How Lack of Trust May Sabotage Your Nonprofit

Trust is the foundation upon which all healthy relationships in a team are built. In the context of a nonprofit, the absence of trust can undermine performance and put one’s mission in peril. When team members don’t trust each other, they hesitate to share ideas, express concerns, or collaborate openly. An atmosphere of distrust can cripple a nonprofit's ability to innovate and respond to challenges.

Patrick Lencioni's book "The Five Dysfunctions of a Team" explains that trust is essential for team cohesion and success. Without trust, team members may withhold information or avoid collaboration, leading to inefficiencies and failures.

How Lack of Trust Manifests:

• Lack of Open Communication: Team members hesitate to share information or express concerns, fearing criticism or backlash.
• Increased Stress and Anxiety: Constant perceived scrutiny creates a high-stress environment, leading to burnout and disengagement.
• Inefficiency: People waste time and resources on redundant approvals and rework due to a lack of trust in the initial decisions.

Why It Undermines Performance:

• Hinders Innovation: Without trust, team members are less likely to propose new ideas or take risks, stifling innovation and growth.
• Reduces Morale: A distrustful environment erodes morale, leading to higher turnover and difficulty attracting top talent.
• Slows Decision-Making: The need for excessive oversight slows the decision-making process, making the organization less responsive to opportunities and challenges.

What might a lack of trust look like in practice? Imagine a nonprofit focused on environmental conservation. The executive team has a history of withholding information from staff to maintain control. As a result, staff members feel undervalued and excluded from decision-making processes. When a new grant opportunity arises, the lack of trust becomes evident. Instead of working together to create a strong proposal, team members hoard information and work in isolation, leading to a disjointed and ultimately unsuccessful application.

The American Red Cross's response to Hurricane Katrina is a prime example of how trust affects an organization. Internal reports revealed that a lack of trust among staff and volunteers led to significant communication breakdowns. These issues hindered the organization's ability to coordinate relief efforts effectively, resulting in delayed assistance and a damaged reputation.

Building Trust

To build trust, nonprofit leaders must prioritize transparency and accountability. Regular team-building activities, open forums for discussion, and consistent recognition of individual and team contributions can help create a culture of trust. Leaders should also model vulnerability by admitting mistakes and seeking input from all levels of the organization.

How The Foundations for Growth Engagement Helps Build Trust

Risk Alternatives’ Foundations for Growth (FFG) engagement is designed to foster trust among nonprofit teams. During the FFG engagement, a group of staff members participate in a series of training sessions that create a safe environment for discussing issues that worry and excite them. Sessions are facilitated by a trainer knowledgeable about emotional intelligence. Participants learn that nonprofit growth and resilience requires a process of regularly checking in about what’s most important, and that process requires both vulnerability and curiosity.

Participants often report that the FFG process was an epiphany: after the engagement they felt empowered to engage more fully because they felt they would be rewarded, not penalized, for having volunteered their views, their data, and their efforts. They report greater belonging and peace of mind. In other words, they feel and build greater trust.

Risk Alternatives provides training and support for organizations that want to improve their resilience, sustainability, and growth. For more information, email info@riskalts.com or call 608-709-0793.