Retention of Fundraising Staff – How Do Nonprofits Keep Them?

When I entered the nonprofit world in 1985, the average tenure for fundraising staff was around 18 months. It still is. This is in spite of the fact that, the longer one stays in a fundraising position, the more effective one is.

A mentor once told me, “Fundraising is like a fine wine. The longer it ages, the better it is.” Fundraising is about building true relationships with the nonprofit benefactors. The deeper the relationship and the more trust that one builds with a benefactor, the more likely that benefactor will respond to a request for a major gift. I have always felt that to be effective, fundraising staff need to stay five years. Regretfully, this does not often match the reality in the field.

There is an excellent study that explores the reasons for the short tenure in development positions. UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising (San Francisco, CA: CompassPoint, 2013). This report points out that hiring a skilled development director is not enough. The nonprofit itself must build a culture of philanthropy to support the fundraising efforts. Among the signs that such a culture exists, the study points to:

1. “Fund development and philanthropy are understood and valued across the organization;
2.  Other staff, the executive director, and the board are …. engaged in fundraising as ambassadors and in many cases as solicitors;
3. The development director is viewed as a key leader and partner in the organization and is integrally involved in organizational planning and strategy.”

Also, retention is certainly not dependent only on compensation. A recent study, 2022 Hiring Benchmark Report by Criteria Corp lists in ranked order what candidates (of all sectors) are most interested in. Better work-life balance took the top spot, prioritizing it above benefits or compensation.

What candidates actually want:

1. Work-life balance
2. Opportunities for career advancement
3. Compensation
4. Good management and / or team
5. Positive work culture
6. Sense of purpose at work
7. Benefits

With that in mind, here are some suggestions on how retain fundraising staff:

1. Work Life Balance. Allow them the opportunity to work on a schedule that fits for them (ex., coming in earlier/later and leaving earlier/later). Working from home in a remote or hybrid situation can be great. If they are required to come into the office, make it as flexible as possible. If the employee has children, make sure there is room for meeting children’s needs. This does not mean that they are excused from getting out of the office and making visits to benefactors! It just means that they are given flexibility based upon their specific circumstances.
2. Opportunities for Career Advancement. The Criteria Study refers to the process of enabling current employees to move internally from role to role as “Talent Mobility”. The article states, “It can be a great way to motivate and reward existing employees.” Create an advancement track for them in the organization. Make them a part of the leadership team. Bring them into key organizational decisions. (However, this participation should not dilute their fundraising role). Work with them and encourage them in their career development.
3. Compensation. Pay them well in relation to what fundraising staff are making in the community (within what is possible for your nonprofit). It is hard to say “no” to another nonprofit that is going to pay them $10,000 more.
4. Good management and team. If there is dysfunction and conflict, do not expect them to stay. This is fundamental to all nonprofits that want to retain staff.
5. Positive work culture. This culture is set by the top leadership. It should be fun and affirming. Achieving fundraising goals are times for cheers and rewards!
6. Sense of Purpose. Make sure they are exposed regularly to the nonprofit’s mission of how it “saves and improves lives.” Let them see firsthand how their work impacts the nonprofit’s beneficiaries and the community. This inspiration will energize their work in a personally rewarding way. It may also become the connector to other supporters who could help financially.
7. Benefits. Depending on the individual, health benefits and generous PTO can be invaluable incentives.

Retention of good development staff will continue to pose challenges, but there are ways to incentivize them to stay. Each year they do is a big plus for the nonprofit’s fundraising program. Read more in our previous blog, 5 Ways to Keep a Development Director for Your Nonprofit and contact us if we can assist you in recruiting your next fundraising leader who will come and stay.

By William J. Moran, J.D., M.S.Ed
President & Senior Search Consultant
The Moran Company
“We Find Great Nonprofit Executives”