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How Charities Can Curb Turnover Among Fund Raisers

April 13, 2010, 5:00 pm

High turnover among fund raisers has slowed in the financial downturn, but will undoubtedly resume when the economy improves, Penelope Burk, a fund-raising consultant, told the annual meeting of the Association of Fundraising Professionals here

Ms. Burk, head of Cygnus Applied Research, in Chicago said a growing number of charities will soon be competing for a scarce number of qualified fund raisers. But she said, charities can avoid some of the problem if they take steps to reduce fund-raiser turnover at their organizations.

Ms. Burk based her remarks on preliminary findings from her forthcoming research with more 8,000 nonprofit officials and board members-including 1,200 fund raisers-to measure tenure in different types of fund-raising positions; whether and how turnover in the development office affects an organization’s bottom line; and whether charities can reduce turnover among fund raisers.

It cost charities 65 to 83 percent of a fund raiser’s annual salary to replace that person, Ms. Burk said.

Given that cost, she said, nonprofit organizations could make the argument to provide a top-performing fund raiser with a 15-percent annual increase-or they could increase pay by a gradually higher amount every year a fund raiser stayed on the job.

Pointing to her research, Ms. Burk said that 37 percent of fund raisers said they left their last job for a higher salary and 48 percent said they would leave their current job for higher pay. The fund raisers she surveyed, said Ms. Burk, do not appear unhappy with how much they are currently paid; they leave simply because they can get more money elsewhere.

Among the other suggestions that stem from her research:

Find ways to give fund raisers more management responsibilities. Twenty-nine percent of fund raisers said they left their last job because they were offered a more senior position, while more than a third of fund raisers said they would leave their current job for that reason.

With a shortage of senior and management positions for development officers, Ms. Burk said, more charities should reconfigure jobs so that fund raisers, particularly those in nonmanagement roles, are in “stepped positions,” with progressively more responsibility for each year the fund raiser stays on the job.

Create succession plans. Only 22 percent of senior fund raisers who manage their organization’s development efforts said they were grooming a replacement, and another 57 percent said that there was no one on their staffs who they felt was qualified to assume their roles, she said. Yet that may not necessarily be the case: More than two-thirds of the development officers in the survey said that they felt qualified to step into their boss’s job.

Offer workers more flexibility and other low-cost benefits. Even if they cannot offer higher pay or more responsibility, charities would do well to offer fund raisers other benefits, Ms. Burk said. The non-monetary benefits rated most desirable among fund raisers are working from home (52 percent), flexible hours (51 percent), more vacation time (42 percent), and an employer provided cell phone (32 percent).

In fact, flexible hours, job sharing, and other such arrangements are among the top reasons cited by fund raisers who said they planned to stay in their current job indefinitely, Ms. Burk said. Others were that the fund raiser believes in the organization’s mission, he or she is respected as an active participant in the decision making of the organization, and feels part of an excellent team.

Fund raisers are also looking for certain qualities in the people who manage them, said Ms. Burk. Asked to describe the characteristics of the best boss they had worked with in the course of their career, fund raisers said that person allowed them to work independently (55 percent), asked for and valued their input (53 percent), encouraged them to ask questions (49 percent), and gave them credit for their ideas (48 percent).

 

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5 Responses to How Charities Can Curb Turnover Among Fund Raisers

81154412 - April 14, 2010 at 2:55 pm

I’ve worked in five different non-profits in fund raising roles over the last 26 years, and each time I felt compelled to leave because of management problems in the organization. It’s very difficult to raise funds effectively when the community doesn’t trust the direction of the organization, or when the organization doesn’t know itself where it’s headed. Fortunately for me, each time I moved I was able to negotiate for a higher salary. My previous employer then chose to save face by saying that I got a better offer. But honestly, most of the time I would have stayed, or stayed longer, had the organization been a competent and trustworthy place for which to raise funds.

lhelmuth - April 14, 2010 at 3:12 pm

Oddly, I’m one of those development professionals with a pretty good track record of staying in one location for long periods of time. All of my jobs since college of been in fundraising with some public relations responsibilty. My first job out of college – 5 years in alumni fundraising and public relations; 2 years with an arts organization; 21 years with a private secondary school; and now almost 4 years with a retirement community for a total of 32 years in this business. Penelope’s observations and research point to some important considerations for our non-profit leaders and boards. While I haven’t experienced serious situations that would force me to move on, I recognize the value of a good employee and recognizing good work. As non-profit leaders, we can avoid some of our turnover issues by being willing to take risks with the people we have working for us now.

pickettcrm - April 20, 2010 at 6:19 pm

My own personal experience was that the connection I had to the cause was the most powerful (and dangerous) tool for my managers. I came on board because I strongly believed in the purpose, the values and the methodology the organization employed. Later, I left because I didn’t see the executives and board leading in a coordinated or thoughtful way. If there had been a clear Vision and Strategic Plan that all of our performances were tied to I would have been more confident that my time and commitment were being maximized for the cause.

2010capital - April 21, 2010 at 12:30 pm

What a timely article. Have recently parted ways with my employer because, supposedly, they now wanted regular hours (instead of the “flexible hours, with some weekend/evening work; no overtime required” that they had originally agreed to). And, this after I have just attained my CFRE. Speaks, once again, to the limited vision of many not-for-profit Boards…

tncgiftplan - January 3, 2011 at 5:49 pm

Can the author of this article or anyone point me to a source for statistics (i.e., percentages) for fundraisier turnover rates over the past 3 to 5 years, or more? I want to compare the turnover rates in my organization to rates for all charities and, of possible, rates in my sector (environment). Thanks!

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