There is a lot of evidence to support the unfortunate fact that many people do not trust some nonprofits to use their donations wisely.
How can you avoid being on that list of distrusted nonprofits? Here are some actions you can take to make sure potential donors don't blacklist your nonprofit:
Develop a unit within your organization that focuses on Keeping donors happy.
It is not enough to just send out an acknowledgement. Donors must be well informed and reminded frequently that they are important to you. If possible, provide a hot line that donors can call and have it staffed 24 hours a day. Yes, that means having someone on call around the clock but it is worth it.Make sure that all of your paperwork is up-to-date.
Nothing turns off a donor more than finding that tax records (IRS Form 990) are not available or that they are out-of-date when they look you up at the major nonprofit tracking sites such as Give.org, GuideStar.org, or CharityNavigator.org. In addition, have those documents readily available at your office. That means that the receptionist doesn't say "Huh?" when asked about them, or the office doesn't have to be turned upside down to find them.Publish an annual report.
Even though nonprofits are not required to publish an annual report, do it anyway. It is necessary to your professional image and provides another avenue to keep your donors informed.Respond quickly and efficiently to inquiries from donors or potential donors
If you invite people to contact you through your website, have a staff member assigned to respond immediately. Also, provide plenty of ways for people to contribute...through your site, at your office, through the mail, or at their homes and offices. There is nothing sadder than a potential donor who wants to give but cannot find anyone to talk to. Unfortunately, this happens all too often, even at large institutions with hundreds on their development staffs.Get out in front of bad news about your organization.
If bad news about your organization appears in the media, consider your donors your most important audience. Get to them quickly with the facts, and reassure them that you have things under control.Shape up your finances.
Keep your financial house in order and make sure that most of your donor dollars go right into programs. Follow the lead of many other nonprofits and use some of the financial best practices laid out in the Sarbanes-Oxley Act, which was passed to curb abuses at for-profit companies. Let your donors know that you are using their money wisely.Use credible and cost-effective ways to solicit donations.
Look as professional as possible. People may buy products from you or frequent your bake sales, but that is not where the big money goes. Only the Girl Scouts can raise millions through cookies, and only the Salvation Army can get by with bells and change pots. Use smart, well-organized fundraising techniques to convince donors that you know what you are doing.As businesses have learned the hard way, customer service is king, and a good reputation is mandatory. The same is true...even more so...for nonprofits. Look at your organization through the eyes of your donors. Your financial health may depend on it.
