Maintaining public trust is fundamental to every nonprofitโs mission. As an organization dedicated to the greater good of society, itโs natural to expect public goodwill. After all, who would oppose a group striving to make the world a better place?
Yet trust must be actively earned and safeguarded. A 2024 survey conducted by Independent Sector in partnership with Edelman Data & Intelligence revealed that while nonprofits are now more trusted than government, business, and media, the overall trust level still stands at just 57 percent.
Trust and respect are not just abstract idealsโthey directly influence peopleโs willingness to donate and support your cause. To strengthen your connection with stakeholders and ensure your nonprofit thrives, itโs essential to focus on strategies for maintaining public trust. Below are key actions to consider that will reinforce credibility and sustain long-term donor confidence.
What Drives the Publicโs Trust of Nonprofits?
In โThe Psychology of Trust,โ Martha Peaslee Levine, director of the Office for Professional Mental Health at Penn State University, lists the following five drivers of trust in nonprofits:
- Promise of mission and values
- Organizational reputation
- Transparency and accountability
- Performance and social impact
- Use of contributions
Levineโs study of nonprofits shows your organization can improve trust through branding and accountability.
Ways to Win and Keep the Publicโs Trust
The publicโs trust in nonprofits can erode because of scandals in nonprofits, regulatory oversight, secret money in politics, and the blurring of lines between how nonprofit and for-profit businesses operate. But your nonprofit can combat those negative attitudes.
Maintain a High Level of Transparency and Accountability
The biggest distinction between accounting for nonprofits and for-profit businesses is the focus. Nonprofit accounting is geared toward demonstrating transparency and accountability. Staying on top of fundraising facts and figures, where the money is going, and what your nonprofit has achieved with donations can go a long way to keeping donors, the community, and regulators on your side.
Aside from publishing your financials, publish other information about your nonprofit, invite the public in, and carry on a regular dialogue instead of just when you are asking for money.
Prepare Your Entire Organization to Promote Your Nonprofit
In order to speak officially, your nonprofit should have a spokesperson. But train and prepare everyone in your organization to speak highly of your nonprofit and take advantage of public perception.
People will ask anyone associated with your nonprofit about the organization. Having them all prepared to respond helps boost the sense of transparency.
Anticipate Backlash
When one nonprofit is under fire, your nonprofit will feel the heat, too. Your organization’s values and ethical standards should be written down and known to all directors, staff, and volunteers.
Coupled with your systematic accounting and audits, being prepared for increased scrutiny helps you remain well-prepared to explain the checks and balances that keep your nonprofit out of trouble. You can point to your annual reports, audits, and other information published by your nonprofit.
Donโt Worry About What You Canโt Control
The media and some people in your community may deny your mission or public statements. Thatโs out of your hands. As long as your nonprofit is being open and honest with the public, thatโs all you can do. Donors, the community, and regulators can decide for themselves based on the transparency and accountability shown in what you publish.
Showing transparency, demonstrating accountability, and building public trust are key to the success and impact of your nonprofit.
Find an Accountant and Auditor for Your Nonprofit
You know the publicโs trust is key to your nonprofitโs fundraising. Building and maintaining that trust starts with your nonprofit accounting.
At Ernst Wintter & Associates LLP, we have deep experience helping nonprofits show transparency and accountability while remaining in compliance with their tax-exempt status. Give us a call today.
Why Choose Us
Maintaining Public Trust Through Expertise and Integrity
At Ernst Wintter & Associates LLP, we understand that maintaining public trust is more than a priorityโitโs a responsibility. As a trusted accounting firm based in Walnut Creek, California, our team is dedicated to upholding the highest standards of professionalism, accuracy, and ethical conduct across every client engagement.
With years of experience serving both individuals and organizations, including nonprofits and broker dealers, we have developed a reputation for reliability and discretion. Our clients trust us to guide them through complex financial regulations, ever-changing tax laws, and industry-specific audit requirements with confidence and clarity. This trust is earned through our unwavering commitment to accuracy, transparency, and communication.
Our team is composed of well-balanced professionals who bring a wealth of experience to the table. Whether itโs helping you navigate an IRS audit, prepare nonprofit tax filings, or manage broker dealer compliance, our collective knowledge allows us to respond quickly and effectively to your needs. We pride ourselves on client service, and it shows in our long-term client relationships and word-of-mouth referrals.
We also believe that knowledge is power. Thatโs why we empower our clients with the information they need to make sound financial decisions. We donโt just manage your numbersโwe help you understand them. And because we believe that maintaining public trust starts with staying current, our accountants go above and beyond by participating in more continuing education than is required by our industry. This ensures that every strategy we recommend is backed by the most up-to-date practices in tax and financial reporting.
From helping nonprofit leaders stay compliant to offering sound advice that promotes fiscal transparency, we are partners in your success. You can learn more about nonprofit transparency and its impact on public trust by visiting this external resource from the National Council of Nonprofits.
If you’re ready to work with a firm that values integrity, insight, and personalized service, we invite you to Speak with an Expert to discuss how Ernst Wintter & Associates LLP can support your mission.
