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ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


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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…

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employee happiness

Wellness movements have gained prevalence in recent years. Following the shifting tide, employers have begun to incorporate wellness programs into their organizations. After all, what better place to promote wellbeing than a place where you are typically at for 8 hours a day? Implementation of employee wellness initiatives is not only born of an employer’s altruism. These initiatives also come in response to ongoing challenges facing the sector such as high rates of turnover and burnout. Emphasis on employee wellness is an organization’s investment into the sustainability of the organization and their people.

As wellness initiatives have gained popularity, Employee Assistance Programs or EAPS, have also become popular. While specific data on the implementation of EAPs in nonprofits is not readily available, some groups estimate that as many at 98% of employers have an EAP of some sort. EAPs come in many different varieties, but the bottom line of employers implementing these programs is to address issues that their employees have that may be impacting job performance. Employee Assistance Programs support issues on topics such as mental health, family, finances, and substance abuse. While EAPs are a great resource, they should not be the be-all end-all of employee wellness initiatives. 

Employee Assistance Programs mainly focus on mental health, but physical health is also an important part of wellbeing. Large…

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Digital tools for efficiency

In today's fast-paced society, nonprofits are expected to have more influence with less money. Funders, communities, and stakeholders desire results; they want them quicker, more openly, and more effectively than ever before. Digital transformation is a contemporary need, not a future wish, for charities of all sizes. Investing in digital technologies is a strategic need, not a luxury, for reaching mission success.

Even with this urgency, many charities still fall behind in using digital technology. Throughout the industry, structural, financial and cultural obstacles remain. Salesforce's 2023 Nonprofit Trends Report claims just 12% of charities see themselves as digitally mature: almost half battle with antiquated technologies and low IT support. The difficulties are even more apparent for small and mid-sized companies: conventional finance policies can prioritize program delivery over infrastructure, and leadership teams may lack the technical knowledge required to support digital innovation.

The COVID-19 epidemic highlighted these difficulties acutely. Nonprofits had to switch to virtual involvement, digital fundraising, and remote programming from one day to the next. Those with robust digital infrastructure responded fast. Some people found it difficult to keep running. The epidemic underlined a necessary lesson: for organizational resilience, financial sustainability, and long-term mission influence, digital…

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workplace culture

In the nonprofit sector, where passion drives purpose, the culture established by organizational leaders plays a pivotal role in influencing staff satisfaction. Nonprofit leaders are not just supervisors but architects of an environment that shapes how employees interact, engage with their work, and perceive their organization’s mission. 

The reality of nonprofit work can often clash with the idealistic vision that attracts individuals to this sector, as issues like inadequate compensation and limited benefits can arise. Suppose leaders fail to cultivate a positive organizational culture. In that case, they risk subjecting passionate employees to stress and burnout, forcing them to choose between their commitment to the mission and their health. 

The importance of culture in nonprofits

A healthy organizational culture is more than an ideal; it is necessary. Research indicates a strong link between workplace culture and employee well-being. A study found that leadership behaviors directly affect employees’ health, with stressful environments correlating to higher cardiovascular disease among lower-ranking staff. This connection underscores the need for leaders to foster environments that mitigate stress and prioritize employee wellness. 

The nonprofit world attracts dedicated individuals who often accept lower salaries in exchange for meaningful work. Studies have shown that many find satisfaction in their roles due to the impact…

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Monthly giving

In today's challenging environment, nonprofits face increasing difficulty maintaining steady revenue. While still important, traditional fundraising efforts often come with high costs and uncertain returns. One-time donations, although valuable, can be unpredictable and make long-term planning difficult. Monthly giving programs offer a more stable and sustainable path forward in this context.

Monthly giving, also known as recurring giving, involves donors committing to support an organization with a set donation each month. This approach not only helps nonprofits plan their budgets better but also reduces the time and money spent on repeatedly asking for donations. Instead of focusing efforts on continuous donor acquisition, organizations can strengthen relationships with existing supporters.

A key advantage of monthly giving is donor retention. Donors who commit to monthly contributions are more likely to continue their support over a longer period. Retention rates for monthly donors are significantly higher compared to one-time donors, which leads to more predictable revenue streams. This consistency allows nonprofits to focus more energy on mission-driven work rather than constant fundraising.

Moreover, monthly giving creates deeper engagement between the donor and the organization. Regular donors often feel a stronger connection to the cause because their ongoing contributions make them part of the…

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ASU Lodestar Center Blog