To Increase Donor Trust and Understanding, Tell a Story

by Rebecca Wood, J.D.
4 minute read

Donor trust is paramount to long-term success. Unfortunately, many Americans are struggling to maintain trust in society’s institutions—including nonprofits. A study conducted by the Indiana University Lilly Family School of Philanthropy in April 2023, What Americans Think About Philanthropy and Nonprofits, examines public attitudes and awareness about the philanthropic sector. The results are noteworthy and can serve as a guide to strategically enhance communication with your donors.

Major takeaways: low trust, lack of awareness

1. Americans believe nonprofits are important and valuable. Over 75% of respondents think society benefits at least moderately when Americans donate to charities. Additionally, about 80% of respondents said in-kind, monetary, and direct person-to-person giving were very or somewhat important.

2. Trust in nonprofits is low but higher than trust in other sectors. While only 39% of respondents professed complete or high faith in the philanthropic sector, less than 6% professed the same for big business and government.

3. Donors appear disconnected from nonprofits and their missions. In fact, just 5% of those surveyed said that they or anyone in their immediate family had received services from a nonprofit within the year. In reality, most people benefit from the work done by nonprofits—from education to religion, healthcare to the arts—but people appear unaware of the full extent of services furnished by nonprofits.

To sum up the study’s findings, Una Osili, Ph.D., Associate Dean for Research and International Programs at the Lilly Family School of Philanthropy, says, “Although the American public appears to have confidence in philanthropy compared to the government or private sector, there are some key challenges ahead. American households are less knowledgeable about the specific benefits that the philanthropic sector provides and have concerns about the overall transparency of the sector. This study helps us better understand public views, which in turn can bolster the efforts of nonprofits and the sector’s leaders to help build greater levels of knowledge and trust that are vital to sustaining philanthropy, with mutual benefit to donors and recipients alike.”

One easy step: employ well-crafted stories

When it comes to your supporters, it’s important to acknowledge that while they may see the value in your work, they may not have a clear understanding of your goals, current accomplishments, or your direct or indirect impact on them. You can build a greater understanding with donors (and boost trust levels in the process) by rethinking your donor communications.

One easy, powerful change is to weave thoughtful storytelling into your existing marketing program. Stories are memorable, whether from donors or those who have benefited from your work. They engage the emotions and paint a vivid picture of goals accomplished, people served, and gifts that make a difference and provide benefits to the donor.

If you decide to revisit your use of storytelling, consider the following tips:

1. Keep your message clear and concise. Attention spans are short—include only enough detail to make the story full and memorable. Keep your focus on your mission while highlighting the significance and impact of donations.

2. Elicit an emotional response. The most powerful aspect of storytelling is the emotional connection it creates. You don’t have to overdo it to encourage readers to feel empathy for those you are serving or feel good about the difference they can make through a donation. These emotions tend to drive action.

3. Include a call to action. If your story has motivated readers to give, it’s important to end with a short call to action relevant to the story you’ve just shared. Ask for a specific, immediate response.