Bonuses Help Retain Fundraisers---Finally Some Else Says It!
I'm not sure if I feel vindicated or sad. Kind of an interesting dichotomy of emotions but both are true when I read the article in the Chronicle of Philanthropy recently about bonus structures and retention of fundraisers.
The Chronicle’s article (Bonuses Can Help Nonprofits Stretch Budgets and Retain Fundraisers) discusses how nonprofits are engaging in bonus structures to retain, and attract, good fundraisers. Specifically, the article talks about a couple of examples, like the University of New Hampshire and HonorHealth, as they have integrated bonus structures into their gift officers’ compensation packages. And while there's no doubt there are challenges based on the ethical requirements of our industry, I'm glad they're having the conversation.
Why do I feel vindicated? Because coming up on two years ago, Hallett Philanthropy wrote an entire white paper, based on nearly 1500 respondents in an online survey, on this very topic. (Hallett Philanthropy White Paper - Employment and Bonuses). The white paper, which was turned into an article for several publications, articulated this exact point. The simple fact was, and still remains, that fundraisers are becoming more sophisticated and realize their value even though they work for a nonprofit. And that a bonus structure is an essential element of evaluating whether or not they feel compelled to remain at the organization even if (or especially if) performing at a high level.
Why the sadness? With the challenging economic times, I have many clients that didn't listen. I've heard stories from non-clients who are challenged with tremendous gaps in the employment of gift officers, leaving potential revenue through philanthropy unrealized. While I'm glad the Chronicle wrote the article, I'm sad that it has taken such a long time for there to be a wider discussion of the issue.
Yes, we're nonprofits. Yes, we need to be economical and wise with our investments. But if a gift officer is delivering six-to-12 times their salary in philanthropic dollars on a regular basis, the smart move is to reward them and let them keep generating necessary investments for that designated charity.
