Impact of Financial Transparency on Donor Confidence: A Comparative Study on NGOs

Author(s)	Dr. Shyamsundar Das, Ms. Rutika Toraskar
Country	India
Abstract	Financial transparency has become a critical determinant of donor confidence and organizational sustainability in the nonprofit sector. This research paper examines the relationship between financial transparency and donor trust through a comparative study of selected Indian NGOs. The study explores how the disclosure of audited financial statements, impact reports, and governance practices influences donor perceptions, retention, and funding continuity. Using both qualitative and quantitative methods, the analysis draws from annual reports, donor surveys, and transparency indices to evaluate differences across NGOs of varying scale and reputation. Findings reveal that NGOs demonstrating higher levels of financial disclosure and accountability enjoy stronger donor confidence and long-term engagement, whereas limited transparency correlates with reduced donor trust and funding volatility.
Keywords	Financial Transparency, Donor Trust, NGO Accountability, Donor Retention, Impact Reporting, Nonprofit Governance
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-25
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.64525

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