Does Your Executive Director Need Fundraising Skills?

by Paul Gemeinhardt, M.S.W.
Senior Search Advisor, The Moran Company
“We Find Great Nonprofit Executives”

The Executive Director’s role in a nonprofit organization is a complex one. Each position may look a little different. The specific blend of skills required depends on the organization.

However, there are certain basic areas of responsibility that must be considered. In addition to having a genuine passion for the mission, a nonprofit Executive Director should have solid financial acumen and strong management skills. Another critical area relates to fundraising.

The specific role an Executive Director plays in a nonprofit’s fundraising activities can be quite different depending on an organization’s size or sector. For example, a small shop or recently established agency might need an Executive Director to serve as the primary fundraiser. A large amount of his or her time will be spent raising funds to support programs and operations.

For a larger organization with a bigger development department, the CEO may partner with fundraising staff to make key introductions and steward major gifts. Externally, he or she must be available to make calls and participate in donor visits identified by the Chief Development Officer or Development Director as high priorities. Internally, the CEO must be available to help staff and Board members with strategic thinking related to fundraising plans for the organization.

In any case, some understanding of fundraising is needed. An exception may be made for organizations that do not rely on charitable donations for funding, such as foundations or associations that have different revenue models centered on assets or membership dues. However, consider what additional opportunities for funding can be explored if those CEOs understand generally how to diversify and grow income streams by enhancing philanthropic support – whether through corporate sponsorships, individual bequests, community partnerships, entrepreneurial endeavors, in-kind resources and more.

So having said all that, the fundamental question to ask before beginning a search for a nonprofit Executive Director is: Does the next leader need to have fundraising experience? To arrive at a clear consensus and conclusion, first consider the size and type of the organization as described above. Aside from exceptions that do not accept charitable revenue, our answer is typically twofold:

1. Yes, it is ideal to hire a nonprofit Executive Director with fundraising experience. This is because he or she must recognize their personal role and responsibility of growing philanthropic support for the organization. It takes effort to prioritize the time needed to strategize fundraising plans and build relationships with key donors. An Executive Director with fundraising experience can do a better job of leading their board members by example, while collaborating effectively with existing development staff and hiring future development staff, to enhance financial resources that are critical to the agency’s mission.
2. On the other hand, direct fundraising experience may not be necessary if a promising Executive Director candidate is willing to agree to some degree of formal and informal training, consultation or coaching provided by the organization. Both sides must understand there will be a learning curve with possible short-term losses to charitable income. Yet eventually, the long-term outcome of hiring an Executive Director to be trained in fundraising can be just as successful as hiring an Executive Director with fundraising skills in the first place.

If your nonprofit is considering whether your Executive Director needs fundraising skills or where to find top candidates for the role, you may want to partner with a search firm like The Moran Company. We recruit only for nonprofits and work closely with you to customize the right qualifications and characteristics needed for your specific position. You will benefit from our networks and our experience as former CEOs and senior-level fundraisers. By incorporating behavior-focused screening questions, we are able to evaluate applicants’ true talent – as well as their potential. Contact us today for a free 30-minute consultation to see how we can help your nonprofit with its hiring needs.

© 2020  The Moran Company, “We find great nonprofit executives.” We specialize in searches for nonprofit executive directors, directors of development/fundraising staff, and other top nonprofit leadership. www.morancompany.com