Are we in a Public-Trust Recession too?
At our June 18 Annual Forum, national expert Paul Light of New York University got people's attention. He believes there's a looming crisis of confidence in nonprofits that the sector isn't taking seriously enough.

Donors give less than they would otherwise, he says, because they feel nonprofits don't spend money wisely. Given the economy's double whammy on charities -- increased need for services while funding is threatened -- this prevailing suspicion comes at the worst possible time.

Professor Light makes his case in a compelling way (complete with comic relief, mind you). But his picture is bleaker than mine, though I do applaud his message. Human nature what it is, we tend to not act until we're convinced things are near-hopeless. I also applaud his Rx for charities to increase trust: show donors that their contributions lead to measurable, positive, substantive change.

My view: there's no doubt that we live in a skeptical era, particularly when it comes to established institutions. After all, we're treated to a steady barrage of fraud and greed news stories. So if you ask people whether an organization wastes money, they're likely to say, "Sure." But at the Council, we have daily interaction with people who trust the charities they support - they just want reassurance that their contributions will be well used. And we also have daily interaction with charities that take their donors' trust seriously and work to be transparent in all their activities.

What's your view? Do you trust charities less than you used to? If so, does it cause you to give less? In either case, do you give less because of the economy? And what can charities do to encourage you to give more?

The Accountability Superhighway
When working with organizations on reviews I frequently encourage them to post their annual reports, IRS Form 990s, independent audits, and more on their web site. I have also been asking people if anyone has telephoned them lately to ask for an annual report. I find that very few donors do this.


I was very excited to read that a recent Nonprofit Times survey confirmed the increasing prevalence of the Internet as a means to research potential donations! I know this is not the biggest news to everyone but it holds enormous promise to charitable giving and building public trust. Having your annual report on-line can actually be less expensive. You can even do it in such a way that it can be easily printed for those without computer access. It is also easier to correct mistakes and to keep it current.


Take a look at our annual reporting standard as a simple guide to what information you should be sure to have on your web site in addition to important public documents. Let us know if you have any interesting ideas or questions about using your web site to build public trust.