Trust is at the heart of what makes a non-profit organization thrive. The relationships we cultivate on behalf of our organizations are the lifeblood of the work we do, and the foundation of those relationships is built on trust. Donors trust us to be transparent about how their money is used, to steward their gifts with care, and to align with their values and vision for the future. This trust doesn’t happen overnight—it’s nurtured over time. The ethical framework of an organization acts as the backbone that ensures trust and transparency are always upheld.
Ethical fundraising isn’t just about following the rules; it’s about fostering a culture of openness and integrity that encourages confidence in your organization and strengthens donor relationships. When donors trust you, they feel more connected to your mission, and that connection becomes the reason they continue to support your cause, year after year.
So how do we build trust through ethical fundraising practices? Consider implementing these four actionable steps in your organization:
Transparency
Transparency is the number one thing that strengthens donor trust. People want to know where their money is going and how it will make a difference. Without that clarity, donors may wonder whether their gift is being used effectively.
How to Create Transparency
Policy: Consider starting with an ethical fundraising policy, outlining how donations are managed (with respect to privacy and confidentiality), restricted vs non-restricted donations, and conflicts of interest, to name a few. But don’t just keep this document internal—share it with your donors! Let them know you have a system in place to ensure their gifts are making the impact they expect. It’s a simple step, but one that shows your donors you’re serious about managing their contributions responsibly.
Donor Bill of Rights: The Donor Bill of Rights was created by the Association of Fundraising Professionals (AFP), the Association for Healthcare Philanthropy (AHP), the Council for Advancement and Support of Education (CASE), and the Giving Institute: Leading Consultant to Non-Profits to provide a framework of ethical guidelines to support non-profit professionals in navigating the philanthropic landscape. The Bill highlights the rights donors need to have when entrusting a non-profit with their financial support, including the rights to be informed, respected, and treated with transparency. As part of your commitment to donor rights, you can request to reprint/display the Donor Bill of Rights in your nonprofit by contacting AFP.
Communications
Authentic communication is crucial to building trust and maintaining strong relationships with donors. One of the most effective ways to demonstrate how their support is making a difference is by providing clear and meaningful updates. Regardless of the size of their gift, donors want to know their contribution is helping to further your mission. As representatives of our nonprofits, we are charged with the task and responsibility of stewarding these donations and communicating the tangible impact their generosity has made.
Ways to Highlight Donation Impacts
Collateral Materials: Targeted, impactful collateral materials are essential for showcasing donor impact. Formats like impact reports, newsletters, thank you letters, videos, social media spotlights, donor recognition events, and phone calls allow donors to receive updates in ways they prefer. These methods help donors understand how their support advances the mission, while reinforcing your organization’s commitment to ethical fundraising and responsible stewardship—building the trust that is crucial to donor relationships.
Intended Use of Funds
It is essential to use donor funds for their intended purpose. Donors choose to support organizations whose missions align with their values and it is our responsibility to honour their intentions. This is an essential component in ensuring ethical fundraising and maintaining donor trust.
Caveat: If you are unable to use a donation for its intended purpose, it is your responsibility to communicate with the donor promptly. Open and transparent communication is essential to maintaining trust and ensuring the donor understands the situation.
How to Ensure Donations are Used for Intended Purposes
Gift Agreements: Creating a gift agreement that outlines the donor’s intentions and sets clear guidelines for the nonprofit, can help donors feel confident that the nonprofit is committed to ensuring that their support is being used in the ways in which it was intended.
Financial Reporting and Collaboration: It is important for both the fundraising professional and the finance team to have a coordinated approach with respect to their accounting for donations. This involves ensuring gifts are accurately recorded in the donor database, funds are allocated to the correct operating accounts, regular reconciliation of donation records is conducted, and there is transparency in reporting how the funds have been used. By working together, both teams can effectively ensure that the donor’s intentions will be met and trust can be maintained.
Protect Donor Privacy and Data
Protecting your organization’s donor information is crucial to ethical fundraising and maintaining trust. Donors have chosen to share their information with you and are trusting you to keep it secure and use it responsibility. It is important to remember that safeguarding data is not only an ethical consideration but also a legal one.
How to Safeguard Your Data
Digital Safeguarding Tools: There are many ways you can safeguard donor information and data, including data encryption tools, secure payment processing, and secure storage solutions. Each of these are all tools you can use to let donors know you are committed to protecting their privacy.
Ongoing Training: In a world where data and information is changing rapidly, it is important for your non-profit to be committed to ongoing training to ensure all staff are vigilant against cyber attacks and data breaches.
Polices: Creating policies specifically focused on protecting donor privacy is another great tool. These policies should include how a privacy breach will be handled and an incident response plan. Together, this allows donors to understand you are committed to ensuring the safeguard of information of your donors and are taking steps to plan for how unforeseen circumstances can be handled.
Being committed to ethical fundraising practices is an ongoing strategy that begins with your Board of Directors and policy development. It is operationalized by the CEO, which extends throughout the entire organization.
It is important to note that the fundraising landscape is always changing and as such ongoing discussions and plans need to evolve and be re-examined. Ultimately, ethical fundraising is not just a responsibility of a few individuals, it is a shared value that permeates the entire organization. By fostering a culture of ethical practices, nonprofits can build and maintain trust with their donors, creating lasting relationships.