Three Ways Charitable Organizations Can Boost Public Trust
Silicon Valley Bank’s collapse adds to distrust in institutions, and that’s affecting nonprofits and grantmakers. Fresh expressions of transparency can show that the nonprofit sector is different.


A macro trend of the last 15 years is a steady decline in the trust placed in institutions, especially financial ones, ranging from banks to charitable organizations. It’s no surprise, considering, for Millennials and Gen Xers, the Great Recession still feels like a recent memory. And now SVB, seemingly minutes after FTX’s spectacular collapse, is the latest point of “public trauma” in society’s collective memory regarding institutions.
While many generations have already witnessed bank collapses, what made Silicon Valley Bank unique was the speed at which events unfolded. It has opened our eyes to the fact that the most established of institutions might be 48 hours away from collapse.
The sense of distrust across all of society generally is spilling to all other types of institutions, including nonprofits. Despite record years for total donations, key measures of trust in charitable organizations continue to drop. Most troubling, there’s been a simultaneous decline in giving participation. This is not helped by fund mismanagement, increased sensitivity to political agendas within charities, and general discussions of charitable overhead being so regularly in the news cycle.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How does the charitable sector counter this trend? I believe an industrywide call to greater voluntary transparency is necessary. We should counter any narratives that nonprofits are not actively trying to earn trust with the public. Charities, by and large, are not trying to hide information. By proactively sharing more raw information with the public, charities can start to craft a broader story of trust and lead the way toward greater American trust in public institutions.
Specifically, there are three ways charitable organizations can distinguish themselves both with their donors and the public through transparency (I am working toward these in my own organization):
1. Show radical transparency with their operations.
Publish comprehensive lists of where dollars are being spent. A great example of this is the organization Watsi, which has published a transparent spreadsheet of each treatment it’s funded for the last 10 years.
2. Make external financial audit findings more public.
Most large charities make the summary of their external financial audits public. If charities were willing to share more of the detailed commentary of their external audits and their steps to improve themselves, that vulnerability would build deeper trust.
3. Make raw impact data more publicly accessible.
Many organizations track impact. Certainly, the best nonprofit organizations do. One thing that few organizations do is make their raw impact data publicly available in any way. They do the analysis and share summaries, primarily with their donors.
This is a fine service, but charities could earn even greater trust by making the raw impact data publicly available for people to do their own analysis. This creates risk that someone crafts an incomplete story based on some limited data, but if the organization is confident in its ability to show its impact is robust, it’s still a strong net benefit.
Do I believe many people will sift through detailed publicly available data? No. But putting it all “out there,” though, can shift sentiment from “default skepticism” back to “default trust.” Vulnerability through transparency can create that shift. If this would become a trend among nonprofits, it could change the macro public sentiment, too, and all nonprofit boats would rise.
As the Boomers transfer wealth over to the next generation, the importance of philanthropy is only growing. Yet public anxiety aims to threaten America’s charitable potential unless charities can counter it. Last year, our organization saw record donations despite the economic uncertainty. Philanthropy can thrive. But radical transparency will ensure its full potential in America.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Stephen Kump is CEO of Charityvest, a modern donor-advised fund (DAF) technology company making purposeful generosity more accessible and frictionless for all. Prior to Charityvest, Stephen worked for over 10 years as a consultant to nonprofit organizations, philanthropists, corporate leaders and private equity investors, most recently with Bain & Company. He is a former U.S. Army cavalry officer and holds an MBA from the Yale School of Management.
-
The Five Social Security Blind Spots Retirees Often Miss
Understand how benefits work before applying, so you don’t lose money for which you qualify.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs After Vietnam Trade Deal
Ahead of a key July 9 tariff deadline, President Trump said the U.S. has reached a trade deal with Vietnam.
-
Social Security's First Beneficiary Lived to Be 100: Will You?
Ida May Fuller, Social Security's first beneficiary, retired in 1939 and died in 1975. Today, we should all be planning for a retirement that's as long as Ida's.
-
An Investment Strategist Demystifies Direct Indexing: Is It for You?
You've heard of mutual funds and ETFs, but direct indexing may be a new concept ... one that could offer greater flexibility and possible tax savings.
-
Q2 2025 Post-Mortem: Rebound, Risks and Generational Shifts
As the third quarter gets underway, here are some takeaways from the market's second-quarter performance to consider as you make investment decisions.
-
Why Homeowners Should Beware of Tangled Titles
If you're planning to pass down property to your heirs, a 'tangled title' can complicate things. The good news is it can be avoided. Here's how.
-
A Cautionary Tale: Why Older Adults Should Think Twice About Being Landlords
Becoming a landlord late in life can be a risky venture because of potential health issues, cognitive challenges and susceptibility to financial exploitation.
-
Home Equity Evolution: A Fresh Approach to Funding Life's Biggest Needs
Homeowners leverage their home equity through various strategies, such as HELOCs or reverse mortgages. A newer option: Shared equity models. How do those work, and what are the pros and cons?
-
Eight Tips From a Financial Caddie: How to Keep Your Retirement on the Fairway
Think of your financial adviser as a golf caddie — giving you the advice you need to nail the retirement course, avoiding financial bunkers and bogeys.
-
Just Sold Your Business? Avoid These Five Hasty Moves
If you've exited your business, financial advice is likely to be flooding in from all quarters. But wait until the dust settles before making any big moves.