https://www.nonprofittech.com/frs/26320757/the-real-nonprofit-retention-issue---it-s-not-what-you-think Across the nonprofit sector, organizations invest heavily in donor retention efforts, yet the struggle of cultivating lasting relationships remains. While attracting new donors is crucial, the lack of repeat donors poses significant financial risks. Through a comprehensive analysis of industry data, experts argue that there is a direct correlation between donor burnout, donor retention, and the talent retention crisis. By unpacking this relationship, we emphasize the importance of cultivating a dedicated workforce to enhance donor retention and drive sustainable growth. 📈 Industry experts Andrew Olsen and Kat Landa will explore: • A data-driven analysis of the current retention crisis in the nonprofit sector 📊 • How talent retention and donor retention challenges faced by nonprofit organizations go hand in hand 🤝 • The key role of organizational leaders in addressing the retention crisis head on 🔑 • Actionable strategies to combat the retention crisis and foster long-term donor relationships 💡

5. State of the state- We have a retention problem
• Trust in nonprofits declined 4 points, to 52% in 2023, the largest year-over-year swing
in trust for any org type
• Trust in philanthropy decreased 5 points in 2023, to just 34%

6. State of the state- We have a retention problem
Source: Fundraising Effectiveness Project 2023

7. State of the state- We have a retention problem
What if donor retention isn’t primarily a
leading indicator of future revenue trends,
but instead, a lagging indicator of prior
employee satisfaction challenges?

8. Fundraisers and
leadership
agree…there is a
lot of work to be
done.

9. Fundraisers and
leadership do NOT
agree on how to get
there and how
serious the gaps
are.
Staff have lost trust
in leadership over
time.

10. The intersection of leadership, fundraising, and talent
Employee Retention
o “We are bleeding talent.”
o “We’ve been trying to fill this
role for a year now.”
WHAT IF EMPLOYEE RETENTION IS
MORE IMPORTANT THAN DONOR
RETENTION?

11. Organizational
culture and a CEO’s
attitude toward
fundraising impact
staff retention and
revenue growth
Source: HELP Wanted: A National Study of Challenges in Nonprofit Fundraising (2021, DickersonBakker)

12. 5 Biggest Staff Retention Issues
• LEADERSHIP + a leader’s vision
• Culture – poor leadership, tolerating toxic employees
• Clarity of expectations and communication
• Growth/Development opportunities
• Compensation
• Burnout

13. Escalating costs of losing employees and donors
“Losing an employee costs 90 to 200 percent of his or her salary, benefits,
and expenses according to the Society for Human Resource
Management and the Center for American Progress. We believe the cost
of losing major-gift officers is much higher.” –Philanthropy.com
• Losing a key fundraising employee holds significant costs:
• Cost to re-hire is estimated at 30% of their annual salary.
+
• Opportunity cost while role is vacant is 8.3% of the role’s fundraising goal, compounding
monthly, and is typically vacant for 6 months.
E.g. A DOD raising $2M annually and is paid $125K/yr
TOTAL LOSS to Organization: ~$99,750

14. We aren’t ready for these losses

15. Service Profit Chain: A Formula for Impact

16. What can we do?
• Level up our leadership
• Level up our Hires
“Employees in the top 25% of the
talent pool tend to bring in at least an
extra 25% in profit. So where an
average hire will bring you $80,000 in
profit, a stellar hire will bring in a
minimum of $130,000.”

17. Level Up -Get on the same page
1. Prioritize seeking feedback:
CEOs should invite team members to share their thoughts, perspectives, and
concerns openly.
2. Embrace a culture of curiosity:
Encourage our teams to question the status quo and challenge existing
thinking to achieve greater clarity and alignment across the organization.
3. Ensure consistency in communication:
Consistent communication helps staff to stay informed and feel connected to
the organization. CEOs can use video updates, newsletters, weekly email
updates, or regular, all-hands meetings to share key information about the
organization's achievements, challenges, and strategic direction.

18. 4. Maintain transparency and honesty:
It's essential for leaders to be open about the current state of the organization and its
future direction. Transparency fosters trust, and trust is the bedrock of effective
leadership.
5. Establish clear roles and expectations:
It is important that the CEO defines the roles of different individuals and teams, and
communicates expectations clearly. This clarity helps to ensure that everyone
understands their role in the larger picture, fosters a sense of ownership, and reduces
confusion and frustration. Regular feedback and recognition of individual and team
contributions will also boost morale.
6. Get Coaching:
To support these transformation efforts, consider engaging the services of an executive
coach.
Level Up -Talent Matters Most

19. Just like donors,
employees have a
lifecycle.
Key experiences come
from:
Culture
Clarity
Compensation
Cultivation
Level Up- Your Hiring

20. Retain your Talent = Retain your donors = Make Your Impact