Building a Fundraising Team

You have a dream to grow your nonprofit, deepen its mission, and expand its impact. That’s fantastic!

But remember, you cannot do it alone. If you want to see your dream become a reality, you need a team. Teamwork, makes the dreamwork.

Patrick Lencioni notes in his Five Dysfunctions of a Team, “It’s not finance. Not strategy. Not technology. It is teamwork that remains the ultimate competitive advantage, both because it is so powerful and so rare.”

Imagine you are leading a mid-sized nonprofit with limited resources – financial, technological, etc. – yet you want to “punch above your weight.” How do you compete? How do you grow?

I’d argue you need to focus your efforts first on building a world class team.

While skills, money, strategy and the latest technology are great, a dedicated and effective team with limited resources can outshine a mediocre team with all the bells and whistles ANY DAY OF THE WEEK. 

There is nothing in fundraising, nothing in leadership, nothing in organizational growth that is more important. 

If you want to grow, this may be the most important article you could read. This article distills over 20 years of experience in leading teams that drive fundraising growth.. 

Let’s dive in!!

**This article is dedicated to the team of the century that served together during the pandemic years. You know who you are.** 

Why You Need a Fundraising Team

They say: If you want something done right, do it yourself.

I say: If you want something done right, build an awesome team! 

Many nonprofit leaders fall into the trap of believing that they must do everything themselves, but this “superhero” mentality is a myth. While nonprofits must run lean, lean can be leveraged – if you build the right team. Here’s why:

1.      Space

As a leader, your time is valuable. Yet, many nonprofit leaders spend their time on tasks that don’t maximize their impact. Everything is of high importance, or so you believe. You manage the budget, order the catering, pay the utility bills, engage with program participants, write the grants, and more.

I find many nonprofit leaders spend most of their time on the urgent but unimportant. But this will not get you to where you want to go. 

These activities, while important, will detract from high-value leadership tasks  only you can do – the conversations that you cannot delegate, the strategy that will not write itself – ultimately hindering your organization’s growth.

To truly grow, you need brain space – time to think, learn, and innovate. A well-leveraged and lean team creates this kind of space and allows you to create real leverage for your organization by focusing on what only you can do.

2.     Specialization

If you want to grow your nonprofit, you need more dollars, and for that, you need a specialized team.The story of every organization is written on a continuum of generalization to specialization over time. The same will be true for you. As you grow your fundraising team, your first hires will be generalists but as you grow, you’ll want to hire specialists who understand the nuances of their particular areas – whether it’s major gifts, monthly giving, mid-level donors, and so on.

The transition from generalization to specialization is crucial for growth, and it requires you to step back and let others shine in their areas of expertise. You won’t know the most about everything anymore. You’ll need to rely on and trust your team members, while providing the structure, support, and coaching to help them succeed. More on this below. 

3.     Scale

Growth requires scale, and scale requires systems, processes, and people. You cannot hold everything together on your own; in order to grow, you have to invest in new people who can take on the day-to-day work to help your organization grow.  

Building a fundraising team allows you to scale your operations, enabling you to manage more details, relationships, and tasks. It might feel uncomfortable at first to let go of control, but remember: moving from a “do-it-all-yourself” mentality to a team-oriented approach is essential for growth. 

So, if you’re really ready to grow, you will need to build a fundraising team. Which, yes, means you will need to figure out how to find the money to invest in it. More on that below.

When to Hire or Expand Your Fundraising Team

This is the ultimate chicken-and-egg question: Do you hire after you have raised more money or do you dip into reserves to hire and hope the money starts rolling in?

The answer is complex, and the stakes are high. 

I once led a team through an organizational rough patch that had nothing to do with the team I was leading but caused significant stress and paralysis for them.  As an exercise, we watched a cheesy Liam Nielsen film where he was in a plane crash in some frozen tundra. At one point in the film, he tells his compatriots, “We need to move, or we die.” It quickly became our team motto. 

If you’ve been stuck in the same place year after year, it’s time to move.

Here are two pathways to consider: 

• De-Risked Pathway:

 Do you have a pathway to raise money that can then be invested in building a fundraising team? This approach reduces front-end risk. Here is what this could look like:

1.       Approach your Board or a major donor to invest in your growth plan.
2.       Apply for a capacity building grant from a foundation.
3.       Acquire a line of credit or working capital (a riskier option).

• Slow and Steady Pathway:  

For those who prefer a more conservative approach, this approach allows you to build your fundraising team without taking on immediate financial risk. To do this, you might:

1.       Organize your budget to delay program investment for 18-24 months while you invest in fundraising, with the goal of exponentially increasing program investment later. 
2.       Purposefully develop a surplus over 1-2 years to invest in fundraising. 

While the slow and steady approach involves less external risk, it costs you time – a nonrenewable resource. Some missions are too urgent to wait.

As a leader you are going to need to answer the question of when to hire for yourself and your unique situation.  But doing nothing is not an option. 

What Should the First or Next Position Be as You Build Your Fundraising Team?

I am sorry to disappoint you, but I cannot tell you which hire to make without knowing some additional information. I have a decision-making framework I use with my clients. I’ll give you a peek into it here.

Ask yourself the following questions to help you discern your starting place:

• Where is your current money coming from?
• Who is responsible for getting that money? You? Another staff member?
• How successful are you at getting that money? AKA how leveraged are you?
• Would adding additional support to you or your current team help you raise more?  Or just be nice?

There are many more questions I would ask you in a conversation,. but you get the idea. 

1. Rather than hiring a position disconnected from your current strengths, consider these strategies:

• Add Leverage
  • Hire a proposal and report writer if you are spending a significant portion of your time doing this and it is keeping you from building more donor relationships. 
  • Hire administrative support if you or a fundraiser are spending more than 20-30% of your time on administrative tasks. 
  • Hire a researcher if you don’t know who to target next. 
• Add Adjacent Capability
  • If your funding comes mostly from small and midsize donors, hire someone who can grow these relationships into major donors. 
  • If your money comes from government grants, hire a foundation fundraiser. 
  • If your money comes from major donors but your time is consumed by small donor campaigns, hire an annual fund manager. 

When starting out, focus on frontline positions that engage with donors to raise more money quickly. As your team grows, consider enabling support positions to create leverage.

A general rule of thumb I have for staff members engaging directly with donors is that I NEVER NEVER NEVER want to see them doing internal work for more than 25% of their time. EVER! 

Why do I say this? A lot of organizations want their fundraising team to be in the office or available all the time, thinking proximity will ensure staff stay on task, or so they can help out in other areas. True, sometimes this is necessary or appropriate. But, I’d argue that if you want to grow, your fundraisers need to be spending at least 75% of their time interacting with donors. 

As a leader, you cannot let you or your organizations fear of fundraising (or any other hiccups) keep these folks from doing their job. Yes, you need to track metrics (here are some great ways to track fundraising metrics). Your fundraisers have externally-facing jobs and they each will presumably have a fundraising goal to reach each year. It is your responsibility to do everything you can to equip them to reach or exceed that goal – for the good of your mission. 

While not giving you “the answer” of who to hire next, I hope that this helps you think through your unique situation and come to a decision on how to move forward. However, you may need more help here. I am happy to have a conversation and help guide you in this area – click here to watch a brief video and schedule a call today!

Fundraising Teams and ROI

This is the point in the article where I drop a bomb on you. Your goal isn’t just to build a strong fundraising team – it’s to build your mission. To do this, you must actively measure your team’s ROI. For example, if you spend $1 million on your fundraising team and they bring in $1 million for the organization, you’ve broken even and have not advanced your mission at all. But if this same group brings in $6 million, you’ve achieved a 6:1 ROI, which can significantly advance your mission.

Nonprofits often fall into these traps: 

1. Not measuring the ROI of the team at all. This is a big problem. When you fail to measure ROI, you have no idea how your business is doing  or how your investment is paying off. And you have no leverage to prove your team is worth investing in to continue growing.
2. Not measuring the ROI of specific initiatives. When you do this, you won’t know what approaches are working and what are not.

Not having an appropriate time horizon to measure the impact of the team. If you expect any new investment to your team to turn a 6:1 ROI within one year, I’m sorry to tell you, you will be disappointed. If you wait to see that ROI for 10 years, that’s too long. I like to think of fundraising investments on a three-year time horizon. In your first FULL YEAR* you should expect a 2:1 ROI on your investment. In year two, you should expect at 4:1 ROI. And in year three you should expect a 6:1 ROI. After this, your ROI is determined by how streamlined you can manage your team and your program. 

*I highlight the first full year in measuring ROI because I so often see organizations put money into their budget, but don’t actually deploy that investment until six or nine months into the year. In this scenario, you cannot expect to see any ROI in year one. 

If your team is not turning a significant ROI, you have a problem. That problem could be with the individuals or makeup of the team, the strategy, or the leader. ROI as a concrete data point can help you diagnose the problem.

Support Your Fundraising Team…or Else

I wrote about this above but want to come back to it. Supporting your fundraising team is crucial but it involves a delicate balance.

We have all met the fundraiser who does not want to do any administrative work. They think that all their efforts should be on asking for money. On the other hand, there are fundraisers who do everything except prepare well for donor meetings and either rush frantically into meetings or avoid donor interactions.

Neither of these approaches are healthy. Fundraisers need time to think, strategize, and prepare without being bogged down by extraneous administrative tasks. However, our support staff should equip them, not do their job for them. 

As your team grows, ensure they have the guardrails of the three S’s we discussed earlier.

1.       Space: 

Fundraisers need time to think strategically. A good friend of mine told me the story of a fundraiser who meticulously planned every detail of a meeting – down to the menu and seating – but neglected the crucial step of planning how to ask for a seven-figure gift. Why? Because he didn’t have the mental space to think it through.

Asking for money effectively requires deep thought about the donor, their motivations, and the right questions to ask. High-performing teams create space, often practicing together. But this isn’t possible if 75% of their time is consumed by internal administrative tasks. 

2.       Specialization

As your team grows, it’s essential to allow staff to specialize. Some will focus on cultivating small gifts that add up, while others will manage significant donor relationships. Whether it’s mid-level fundraising, major donors, or corporate and foundation work, specialization is key. Without support and strategic investment in your team’s skills, you risk stagnating year after year. As the leader you need to support your team, hone your team, judiciously invest in their skills, and add to their numbers. With the right support, your team can grow and excel, driving your mission forward.

3.       Scale

Scaling is the ultimate goal. Building a fundraising team isn’t just about raising more money – it’s about expanding your mission’s reach. To do this, you need scalable systems, clear processes, and supportive back-office functions. As a rule I like fundraisers to spend 75% of their time on forward facing activities (including thinking about forward facing activities), and 25% on administrative tasks. If they’re bogged down with admin work, their ROI will suffer, and so will your mission’s growth.

How to Hire a Fundraising Team

Hiring the right people is critical; get it right and 90% of your job in building a fundraising team will be a breeze. Unfortunately, many of us make mistakes in this process. 

The first step is to clearly define and communicate what you want. Your job descriptions must be specific, including the metrics by which you’ll evaluate your fundraising team. Don’t leave something so important to ambiguity.

The second step is reviewing a fundraising resume.

• Look for Numbers 

When scanning resumes, I focus on one thing above all else: numbers. I’ve never hired a successful fundraiser who did not include numbers on their resume – highlighting year-over-year growth in particular. It’s not just about how much they’ve raised, but whether they’ve grown their portfolio over time. If they’ve merely maintained a well-built portfolio without growing it, that’s a red flag.

• Consider Tenure: 

Longevity matters. While HR professionals might debate this, I believe  if you want to serve donors well, you need to build lasting relationships. This requires fundraisers to stick around long enough to get to know their donors and for donors to know them.

• Assess Upskilling: 

Look for progression into more senior roles over time. While you don’t necessarily need C-level executives in every role, you want someone ready to grow as part of your team. The past is the best predictor of the future, so I look for steady individuals with solid career trajectories. And if I can get them as they are hitting their stride, even better! 

Fundraising Team Culture: Hungry, Humble, Smart

When hiring fundraisers, it’s not just about relevant skills – team fit is crucial. A well-rounded, cohesive team is your greatest competitive advantage, so you need people who are strong team players. This isn’t just my opinion; it’s supported by Patric Lencioni’s insights in The Ideal Team Player, Which highlights three essential qualities: humility, hunger, and smarts. Below is his explanation and a link to his resources.

With enough time, patience and attention from a good manager, almost anyone can learn to become a team player. I believe that.

Having said that, some people are better at teamwork than others. These are the kind of people who add immediate value in a team environment and require much less coaching and management to contribute in a meaningful way.

So, there are two obvious questions. What do these people look like? And how do we find them? As it turns out, they have three qualities or virtues in common: they are humble, hungry and smart.

The Three Virtues

The three virtues seem quite simple, but require a bit of explanation.

HUMBLE The first and most important virtue of an ideal team player is humility. A humble employee is someone who is more concerned with the success of the team than with getting credit for his or her contributions. People who lack humility in a significant way, the ones who demand a disproportionate amount of attention, are dangerous for a team. Having said that, humble team players are not afraid to honestly acknowledge the skills and talents that they bring to the team, though never in a proud or boastful way.

HUNGRY The next virtue of an ideal team player is hunger, the desire to work hard and do whatever is necessary to help the team succeed. Hungry employees almost never have to be pushed by a manager to work harder because they are self-motivated and diligent. They volunteer to fill gaps, take on more responsibilities and are eagerly looking around corners for new ways to contribute to the team.

SMART The final virtue of a team player is not about being intelligent, but rather about being wise in how to deal with people. Smart employees understand the nuances of team dynamics, and know how their words and actions impact others. Their good judgment and intuition help them deal with others in the most effective way.

As simple as these three concepts may be, the key to all this is the unique combination of all three virtues, which make a person an ideal team player. Unfortunately, when even one of these attributes is lacking in a significant way, challenges can arise.

For instance, a humble and hungry employee who is not smart about people may accomplish a great deal but will often leave a trail of interpersonal destruction behind them. And a person who is smart and humble but lacking in hunger will frustrate team members by doing only what is required and having to be constantly asked to do more. Finally, a team member who is hungry and smart but truly lacking in humility, can have a devastating impact on a team. This type knows how to present himself or herself as a well-intentioned colleague, all the while looking out for his or her own needs. By the time team members figure this out, people have been manipulated and scarred.

How do you go about hiring ideal team players? It’s mostly about knowing what to look for, and probing in non-traditional ways. And what about employees who already work on the team and lack one or more of the virtues? A big part of helping them improve is making sure they understand the concepts and know where they fall short. We’ve found that merely introducing this simple model to teams and allowing them to self-assess goes a long way toward improvement.

The impact of ensuring that members of a team value and demonstrate humility, hunger and people smarts cannot be overstated. Most teams that struggle are not lacking in knowledge or competence as much as they are unable to access that knowledge and competence because of dysfunctional behaviors. A team full of people who are humble, hungry and smart will overcome those dysfunctions quickly and easily, allowing them to get more done in less time and with far fewer distractions.

When you are looking to hire a highly functional fundraising team, look for people who possess the right skills, have the right resume, and exhibit the qualities of being hungry, humble, and smart. Here is a great toolkit to do this. 

Fundraising Team Structure

Here’s a recommended structure for a mid-sized fundraising team. Whether your organization is larger or smaller, this model provides a strong foundation for growth

First, the fundraising leader should have no more than three or four direct reports. While this might seem ambitious, remember the “3 Ss”: space, specialization, and scale. In addition, to effectively fuel your mission, this person should on;y manage a a small portfolio of HIGHLY impactful donors. 

Now, here are the key roles that should report directly to the fundraising leader:

1. Director of Institutional Giving

   • This individual manages relationships with corporations, foundations, and possibly local, state, and federal grant agencies. They will either do this work directly (if you’re small) or lead a team in doing so.
   • Working with institutions (known as business-to-business to B2B) is a unique skill set when compared to working with individuals (known as business-to-consumer or B2C). The sales process in B2B is typically longer, more data-driven, the gifts are usually larger, and as your team grows, this team will often expand. You could have a dedicated development coordinator for this team if you grow large enough (more on that below).
   • In order to be successful, this person needs to have proven success in overseeing technical grants from foundations and corporations. 

2. Director of Individual Giving

   • This role focuses on B2C relationships, either directly managing or leading a team focused on individual donors.
   • As your organization grows, the Director of Individual Giving may oversee multiple teams, including those focused on major gifts, mid-level donors, and the annual fund. 
   • Specialized skills and perspective in B2C is essential for this role and for effective individual donor engagement. 

3. Development Coordinator

   • The Development Coordinator is the glue that holds your fundraising operation together.
   • A strong coordinator ensures that processes run smoothly, whether managing reports, putting on events, overseeing CRM systems, or writing appeals.
   • This individual and the support staff they manage are the connective tissue that allows the entire fundraising team to operate efficiently. I want to make it very clear that these staff members are equally important to a highly successful fundraising team as frontline fundraisers, and should be values as an integral part of your growth plan.

4. Administrative Support 

   • Providing the leader with essential administrative support, this role helps handle logistical and clerical tasks, freeing the leader up to focus on donor engagement and strategic activities. 

By structuring your team this way, you’ll create a scalable and efficient operation that can grow with your organization’s needs. This structure ensures that your team members are focused on their strengths, whether that’s building relationships with institutions, engaging individual donors, or keeping the entire operation running smoothly.

How to Lead A Fundraising Team

Under no circumstance can you discount the role of the fundraising leader. The leader of your fundraising team needs to be a jack of all trades, able to seamlessly transition from donor meetings to budget discussions to performance check-ins. 

Leadership in fundraising is less about being the best fundraiser and more about being a phenomenal leader. This means creating the right conditions for others to bring their best to their job, while also holding them accountable. The fundraising leader needs to be their own toughest critic and their team's biggest cheerleader.  

Here are four guiding principles I’ve adhered to while leading fundraising teams:  

1. Be a Genuine, Results-Oriented Leader

Many leaders believe they must choose between being authentic and kind OR being results-driven. This is a false dichotomy. The best teams I’ve led have described me as both their most demanding leader and the one they had the most fun working with. Authenticity and results are not mutually exclusive; they can and should coexist. 

Leaders who focus solely on being kind without driving results often end up with teams that function more like families – there’s plenty of love, but dysfunction is swept under the rug. These teams struggle to make significant progress.

On the other hand, leaders who are hyper-focused on metrics without emotional intelligence run the risk of turning their teams into fundraising sweatshops. These teams may raise a lot of money quickly, but overtime, staff members burn out and donors get fatigued. These teams are known for quick wins and long, slow downward spirals.

The key is to blend these two approaches, fostering a team culture that may grow slower at first but ultimately builds something that will last, and something that is beautiful.  

2. Listen Judiciously

As your team grows, it's important to step back from the day-to-day tasks and focus on listening carefully. This doesn’t mean micro-managing but rather understanding the needs, challenges, and successes of each member of your team. Listening allows you to serve your team better, hold them accountable to results and processes, and facilitate their growth.

3. Serve Your Team

A great leader is one who serves their team, removing obstacles and providing the tools they need to succeed. This might mean advocating for resources, offering guidance, or simply being available to dive in and do some work alongside your team members. Serving your team ensures they are empowered to do their best work and feel seen and valued by their leader.

4. Celebrate Success:

Don’t underestimate the power of celebration. Recognizing achievements, whether big or small, reinforces the behaviors and attitudes that lead to success. Consider incorporating rituals like ringing a gong when a significant goal is met.  This may sound cheesy.  But the team to whom this article is dedicated rung gongs for every win–and it was so much fun to watch the creative ways this fostered community, growth and creativity.  

These moments of celebration not only boost morale but also build a sense of shared accomplishment.Leading a fundraising team requires a balance of discipline, empathy, and strategic vision. By fostering a culture of accountability, support, and celebration, you can build a team that is not only effective but also resilient and motivated to achieve great things.

How to Measure Your Fundraising Team’s Performance 

Measuring your fundraising team’s performance is crucial for ensuring the effectiveness of your efforts and the growth of your mission. To start, establish clear, measurable goals for each team member and the team as a whole. These should include financial targets, donor acquisition and retention rates, and other key performance indicators (KPIs).

Use Data-Driven Metrics

Regularly track and analyze these metrics to assess progress. For instance, measure the return on investment (ROI) for specific fundraising campaigns, and compare the performance of different donor segments. Use tools like a CRM system to collect and analyze this data effectively.  One of my favorite data points to evaluate is in the area of lapsed donors.  Having high donor retention is a sign of a very healthy fundraising team.  Read our full guide on lapsed donors and how to win them back! 

Evaluate Fundraising Efficiency

One important metric is the cost to raise a dollar (CTRD). This metric helps you understand how efficiently your team is operating. A lower CTRD indicates higher efficiency, meaning your team is raising more funds in support of your mission.

Set Clear Expectations

Make sure that all team members understand their goals and how their performance will be measured. Regular check-ins and performance reviews can help keep everyone aligned and motivated. One team I led presented their portfolios – progress toward their individual goals, challenges, and plans to close any gaps – in front of the full fundraising team twice annually. This approach not only fostered accountability but also encouraged collaboration and shared learning, driving the team to achieve their goals more effectively.

For more detailed metrics and strategies, refer to articles on fundraising metrics and donor development strategies.

 

Fundraising and Marketing Alignment

Aligning your fundraising and marketing efforts is essential for creating a cohesive message that resonates with your audiences. These two teams must work closely together to ensure that the organization’s brand, mission, and values are consistently communicated across all channels.

• Integrated Campaigns: When your fundraising and marketing teams collaborate, they can create integrated campaigns that leverage the strengths of both teams. For example, marketing can amplify fundraising efforts through targeted social media campaigns, email newsletters, and storytelling that highlights donor impact. Alignment between these teams also enhances donor acquisition by optimizing website content and newsletters, which generates new leads for frontline fundraisers. 
• Shared Goals and KPIs: Establish shared goals between fundraising and marketing teams, such as increasing donor engagement or boosting campaign visibility. Use KPIs that reflect the contributions of both teams to these goals. This shared accountability fosters collaboration and helps break down silos.
• Consistent Messaging: Ensure that both teams are using consistent messaging that reinforces the organization's mission and appeals to your target audience. This consistency builds trust with donors and enhances the overall effectiveness of your campaigns. 

This cohesive approach ensures that your organization’s mission and message resonates consistently across all channels, driving both engagement and donations.

The role of consultants in fundraising teams

Consultants can play a pivotal role in enhancing your fundraising efforts, particularly when your team lacks certain expertise or when you need an outside perspective to solve specific challenges.

• Expertise and Specialization: Consultants bring specialized knowledge and skills that may not be available in-house. They can provide strategic guidance on capital campaigns, major gifts, planned giving, or digital fundraising, among other areas. Their expertise can help you implement best practices and innovative strategies that drive results.
• Objective Insights: An external consultant offers an objective perspective on your organization’s fundraising operations. They can identify inefficiencies, recommend process improvements, and help your team navigate complex challenges.
• Capacity Building: Consultants can also contribute to the professional development of your team. Through training and mentoring, they can help build your team’s capacity, equipping them with the skills and knowledge needed to sustain long-term growth.

Consultants can be invaluable in enhancing your fundraising efforts, especially when your team needs specialized expertise or an external perspective. They offer objective insights, help streamline processes, and provide strategic guidance on complex campaigns. Consultants also play a crucial role in capacity building, equipping your team with the skills to sustain long-term growth. When hiring a consultant, ensure they align with your organization’s values and goals. It’s also important to set clear expectations and outcomes to measure the success of their involvement.

If you’re looking for expert guidance to elevate your fundraising, consider partnering with a trusted advisor like The Kipos Group, who can help you achieve your goals and drive impactful results. 

If you’re ready to get to work and grow your team, schedule a discovery call today!