M+M 013: 3 Ways Nonprofits Can Use Numbers to Build Donor Trust

A lot of leaders I meet share the same concern. 

They can talk passionately about their mission.

They can highlight programs and client success stories.

But when the conversation shifts to the numbers, the confidence starts to fade.

And the challenge is that funders notice. 

Large donors, foundation leadership, and corporate partners often come from business backgrounds.

They’ve sat in financial meetings. They’ve managed P&Ls. They know when the numbers don’t quite match the vision. 

That uncertainty can cost you the next meeting, the next grant, or the next check. 

On the other hand, when you know your numbers and communicate them with confidence, you gain instant trust.

What Financial Questions Are Donors Thinking About?

Fundraising isn’t just about sharing your mission. It’s about showing that your organization has the strength to sustain that mission for years to come.

It’s about gaining trust that you can execute on the vision, not just tell a good story.

Donors want to know:

• Are you financially sound?

• Do you understand your risks and opportunities?

• Can you explain how resources turn into impact?

When you answer those questions clearly, you set yourself apart from the dozens of other organizations vying for the same dollars.

Common Mistakes Nonprofit Leaders Make Sharing Financials

Too many leaders fall into one of two traps. 

1. Too much detail. They share every line item, hoping to prove transparency. But funders don’t want spreadsheets. They need a summary, anchored in detail. 

2. Speaking vaguely. They talk about being “stable” or “in a good place” without specifics. Seasoned donors and funders can sense when confidence is masking uncertainty.

Both approaches miss the mark. The real key is to know the right numbers, keep them simple, and connect them to impact. 

Confident numbers tell a story that wins trust, strengthens relationships, and increases funding. 

So what are some examples? 

How Nonprofit Leaders Can Use Confident Numbers With Donors

1. Show Financial Sustainability

Every funder wants to know your organization will still be here next year.

You can prove that by sharing simple, trust-building metrics.

Cash on hand: “Our forecast shows that at our low point in the next 12 months, we’ll have four months of operating expenses on hand.”

Forecast vs. budget: “We’re on track to finish the year within 2% of budget.”

Trends: “Program revenue has grown 15% annually for the past three years. This is due to new partnerships we’ve been intentional about creating and nurturing.” 

These aren’t complicated numbers. But when delivered confidently, they communicate stability in a way that donors and funders trust.

2. Connect Costs to Impact 

One of the most powerful things you can do is link financial efficiency to mission outcomes. 

A lot of people assume you have to always show that you’re providing your service at a lower cost over time. That’s not necessarily true. This metric will help tell the bigger picture of your organization’s strategy with data.

Let’s say you’re a food bank. Instead of saying, “We spent $500,000 on food distribution,” you can say “It costs us $2.17 to provide a week of meals to one person, down from $2.45 last year thanks to changes in sourcing.”

That small shift turned an expense line into a story of impact and stewardship. Funders could see not just the cost, but the efficiency and thoughtfulness behind it.

Now, let’s say the cost increased slightly vs. last year because you chose to source more organic produce. That’s still part of the story and one that your donor may like to hear.

This is important outside of just donor conversations though. It’s important to keep an eye on this because it prompts nonprofit leaders to ask why it’s going up or down.

Maybe your cost per meal served went up because you served less clients? Maybe it went up because you needed to pay your amazing staff more to retain them?

Either way, this helps you understand what’s really going on in your organization!

3. Anticipate Donor Questions

This is where confidence really shows.

Donors often ask questions that aren’t on the printed reports:

• “What percentage of revenue comes from your top five donors?”

• “What happens if your biggest grant doesn’t renew?”

• “How does your staffing level compare to similar-sized organizations?”

When you know these answers right away and can explain them in simple language you build credibility fast. It shows you understand both the mission and the mechanics of running the organization. 

I used to do a lot of work with startups as they were raising money. I’ve seen this play out in investor meetings, which are very similar to donor meetings.

The leaders who could answer clearly almost always secured the next meeting or the check.

The ones who hesitated or guessed? Investors could tell, and the momentum fizzled.

How Confident Numbers Build Donor Trust 

Confident numbers do more than satisfy curiosity.

They communicate that you’re a trustworthy steward of their money and they think you’ll be successful in implementing your vision, not just telling a good story. 

Donors want to know they used their hard-earned money to make a difference.  

Donors can sniff out false confidence. They know when a leader is stretching or avoiding.

But they can also spot the real thing. 

The smartest leaders aren’t the ones who recite every line of the budget.

They’re the ones who use confident numbers to make funders believe this organization is worth investing in.

-------------

If you'd like to chat, click here to schedule a 30 minute free consultation.

Not ready to chat? All good! Check out this list of 140+ nonprofit discounts!