Hiring the First Development Director for Your Nonprofit

For a board of directors or executive director, the decision to hire the first-ever development director is a watershed moment that requires special care and attention. Resources are often scarce, and one cannot afford to make a mistake. However, it is tricky.

A common pitfall is hiring based on a candidate’s previous employer’s fundraising success rather than his or her own ability to fundraise. For example, it can be difficult to evaluate an applicant’s individual achievements if that person is coming from a big organization with thousands of existing supporters and many support staff. A good search firm will be able to evaluate all candidates, including those from large nonprofits, to better understand if their experiences are broad and if their skills would be a fit for a new organization.

Starting a fundraising program from scratch is fundamentally different from managing an established one. To succeed, leadership must understand the unique demands of a small shop and hire accordingly. Below are some tips and insights to help you prepare.

Why the Startup Phase is Different

In an established program, development staff build upon a foundation of historical data and existing momentum. They inherit:

• A Proven Roadmap: Historical data reveals which fundraising vehicles (grants, individual giving, events) have the most potential.
• Established Relationships: New staff plug into long-standing relationships with major donors and foundations.
• Infrastructure: Systems for donor tracking, acknowledgment, and stewardship are already in place.

In a new program, none of this exists. The first development director isn’t just a fundraiser; they are also a builder and pioneer.

Key Qualities of a Scratch-Build Development Director

When evaluating candidates for a new fundraising program, prioritize these five traits:

1. The Generalist Mindset: In large nonprofits, fundraisers are often highly specialized. For example, a special events manager or a planned giving officer may not know how to write a federal grant or run a direct mail campaign. In a new program, you need a generalist who has worn many hats and has practical experience with different types of fundraising vehicles (e.g., direct mail, individual major giving, foundation grants).
2. Strong Relationship-Building Skills: Without a database of warm leads, the first development director must have an exceptional ability to form relationships from zero. They must be comfortable with the cold phase of donor acquisition—finding, meeting, and engaging individuals who have no prior connection to the organization.
3. Resourcefulness Over Resources: Be cautious of candidates from much larger institutions with vast donor bases and robust administrative support teams. A candidate who is used to having a research department and a marketing team may struggle when they realize they have to draft their own appeal letters, manage their own database and put on a special event. You need a builder who finds energy in creating something from nothing.
4. Ability to Build Systems and Processes: A nonprofit’s very first director of development should have the ability to establish processes and put systems into place that allow the program to scale. For example, protocols will be needed for recording and acknowledging charitable gifts received for tax purposes. It may be important to explore and evaluate vendors for donor tracking software or online giving tools.
5. Mission Alignment: While a professional fundraiser can adapt to many causes, look for someone who has a genuine passion for your specific mission. This authentic enthusiasm is important when they are making the first ask to stakeholders.

Suggested Steps to Take – A Roadmap

Executive leadership might take these 3 steps to ensure the new hire is set up for success:

Step 1: Conduct a Fundraising Audit
Consider engaging a fundraising consultant to assess your organization’s potential. A consultant can provide a development plan that outlines your greatest opportunities (e.g., whether your strength is foundation grants or individual major gifts).

Step 2: Ensure Active Leadership Support
Do not expect that the new development director will come in and do it alone. The executive director and the board must support and help implement the development plan. If they are unwilling to actively work with the staff, do not anticipate success.

Step 3: Match the Skillset to the Potential
If your audit shows that foundation grants are your most significant opportunity, don’t hire a specialist in a different focus area of development. Hire someone whose experience aligns with your organization’s path to fundraising success.

Here is a Sample Position Description for Hiring your First Development Director. This document can serve as a template for your customization.

At The Moran Company, we know how to evaluate the skills needed for a nonprofit’s very first development director to be successful. Just as we work with large national organizations, we also partner with smaller nonprofits that are looking to grow. There are many different types of professional fundraisers, and all are valuable to the nonprofit sector when they are plugged into the right roles where their strengths can shine.

If your nonprofit is preparing to hire a critical fundraising leader, please contact us for a free consultation to see how we can help. For further reading, check out our online resource library. You will find additional articles written by members of our team including “5 Ways to Keep a Development Director for Your Nonprofit” and “Retention of Fundraising Staff – How Do Nonprofits Keep Them?”

by William J. Moran, J.D., M.S., Ed.
President
The Moran Company
“We Find Great Nonprofit Leaders”

About the Author: Bill Moran is known nationwide for his decades of experience as a nonprofit executive recruiter. He previously served as a fundraiser for a hospital foundation and a faith-based organization in Kansas City. Bill is also an attorney and past President of the Network of Nonprofit Search Consultants. Read more about our team.