Leyna on Nonprofit Leadership

For the past two years, I’ve managed the auction for my synagogue’s big fundraising gala. I volunteer as a fundraiser because we are a scarce breed, and because this work enables me to walk a mile in the shoes of the people I recruit. (Preferably red stilettos, but that is another blog….)

The two fantastic volunteers who created the gala and have run it for six years just officially “retired”. This year’s very successful event was their last. Pondering how we are going to replace Lisa and Susie got me thinking about the importance of succession planning for development staff, especially leadership.

With a little help from my friends, here are some tips for fundraising succession planning:

Know Thy Systems: Having a database doesn’t ensure institutional memory.  Robert Weiner, fundraising technology consultant, often encounters problems in the transition between Chief Development Officers. “I encounter problems when the prior CDO has had a custom system built, or really didn’t use or care about the database.  I also see lots of organizations that have a donor database, but where the CDO does all her tracking in Excel.” (Leyna: Yikes!)

Document, document, document: Make sure you have a written fundraising plan, including major strategies, calendar, tactics, and responsibilities. Be sure that your fundraising budget is annotated with clear information about variances in both income and expenses.

Share the Love: Laura McCrea, of Laura McCrea & Associates, says, “Development Directors often develop a wonderful understanding of their major donors and the nuances of how to keep each donor engaged and inspired.  All too often, this knowledge – which can’t typically be summarized in database fields – is not shared with other staff and volunteers on a regular basis.”   You don’t want knowledge of the passions and pet peeves of your biggest donors walking out with exiting staff.

Build Bench Strength: Your annual fund development budget should include a line for professional development, and not just for your Development Director. The best development leaders continually groom staff for more responsibility and provide skill development opportunities. (Example: Fundraising Day!)

Plan for the Unexpected: Prepare an emergency succession plan. There is no better way to identify your vulnerabilities than to develop a plan for dealing with the unexpected departure or absence of your Development Director. Theresa Nelson, an experienced interim Development Director, suggests creating a transition binder containing all the key information that your Director of Development would want were she new on the job, and updating it annually.

Pray. (Can’t hurt!)

Next month: Building a strong ED/DD partnership.

Most of us in the nonprofit community are familiar with the statistics about the short tenure of senior development staff. Is this rapid turn-over the result of all development folk being restless climbers? I don’t think so.

The reason development directors move around has more to do with unrealistic expectations, and the short length of their “honeymoon” period, than with the draw of greener pastures. Of course, sometimes the fit just isn’t right, or an offer no development professional could refuse comes along.

Here’s my list of hiring mistakes you do have some control over:

1. Hiring a Development Director when what you really need is a development coordinator/administrative assistant. You can’t hire a professional fundraiser with a track record of success and then expect her to do her own data entry. Too many nonprofits go from zero development staff to advertising for a director level person, without considering the support and tools a seasoned fundraiser requires.

2. Assuming that salary and benefits are what a Development Director will cost you. One of the most prepared candidates I’ve worked with provided the prospective employer with a list of the expenses she anticipated — in addition to her salary and benefits — during her first year of employment. These expenses included the costs of membership in professional associations, the cost of an outside consultant to do grant research, the cost of laptop to allow her to work remotely, the cost of attendance at AFP’s annual conference, and so on. You get the picture?

3. Not budgeting enough for fundraising expenses. It costs money to raise money. It really does.

4. Expecting the DD to raise her own salary in the first year. Even the most seasoned professional has a learning curve. If your programs are complex, or your new hire hasn’t worked in your field, she’ll need time to be able to effectively engage funders and donors. Be realistic about the foundation upon which your new DD has to build. If you’ve never raised major gifts from indivduals, it is going to take time for your DD to help grow that capacity.

5. Assuming that “Development Directors” is a generic term. Don’t expect your new DD to be all things to all people — she is going to be fiercely talented in some areas, and not so strong in others. To make a good hire, you need to know where you are going as an organization, the strategies you are employing to get you there, and what areas of fundraising you want to strengthen and grow.

6. Thinking that once you hire a DD, you can wash your hands of fundraising. If you hire an effective development professional, you should expect to be more engaged in fundraising, not less. The difference is in how your time will be spent. You should find yourself spending much less time on details, and much more making direct asks for large amounts of money.

7. Not including your board in the hiring process. I don’t know of a single nonprofit that can rely solely on grant funding in today’s economy. Raising money from individuals requires your board’s active involvement, and therefore your board needs to be engaged in the hiring process. If you hire a DD who doesn’t work well with your board chair or your development committee members, you’ve just hired the wrong person for your organization.

Some relationships aren’t meant to last, and that’s just fine. In hindsight, my rebound relationship after my divorce was just what I needed, even though I got my heart broken. I needed a breather in between serious relationships, and I learned a few things and had a lot of fun with my salsa-dancing beau. By the time my husband Brian came along, I was ready for him.

Which leads me to what I want you to think about: the value of interim management staff.  In addition to the obvious advantage of covering critical responsibilities while you conduct a search, an interim manager can provide you with unexpected dividends. A good interim will offer you invaluable (and honest) insight and advice — the kind that only an objective perspective can yield.

I’ve heard directly from some very happy boards and executive directors who hit the jackpot with an interim. I connected Sonoma Land Trust to interim Development Director Theresa Nelson (www.theresanelson.com) while conducting their search for a new Development Director. She provided Executive Director Ralph Benson and the development staff with advice about structuring the department, implementing new donor management software, and kept the ball rolling until Beverly Scottland was hired.

Similarly, Nancy Salamy at Crisis Support Services of Alameda County sang the praises of interim Development Director Duff Axsom (http://www.linkedin.com/pub/4/a16/b79). Same story with the board of Pacific Center in Berkeley. They hired Corey Pohley through CompassPoint’s (www.compasspoint.org) Interim Executive placement service — run by the stellar J.R. Yeager — and she helped with some critical operational issues before Leslie Ewing took on the permanent position. By hiring an interim, smaller nonprofits can tap into the experience and expertise of very seasoned professionals — people whom they couldn’t hire full time, but who make a major contribution filling an interim role.

There’s a great article about the value of Interim development staff in the January/February issue of Advancing Philanthropy – the magazine of the Association of Fundraising Professionals. Written by D.A. Hickman, “Interim Help Wanted — and Needed” (http://www.afpnet.org/ka/ka-3.cfm?content_item_id=24783&folder_id=902)  makes the case for a stint with someone who is not afraid to give you the unvarnished truth.

The Bay Area is full of highly experienced, talented professionals who make some or all of their living by serving in interim management roles for nonprofits. Drop me a line or give me a call if you’d like some referrals. I won’t guarantee that you’ll get a salsa dancer, but you never know.