Waking up to the news of yet another major charity scandal – reported to be one of the largest ever – sure didn’t feel good.
Turns out Knoxville-based Cancer Fund of America was busy building a $187 million “fraud empire” while you and I were busy trying to make the world a better place. Go figure.
The problem is that we’ve already got enough working against us.
People are generally fairly suspicious of charities. Fundraisers and used car salesmen are routinely lumped together. I just bought a car this week and, believe me, I found no useful comparisons between car sales techniques and good fundraising.
And studies show time and again that when people do give to charity, trust in the nonprofit (and its people) is one of the primary reasons.
So, what to do in the face of this scandal? Here are a few thoughts on how to engender trust among your donors and prospects:
Don’t treat them like ATMs.
Best practice suggests you should communicate with your donors at least five or six times between every “ask.” You don’t want donors feel like you’re all about the money instead of all about the work. Send them email updates, call them, send newsletters, connect with them through social media. Whatever you do, stay in touch and keep it about the mission.
Tell them the difference their money will make.
Link every ask very directly to the change it will enable. Don’t ask for $1,000 because you think a donor can afford it. As for $1,000 because it will provide a week’s worth of shelter for 10 abused women, (or whatever fits with your cause).
Then tell them the difference their money actually did make.
Report back. Frequently. Tell them how you spent their dollars and demonstrate that you spent them well. Give real-life examples of how their donation fulfilled their own values.
Provide straightforward financial reporting.
Do an annual report. It doesn’t have to be fancy or expensive, but get your financials out there for everyone to see. If you have high overhead costs because you’re currently investing in infrastructure or in the early phases of an expansion or growth strategy, that’s fine. Just explain it all in plain language.
Offer reassuring role models.
Now is a good time for donor and client testimonials. Use all your communications channels to assure donors that giving to you is a good investment offering high and satisfying returns. You saying it isn’t particularly meaningful. But letting your donors say it can help allay any concerns that other prospects or donors may have. And allowing your clients to verify how impactful their experience with you has been is probably the most powerful thing you can do.
Don’t worry about converting hardline skeptics.
I say this almost every week: fundraising is not evangelism. If someone doesn’t believe in your cause or if they think all charities are scams or if they’re convinced that fundraisers are charlatans, forget about them and move on. The reality is that you don’t have the resources to get to every person who might truly be interested in supporting you. Don’t waste time and energy on red herrings.
There are always going to be bad apple charities. Days, weeks or years from now, your nasty uncle or pesky aunt will question your career choice by invoking the name of the Reynolds family (or William Aramony ,or the Red Cross post-9-11, or some other charity).
The underside of the charity world is not who you are or what you’re a part of. Twenty-five years in, I couldn’t be prouder to be a fundraiser or more satisfied to be a part of the nonprofit sector.
It’s up to each of us to make sure our donors understand that they’re part of something great, too.
