7 Tips for Nonprofits to Build Trust With Major Donor

Through a long and rich tradition of generosity, Americans have built a charitable sector

that enriches lives, communities, and society. Yet only one in five Americans have a great deal of trust in charities’ ability to use donations effectively, according to The Better Business Bureau’s Give.org Donor Trust Report.

The report found nonprofits are more trusted than institutions including organized religion, banks, businesses, the media, and government. Yet the fact that only 19% of respondents highly trust nonprofits to use donations wisely shows the sector still has a lot of work to do to build trust.

Last year, more than half of Americans surveyed reported they were giving less to charity due to concerns about the economy, a Wells Fargo/Ipsos poll found. Most Americans remain motivated to donate but want to be more strategic in how they give. This is where nonprofits that take steps to build trust hold an advantage.

Major gifts from individuals, defined as donations of five to seven figures, often account for more than 90% of the revenue nonprofits receive from individual supporters. People who make large contributions don’t write checks this large on a whim. They must trust that the nonprofit will use their money wisely and effectively.

Nonprofits therefore need to be smart about building trust with high-capacity charitable investors. Once your organization has identified major investment prospects, the next stage involves earning and deepening their trust. This can take anywhere from one or two conversations to 30 or more depending on the donor and your organization’s value proposition. Some tips for building trust include:

1. Ask for Advice: There are few better ways to show appreciation for supporters — and build trust toward their future investment — than asking them for advice on the organization’s confidential future initiatives. This includes seeking their front-end advice when developing or updating the organization’s business plan. Very few people are asked to provide feedback on a confidential, early-stage document. Usually they are asked to fund an idea that is already baked. If you try to sell donors a finished product, you send the message that they are just cash machines. But if you ask for advice and feedback early, they will become stakeholders in the outcome.
2. Meet Prospects in Person: Organizations that are successful at fundraising hold high-quality, face-to-face meetings with current and prospective supporters. When it comes time to propose charitable investments, always meet in person. Unless you can tell the prospect enjoys email, use it as little as possible. A Zoom meeting or a phone call is fine for follow-up meetings, but don’t rely on them. Influential people are busy, so act considerately.
3. Invite Them to Visit: Major prospects may want to see more than plans and cash flow projections. By having them visit and see your daily operations firsthand, you demonstrate your value proposition in real time. When it comes to building trust, showing is more powerful than telling.
4. Host Events: The most effective events are designed to be the start of the fundraising conversation, not a one-time ask. Instead of asking donors to dig deep and make a stretch gift, change the script. You might say: “If you have been moved by what you’ve heard, we would be honored if you choose to make an investment. We will follow up with each of you after this event to get your feedback on our goals and strategies. This is a hard problem to solve, but with your advice and participation, we can get it done.”
5. Arrange One-on-One Meetings With the Board Chair and CEO: Relationships are built on personal connections. These conversations may be almost entirely about personal matters at first. Often the most sophisticated prospects want to get to know the character of an organization’s leaders first. Savvy judges of performance often focus on who before what. If a prospect asks questions about character and background, that’s a good sign.
6. Ask for Feedback on the Dashboard: An executive dashboard is a one-page snapshot of an organization’s performance, a visualization of goals and key performance indicators of impact and growth. It may include measures of program reach and quality, revenues generated, and other indicators of financial health. A dashboard can be a powerful fundraising tool, showing investors how their funding will be used to generate impact.
7. Share Anecdotes of Wins: Business plans and dashboards are critical tools that are very compelling for the most sophisticated audiences, but everyone likes a good story to put all the data into a human context. Most nonprofits need little help with this tactic; inspiring stories is typically part of their DNA.

Finally, when it comes time to ask for support, remember that language matters. When someone says “I don’t like asking people for money,” it’s probably because that phrase evokes stereotypes of panhandling or pushy salespeople. Instead, frame questions to emphasize the positive, such as: “Do you like to invest in partnerships that result in profound social progress?”

The word “proposal” embodies this positive spirit. Always start by asking questions to learn about your prospect’s goals. Then share how your organization can help them express their desire to make the world a better place.

Written by Donald Summers, Ed.M.
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