Scott Jones, CFRE, CAI, BAS
Senior Consultant & Auctioneer
The purpose of reporting on your fundraising results is to fulfill the accountability and transparency requirements associated with the acquisition and utilization of donated funds and convey to your stakeholders that implementation is progressing, and that the organization knows what it is doing. Who are the stakeholders? As pictured, stakeholders are everyone connected to your mission and its ongoing efforts to seek out support from external resources, while building a culture of philanthropy internally. When organizations receive donations, they are entrusted with financial resources to support specific projects, initiatives, or activities that align with the fundraising’s objectives and the organization’s mission. Reporting serves to demonstrate responsible stewardship of these funds and provides valuable information to stakeholders which include the donor and the public.
Some of the key purposes of reporting on donations
Compliance: Stakeholder reporting ensures that the recipient organization is in compliance with the terms and conditions set forth by the communications shared with prospective donors. These conditions include specific program milestones, financial guidelines, project deadlines, and regulatory requirements.
Accountability: Reporting promotes accountability by providing a transparent account of how the donations were utilized and helps demonstrate that the organization has used the funds for the intended purpose and in accordance with the donors’ understandings. Detailed reports allow donors and stakeholders to assess the effectiveness and efficiency of the funded programs and activities.
Impact Assessment: Reporting allows organizations to evaluate the outcomes and impact of the funded projects or programs. These impact assessments keep donors informed and helps them in their future donation decision making by demonstrating the value of the organization’s work.
Learning and Improvement: Reporting to Stakeholders also serves as a learning tool for the organization. Through the reporting process, organizations can identify successes, challenges, and areas for improvement. By analyzing the data and feedback collected during the reporting period, organizations can make informed decisions, refine strategies, and enhance future performance.
Transparency and Public Trust: Fundraising reporting enhances transparency and builds public trust. It allows the public, donors, beneficiaries and other stakeholders to gain insight into the organization’s financial management, program implementation, and overall performance. Transparent reporting fosters confidence in the organization’s ability to effectively utilize donated funds and achieve the desired outcomes.
You can now see the importance of reporting to stakeholders which is more than just donors, it’s your entire community. It also strengthens an organization’s Culture of Philanthropy and a key Fundraising Cycle component…Stewardship!
Feel free to contact me if you have any questions. scott@raisingpaddles.com
