How your organisation can build trust

Trust is essential to any charity. Your donors need to trust that you’ll use funds in a sensible and just manner. Service users need to trust that you’ll support them and continue to support them in the long-term. Supporters need to trust you’ll use their data in the right way. And staff and volunteers need to trust that you’ll always treat them fairly and honestly. 

 

In 2022, the picture largely looks broadly positive for the charity sector, although it has declined slightly in the past year. Charities are generally well-regarded, according to a recent report from the Charity Commission, with trust in the sector remaining “higher than in most other parts of society”.  

 

The report concludes, however, that there still exists a “stubbornly persistent scepticism” around how charities use money and behave. That scepticism follows recent headline-grabbing scandals. It is that scepticism that charities need to overcome in order to build and, importantly, maintain trust.  

 

Trust is vital. The loss of trust can prove devastating. Charities need to practice ensure sound judgment around finances, ensure fundraising works to build trust, create transparent processes and operations, and constantly evolve ethical practices. In this article, we discuss the concept of trust, the benefits of building trust, the risks that threaten trust, and how to overcome those risks.

 

Skip to: The importance of trust

Skip to: The benefits of building trust

Skip to: How to build and maintain trust

Skip to: In charities we trust

 

 

The importance of trust 

 

Research has shown that efficiency and impact are the two most researched elements about charities by potential supporters. With a wave of charity aggregators, such as Charity Clarity and Give What We Can, donors and beneficiaries are more informed than ever about how charities operate.

 

Transparency has become important to everyone involved in charity life, particularly supporters. And, for charities, transparency has become increasingly easy to practice – and increasingly difficult to avoid. Charities should embrace transparency and use it to hold themselves to account. 

 

Increased transparency leads to greater trust. It shows potential supporters that you are honest about your practices, willing to learn and improve, and open to criticism. And, importantly for the charity sector, increased transparency demonstrates the way money is accumulated, spent, and saved in any given organisation, which has become more important to supporters in recent years. 

 

From the person who puts a two-penny coin in the rattling tin to the life-long recurring donor, people who give money to charity want to know that money directly supports the cause. That’s why transparency and trust are so essential. It’s part of the agreement between donor and charity, part of the unwritten contract, part of the deal. 

 

 

The benefits of building and maintaining trust 

 

There are many benefits to building and maintaining trust, almost all of which somehow relate to fundraising. Below we look at some of the main benefits to building trust in your charity and then we discuss some of the ways organisations can increase it.  

 

 

Creates loyalty 

 

Loyalty is important for every organisation. But in the charity sector it is vital. Loyalty leads to repeat donations, the most stabilising and trusted source of charity income. Repeat donations are particularly helpful to charities because they allow for greater financial sustainability and long-term viability, allowing charities to broadly predict income and expenditure, allowing a greater sense of stability.

 

Loyalty from volunteers helps, too, as charities can effectively judge how many people they can depend on at any given time and distribute such resources accordingly. And loyalty from service users allows charities to broadly judge how many people they will need to help at any given time.

 

In short, loyalty gives charities a clearer picture of their general operations, allowing more clarity when planning, improving processes, and ensuring that the needs of all involved are met. 

 

Trust creates loyalty. Trust means that people will return, again and again, over years and years, because they trust that their money and their time is used well and serving a good cause.  

 

 

Drives new donations 

 

Trust also drives new donations, largely as a knock-on effect of loyalty. A legion of loyal donors, who regularly beat the drum of your charity, who champion your cause, who amplify your fundraising efforts, is one of the greatest assets available to any charity.

 

Loyalty breeds free and passionate advocates for your charity, people happy to spend time convincing others to join the cause. Loyal donors thus drive new donors to charities, giving them a good cause with which to get involved.

 

The converse is also true, of course. The absence of trust will lead to volunteers and supports deserting your charity and warning others to avoid it, too. It’s thus essential that you maintain trust.

 

 

Ensures strong user relationships

 

Trust is not simply about donors. Building trust means that service users will feel safe when interacting with your charity, regardless of your mission. Trust is essential when trying to treat people with dignity. Service users will return to charities they trust, charities that treat them with respect. Trust enables you to provide support to users – and allows you to continue that support in the long-term, if needed.

 

Developing strong relationships with users, ensuring that they are consistently supported, is an essential way of demonstrating impact. It shows that you’re continually supporting your community, using funds effectively, and making a real difference in the world. That information is essential to the future of your charity’s fundraising, showing donors that their money is going to good use. 

 

 

Supports fundraising 

 

All of the above relate to fundraising. Trust and effective fundraising are inextricably linked and interdependent. Donors give to charities they trust and charities that demonstrate impact – and they continue to give to those charities in the long-term. And, on top of that, trust pushes donors to advocate for their charity in their daily lives, to throw fundraisers, to champion their cause.

 

 

How organisations can build trust

 

So we know that trust is essential to charities. But how exactly can charities build and maintain trust? The answer lies partly in mitigating risks that threaten trust – cyber breaches, for example, or financial instability – and partly by proactively gaining trust – through boosting transparency, for example.

 

Below we look at five essential ways that charities can build and maintain trust.  

 

 

Practice transparency around finances

 

As mentioned above, transparency boosts trust. Transparency in a charity means making all the relevant information as easy to find and access as possible, for all stakeholders and supporters and all other appropriate parties.

 

That might include regulatory information, such as gender pay gaps and the diversity of your workforce, and financial information, such as income and expenditure. Signposting and communication are essential, ensuring people do not need to spend hours finding information.

 

Transparency is particularly important when it comes to fundraising. As mentioned above, people want to know where their money is spent and how it is spent. They may want to know, among other things, how much goes on administrative costs, how much goes to service users, how much is spent on staff, and so on. Again, the key for charities is to practice openness. 

 

There are some obvious ways to support transparency around fundraising and money management. Below we look at some of the ways charities can become more transparent. 

 

 

Publish financial information

 

Charities should publish budgets and make them as easy to read and engage with as possible. The budget should show how much you’re spending on different areas of your charity and clearly highlight how much of your total budget goes directly to service users.

 

You have the opportunity, when publishing information to potential and current supporters, to show fundraising goals. You should use that to your advantage. You could, for example, list how you want to further support your service users and show the amount of money you need to raise to do so. That’s a great way of fundraising while practicing accountability, transparency, and boosting trust.  

 

 

Provide visuals to make it easier 

 

Publishing financial information can feel cold, perhaps inaccessible. You should consider visuals, such as chart and infographics, that clearly demonstrate the way you’re spending money. Break down your costs in terms of different areas of expenditure and ensure that the visuals are an accurate reflection.  

 

 

Use high-tech for greater transparency

 

Charities can, and should, do all of the above. But they can also use tech to increase financial visibility. Blockchain is one option several charities have adopted. Blockchain’s verifiable trail of transactions helped bring transparency to the use of funds by enabling donors to track their gifts.

 

Several charities have already adopted the tech. Digital financial platforms, such as Alice, are solving transparency issues by introducing Blockchain into the charity sector.

 

Based on the Ethereum Blockchain Network, users can track payments made to a particular charity and set conditions around how money may be spent. And, importantly, users can pull back donations if charities do not meet the conditions.

 

Charity organisations, such as St Mungo’s, are using the Alice platform to improve donation services. St Mungo’s used Alice for an appeal to raise £50,000 to help lift 15 people out of long-term rough sleeping by delivering concentrated personalised support.

 

Alice worked to freeze donations until the charity provided evidence that money was spent to meet the defined goals. Donors were also able to track when the suggested goals were met. 

 

 

Focus on stable finances 

 

Keeping finances stable follows from the above point. Charities need to be trusted with money and trusted to give money to service users, but they also need to keep themselves afloat.

 

That is particularly challenging in the coming year, with the cost-of-living crisis. Rising demand for services combined with fundraising constraints mean that financial instability has become an increasing concern for charities. Seven in ten charities said COVID-19 negatively impacted their financial position in 2021, while 60% said they experienced a loss of income from charitable activities.

 

The key for charities is to adopt sound and sensible financial practices. That often means tough decisions. But tough short-term decisions will allow charities to remain viable in the long-term.

 

One proactive step that charities can take is to diversify their income. That means, if a charity’s main source of income diminishes, the charity can continue operations and meet the demands of service users. The cost-of-giving crisis demonstrates the importance of income diversity, as one source of income may well start to run dry for many charities.

 

Charities should start by assessing their current income streams, looking at the risks associated with each, and broadly deciding on the need to diversify. If diversification is urgent, there are many income streams that might prove beneficial to your fundraising. Consider, for example: 

• Crowdfunding and micro-financing 
• Corporate partnerships and CSR 
• Selling merchandise or other products 
• Legacy and tribute fundraising 
• Sponsorship models 

Examine each possible income stream, consider your expertise and your resources, and pick the one that may prove most lucrative. For more, check out: Why charities need to embrace income diversity 

 

 

Ensure honesty in marketing and comms

 

Transparency and honesty are not simply important for supporters, staff, donors, and users. They are important for everyone who interacts with your charity. Perhaps the quickest way to lose trust is by overselling, exaggerating, or manipulating data. You need to practice complete honesty – especially when releasing information into the public, especially on social media and other comms. 

 

 

Greenwashing reduces trust 

 

We can use Greenwashing as an example of dishonesty, as a cautionary tale. Greenwashing refers to the false claims made by organisations to boost their green credentials. Charities need to ensure they are transparent about climate action, about their successes and failures.  

To avoid greenwashing, charities can take the following steps: 

• Substantiate any claims about sustainability and environmental-friendliness 
• Ensure all claims are easier to understand, with reference to relevant data 
• Make comparisons with other brands fair and just 
• Avoid the use of visual claims that may prove misleading 
• Ensure no relevant information is omitted 
• Ensure you’re not painting a selective picture 
• Have colleagues and third parties review any claims 
• Practice a robust feedback policy that highlights potential problems 

Greenwashing is just one example of misleading marketing. There are plenty of others. The result of dishonesty is the loss of trust, with supporters no longer believing in the impact you aim to show.  

 

 

Re-building with an apology

 

If the above does indeed take place, you may need to make an apology. It is worth mentioning that point specifically because, once trust is lost, you need to rebuild. An apology does just that. The most important element of an apology is sincerity. An apology is not for the organisation, but for the people the crisis has affected, both directly and indirectly. Charities must consider all stakeholders, from donors to service users, trustees to volunteers.

 

Some tips for a good, meaningful apology include avoiding templates and always starting with understanding. Even if you are explaining your position, rather than apologising (only recommended if it is certain there has been no wrongdoing on your part), acknowledge the situation and how it has affected the person complaining. 

 

Be specific about the situation in question, avoid generic platitudes, and remember that your followers ill likely see more than one communication from you. If your messages look the same time after time, they will be seen as less authentic and will damage your reputation.

 

The next step in making amends is being clear about the steps you are taking to change the situation. It is said that actions speak louder than words and this is particularly true in matters where your reputation is at stake. Charities must demonstrate the preventative measures they will implement to ensure the situation does not happen again, as well as express dismay that it did.

 

This could be as simple as sharing your commitment to cyber security protocols. It does not have to be covered in great detail, but reiterating that there are policies and software in place to keep data secure is comforting to potential donors and beneficiaries. It shows thought and consideration as well as giving your audiences a promise to hold you accountable to. 

 

 

Protect supporter and user data

 

We will end with a word of caution. Of course, all of the above is important, but the use of tech and digital opens charities up to vulnerabilities. Yes, charities need to be reactive, but they also need to be proactive – and that means ensuring cyber security measures alongside adoption of tech.

 

Cyber security is one element of charity operations that is neglected in times of hardship. During the pandemic, we saw increasing vulnerabilities from charities who were (understandably) more focussed on providing a service. But cyber security is essential for the continuing operations of your charity.

 

Let’s dig a little deeper. In simple terms, cyber security is the protection of systems and networks from theft or damage. Cyber security protects and secures hardware, software, electronic data, and other parts of your network, ensuring there is no disruption or misdirection in the services they provide.

 

Cyber security is important because devices have become essential to our ability to delivery services, raise funds, and continue daily operations. Any act that prevents our ability to use devices poses a serious threat to our organisations. And cyber crime is certainly a threat.

 

Let’s look at some of the statistics. Consider, for example, that according to the Charity Digital and National Cyber Security Centre (NCSC) report, The state of cyber security in the UK charity sector: 

• 66% of organisations report that a cyber attack would affect operations 
• Only 61% have a plan in place in the event of such an attack 
• 78% of trustees said they were unaware of a cyber strategy within their organisation 
• Only 5% of charities are using comprehensive cyber security software to protect themselves 

The above shows that charities are broadly aware of the threat of attack, but seemingly do very little to prevent that threat. There is an awareness of cyber crime, but few charities taking it as seriously as they should.

 

That is a problem, one that is particularly widespread in the charity sector. Cyber attacks can lead to reputational damage, huge financial costs, and various legal consequences.

 

The following are the main cyber attacks that could face you could face – click the link to find our more in-depth definitions and our advice on how charities can mitigate risk: 

• Malware 
• Ransomware 
• Trojan Horses 
• Phishing 
• Evil Twins 
• Man-in-the-middle 
• Denial-of-service 

The attacks all pose various threats. The cost-of-living crisis has brought additional threats, especially around phishing emails, which often use current events to garner a response. The cost-of-living crisis also creates a situation where charities are less able to pay for adequate protection, rendering themselves open to vulnerabilities.

 

It’s a double-edged sword: charities have less money to spend on cyber security at a time of heightened cyber attacks. But there are plenty of simple (and cost-effective) steps that charities can take to protect themselves. Consider some of the below, for example. 

 

 

Employ endpoint security software

 

Endpoint security software also provides many security features, such as the blocking of malicious websites to help prevent users from visiting sites that are known to contain malicious links. Larger charities can also opt to use a security gateway appliance that filters all internet traffic arriving at your site from malware and other cyber threats.  

 

All your computers should be protected with endpoint security software, such as BitDefender, GravityZone or Norton Small Business,  which provide anti-virus and anti-ransomware capabilities. 

 

 

Use passwords managers

 

Passwords should be at least 13 characters and made up of upper case and lower case letters, along with special characters such as ‘!’ and ‘?’. The NCSC advises using three random words to make it easier for users to remember their passwords and harder for cyber criminals to guess.

 

One effective way to ensure robust passwords is by using a password manager program, such as LastPass, Dashlane, or 1Password. Many endpoint security software options will include password management, so do some digging if you’ve purchased any of the abovementioned options. 

 

 

Regularly update software 

 

Cyber security breaches often involve hackers exploiting vulnerabilities in your software. That might be because you have not downloaded the latest versions or updated your applications. It is essential that you are running the most up-to-date version of your software.

 

Charities, at a minimum, should regularly check for updates at start up and ensure their operating systems are set to update automatically. Making sure all updates are installed is referred to as ‘patching’ or ‘patch management’. 

 

 

Don’t get caught by phishing

 

Phishing emails account for around 80% of all reported cyber breaches. And that number is likely to increase during the cost-of-living crisis. The solution is simply awareness. Charities need to provide training to help staff spot phishing emails. The training should teach them to recognise malicious links and attachments and, importantly, teach them not to click on them. 

 

For more information on preventative measures, check out the following: 

• Easy steps to prevent a cyber security breach 
• Why are charities falling behind on cyber security? 
• How to do cyber security the right way 
• What are the cybersecurity essentials for charities? 

On top of that, charities should educate themselves on cyber security. Lots of resources are available to accommodate that search for knowledge. The NCSC has plenty of tools – such as Early Warning and Mail Check –  that can help you improve cyber security, all of which are free-to-use and simple enough not to require excessive knowledge. Charities can use IASME’S Cyber Essentials Readiness Tool to see if they have the five core controls necessary to prevent a cyber attack and become cyber certified.  

 

And, of course, Charity Digital’s Exchange software donation programme  has been helping charities save money on essential software for more than 18 years. Registered charities can receive as much as 96% off the retail price of software, including popular security tools from Bitdefender and Symantec, as well as tools like Avast and even add-ons to existing programmes, such as Windows Defender. 

 

So check out the above and protect yourself and your reputation. 

 

 

In charities we trust 

 

Charities are held to a higher standard than many commercial organisations. That’s because, like it or not, we are seen as leaders when it comes to ethical decisions. Trust is so essential precisely because people look to us for support, for help, for guidance, and we pride ourselves on providing just that. 

 

Charities need to continue building and working on trust with their supporters, paving the way for a brighter future for the sector and the world.