7 Ideas to Prevent Turnover

There are many reasons why nonprofits suffer high turnover when it comes to development positions.  The average tenure for a fundraising position is less than 2 years.  As a result, organizations and their missions suffer in multiple ways.  An obvious one is that it often takes 2 years or longer for a fundraiser to build a relationship for a significant gift.  Turnover can be costly for any organization, but for nonprofits, it can have extreme cost and that is a whole other article.

There are volumes of research on the why this turnover occurs.  Dr. Abbi Haggerty did an excellent job of compiling and evaluating this research in her dissertation that covers two aspects: personnel dynamics and organizational fit.  If you look deeper into the data as Haggerty did, you realize that the top fundraiser position is often the only fundraiser position.  This is important to allow the “why” of turnover to make sense. 

One reason is fundraising often accounts for 50% or more of the organizational revenue, yet statistics suggest a lack of confidence from boards or the Executive Director about the skill level of the Development Director.  One in three of those surveyed feel their development director is lacking the necessary skills to be effective in fundraising.  Imagine the stress when your boss(es) don’t have faith in your ability.

Regardless of the type of organization, compensation is often the reason given for leaving.  However, where it is the reason given, it is often not the reason why people became open to other opportunities.  Relationships are instrumental and extremely important in organizations achieving goals and organic growth in fundraising.  Haggerty’s research reveals that most of the time it has to do with people and culture.  Compensation is just what people say as they are walking out the door as in “You can’t pay me enough …”  It is the dot dot dot that I want to talk about in this blog.

Here are 7 things you can do to help keep someone long enough to get significant gifts.  When it comes to employing someone in the role of fundraising, there are steps that an organization and its leadership can do to help to mitigate turnover in the fundraising position. 

Start with a personal connection. 

There are plenty of people that value the work you are doing for the community.  Find that person that has a personal story and connection with your mission that will help them in raising money for the organization.  For example, I ask the schools that I work with to identify a parent or passionate alumna that could fill the role.  Someone that already has an understanding and belief in the mission will start out ahead when hired. 

This should be a part of the interview.  Ask what is their personal connection to (you fill in the issue): addiction & recovery; cancer research; homelessness.  Ask them to share a personal story and see if their story connects with you and the organization.

Build mobility into the position. 

Few people look to start a career and plan to leave it in 5 or 10 years in the same position they had on day one.  Part of that is the evolution they will bring to the position, part of that will be in recognition for what they have accomplished.  As leaders, we should want our people to grow and move into bigger roles.  When we ask that question in the interview about where they see themselves in 5 years, we need to listen and make sure we can match their personal goals in the position we offer.  Or in the alternative, can we make this part of the hiring discussion as you discuss the goals of the position and the person.

For example, if you are hiring someone with little or no experience in fundraising, then start the individual out as a coordinator, and then discuss their progression.  That could be moving into a major gifts officer position, or a director position.  Those moves should be based on organizational and department accomplishments that are measurable, attainable, and clear from the beginning.

If you are hiring someone to be the director of themselves, have some clear goals on how they can grow the department and what an expanded department looks like.

If neither of these ideas work for your organization, then be a part of her growth.  Ask for 3 years and be a part of finding the right next opportunity.  Be proud of what you both have accomplished and set both of you up for success.

Hire for the position you need. 

Fundraisers will pay for themselves (literally).  Many times when I review job postings or start the discussion with someone for hiring a fundraiser (especially if it is the first fundraiser for an organization) the job description is littered with sundry duties.  This could be the need to justify the position or the salary necessary to hire a solid fundraiser.  However, fundraising almost seems like a bonus in the job description.  Not having the position focused on building relationships and achieving funding goals is why so many organizations fail when they hire fundraisers, the jobs are too confusing.  Do they want an event manager, a social media marketer, a part time janitor, or a major gifts officer?

If you want someone to raise money for your organization, then make that the focus.  It takes time to build relationships and understand your donor population.  I often hear the statement “we need to justify the position.”  I opened this section by saying fundraisers pay for themselves, and when focused on major gifts, they will cover their salary several times over.  If you hire someone to focus on events, this will be a struggle.  If you have someone to focus on social media, analytics, and data it will also be a struggle.  If you hire someone to engage donors, the community, and tell your amazing story, then you will get the results you want. 

If you want to build value in their position, then have them work within your programs so that the stories they share are personal.

Invest in the position. 

From the moment the organization decides to formalize its fundraising program, the organization needs to consider it an investment.  Investments are a long-game and formalizing your fundraising program is just that.

Any investment requires continual deposits for the best results.  These deposits could be in the form of professional development or in providing the proper tools in the form of a donor management system or a wealth engine.

It is also important to continually re-invest.  As the organization raises more money, take time to evaluate and see if it is time to increase an individual’s salary or more people.  More people can often provide the most significant return as they can allow the work to be spread and prevent burn out.

Have fundraising in the culture.

Fundraising is not fun for everyone.  Major gifts fundraising is even more challenging.  That is because people correlate fundraising with asking for money.  When does it make sense to ask an individual for thousands of dollars with nothing but a warm-fuzzy in return?  Asking is only the transactional aspect and the least part of fundraising.  It is the part of the glacier you see above the water.

Before there is any discussion of funds, there is a lot work to be completed.  There is building the relationship, creating value in the mission and the organization, and explaining the impact made to the community.  To be successful, it will take everyone in every aspect of the organization.  Fundraisers will need help identifying stories to share that illustrate the impact.  The program people are the frontline when it comes seeing all the ways the organization is making a difference in the community.  It is important that program people share that information with fundraiser with the same excitement that they discuss it around the family dinner table.

Volunteers and board members will need to recognize raised eyebrows and perked up listening postures as they share the work of the organization in their circle of influence.  Then seize the opportunity and connect them with the paid fundraising staff.

Have clear goals

It is important that it is clearly stated what the expectation of a fundraiser is in the terms of clear numbers.  As important to the overall goal, the smaller goals of each month, event, or activity are just as important. 

Know where you have been and how you got there.  Hiring a fundraiser will not immediately get you a half million dollars, especially if the most you have raised is $150,000.  Put together a plan that involves historical information.  Know what previous activities have accomplished and how to improve the results.  It is important that this is a discussion rather than a directive and based on realistic expectations.

Negotiate and collaborate

One of the greatest reasons why fundraisers leave is because they feel that they have no role in how the money is used or involvement in how goals are set.  When there is discussion about adding a new program or expanding services, bring the fundraisers in to discuss how this expansion will be paid for.  This way you can negotiate with the fundraiser whether or not they will be responsible for 80% or 90% of the heavy lifting. 

Your development staff has knowledge of what donors will connect with your new initiative and what funders are looking for similar projects.  This way, the organization will have realistic expectations and buy-in from all parties to insure success.

These are only a handful of ideas on how turnover in fundraising can be curbed.  I encourage you to review the research done by Dr. Abbi Haggerty and the Underdeveloped report from CompassPoint and The Evelyn & Walter Haas, Jr. Fund and see what ideas you can add.

PB&J marComm would welcome the opportunity to discuss how you can set up your people and your fundraising program for success.