Lack of transparency threatens trust in charities

Press release
Article tags:
  • Social impact

The work of charities and social organisations is appreciated by a large majority of the Dutch. More than three in four people consider charities to be indispensable to society. And although purchasing power has fallen sharply, for more than four in five people, that's no reason to put an end to their donations. These are the conclusions of research conducted by ABN AMRO MeesPierson into charity behaviour in the Netherlands. For the Dutch, freedom of choice, transparency, and social impact are the key factors in their decision to donate. Proximity also appears to be a major factor, with almost three-quarters of Dutch people indicating that they mainly want to donate within their own country. However, almost half of the contributing Dutch see a lack of transparency as an obstacle to donating. And this threatens trust in charities.

Dutch prefer to donate within their own country

The Dutch appear to give to charity mainly for altruistic reasons. More than six out of ten citizens do so because they want to help out those less fortunate than themselves. More than half donate with the aim of solving social problems and/or contributing to a better world. At the same time, more than three-quarters of the respondents indicated that they mainly want to do this within their own country. Proximity is therefore an important incentive for philanthropy. Four out of ten Dutch people who do donate to charity say they find it particularly important to personally decide which charity they give to, how often they do so, and how much they contribute. Fifty-six percent prefer specific projects, as they appreciate knowing exactly what the funds are spent on. Freedom of choice is especially important for young people. While more than half of people aged 65+ donate on a subscription basis, nearly a third of young people prefer to make one-off donations. "Besides proximity, visibility is an important factor. We're noting the popularity of themes such as healthcare and humanitarian aid. Current developments -- such as the consequences of the pandemic and the war in Ukraine -- undoubtedly play a major role there," says Frank Aalderinks, Head of Philanthropy Advice at ABN AMRO MeesPierson. "At the same time, there are clear differences between generations. Young people are less willing to commit to a charity by making regular donations for a longer period of time. They prefer to be in control and want to know what their donation will be used for. Charities, on the other hand, benefit most from predictable income, because that enables them to finance long-term programmes, to conduct research, and to initiate lobbying.”

Transparency crucial for survival of charities

One in four Dutch people believe the transparency of charities is a crucial factor. They are only prepared to donate if they trust the charity. For example, no less than 61 percent of people who donated during the Giro 555 campaign for Ukraine say they trust that their money will be well spent. That's not something to be taken for granted, however. In fact, 45 percent suspect that too much money is spent on overhead and almost a third say they are not sure whether their donation has been well spent. Aalderinks: "The world of charities, donations and spending is a black box for many donors. Charities can continue to attract donors only by establishing one hundred percent transparency. Confidence in the sector has been further eroded by the recent negative publicity surrounding malpractice at various charities. So while philanthropy is still seen as indispensable to society, it's very important that charities respond well to that growing need for transparency. That they visibly state what the money is spent on and how much social impact it achieves."