Why Growing Your Fundraising Team Will Improve ROI

by Suzanne Battit

Senior Vice President and Fundraising Practice Manager

Posted June 20, 2022

When looking to improve your ROI, it may feel counterintuitive to think about spending more money by investing in and growing your frontline fundraising team. However, doing so is one of the best ways to increase revenue and grow your impact. Consider these 3 reasons why recruiting new frontline fundraising staff can financially strengthen an organization:

1. Typically, a frontline fundraiser will pay for themself within the first twelve months of joining an organization.

With the right resources and support, an effective frontline fundraiser at a mid-sized organization will secure enough gifts within their first year of employment to fully offset the cost of their salary. Furthermore, most organizations can expect these fundraisers to bring in double their salary by the end of year two, and even more by the end of year three. The ROI will grow exponentially as the fundraiser’s relationships deepen and portfolio strengthens – making them well worth the investment.

2. Continuously—and seriously—investing in your frontline fundraising staff will attract higher-caliber candidates.

The best fundraising talent are seeking organizations where the leadership and board are fully committed to the success of the fundraising team. Over and over again, through our work as executive search consultants, we encounter highly skilled candidates who prioritize the organization’s investment in fundraising as highly as many other important factors, such as the job responsibilities, organizational mission, and salary. If you want the best talent, show them that you have the conditions in place to help them succeed.

3. Operating leanly does not always equate to operating effectively.

Too often, nonprofits operate with a scarcity mindset, when in reality, increasing overhead costs is often critical to scaling an organization’s growth. A general rule of thumb for a healthy cost per dollar raised is 25-30 cents. If you are significantly below that, you are running the risk of burnout and retention issues among your staff – which are costly issues to address.

• • •

Even in today’s dynamic job market, talented candidates are responding to exceptional opportunities. If we can be of assistance, please be in touch.

Development Guild DDI Logo

How can we help you?

For 45 years, Development Guild DDI has partnered with nonprofit organizations nationwide to achieve their most ambitious goals. Whether you need new talent, fundraising or campaign solutions, or strategic counsel, we can help.

Interested in becoming a candidate?

Provide us with some context, and we will connect you with the right consultant.