Transparency is absolutely essential to nonprofit boards… but so is confidentiality. Today I'm sharing practical tips for balancing these two foundational values within your nonprofit. 

     Have you ever heard the phrase, “Loose lips sink ships?” Well, that slogan originated during World War II as part of a campaign aimed at promoting wartime secrecy. It was used to remind military personnel and civilians alike that careless talk about military operations could actually jeopardize national security and endanger lives.

     In nonprofit leadership, there is also a balancing act between transparency and confidentiality. These two can create healthy tension. We shouldn’t use confidentiality as an excuse to keep private what should be public, but we also shouldn’t overshare things that should be private. So, how do you know the difference? Here's an overview of the concepts and how they intersect.

Prioritize Confidentiality in These Areas of Your Nonprofit

Donor Privacy

     Nonprofits often collect sensitive information from donors, including financial details and even personal identifiers. Protecting this information builds trust and encourages ongoing support. 

Client Confidentiality

      Many nonprofits serve vulnerable populations such as a congregation member facing a crisis or in need of care, victims of domestic violence, or individuals seeking mental health services. Upholding client confidentiality is essential for ethical practices and fosters a safe environment. 

Employee Information

      Personal information about staff and volunteers should be kept confidential to protect their privacy and to maintain a respectful workplace. 

When to Prioritize Transparency in Your Nonprofit

Financial Accountability

     Transparency about how funds are raised and spent is critical. Nonprofits should provide clear financial reports, budgets, and audits to demonstrate responsible stewardship of their resources. 

Mission & Impact Reporting

You should share information about your programs, your services, and most importantly, the impact that you're having! This builds credibility and trust with stakeholders, donors, clients, and the community. 

Governance Practices

     Nonprofits should be open about their governance structure, including board leadership and their decision making processes. They should make it clear who serves on the board and they should strive for a board that's made up of a majority of board members that are independent of the organization. Transparent conversations about these practices will also create accountability and confidence. 

How to Find a Balance Between Transparency and Confidentiality in Your Nonprofit Board

Establish Clear Policies

     The foundation of this delicate balance rests on clear policies. By establishing clear policies around confidentiality and transparency in advance, you’ll be better equipped to navigate these areas more systematically and effectively.

Establish clear guidelines for: 

•  how you'll protect data
•   how you'll recognize donors
•   how you’ll meet your reporting requirements

Improve Stakeholder Communication

     Regularly communicate with your stakeholders about what information is kept transparent and available for anyone to access and what information is always kept private. Reinforce your organization's continuing commitment to both transparency and confidentiality. 

Provide Training and Education

Educate your staff, volunteers, and board members on confidentiality practices and the importance of transparency to help ensure that everyone understands and adheres to the necessary tension between both of these values. 

     By balancing confidentiality with transparency, nonprofits can maintain the trust of their stakeholders while fulfilling their mission effectively. So, let's keep private the things that need to be kept private, and let's lead publicly with the things that will help your nonprofit thrive well into the future. 

Don’t forget to register for my live webinar next week called Embracing the Role of a Beginner. I’m looking forward to seeing you on Thursday, October 24th at 10 am Central. Register here!