Staffing the Development Office
[Tutorial]
CAPITAL VENTURE CEO/President
For organizations that are just beginning a development program, one of the most challenging aspects of this procedure is finding the right person(s) to staff the office. There are so many questions: Do we hire from within or look for someone from the outside? What skills and talents do we look for? Is it better to hire from the corporate world or the nonprofit sector, or perhaps from the public sector? Who manages the development staff? How much should we pay them? What should we expect in the first year? And of course, the big question: is it worth the investment?
Here are some possible answers:
Do we hire from within or look for someone from the outside?
Occasionally there is someone within the organization who has the right skills and talents, the right attitude and the willingness to learn development. However, what often happens is that someone whose job is being eliminated but has been a loyal employee is placed in the development position rather than being left go. Or the organization realizes it needs to have someone in charge of development so it takes a person whom they believe has good people skills or good communication skills and names them Development Director. This person may not necessarily be the right person for the job.
Development is a profession and one that needs to be taken seriously by the entire organization. The organization must be willing to make an investment in the development staff. Putting a person into a position about which they know very little (or nothing) and expecting them to perform wonders is setting them, and the organization, up for failure. So, rather than try to fit the job into the person's capabilities, the job should be created first. The organization should develop a job description and a set of expectations for the position and then see if there is someone internally whom the organization believes would be the best person for that job. If not, then the organization needs to look outside — either by placing ads in the right places (the local AFP chapter would be a good place to start) or engaging the services of a search firm.
What skills and talents do we look for?
There are many skills and talents that good development people seem to share in common. Good communication skills are important, not just the ability to write and speak well but to listen (remember, listening is 90% of the art of securing a major gift). The ability to plan and strategize is important. Keeping up with technology is an important skill, but too often job descriptions for senior development people require the applicants to be fluent in donor software programs. If the development person is expected to be raising money from the community, he or she cannot be sitting behind a desk writing grants or managing a database.
Remember that skills can be learned and acquired. Attitude cannot. Some less tangible things are more important than technical skills. Jerold Panas in his book, Born to Raise, cites impeccable integrity as the number one requirement for a development officer. The stamina and willingness to work long, and often unusual hours, is essential. Development is not a nine-to-five job; there will be evening events, early morning meetings. Development officers cannot take time off during the holidays because year-end giving will probably require their attention. An organization can lose a major gift from a donor who needs a tax deduction by making their gift at before December 31, if the development officer has taken time off then and is not an available to assist them in making their gift.
And passion for the mission of the organization is must!
Is it better to hire from the corporate world or the nonprofit sector, or perhaps from the public sector?
Some advantages of hiring from within the nonprofit sector is that the new development officer may understand working with boards, what it means to work in a nonprofit rather than a business, and often will have a dedication to the mission. On the other and, someone from the corporate world may have a strong business sense that can really help bring organization and order to the development office as well as have community connections. And an individual from the government sector may have a good feel for how to get things done from the political standpoint. However, don't make the mistake of hiring a business person just because "they are a good salesperson, so of course they will be good at development," or a government person because they have a lot of political connections, or a nonprofit person because they may be willing to work cheaper. A good development person will have dedication to the mission, good business skills, and political diplomacy. Weigh the abilities of all applicants in light of: Does this person have impeccable integrity? Will they be able to meet all the requirements of the job? Are they willing to learn more about philanthropy and development? Will our donors respond well to them?
Who manages the development staff?
It is essential that the Chief Development Officer report directly to the Executive Director of the organization. Development does not fall under finance, or public relations, or marketing. It is its own area and needs to be listed at a level with other department heads on the organizational chart and be paid a salary on a level with other administrators. The CDO must be part of the management team. It is essentials that this person have a say in developing a realistic budget for the development office and that they have access to the chief executive and board members who will be involved in fundraising, Do not make the mistake of thinking that once the organization hires a development staff person that no one else in the organization has to ever worry about fundraising again because the development office will "handle all that nasty fundraising stuff."
How much should we pay them?
Compensation is always an issue that causes a lot of questions? Some good places to start are checking the AFP Salary Survey (www.afpnet.org) to see what typical salaries are for development officers. This study is broken down by geographic areas types of organizations, and years in the field as well as position titles. Local United Ways or Nonprofit Centers may have specific information for the location of the organization. Talk to other agencies in the community. If the organization is working with a search firm, they will help establish a realistic salary structure.
What should we expect in the first year?
Do not expect miracles. In most cases, a new development office will not show "a profit" for at least three years. Remember it is called development for a reason; It takes time to cultivate relationships with donors and to build an infrastructure that can support a strong development program. The Executive Director should sit down with the new development officer and establish realistic goals for the first year, the first quarter, and the first month. (See our tutorial on what to expect in the first 100 days in a development job). Be sure to have written plan with goals and objectives that can be measured on a regular basis. Benchmarking is critical. Not all goals should be monetary, especially in the beginning. A goal to visit a certain number of potential major donors in person each month, to increase the size of the board or to start a development committee are good places to start.
Is it worth the investment?
Remember what we said about development involving more than just money, it is all about building relationships. Don't just look at the dollars in and dollars out, especially in the first year or so. Look at development as a long term investment in the organization. Is it worth it to pay people to design and implement programs and provide services to the client? The answer of course, should be yes. Although it costs money to provide programs, the community needs those programs or the organization would not exist. The same thinking should apply to development. Yes it is going to cost money to raise money, but the adage, "No Money, No Mission" is a true one.
Copyright © 1993-2009 CAPITAL VENTURE SM. All rights reserved.
Reproduction in full or part is prohibited without permission.
Reproduction in full or part is prohibited without permission.
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