Why charities need to be transparent and accountable

Earlier this month the inaugural 2017 Global Trends in Giving Report was published offering a better understanding of donors worldwide, and their giving habits.

It identified that 61% of donors prefer to give online and that donors like having a personal connection to the charity they are donating to. Not surprisingly, it reports that social media is facilitating stronger connections, and cites Facebook as the most inspirational platform and the one most used by charities to promote and share news about their cause.

Every day, at MyDonate, I see the positive role played by social media in attracting donations. We encourage charities registered on the site to embed YouTube videos and pictures across a range of social media channels. By doing this our charities can show their donors how their financial contribution is being used and the impact their generosity is making for the cause they care about. 

Last week Jane Dudman, editor of The Guardian’s Voluntary Network reported on Facebook’s decision to launch donate buttons to charities in the UK. Given that three quarters of donors agreed that social media is the primary news source for charity news, Facebook can use its reach to engage with donors and encourage more people in the UK to donate to good causes. However, like many other online fundraising platforms, Facebook charges a 5% administrative fee on all donations. Although organisations can charge legitimate administrative costs, how many donors truly understand where the 5% of their donation goes?

I am proud that MyDonate still does not charge any commission. BT has put aside 1% of its corporate pre-tax profits to cover all the costs associated with running MyDonate - meaning that more money goes to charitable causes. We discuss what we do and why we do it in depth because we believe clear communication denotes transparency.

One fundraiser who has used MyDonate to raise money for The Sepsis Trust, told us: “When I started my initial research into fundraising platforms I was surprised at how much money some platforms took from admin fees and commission but by using MyDonate, which charges 0% commission, I know my fundraising goes further and more money will go directly to The Sepsis Trust. I think it’s essential that people make an informed decision and understand that their fundraising efforts can be massively reduced by choosing the wrong platform - one that takes commission.”

So, what actions can a charity take to achieve accountability and transparency?

1. Understand the financial implications for donors of using different donating routes and fundraising platforms
2.  Clearly communicate these financial implications to donors so they are aware of the choices they have and understand where every penny of their donation goes
3. Audit all communications for transparency
4. Maximise opportunities to show transparency: use social media and share personal stories
5. Always thank donors for their support. Show appreciation to donors at all times and respect their feedback and opinions.

In order to be trusted, businesses need to be transparent, accountable and able to prove the impact of their work. Recent events have put a spotlight on the issues of responsibility and donors’ trust, but only by being transparent can we really begin to rebuild this trust to benefit the industry and ultimately support those in need.