Why Transparency Is Important | Allan Gindi

Is, it is more critical than ever for nonprofit organizations to be high-impact and transparent. But what exactly does that mean? And why does it matter? Let’s dive into the details to gain a better understanding.

Transparency in the nonprofit sector is the act of being open, honest, and clear about funding, goals, and initiatives within an organization. It requires the organization to willingly share financial information, including how donations are spent. But that is not all that goes into transparency.

Battling Misinformation

The actions of a few rotten eggs have ruined public opinion of nonprofits. Many people in this world don’t trust nonprofits anymore. According to one study, almost a third of all Americans didn’t trust charitable groups — or believe they were being honest with their funds.

This is where transparency comes into play. If a nonprofit was upfront with how proceeds were spent, citizens are more likely to trust them. It is that simple. People just need to understand where the money is going.

In this way, transparency can help fight the negative image formed over the years. It will also help good nonprofit organizations stand out from those looking to make quick (and illegal) money.

Understanding the Missions

Sometimes not everyone can understand a nonprofit’s mission. Naturally, when this happens, these people aren’t so inclined to support it — or throw their money at it.

Transparency helps make a mission clear and concise. It’s easier to understand the goal when one can see how the nonprofit works. For example, a wildlife organization can help make their mission clearer by showcasing all that it has done.

However, there are two sides to this issue. It’s impossible to be clear on a mission if there is no clarity in the mission itself. Therefore, develop a mission statement that is easy for potential donors to understand.

Better Funding

People don’t want to waste their money. So if a person doesn’t trust an organization and doesn’t understand the mission statement, they won’t donate. Once again, it really is that simple.

Researchers from Villanova University and the University of Wisconsin have found that more transparent companies earned more than those with a high transparency rating. This implies that companies working hard to be transparent about their missions will, in turn, receive more funding.

Article originally published on AllanGindi.net




Allan Gindi Lives in Irvine, CA www.allangindi.net.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Enjoy Stress-Free Payments With Bitrix24 Invoice Automation

SME financing: some interesting fintech case studies.

Expon Capital announces 2 internal promotions to Principal: Lily Wang and Owen Reynolds

Understanding the E-commerce Landscape & Investment

Why does the government want to kill jobs?

How to Keep your Business Open during COVID-19

The GameStop Infinite Money Glitch Explained

Guide To: Getting Rich by Doing Good

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Allan Gindi

Allan Gindi

Allan Gindi Lives in Irvine, CA www.allangindi.net.

More from Medium

Reboot, Rethink, Regenerate…and Reconvene.

Frictionless Customer Onboarding Experience with Karza Technologies VKYC

Losers Average Losers — Risk Management

Let’s not Purge uber’s Surge