The sixth tenet of the Donor’s Bill of Rights says donors have the right “…to be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law.” A failure to treat donors with respect and safeguard their information can be disastrous to the relationship. All philanthropy is based on trust, and once the trust is gone there is nothing left. Safeguarding donor information is not just the law, it is vital to the success of the organization.
Donors cannot make informed decisions about how and where to give their money if they cannot get a sense of the financial health of an organization. Nonprofits that are on the up and up should have no trouble disclosing basic financial information.