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Fundraising is one of the most visible things your organization does. It’s also one of the most sensitive. You’re asking your school community to contribute their money (often multiple times each year) and in return, they put their trust in you to manage funds in ways that truly benefit students.
That means every dollar you raise comes with a big responsibility—transparency around how money is raised, managed, and spent that helps build trust with your community.
Without transparency, questions about how your organization is using community-driven donations can quickly turn into skepticism and lack of confidence. That’s why, as an organization leader, it’s so important to connect, communicate, and clarify how the funds you raise are used and to show their impact.
So how do you use transparency and build a culture of trust around your fundraising? Here are five important steps you can take, starting right now!
Every time you ask your community to contribute to your fundraiser, your goal and reason for asking should be crystal clear.
Too often, organizations promote a fundraising goal without clearly illustrating the “why.” Families hear, “we’re trying to raise $10,000,” but they aren’t sure what that actually represents, making them less inclined to donate.
That’s why it’s so important to explain what funds raised will actually do. Whether it’s field trips, playground improvements, or technology updates, be as specific as possible and spell out how the money will be used and the impact it will have. For example, how many classrooms will benefit? How many events will be funded? How many students will be supported?
Remember, clarity builds trust, which makes families much more confident to give when you ask.
Your budget is top of mind during the planning process, but once it’s approved and implemented, it usually takes a backseat to everything else going on. By keeping your budget public, accessible, and updated throughout the year, you can reinforce that funds are being handled responsibly.
Sharing a summary on a regular basis with families can go a long way toward building trust. A simple update showing how much has been raised, what has been spent, and what remains is a great way of handling fundraising transparency.
Building a culture of fundraising transparency means being open to questions from your community. By responding openly and honestly with relevant numbers, information, and details about why decisions were made, you can send a powerful signal that your organization is operating transparently.
Most fundraisers have associated costs. There are vendor fees, processing charges, and other expenses depending on the type of fundraiser.
Being transparent about your fundraising includes sharing these costs so that people understand the difference between the total amount raised and the net amount after costs are accounted for.
Visibly demonstrating fundraising impact is a great way to foster transparency, and there are plenty of ways to do it effectively. For example, when fundraising dollars make new books, field trips, or other programming and events possible, share photos in newsletters and on social media.
This type of impact reporting should happen regularly, not just once a year. You can weave it into your communications throughout the school year so that families can see the results of their support and everything you have accomplished together as a community.
Transparent fundraising isn’t just a good financial practice for your organization. It’s good leadership that not only shows families their contributions are being put to the best use possible, but also proves that your organization is worthy of their trust.
By discussing budgets and sharing updates regularly, you can make transparency a routine practice. That leads to more trust, easier fundraising, increased participation, and confidence in your organization.
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