American Church Group - Texas

Increasing Donor Trust

The ability to inspire others to give is a blessing. Because fundraising can be both exciting and challenging, there are some important details to consider that can help your donors, and organization, have a smooth and successful experience.

There are generally two key components to building donor trust: appropriate oversight and transparency.

Proper oversight of donations usually means your ministry keeps detailed records of gifts. You’ll want to be able to show gifts given for general expenses and those designated for specific projects. Not only does this help with reporting, but if an auditor asks for specific donation records at year-end, you’ll be able to quickly provide that information.

Be sure to also acknowledge receipt of donations. When sending written acknowledgment of a gift, make sure it always includes these three critical pieces of information:

1. The amount contributed by the donor.

2. If any goods or services were provided in consideration for the contribution.

3. A description and good faith estimate of the value of any goods or services provided by your organization.

Transparency is important for showing donors that your organization treats donations with care and respect. For many ministries, this means there is an internal system of accountability through a board or committee that looks at the finances. It is also wise to have an independent review of your finances.

For more tips on boosting donor trust, download Brotherhood Mutual’s latest edition of the Deacon’s Bench and hear from Michael Martin, president and CEO of ECFA (The Evangelical Council for Financial Accountability), an accrediting organization for ministries.