In the survey it was highlighted that more than two thirds (68%) of people who give to charity are concerned about how their donations are spent.
The most common concerns are:
- Not knowing how donations are spent (68%)
- Whether charities are accountable to fundraising best practice (59%)
- Administration and fundraising costs (59%)
When this report was opened up to the community on some underlying trends were raised.
- Some money has to go on admin and there is noting wrong with this.
- The issue is complicated, not all NGOs have direct care functions to spend money on, such as political pressure groups.
- Promotions and tie-ins that state "all the money" goes to the cause do not help, as they set up preconceptions that all charities could do this (Comic relief, Children in need, Oxfam/pay-pay)
- "We need to be front and centre with the costs of fundraising, and running charities - and with a clear, reasoned and consistent message the donors will be with us." Purple Vision
Communicate with your website visitors
It is clear from the research and anecdotal evidence on the Third Sector website, that there is a problem with communications to potential donors on where and how their money is spent. Charities that collect money and supporters online are at an advantage as they can use their website to communicate their donor promise and implement fundraising best practice standards in a clear and simple way.
Donor promise
I believe all charities need to build trust that will maintain the "donor promise" on what will be delivered. i.e. what you promise to do with a supporters donation is to include the percentage that is spent on administration and the percentage that goes to the cause. The donor promise should be easy to find, sign-posted and promoted. As well as a clear and simple statement, further trust can be built with evidence. This should include case studies of the charity's work in action, testimonials from recipients of assistance and reports and videos on project successes.
Fundraising best practice
There are many things a charity can do to deliver a better fundraising experience. Implementing best practice on your website can be straight forward. Websites with great usability and design are able to communicate how donated money is spent. By being clear, transparent and providing contact methods for complaints, charities can be sure to adopt fundraising best practice. Adoption of web accessibility standards will also ensure best practice is met.
Trust can be further cultured by membership to The Fundraising Standards Board, The Institute of Fundraising or other organisations.
Conclusion
Charities should use online communication skills to demonstrate that their donor promise will be met, to give supporters piece of mind that they can trust the organisation. Additional care to ensure that fundraising best practice is adopted will also assist in promoting trust. Ultimately, if executed correctly, both techniques can enhance donor acquisition and increase amount donated.
Posted by Pete Stevens on 6th April 2011
