Philanthropy – Love of Humankind – Needed More Than Ever
Money is only part of the story of why fundraisers leave
If you’re a fundraiser, does the following statement sound like you?
Show me my money!!!
According to five years of research by Penelope Burk (culminating in her book, Donor-Centered Leadership) as well as a much-talked-about study, Underdeveloped, by CompassPoint and the Evelyn and Walter Haas, Jr. Fund, half of chief development officers plan to leave their jobs in two years or less and 40% plan to leave fundraising entirely.
The number one reason fundraisers give for leaving is to earn more money.
What’s going on, and how can you fix it?
Is it about money, or something else?
Money does play a role.
According to Penelope’s research, many charities are penny-wise and pound-foolish when it comes to compensation for their development staff. In her book she offers an example:
“A high-performing fundraiser making $90,000 at a national health charity is offered another job paying 40 percent more, and his organization decided it could not afford to match the offer.”
Ms. Burk says the health charity should have done so, because the fundraiser, who supervised 18 colleagues working on direct-marketing appeals, might have stayed if he had gotten the $36,000 increase. And, Ms. Burk notes, that would be far cheaper than the estimated $952,000 the charity would lose in donations and other aspects of lost productivity over three years if the fundraiser leaves.
Part of the reason fundraisers aren’t paid enough, of course, is a consumer perspective that looks for the lowest overhead and cost of fundraising. This ‘overhead myth’ must be retired.
Everyone would come out ahead by spending a bit more. Sure you can spend just 5% and have 95% go to direct service. But that might mean you’ll raise only $100K for your mission when, if you spent a little more to gain $500K or even $1 million, you could achieve a greater impact.
As a society we’d be well served to get over the nonsensical hair shirt mentality that fundraisers — and all nonprofit staff — should toil for love and not for money or benefits. Where is it written that nonprofit workers should be monks? Yes, fundraising is servant to philanthropy. No, that does not mean that fundraisers – or any nonprofit employees — should be servants.
Of course nonprofit employees serve. And the concept of servant leadership, coined by Robert Greenleaf 30 years ago, holds true. Servant leadership does not mean submission however. It does not mean suffering and taking on the sins of others. It means caring for others. And to care for others requires first caring for oneself. To serve the community well fundraisers must also serve themselves well.
8 Ways to Satisfy Fundraisers with Love and Money
1. Embrace development directors who advocate for themselves.
This means they’re good at asking. Isn’t that what you want? The difference between paying a development director $X and $Y can mean the difference between hiring a middle-level skilled “implementer” and a high-level skilled “leader” with expertise, big picture thinking, strong planning skills and a demonstrated record of success. This is the epitome of penny-wise and pound-foolish.
CONSIDER: That extra $Z you decided not to pay your fundraiser would likely have reaped exponential rewards.
2. Understand what money symbolizes for people.
It’s seldom just about money, of course. I’ve never met a fundraiser who was in the business chiefly for the money. Plus, money has been shown time and again to not be a primary motivator [See Herzberg two-factor motivation theory]. Yet fundraisers in the studies cited above still said this was the number one reason they left, or were contemplating leaving, their jobs. So, what’s the deal? What do you think your fundraisers believe more money will buy them (respect, power, security, or a sense of achievement)?
CONSIDER: Is there another way you can give what people really desire to them?
3. Realize money is a powerful symbol of achievement and recognition.
Both of these are primary motivators standing alone, even without the money. Those of us who’ve worked in the fundraising trenches understand money represents impact. You don’t ask donors for “money” per se (At least I hope you don’t). You ask them to help you accomplish a goal. When they give it to you, you feel they’re acknowledging your organization’s achievements. They’re recognizing your good work. They’re joining with you. They understand you. Together, you’re team players.
CONSIDER: Treat compensation as recognition you’re moving forward together as “us,” not “us and them.”
4. Give fundraisers “us” compensation so they feel validated.
When development leaders are treated as part of the management team, responsible for assuring your mission survives and thrives, they feel appreciated. Recognized. Trusted. This enables them to move forward as team players, rather than stewing about the unfairness of it all. Or feeling like they’re sitting in a corner in the dark, implementing and following rather than leading (Please: Invite them to board meetings!). It’s beyond time to retire the too-often-chanted nonprofit employee mantra: “overworked and underpaid.” Folks sometimes wear this as a badge of pride on the outside; inside they stew. Burk notes: “Research extending back 100 years is remarkably consistent in its conclusion that working beyond a standard 35-hour week is counterproductive.” This is not good for people, or business.
CONSIDER: Are there other ways to make your development staff feel validated as the professionals they are?
5. Be generous with benefits.
Give vacations, flex time and “sick” time that can be used for their own mental health and the care of others. Burk writes that fundraisers won’t abuse unlimited time off as long as it’s tied to the caveat that they must fulfill their responsibilities to both coworkers and donors. In other words, as long as you treat them as grown-ups.
CONSIDER: Not infantilizing your staff can go a long way towards making them feel rewarded.
6. Give fundraisers chances to get promoted.
It’s a smart strategy, because Burk reports the learning curve for most fundraising jobs is 10 – 12 months and, on average, folks stay for 16 months — often leaving because they see no opportunity for growth. Hiring someone unknown from outside is not only more expensive and risky, but the search for an outside candidate also means the position is likely to be vacant for a longer period. And once the job is filled, the organization will spend more time getting the new person up to speed than it would with an existing employee.
CONSIDER: Rather than getting only four months of truly productive work out of a staffer, wouldn’t it make sense to promote from within?
7. Invest in staff development.
Offer opportunities to attend courses and conferences. Burk even recommends the old world concept of “apprenticeships” in other areas of development and marketing departments, instead of just a standard orientation to their particular job. For example, a newly hired direct-mail fundraiser would be required to work alongside colleagues writing grant proposals or seeking major gifts. In this manner,
CONSIDER: Help new hires understand how their job fits into the overall fundraising operation (and, perhaps, other parts of the development office in which they might one day aspire to work rather than leaving the organization).
8. Recognize, where money is concerned, satisfaction depends not on absolute salaries.
Rather, it depends how much people are paid relative to their peers. Money may not be a long-term positive satisfier, yet dissatisfaction ensues from its perceived absence. I would suggest most senior development professionals perceive they could earn more outside the sector. They’re intelligent and creative. They have advanced degrees. They have friends who may not be as smart or hard-working, but who earn more. Combine this reality with the fact that fundraisers often are not well-supported in their jobs by chief executives, boards, and other staff members [the subject of my next post; stay tuned!] and you have a recipe for malaise.
CONSIDER: Do you need to revisit your salary structure to assure people are equitably paid based on the work they perform?
Stay tuned for Part II (brought to you by Aretha Franklin and The Rolling Stones), where I’ll discuss: R.E.S.P.E.C.T and SATISFACTION (I can’t get no)… and how the lack thereof may be the true number one reason fundraisers leave.
For today, tell me what you think in the comments below. How is fundraiser turnover about/not about money? What’s been your experience?
Photo by Alexander Mils on Unsplash
Keep Your Donors the Same Way You Keep Your Staff: Love and Money!
Learn how in my e-guide: How to Cultivate an Attitude of Gratitude and Keep More Donors. A full 98 pages filled to the brim with practical tips, templates and tools you’ll use and refer back to, again and again. Unlike many consultants out there, I’m not just telling you what to do. I’m sharing with you what works/doesn’t work because I experienced it first-hand! This stuff works! I promise you will raise more money if you implement the tips you find inside.
