How do you balance transparency and confidentiality when engaging and communicating with stakeholders?

1 Know your legal and ethical obligations

The first step to balancing transparency and confidentiality is to understand your legal and ethical obligations as a nonprofit leader. Depending on your jurisdiction, you may have to comply with laws and regulations that govern how you handle personal data, financial records, contracts, and other information. You may also have to follow codes of conduct or standards of practice that outline your ethical responsibilities to your stakeholders. For example, you may have to respect the anonymity or confidentiality of your donors, beneficiaries, or partners, or disclose any conflicts of interest or potential risks. Make sure you are familiar with these obligations and communicate them clearly to your staff and board.

2 Define your transparency policy and practices

The next step is to define your transparency policy and practices, and communicate them to your stakeholders. Your transparency policy and practices should outline what information you share, how you share it, and why you share it. For example, you may share your mission, vision, values, goals, strategies, activities, outcomes, impacts, challenges, and learnings with your stakeholders, using various channels and formats, such as reports, newsletters, websites, social media, events, or meetings. You may also explain how you use feedback, evaluation, and accountability mechanisms to improve your performance and impact. Your transparency policy and practices should also clarify what information you do not share, and why. For example, you may not share personal or confidential information that could harm or endanger your stakeholders, or compromise your legal or ethical obligations.

3 Respect your stakeholders' preferences and expectations

The third step is to respect your stakeholders' preferences and expectations when it comes to transparency and confidentiality. Different stakeholders may have different levels of interest, involvement, and influence in your nonprofit, and may expect different types of information and communication from you. For example, your donors may expect more detailed and frequent financial reports than your beneficiaries, while your beneficiaries may expect more personal and empathetic communication than your donors. You should also respect your stakeholders' preferences and expectations regarding how they want to receive, access, and use the information you share. For example, some stakeholders may prefer email or phone calls, while others may prefer online platforms or face-to-face meetings. Some stakeholders may want to have a say in how you use the information they provide, while others may trust you to use it appropriately.

4 Establish trust and rapport with your stakeholders

The fourth step is to establish trust and rapport with your stakeholders, by being consistent, responsive, and respectful in your communication and engagement. Trust and rapport are essential for balancing transparency and confidentiality, as they enable you to build mutual understanding, cooperation, and support with your stakeholders. To establish trust and rapport, you should communicate and engage with your stakeholders regularly and proactively, not just when you need something from them or when something goes wrong. You should also listen to their needs, concerns, and feedback, and address them promptly and effectively. You should also acknowledge and appreciate their contributions, and celebrate your achievements and successes together.

5 Handle conflicts and crises with integrity and professionalism

The fifth step is to handle any conflicts or crises that may arise with integrity and professionalism, and maintain your transparency and confidentiality standards. Conflicts or crises may involve disagreements, disputes, complaints, errors, accidents, scandals, or emergencies that affect your nonprofit or your stakeholders. They may also pose threats or opportunities for your transparency and confidentiality. For example, a conflict or crisis may require you to share more information than usual, or to withhold some information temporarily. To handle conflicts or crises, you should communicate and engage with your stakeholders honestly and respectfully, and explain the situation and your actions clearly and convincingly. You should also seek their input and feedback, and involve them in the resolution or recovery process. You should also learn from the experience, and improve your transparency and confidentiality practices accordingly.

6 Review and update your transparency and confidentiality practices

The sixth step is to review and update your transparency and confidentiality practices regularly, and ensure that they are relevant, effective, and aligned with your legal and ethical obligations, your transparency policy and practices, your stakeholders' preferences and expectations, your trust and rapport with your stakeholders, and your conflict and crisis management. You should also monitor and evaluate the outcomes and impacts of your transparency and confidentiality practices, and use the results to inform your decision-making and improvement. You should also seek feedback and suggestions from your stakeholders, and incorporate them into your transparency and confidentiality practices. By reviewing and updating your transparency and confidentiality practices, you can ensure that you are always engaging and communicating with your stakeholders in the best possible way.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?