Aug '25 ⢠General discussion
𧞠How to Show Financial Health in Donor Communications
Todayâs donorsâwhether giving $50 or $50,000âwant to know: âIs this nonprofit financially responsible and impactful?â
You donât need to overwhelm them with spreadsheets. You do need to share the right infoâclearly and confidently.
â
What Donors Want to See:
- Transparency
- Impact
- Efficiency
- Sustainability
They want to trust youâre:
â Using funds wisely
â Delivering results
â Planning for long-term success
𧊠What to Share:
1. Key Highlights (Not Full Statements)Stick to simple, high-level numbers:
- Revenue vs. Expenses
- Program vs. Admin spending (ratios are great!)
- Donation/reserve growth
- Surplus/deficit with a quick explanation
2. Visuals Matter
Use pie charts or bar graphs.đ
Example: â83% of every dollar supports programs.â
3. Impact Per Dollar
Tie donations directly to results:
- â$100 feeds 25 familiesâ
- â$10K funds training in 5 schoolsâ
4. Tell a Story with the NumbersđŻ
Example: âDespite a lean year, admin costs dropped 12% while outreach grew 30%.â
5. Build Trust with Third-Party Validation
- Audit summaries
- Charity Navigator / Guidestar ratings
- Testimonials from funders or partners
â ď¸ Avoid:
- Jargon overload
- Ignoring challenges
- Hiding overhead (donors want effectiveness, not perfection)
đŹ Pro Tip from a CPA:
âDonors donât expect perfectionâthey expect honesty and competence.â
Need help crafting your financial story?
đ Book a Free 30-Min Discovery Call today.
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𧞠How to Show Financial Health in Donor Communications
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