Obviously, you will lose all credibility if you are caught falsifying records to make your organization appear more financially successful than it is. Receiving grants is at a premium today, and it's tempting to round off income or try to make your organization appear more credible by adding on funding sources that do not really exist. It's a big risk you should not take.

Tread Carefully

Besides money issues, making claims you cannot keep also puts your credibility in jeopardy. Like any business, a nonprofit must be able to deliver on a promise, just as donors who pledge money are expected to deliver on their promises. If you claim your organization has helped many children learn to read, be prepared to explain where, when, and through which program. It doesn't have to mean every child in the funded program will be reading at an appropriate grade level, but don't say your organization has taught children to read unless there are children who could not read before who can now read at some level.

Be Honest

On a more basic level, if you are selling something for the holiday season, you must deliver it before the holidays. Don't tell someone that by holiday season you meant Valentine's Day when she clearly bought wrapping paper for Christmas.

Make it clear how your organization spends money. Nonprofits may be hit hard by rising postage and other costs, so make sure the public understands any new economic pressures your organization may be experiencing.