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Nonprofit Staff Retention: Proven ways to keep your fundraisers over 18 months

Donor Staff Retention

Nonprofit staff retention is not just a metric—it’s the pulse of an organization’s ability to achieve its mission. A well-functioning nonprofit isn’t solely built on passionate donors or visionary leaders; it thrives when its workforce, particularly fundraisers, feels supported, fulfilled, and equipped to stay long-term. Unfortunately, the reality is stark: nonprofits struggle with high turnover rates, especially in development and fundraising roles. This creates a ripple effect that destabilizes the organization at its core. So, before an organization focuses on donor retention, it must first address its most pressing issue: keeping its people.

Why Tracking Nonprofit Staff Retention Matters

Tracking nonprofit staff retention isn’t a box to check. It’s a way to understand the health of your team, diagnose systemic problems, and address issues before they spiral out of control. High turnover rates in fundraising positions, for example, signal more than just dissatisfaction—they reveal a cultural or structural problem that, left unchecked, will cost the organization both financially and reputationally.

Let’s think about it philosophically: nonprofit staff retention is about building trust. When employees, particularly fundraisers, remain in their roles, they deepen their relationships with donors, board members, and the community. These relationships are the lifeblood of any nonprofit. Fundraisers who leave after a short tenure take with them not just their skills but also the trust they’ve built with your most critical supporters. Every time a nonprofit loses a key development officer, it loses a piece of its narrative continuity—the threads that connect the donors to the cause fray. Over time, this instability leads to donor disengagement.

By focusing on staff retention, especially in key fundraising roles, nonprofits ensure that these relationships grow over time, creating a stable foundation for donor loyalty.

The Financial and Operational Costs of Ignoring Retention

Nonprofits often operate on tight budgets, yet they continue to hemorrhage money through turnover. The direct cost of replacing a fundraiser includes recruitment fees, training costs, and the loss of institutional knowledge. In fact, a study by CompassPoint revealed that it takes an average of 18 months to hire, onboard, and get a fundraiser fully integrated into the role. But here’s the catch: many of those fundraisers leave within 18-24 months. The organization is trapped in a cycle of constant hiring, with no time to build momentum in donor relationships.

Beyond the financials, think of the operational costs. When a fundraiser leaves, ongoing campaigns, planned giving strategies, and donor stewardship plans are disrupted. The development director who had personal relationships with major donors is gone, and the new hire must rebuild those connections from scratch, setting the organization back months, if not years. It’s not just time that is wasted—it’s trust, potential donations, and forward progress on the mission.

How to Fix the Staff Retention Problem, Especially with Fundraisers

Addressing the nonprofit staff retention issue, particularly with fundraisers, requires a deliberate, multi-faceted approach. It’s not just about offering competitive salaries or occasional perks. It’s about creating an environment where fundraisers feel valued, supported, and motivated to stay for the long haul. Here’s how to begin:

1. Create a Culture of Purpose and Belonging

Nonprofit staff often join organizations because of their passion for the cause, but passion alone isn’t enough to keep them. Fundraisers, in particular, need to feel a sense of purpose in their work. Create opportunities for them to see the impact of their fundraising efforts firsthand. Invite them to board meetings where success stories are shared or have them attend programs where they can see how their work translates into real change.

But beyond purpose, fundraisers need to feel that they belong. High turnover can often be a result of a toxic or unsupportive work environment. Address this by fostering a culture of inclusivity, open communication, and recognition. At Nonprofit Freelancers, we emphasize creating roles that align with an individual’s strengths and passions, helping to cultivate a sense of belonging and long-term commitment.

2. Offer Professional Development and Growth Opportunities

One of the primary reasons fundraisers leave is the perceived lack of professional growth. Fundraising is a high-stress job, with heavy targets and emotional pressure. To retain fundraisers, offer them clear career advancement opportunities within your organization. This could include mentorship programs, access to continuing education, or leadership roles in new campaigns.

For example, a small nonprofit struggling with turnover might introduce a “Path to Leadership” program, where high-performing fundraisers are given the chance to lead key initiatives and develop management skills. This not only boosts morale but also sends a clear signal that the organization is invested in its employees’ futures.

3. Address Burnout Proactively

Burnout is rampant in the nonprofit world, particularly among fundraisers who carry the heavy responsibility of meeting financial goals. Fundraisers are often expected to work long hours, attend events on weekends, and continuously chase aggressive targets. This level of demand is unsustainable. To retain fundraisers, nonprofits must focus on work-life balance.

Consider reducing unrealistic targets and offering flexible work schedules. Some organizations, like Endeavors, where I oversaw development, created systems where fundraisers worked in teams, distributing the pressure across multiple people rather than placing it on one individual. Offering mental health support, generous paid time off, and acknowledging the emotional toll of the job can also help alleviate burnout.

4. Competitive Compensation and Incentives

Fundraisers often leave nonprofits because they find better financial opportunities elsewhere. While nonprofit salaries may not always compete with the private sector, they should still be fair. Transparent salary structures, performance-based bonuses, and non-monetary perks such as additional vacation time or flexible work arrangements can go a long way toward retaining top talent.

For example, BCFS Health and Human Services offered bonus incentives for fundraisers who met or exceeded specific campaign goals. This allowed high-performing employees to feel rewarded without having to look outside the organization for better-paying opportunities.

5. Foster Long-Term Donor Relationships

Fundraisers build donor relationships over time. Nonprofits should invest in a long-term strategy for donor cultivation and stewardship, allowing fundraisers to work in an environment where they can cultivate deep, meaningful relationships with donors. This requires moving away from the mentality of “quick wins” and focusing on sustained growth. By doing this, fundraisers can spend more time on developing personal connections with donors, which reduces stress and creates job satisfaction.

Fix Staff Retention to Improve Donor Retention

There is a deep connection between staff retention and donor retention. The two cannot be separated. A stable, well-supported staff, especially in the development office, builds trust and familiarity with donors over time. Donors give not just to causes but to people—people they know, trust, and believe will carry out the mission. If your organization is constantly losing fundraisers, donors may become hesitant to give because the personal connection they’ve built with your nonprofit vanishes every few years.

Fixing your nonprofit staff retention problem, particularly among fundraisers, is the first step toward improving donor retention. Before you can expect loyalty from your donors, you need loyalty within your team. By creating an environment where fundraisers are valued, supported, and given opportunities to grow, nonprofits can stabilize their internal operations and foster long-term donor relationships.

Conclusion

Nonprofit staff retention isn’t just about keeping people—it’s about preserving the integrity and continuity of your mission. Especially in fundraising, where relationships are everything, retaining staff can make the difference between a thriving organization and one that is constantly scrambling to catch up. For more insights into building a strong, motivated team, explore Nonprofit Freelancers.

 

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October 18, 2024