A 2022 report from the National Council of Nonprofits calls trust one of the most valuable assets a nonprofit can cultivate. Without donor trust, even the most well-intentioned organizations can struggle. Building trust takes time, but losing it can happen in a headline, a misstep, or an unanswered question. So, what exactly is donor trust? It’s the confidence donors have that your nonprofit will use their funding wisely, ethically, and in alignment with the mission they care about. It’s about believing in an organization’s ability to make a real impact. In a time of high-profile scandals, inconsistent communication, and growing public skepticism about how organizations use their funds, trust has never been more valuable, or more fragile.

Treat transparency as a strategy, not a checkbox

Nonprofits are legally required to disclose financial information, but legal compliance doesn’t always translate into clarity. Donors frequently report that they struggle to access or understand how funds are being used. This lack of clarity fuels public skepticism- according to a 2006 poll, only one in ten Americans strongly believed that charities are honest and ethical in their use of donated funds. To shift this dynamic, nonprofits can communicate financials in ways that are proactive, accessible, and understandable. 

Build internal systems that reinforce accountability

Accountability can start from within. Scandals in organizations like Oxfam and the American Red Cross have shown how ethical missteps can result in reputational damage. The reputational damage caused by a single nonprofit scandal, “could generate spillover effects and so contaminate the sector as a whole”. Leadership teams should regularly review and update governance policies, not just to avoid crisis, but to create a culture where accountability is normalized. 

Use storytelling ethically

Nonprofits have a responsibility to present accurate and honest accounts of their work. Storytelling can be one of the most effective ways to communicate impact, but it must be handled with care. Ethical challenges can arise when stakeholders pressure organizations to frame narratives in ways that align with their own agendas. Research shows that organizations that use storytelling can double donor retention rates from 27% to 45% (Hosey, 2023). It's important to create clear internal guidelines that protect the authenticity of the people behind the stories. 

Prioritize digital credibility

First impressions are increasingly made online. A nonprofit’s website could be the first touchpoint a donor will have with the organization. Outdated, unclear, or incomplete websites can raise red flags. Make sure your digital presence includes current program updates, staff and board listings, recent financial documents, and a clear articulation of your mission. This not only boosts legitimacy, it encourages engagement.

Make mission alignment a guiding principle

Accepting donations that contradict your organization’s core values might help short-term, but it can severely damage long-term trust. As one case involving the Sierra Club showed, supporters can feel betrayed when organizations stray from their missions. Nonprofit leaders can have policies in place to evaluate potential funding partners and ensure that all activities remain consistent with the organization's values.

Trust is built over time through consistent, transparent, and mission-driven actions. In a world where misinformation and skepticism are high, nonprofit leaders have both the opportunity and responsibility to lead with integrity.

Callista Kaler is a 2025 graduate of the Masters of Nonprofit Leadership and Management program at Arizona State Univeristy. Currently, Callista is a Grant Writer at Gila River Health Care. 

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