Building Trust in Nonprofit Organizations: Lessons from Leaders on Transparency, Culture, and Connection
Let’s be honest—trust in nonprofits is slipping.
Donors are asking harder questions. Volunteers are more cautious. Communities aren’t giving us the benefit of the doubt like they used to. And if you’ve read the headlines, you know skepticism is alive and well.
But here’s the thing: trust isn’t built with spin. It’s built with substance. That was the heartbeat of a recent LinkedIn Live conversation we had the privilege of hosting through The Nonprofit Hive, featuring three leaders who know this topic intimately:
- Bobbie James, Executive Director & Founder, Jamsz Konnections
- Courtney Harrness, Director of Strategic Advancement, Vermont Association for Mental Health and Addiction Recovery
- Dr. Angie Holzer, CEO & Founder, WikiCharities
- Facilitated by Dan Drucker, Founder of Philanthropy Fuel
What followed was one of the most honest conversations we’ve heard in a long time about building (and rebuilding) trust in nonprofit work. Here are the big themes that emerged.
Why Trust in Nonprofits is Declining
Trust doesn’t disappear overnight—it erodes little by little. The panel surfaced a number of interconnected reasons why confidence in nonprofits has weakened, each pointing back to the gap between what we promise and what people actually experience.
The Disconnect Between Rhetoric and Reality
Courtney didn’t mince words: “As a sector, we’ve not held ourselves accountable to our rhetoric.” When organizations say one thing to funders or the public and then fail to follow through in action, trust deteriorates. It doesn’t matter how polished the annual report looks—if actions don’t align with promises, the credibility gap only widens.
Education Gaps About What Nonprofits Really Do
Bobbie pointed out that too many nonprofits don’t even see themselves as businesses. If staff and leaders aren’t clear about their organizational identity and purpose, how can the community or funders be expected to trust them? Building trust begins with education—both inside and outside the sector—on what nonprofits actually are and why they exist.
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Donor Expectations vs. Organizational Capacity
Angie’s research at WikiCharities has shown that funder practices play a big role in shaping trust. Rigid grant requirements, for example, can stifle transparency, while open dialogue fosters partnership. The challenge is when nonprofits say they can do something with new dollars but aren’t prepared for the realities—leading to misalignment, disappointment, and skepticism.
What Transparency Really Looks Like
Transparency isn’t just a buzzword—it’s the daily practice of showing up honestly, even when the story is complicated. The panelists reminded us that being open about both wins and challenges is where real credibility is built.
Beyond Impact Reports—Telling the Whole Story
“Most impact reports read like a victory lap,” Courtney said. “We serve X number of people, here’s how great we are. And then in the same breath we say, ‘we desperately need your money.’” That disconnect erodes trust. Instead, impact reports should highlight both achievements and the gaps that remain—painting a full, honest picture of the work.
Honesty, Humility, and Ethical Storytelling
Angie’s research confirms what many of us sense: funders and communities trust organizations more when they acknowledge challenges and limitations. In fact, sharing failures alongside successes can strengthen credibility. Leadership humility and vulnerability are critical ingredients for trust.
Why Vulnerability Can Build Stronger Relationships
Bobbie put it plainly: “Being transparent and vulnerable can be the most powerful thing you ever do.” When nonprofits own their struggles—and share them in a way that invites collaboration rather than pity—they invite supporters to be true partners. That’s a trust builder.
Trust Starts on the Inside
Before nonprofits can earn trust externally, they must cultivate it internally. The culture, leadership practices, and day-to-day relationships within an organization lay the groundwork for how trustworthy it feels to the outside world.
Leadership, Culture, and Staff Inclusion as Trust Builders
If managers don’t trust their staff, that reality eventually shows up in frontline interactions with donors, volunteers, and community members. Courtney argued that transparency isn’t just external; it has to start internally. “When actions align with values on the inside, the outside world feels it.”
The Role of Vulnerability and Humility in Leadership
Leaders who model humility (“I dropped the ball,” “I don’t have the answer yet”) create safety for staff to be honest, too. And that honesty eventually ripples outward into stronger community connections.
Internal Alignment Fuels External Credibility
Bobbie shared that people are always watching—whether they tell you or not. If your team culture is fractured, if promises made internally aren’t kept, or if staff don’t feel included, that misalignment leaks externally. Trust is contagious, for better or worse.
Rebuilding Trust After It’s Been Broken
Every organization faces setbacks. The difference lies in how you respond. Re-establishing credibility isn’t about finding the perfect words—it’s about demonstrating through action that lessons were learned and values still hold firm.
Taking Ownership, Not Spinning the Narrative
If actions don’t align with promises, nonprofits can’t talk their way out of it. “Don’t say it unless you’re willing to do it,” Courtney urged. That’s accountability.
Responding with Transparency and Action
Angie shared that funders respond more positively when organizations admit challenges early, explain what’s being done to improve, and involve them in the solution. Real-time honesty beats retroactive damage control every time.
Trust as a Renewable Resource
Dan summed it up beautifully: “Trust isn’t a given. It’s a renewable resource. And when it runs low, we can’t just explain harder—we have to re-earn it.”
Trust Across Communities, Cultures, and Generations
The ways people interpret and extend trust vary depending on culture, lived experience, and generational perspective. The panel reminded us that what builds trust in one community may not resonate—or may even backfire—in another, making nuance and humility essential.
Moving Beyond a One-Size-Fits-All Approach
Trust doesn’t show up the same way in every community. What resonates with a younger donor might feel hollow to a long-time volunteer. And communities that have been historically underserved may need more proof, more listening, and more humility before they extend trust.
Why Local Engagement Matters More Than Ever
Angie’s research highlighted that local engagement is one of the strongest predictors of trust. Nonprofits closest to the communities they serve often carry more credibility than large, distant institutions.
Small Nonprofits as Trust Anchors in Communities
Bobbie encouraged smaller organizations to embrace their strengths—authenticity, proximity, and collaboration. “You don’t have to be the biggest. You just have to be honest about what you do and consistent in showing up.”
Conclusion: Moving the Needle on Building Trust in Nonprofits
Reversing the decline in nonprofit trust is going to require two critical changes: a shift in mindset and a renewed commitment to authentic action. Organizations that prioritize honest communication, clear alignment between rhetoric and reality, and strong internal cultures create an environment where trust can thrive. Nonprofits deserve to be seen not just for the services they deliver, but for the values they uphold and the communities they empower.
What is clear after this conversation with Bobbie, Courtney, and Angie is that investing in trust isn’t just about securing funding or pleasing stakeholders. At the heart of it all, we are investing in our people and our communities—so that nonprofits can remain resilient, mission-driven organizations capable of lasting impact.
Our Speakers
Bobbie James, Executive Director & Founder at Jamsz Konnections, brings a lived understanding of the challenges small nonprofits face. Her passion is creating education, resources, and collaborations that strengthen the sector from the ground up.
Courtney Harrness, Director of Strategic Advancement at the Vermont Association for Mental Health and Addiction Recovery, has two decades of nonprofit experience navigating economic shifts, donor dynamics, and internal culture. He speaks with candor about accountability, alignment, and the realities of trust in our sector.
Dr. Angie Holzer, CEO & Founder of WikiCharities, launched the world’s largest open-access database of nonprofits with the goal of increasing transparency and trust. Her research has shown that leadership humility, local engagement, and funder practices all play critical roles in shaping public trust.
Facilitator: Dan Drucker, Founder of Philanthropy Fuel, a coach and connector helping nonprofits build stronger partnerships. His facilitation brought both honesty and humor to a challenging conversation.
About The Nonprofit Hive
The Nonprofit Hive supports changemakers globally by fostering one-on-one connections that empower, inspire, and drive social change. We are committed to helping nonprofit professionals connect with the resources and networks they need to amplify their impact.
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Tasha Van Vlack is the co-founder of The Nonprofit Hive. Her happy place is building community, talking nonprofit work/marketing/parenting and meeting new people.
Being a cheerleader for nonprofiteers is where Tasha has found her niche – she hopes that by providing a space for connection, nonprofit work will become more collaborative and supportive.