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NZ charity: Building trust with donors through transparency.


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Transparency is not as simple as just making organisational information available, as trustworthiness of charity practices would be evaluated by donors. This study explores the importance of transparency in building trust of donors in a New Zealand context. This study used a qualitative method in which data was collected primarily through a face to face interview with five charity donors in the Waikato region. The discussions focused on identifying the expectations of donors in regard to transparency, and how their assessments of transparency affect their donation decisions. Data collected during the interview was analysed using a thematic analysis approach. This study discovered that transparency is a trust-building tool based on honesty relationships. In addition, this study revealed that the more transparent a charity is about their weaknesses, the more trustworthy the charity is viewed to be by donors. However, even though the level of influence of transparency is high, the nature of the service provided by the charity is the key factor in finalising donor’s donation decisions. This study concluded that donors are more interested in knowing that their money is making positive differences in the lives of the Waikato community rather than how their donation was used. Therefore, this study recommends more workshops on transparency to assist charities to provide quality reporting regarding outcome rather than output. This study also suggests more training on how to prepare financial reports, especially for charities with volunteer staff, as a basis to improve compliance and enhance greater transparency.

Item Type: Paper presented at a conference, workshop or other event, and published in the proceedings
Uncontrolled Keywords: charities, New Zealand, business, donors
Subjects: H Social Sciences > HF Commerce
Divisions: Schools > Centre for Business, Information Technology and Enterprise > School of Business and Adminstration
Depositing User: Adrian France
Date Deposited: 13 Dec 2018 03:59
Last Modified: 21 Jul 2023 07:48

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