked for their efforts and others do not want to recognized for their major contribution.
Similarly, certain funders want to be contacted regularly after donating and others don't. People have concerns about how their funds will help the cause, but disclosing information about where fundraising revenue will be used can help convince donors to support the nonprofit.