Posted by Bo Garner in Audit & Assurance, Not-for-Profit.
Key topics covered in this article:
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- Donors are evaluating nonprofits with greater scrutiny and more accessible information than ever before. They increasingly want clear evidence of financial stewardship, program results, governance, data privacy, and long-term sustainability before making a gift.
- Data, technology, and transparency now play a central role in donor confidence. Nonprofits that use donor and program data thoughtfully, invest in easier giving and reporting tools, and explain financial and impact information in plain language are better positioned to strengthen trust and deepen relationships.
- Transparency is no longer just about publishing documents; it is about helping donors understand what resources support and what outcomes those resources produce. Regular impact updates, secure donation experiences, and meaningful year-round communication can help turn one-time donors into long-term supporters.
Today’s donors have more information available than ever before when deciding where to invest their charitable dollars. They are looking beyond an organization’s mission statement and asking practical questions about financial stewardship, measurable outcomes, governance, and long-term sustainability. For nonprofits, responding to those expectations is not simply a fundraising strategy. It is an opportunity to strengthen trust and build lasting relationships with supporters.
What Do Donors Expect Today?
Donors have always wanted to know that contributions are being used responsibly. The difference today is how much information is available before someone writes a check or clicks on the “donate” button. Nonprofit websites and other online resources have made it easier to look into an organization before making a commitment. Donors also have different ideas about how they want to give and stay involved.
BBB Wise Giving Alliance’s 2025 Donor Trust Special Report offers some insight into what matters most. Respondents identified several factors when evaluating charity accountability:
- How a charity spends its money (61%)
- Truthful, accurate fundraising appeals (58%)
- Protection of donor information (45%)
- Website information about programs, finances, and governance (45%)
- Measuring and communicating organizational achievements (40%)
- These percentages represent respondents who rated each factor 9 or 10 on a 10-point importance scale.
What stands out from recent donor research is that donors are not necessarily asking for more information. They are asking for clearer information. Organizations that can explain both how resources are used and what results are achieved are often better positioned to earn donor confidence.
How Nonprofits Can Meet Changing Donor Expectations
Use Data Responsibly to Understand Donors and Measure Results
In our experience, many nonprofits already possess valuable data but do not consistently use it to inform donor communications. A nonprofit may already have much of the information it needs to improve fundraising. Giving histories can show which programs attract support and how frequently donors contribute. A first-time donor, for example, might appreciate an update about a recently supported program. Someone who has contributed to the same local initiative for years may be interested in helping fund its next phase.
Data has another job, too. Financial records show what programs cost, while operational data shows what those programs accomplish. Bringing the two together gives nonprofits a better foundation for impact reporting and future fundraising appeals.
Of course, donor information comes with responsibilities. Cybersecurity and privacy have become an important part of the conversation, especially as donors express concern and data privacy laws gain momentum. As a best practice, nonprofits should gather only the information they need and limit access to sensitive records. A clear privacy policy reassures donors about how their information is handled. Organizations should establish clear policies over donor data and ensure technology tools are used in ways that protect confidential information. Staff should understand how donor information is collected, stored, shared, and secured.
Invest in Technology That Makes Giving and Reporting Easier
Online giving is now a familiar part of fundraising, which makes the nonprofit website an important part of the donor experience. Program information and financial reports should be easy to find. So should the “donate here” button. A mobile-friendly design, secure payment options, and a simple checkout process can make the difference between a person who merely visits the website and an actual contribution to the mission.
Behind the scenes, many nonprofits still have donor information in an outdated database or program records in a spreadsheet. Financial information may be located in disconnected accounting software. Getting those records to tell one story can take considerable staff time.
Modern donor management systems can help organize information and identify giving patterns. Better coordination with accounting and program records can also make impact reporting more achievable. For example, coding expenses to specific programs allows an organization to calculate costs per household or community member served. Those figures help explain how resources are being used, which is increasingly important to donors.
Automation can take on some of the routine work, too. AI may help prepare donor updates or summarize program information, provided staff review AI-output for accuracy and protect confidential data. The goal is to make better use of technology so staff can spend less time compiling information and more time developing all-important relationships with donors.
Use Transparency to Demonstrate Accountability and Impact
Financial transparency is about more than making documents available. Donors need to understand what the numbers mean.
Annual reports and IRS Form 990 filings have long provided a window into nonprofit finances. They are still useful, but these documents can be difficult to interpret. A plain-language explanation and graphics or charts can help put the information into context. Evidence of internal controls and board oversight adds another measure of accountability.
Impact reporting takes the discussion even further. Instead of simply explaining how much a program costs, it explains the outcome of the program over a specific period of time.
Consider a food pantry that spends $250,000 annually on food assistance and serves up to 1,200 households each month. Those figures tell part of the story. The organization might also report how many pounds of food were distributed or how many children and older adults received assistance.
A follow-up survey could add another dimension by asking participating households whether food security improved. That information begins to show the difference the program is making, rather than simply saying the services were provided. Personal stories can make the connection more meaningful, particularly when they reflect issues important to the local community.
Nonprofits are encouraged to share impact updates throughout the year in addition to the annual report. Short updates throughout the year give supporters a chance to see how work is progressing. They also give the nonprofit another touchpoint with the donor base.
Next Steps
Understanding donor expectations is only part of the process. Nonprofits also need to turn that confidence into action. Donors want to have convenient, secure ways to contribute and a clear understanding of what support can accomplish.
They are also looking for meaningful updates throughout the year. One way to connect is to commit to a quarterly review of giving patterns and campaign results; the impact can be posted on social media or shared via newsletter update, for example. That ongoing exchange is what helps turn an occasional contribution into a lasting relationship.
Looking Ahead
Donor expectations have changed. Organizations have an opportunity now to understand those changes and earn donor confidence. Data, technology, and transparency will play an outsized role, but it still comes down to building relationships and showing donors what contributions accomplish. PBMares offers nonprofit accounting and advisory services, including financial reporting, internal controls, and technology-related improvements, designed to strengthen financial management and support long-term sustainability. For more information, contact PBMares Not-for-Profit Partner Bo Garner.
Be sure to consult with your financial or tax advisor on this topic as individual situations may vary. The information contained in this article or webinar, and any related materials, are for informational purposes only, and cannot be relied upon for legal, financial, tax, accounting, or other professional services advice. The content is provided on an “as is” basis and PBMares makes no representations or warranties about the accuracy or sustainability of any information for your purposes. For any specific questions you may have, please contact us.
This content is accurate at the time of publication. Always ensure you are reviewing the most recent information available. Contact your tax or financial advisor if you need clarification.
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About the Author
Bo Garner
CPA, MBA
Partner, Not-for-Profit Team Leader
Newport News
Bo specializes in overseeing attest engagements with the firm’s not-for-profit, healthcare, and contractor clients, leveraging his expertise to provide clients with clear and actionable insights.
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