If you own or plan on starting up a nonprofit organization, you need to understand the importance of transparency. In simple terms, transparency means that donors know where the nonprofit’s money is going. Without transparency, you may be faced with distrustful donors that question your actions.
If you want your nonprofit organization to be as successful as possible, the first step is to define your actions and set up a plan. Depending on your nonprofit, you will have different goals to other organizations so it’s important to focus on what you want to achieve. To measure the impact that your nonprofit is having, you might even want to consider using the software that is available from https://www.upmetrics.com/platform.html. That can help nonprofits to measure their success. Furthermore, the following tips will help you make your nonprofit more successful.
Have your nonprofit listed on the Internal Revenue Service’s list of tax-exempt charities. This list consists of nonprofit organizations that can receive tax-deductible donations.
Keep your nonprofit’s website up-to-date with important information. Publish your IRS form 990 on your website. This form is already a public form, so you can make it easy for donors to view it by putting on your website. You should also have current contact information and a list of your board of directors. Be sure and post any pertinent, recent activity, such as the results of your latest audit and recent activities by the board.
Make sure your GuideStar listing is up-to-date. GuideStar publishes 990 forms and other important information about nonprofit organizations. You can list your mission statement, programs, goals, and needs. GuideStar is a valuable resource that donors utilize when researching nonprofit organizations.
CharityNavigator is another organization that provides information about nonprofits. Try to have your nonprofit rated by CharityNavigator. It will access your organization, especially your financial efficiency, and give it a rating. This is another place where donors look when they are researching nonprofits.
The Better Business Bureau does more than just rate for-profit businesses. The Wise Giving Alliance of the BBB has a set of standards that nonprofits must meet to receive the BBB’s Accredited Charity Seal. If you meet those standards, you can proudly display the seal, just one more way to make donors feel comfortable in knowing that their money is being used wisely.
Be specific about where the money goes. The more detailed you can be, the more someone will feel comfortable handing over money to you.
Make it easy to donate. While an investor doesn’t want a large portion of their donation to be given towards expenses, they do also want to see that you make it easy for them to donate as well. In today’s technical world, its easy to use credit cards and except doantions at events, over the phone or even through your website. Make sure you work with a merchant processor that understands the importance of fundraising.