Trust me. It's a Vicious Circle
How to rebuild trust and retain donors
Donor trust is the cornerstone of sustainable fundraising. Yet in recent years, that trust has eroded significantly, with serious consequences for the nonprofit sector. In 2023, U.S. charitable giving totaled $557.16 billion—a 1.9% increase in current dollars compared to 2022, but a 2.1% decline when adjusted for inflation. Individual giving, which makes up nearly two-thirds of all contributions, fell by 2.4% in real terms. This marked the second consecutive year of inflation-adjusted decline in giving, driven not only by economic pressures like inflation and market instability but also by a noticeable drop in donor confidence and engagement.
In fact, only 52% of Americans reported trust in nonprofits in 2023—a 4-point drop from 2022 and a 7-point decline since 2020, making it the steepest year-over-year decline in trust across all surveyed institutions. Although trust rebounded slightly in 2024 to 57%, nonprofits are still grappling with the fallout: the number of donors declined for the ninth consecutive quarter in Q3 2023, including a 7.6% drop overall and a 16.9% decline in new donors. The message is clear—when trust erodes, giving and retention follow.
Rebuilding donor trust is not only possible—it is essential. At the heart of this effort lies a fundamental shift in how organizations view and engage their supporters. Donors are not just revenue sources or passive “heroes” to be praised during campaigns. They are partners in a shared mission. The traditional fundraising model of one-way communication and constant asks no longer works. Instead, nonprofits must foster two-way dialogue built on transparency, accountability, and mutual respect.
Donors want more than to be thanked. They want to know their contributions are making a difference. They want to feel part of something bigger. Organizations that prioritize relevant, timely, and honest communication are more likely to build lasting trust. This includes celebrating wins and acknowledging setbacks. Being open about challenges doesn’t weaken trust—it strengthens it by demonstrating integrity and a commitment to learning and improvement.
This approach requires empathy. Nonprofits must ask: What does our audience need to feel included? How can we show them the impact of their giving in a way that resonates emotionally and intellectually? The answers often involve delivering information that is easy to understand, engaging, and personalized.
Technology is a vital enabler of this transformation. From automated emails and donor management platforms to impact dashboards and personalized communication, tech tools help nonprofits engage more effectively. Even when staffing is limited, scheduled updates and tailored outreach can ensure donors feel seen, informed, and valued. When communication aligns with donor interests and history, it deepens the sense of connection.
Ultimately, trust is not earned through glossy campaigns or last-minute appeals. It is built through consistent, sincere, and strategic interactions that honor the donor’s role as a committed partner. Nonprofits that embrace this mindset not only break the cycle of attrition—they lay the foundation for a resilient, engaged, and growing community of supporters. In doing so, they don’t just recover lost ground—they chart a sustainable path forward.