How Nonprofits Can Gain the Public’s Trust

A third were concerned about how charities spend money, and many said nonprofit leaders are paid too much.

Reports of fraud have soured many people on nonprofits, and sizable percentages criticize charity spending and say leaders are paid too much. Nonprofit experts suggest how to gain the public’s trust.

Americans’ confidence in many parts of society have been declining for four decades.

Almost two-thirds of Americans have a great deal or fair amount of confidence in charities, according to a new Chronicle poll — the first to measure public views on that question since 2008. But, a sizable percentage say charities don’t spend money wisely.

Some charity leaders are bullish on quarterly updates like those that businesses are required to do but acknowledge the risks involved with flinging open the books.

Experts interviewed by The Chronicle reveal strategies charities can use to improve their public image, especially through better communication and more transparency.

Sen. Charles Grassley urges nonprofits to become more transparent as a way to bolster confidence.

A decade ago, the group was rocked by investigations by Congress, the IRS, and the EPA, and donations withered. A structural overhaul — and a big dose of transparency — helped restore the public’s trust.

As the charity comes under a new round of federal scrutiny, some worry about growing cynicism toward charities in general.

Helping people understand how charities operate is a start, and better regulation can increase transparency, says one expert. Also, see our exclusive poll results, available to Chronicle subscribers.