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Why Is Membership Reporting Software Key To Building Donor Trust?

To build donor trust, associations need to spend considerable effort proving to their boards, donors and the community that money isn’t going toward inflated executive director salaries or fancy offices. A recent article on the GuideStar Blog discusses membership reporting and what it calls “mission-based” performance measures.reporting-donor-trust	|	Photo Courtesy of	Depositphotos	http://depositphotos.com/12766909/stock-photo-Good-financial-report.html?sq=212mp5To build donor trust, associations need to spend considerable effort proving to their boards, donors and the community that money isn’t going toward inflated executive director salaries or fancy offices. The key to maintaining trust with donors is transparency around the budget. To do this, organizations need to use stellar membership reporting software to demonstrate the percentage of their money that they’re spending on mission-related activities and then demonstrate to donors how effective those dollars are. That’s where organizations need great metrics to track and record information. Unfortunately, many organizations struggle with mission-based performance measurements, especially if the association is issues-oriented. They often lack membership reporting capabilities that would allow them to track key metrics. For example, if the organization works to help educate children in developing countries, the association can show how many schools have been built and by what percentage attendance numbers are trending upward. Here’s what’s important: Associations need to get down to that grassroots level that donors can relate to. Most people donate because they have a passion for certain missions. That’s why organizations need metrics with which their audience can easily identify. It’s also a good idea to personalize metrics whenever possible. Organizations might be focused on 10 different areas, but most donors contribute to specific areas. One donor might contribute to a program that invests in schoolbooks for girls. When contacting that donor, the organization must report on the progress it’s making in that area. If not, the donor is likely to think that the organization is either ignoring or failing to make any progress in providing girls with schoolbooks. A recent article on the GuideStar Blog discusses membership reporting and what it calls “mission-based” performance measures, which demonstrates “significant or lasting changes that a nonprofit is making for [the] community and society at large.” To perform this kind of analysis, the article suggests that organizations figure out what can be reasonably measured. Organization should then create a model of program inputs, activities, outputs and outcomes that can “provide a helpful means for thinking through the changes program participants are expected to experience during and after the program.” Source: GuideStar Blog, July 2013
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