Validating Impact: What Today’s Donors Expect From Nonprofits

Nonprofits today are expected to demonstrate clear, measurable impact. Donors want to see how their gifts translate into meaningful outcomes, and communities rely on organizations to show results—not just intentions. Validating impact has become essential to building trust and proving relevance.

This point was reinforced for me during the Indiana Philanthropy Awards Celebration, an event hosted by the Indiana Chapter of the Association of Fundraising Professionals that honors individuals, groups, organizations, foundations and corporations that strengthen communities across Indiana.  It is always a source of inspiration for nonprofit professionals. 

This year’s featured speaker, philanthropist Marianne Glick, underscored a point that resonates deeply across our sector: nonprofits, regardless of size, must continuously validate their impact and results.

Validate Relevance 

For years, development professionals could rely on compelling emotional stories and personal relationships to secure donor support. While those elements still matter, they are no longer enough. Today’s donors expect nonprofits to demonstrate meaningful outcomes through data and transparency. 

Nonprofits must show donors — and all stakeholders — that their gifts are investments yielding tangible community impact. This requires ongoing evaluation, clear measurement of results, and alignment of programs with an organization’s mission and strategic plan.

Internal stakeholders (administration, board members, staff, volunteers, major donors, and close partners) and external stakeholders (community members, donors, prospects, government agencies, businesses, and media) all expect consistent and credible proof of performance. Validated data builds trust, strengthens communication, supports decision-making and demonstrates that an organization is meeting community needs in measurable ways.

The Role of the Impact Report 

Impact reporting is an important tool for transparency and donor stewardship, according to Funraise. Strong impact reports highlight organizational outcomes, feature beneficiary stories, incorporate visual storytelling, present clear metrics, and include a call to action.

Nonprofits use impact measurement to create data-informed stories that reinforce mission, deepen donor engagement, and personalize outreach, according to Virtuous. Data helps organizations understand donor motivations, communicate authentically, and build sustainable systems for growth.

Creation of a New Impact Report 

At The Salvation Army Indiana Division, where I serve, we recently produced our first 12-page divisional impact report. The cover featured a young mother and daughter, along with programs that reflect our ministry across the state.

The opening spread thanked supporters and introduced key statewide data—such as 2,591,467 meals served annually, 296,897 individuals receiving basic social services, and 106,310 nights of safe lodging. A statewide service map and program-by-program service information for each region appeared on the following spread.

The report also shared how to obtain services, personal stories from people the organization impacted and clear ways to give. Additional pages highlighted our Christmas programs, volunteer opportunities, leadership, mission statement and contact information. We used QR codes to direct people to more information on how to donate or volunteer. This report now serves as a vital communication tool for the communities we serve.

Now What? 

Producing an impact report is only the beginning. Nonprofits must develop a multi-channel communication strategy to ensure impact results reach the right audiences. This may include:

• Updating your website with impact highlights.
• Creating targeted donor summaries.
• Launching social media campaigns with short videos.
• Sending thank-you messages via mail, text, and email featuring key impact points.
• Issuing press releases.
• Engaging a communications consultant to refine and amplify outreach.

Education is equally important. Share impact data internally with administration, staff, board members, volunteers, and donors. Review trends, discuss strategic implications, and invite feedback so these ambassadors can confidently communicate your mission and results.

Externally, present your impact to individuals, corporations, foundations, and community partners. Highlight measurable results, express gratitude, and outline future plans. Seek questions, advice, and guidance. These conversations build trust and inspire deeper engagement.

Every opportunity — even before someone opens your impact report — is a chance to make your case. Reinforce why your nonprofit matters, how it addresses community needs, and why donors’ investments are essential to your mission. Connect external environmental factors — economic shifts, government changes, community studies — to your organization’s readiness and vision.

Data is powerful, but data paired with strategy, communication, and trust-building is transformational. Stakeholders are investors who expect a clear return on investment. Use your information wisely, and it will elevate both your mission and your impact.

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.