“Research indicates that nonprofits earn public trust by doing.” That’s the key takeaway from Trust in Nonprofits and Philanthropy, a report published by Independent Sector. The organization surveyed 3,000 adults aged 18 and older in the United States to generate the report’s results. It offers a refreshing and somewhat eye-opening view of how people feel about nonprofits, philanthropy, and giving, as well as trends in nonprofit management, such as the use of AI.
Given how much nonprofits rely upon public trust for support, this is good news. Here are the top findings from the report and how your organization can use them to improve.
What Engenders Trust in Nonprofits?
Connection. Transparency. Communication. Community. These are the four things that signaled trust to the people surveyed as part of this study. More importantly, people who were hands-on participants in the activities of their chosen nonprofits expressed higher degrees of trust and confidence in the organization.
That’s not surprising. If you’re volunteering at the animal shelter, handing out bags of groceries at the food bank, or helping with the phones at the local health clinic, you’re seeing firsthand how the organization is run. You’re part of the daily fabric of their work, and probably deeply committed to the mission.
What if people aren’t hands on with their favorite nonprofit? After all, not everyone has the time to volunteer in person. That’s where transparency becomes key. Nonprofits that were clear and transparent about their activities, funding, and budgets were much more likely to receive high marks for trustworthiness than those who weren’t. The more people felt they knew about an organization’s activities, the higher the degree of trust.
Trust in Nonprofits Remains Steady
One of the most encouraging findings from the study is that trust remains high and steady among certain types of organizations. Nonprofits focused on human services, especially in the form of abuse counseling, addiction and recovery, and community integration services for formerly incarcerated persons, all maintained steady, high levels of trust with the public. Two-thirds of respondents (67%) indicated trust in human services nonprofits that encompass counseling, recovery, and reentry services. The second most trusted category is that of animal and wildlife charities, which held a 62% trust rating, and health organizations at 58%. The only ones that dropped were those that focused on civic issues, possibly due to the increasing political polarization dominating the media today.
But Trust in Philanthropy (and Philanthropists) Is Waning
Interestingly enough, trust in philanthropy and philanthropists is waning. It seems like Americans’ distrust for all things big—big business, big government, and big donors—has spilled over into the nonprofit realm, too. Americans included in this survey were skeptical of the motives of businesses and the government, as well as individuals contributing large sums to nonprofits. They expressed less confidence in the abilities of these organizations to tackle major social issues.
When organizations were careful to include citizens on their boards instead of only the wealthy and the powerful, they regained some level of trust among those surveyed. Additionally, perceived independence of the nonprofit also drove trust levels higher. If an organization had some level of independence in its decision making, and oversight by their fellow citizens, people expressed higher levels of trust than those without citizens on the board or organizations tightly aligned to government or corporate interests.
What People Distrust: AI
For the past several years, artificial intelligence (AI) has infiltrated every aspect of life, including nonprofits. And people are starting to resent it. Most of those surveyed (76%) felt that nonprofits should disclose their AI use. This dovetails almost perfectly with other studies indicating that consumers, in general, want all companies (not just nonprofits) to disclose AI use, with around the same percentage, 75%, responding similarly in a UK-based study.
Among the respondents, 37% said that AI use would make them trust a nonprofit less. Again, the issue seems to go back to transparency. It seems like people recognize that AI will be used in some way, but they wish to understand exactly how it’s used.
Next Steps for Nonprofits: Focus On Building Trust
While the overall findings of the report shared good news, there are a few hidden messages worth repeating.
One, trust is won through action. This means acting trustworthy. It means making sure that your financial reporting is clear and transparent. Communicate with your constituents early and often, almost as if they were actually there doing the work. The more you can help people feel like they’re part of the mission, the better.
Next, AI use remains controversial. More than three years into the generative AI journey, people remain uncomfortable with how it’s infiltrating every aspect of their lives. This goes back to transparency—people want to know when and how it’s used. They want to consent to it, not have their participation taken for granted.
And lastly, nonprofits remain a trusted entity in a world where trust is crumbling on many fronts. Most are still seen as doing good work. Make sure yours is, too, through smart communications that build connections, community, and trust.
Welter Consulting
Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.
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