How To Incentivize Fundraising Staff

The often-controversial topic of incentivizing fundraisers. A pointed discussion revealing the complexities and challenges nonprofits face in retaining top talent in fundraising roles, where turnover rates are alarmingly high, with the average tenure of a professional fundraiser lasting only 16 to 19 months. Hosted by Julia Patrick, CEO of the American Nonprofit Academy, and Tony Beall, a renowned thought leader in the nonprofit sector.

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Tony starts with the comment that before even considering incentives, organizations must establish clear policies, processes, and measurements for success. He metaphorically refers to incentives as "the icing on the cake," explaining that the foundational layers—such as well-defined job descriptions, performance metrics, and annual reviews—are critical to creating a meaningful incentive structure. Tony’s approach is rooted in practicality and experience, citing that incentives alone cannot solve the retention problem if these basic elements are missing. 

A key takeaway from this enlightening chat is Tony's focus on creating a "workplace of joy," a concept often overlooked in traditional discussions about incentives. He highlights the importance of fostering an environment where employees feel valued, motivated, and happy, which can be a powerful incentive in itself. As Tony puts it, "Creating this workplace and just a place of joy is a huge incentive for folks." 

The conversation also explores the broader impact of organizational culture on fundraising success. Julia reflects on the disconnect between the board's focus on revenue goals and the day-to-day realities of fundraisers, who are often judged solely on their ability to meet financial targets. This binary approach, where fundraisers either "win or lose," contributes to the high turnover and dissatisfaction in the field. 

Tony and Julia agree that a holistic approach is needed—one that includes both financial and non-cash incentives, such as time off, volunteer days, and professional development opportunities. They discuss the potential for personalized incentives, acknowledging that what motivates one individual may not work for another. The challenge, as Tony notes, is to find a balance that ensures equity and access across the organization.

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