Nonprofit HR’s Blog

Development professionals — those responsible for securing funding and ensuring the financial health of nonprofit organizations — are vital to nonprofit sustainability, yet many organizations face persistent challenges in hiring and retaining them. In fact, a 2024 survey of over 1,000 nonprofit professionals revealed that 37% of organizations have struggled to recruit fundraising and development professionals in the past year.

An organization’s fundraising strength is key to advancing its mission effectively and ensuring long-term stability. Building meaningful relationships with donors takes time, making the longevity of development professionals a crucial factor in sustaining those connections. Based on my experience as an Executive Search Consultant, here are the five most common challenges organizations face when recruiting and retaining these professionals, along with effective strategies to overcome them. Understanding these pain points and how to proactively address them will add to your arsenal of talent management tools, secure your ability to attract and keep this essential talent to support the sustainable impact for your mission.

High Demand, Dwindling Talent Pool

Recruiting a development professional is difficult and although the rewards of success are high, the challenges contribute to why the market isn’t saturated with skilled fundraisers. Nonprofits have cited their biggest recruitment challenge in the last year was the lack of available candidates or unsuitable candidates. Professionals with strong relationship-building, donor cultivation and revenue-driving abilities are in high demand, and there aren’t enough experienced candidates to meet that need.

This competitive landscape requires nonprofits to develop distinctive attraction strategies that make their organizations stand out. Consider enhancing your recruitment approach by highlighting mission impact through compelling storytelling, showcasing professional growth trajectories unique to your organization or offering creative benefits packages that address work-life balance concerns. Additionally, partnering with fundraising professional associations and nonprofit leadership programs can position your organization in front of qualified candidates before they actively enter the job market. Your recruitment messaging should emphasize not just what you need, but what makes your organization an exceptional place for development professionals to make their mark.

High Turnover Rates

Based on direct experience recruiting this talent pool and a bit of industry research, the average tenure of a Chief Development Officer is about 1.5 to 2 years. Common reasons for turnover are unrealistic fundraising expectations, lack of organizational support or burnout from managing aggressive revenue targets.

Addressing these retention challenges requires intentional strategies focused on creating sustainable working environments. Implement regular check-ins specifically designed to calibrate fundraising goals against available resources and market conditions. Develop cross-departmental support systems where program staff actively participate in donor engagement, reducing the isolated nature of development work. Recognize and celebrate incremental fundraising successes rather than focusing exclusively on year-end targets. By addressing the root causes of development professional turnover, you’ll not only extend tenure but also build an organizational reputation that will attract future talent.

Unrealistic Expectations & Lack of Support

Development professionals are often expected to immediately produce large donations but aren’t always provided adequate resources, time or leadership support to do so. Some organizations fail to invest in proper donor databases, marketing efforts or a strong fundraising team, which can hinder the impact and success of development efforts.

Before starting the recruitment process, organizations should assess whether they have the right infrastructure to support a development professional’s success. Skilled fundraisers thrive when they have experienced leadership, clear goals and the necessary resources in place. This includes access to sufficient training, appropriate tools and technology for tracking donations and donor engagement, a supportive team, and an organizational culture that prioritizes collaboration and transparency. Is your organization prepared to provide these supports? Without a strong foundation, even the most talented fundraiser may struggle to succeed — leading to a partnership that feels unsteady from the start.

Mission Misalignment

Unlike corporate sales, fundraisers need to believe in the mission to be successful. If they don’t feel a strong connection to the cause or sense a lack of impact, they’re more likely to leave for an organization that aligns better with their values.

One way to deeply vet a candidate’s mission alignment is to get to know them as an individual. I have worked with organizations that simply lack the bandwidth, internal structure or time to really identify a candidate’s “why.”  The executive search process is designed to uncover that very thing. This is one of several reasons why boards continue to see the value in working with search firms. Taking the time to uncover this piece will enhance retention and increase the likelihood that the employee will make meaningful contributions to your organization’s mission and goals.

Compensation Gaps

As an Executive Search consultant, I have found this compensation dynamic to be a dance in nonprofit organizations. With limited financial resources, many nonprofits struggle to offer salaries competitive to those of the private sector. As a prospective employer, a competitive compensation plan helps, but you can’t squeeze water out of a turnip.

In a landscape where funding may be limited or at risk, nonprofits can adopt creative ways to contain costs while still attracting and retaining development talent. This may include offering non-monetary benefits such as flexible work arrangements, professional development opportunities, and a strong focus on employee well-being. For some organizations, a focus on employee recognition, a positive work culture and opportunities for growth can make a significant difference in retention without requiring large financial investments.

What Your Organization Can Do

I’ve seen this challenge also managed through mission alignment. Find the developers that are passionate and aligned with your mission. For those individuals, meaningful work and creating lasting impact in the world is powerful currency! In addition, consider creating an ambassador program where current staff promote your culture through their networks can strengthen your employer brand and promote the unique culture of your organization to prospective talent. By emphasizing the mission and the opportunity to make a tangible difference, organizations can offset compensation gaps and attract candidates who are truly invested in the cause.

From compensation to retention to success, understanding and actively addressing each dynamic in this process will significantly increase the success of the hire, foster a stronger relationship between the employee and the organization, and ultimately build a foundation for long-term success and impact.

Need support with your recruitment or retention strategy? Contact our team today to see how we can craft a solution unique to your organization.

Contributing Author

Jami Armstrong Senior Consultant, Search, Impact Search Advisors by Nonprofit HR Jami brings over 15 years of experience in corporate recruiting, agency recruiting and client relations in several sectors. These sectors include engineering, corporate operation roles, accounting in for-profit and nonprofit organizations, government contracting and international development. She has had years of proven success managing a high volume of open job requisitions at multiple levels while simultaneously delivering excellent client service. Read full bio. Check out a recent Chronicle of Philanthropy article Jami was featured in for tips on securing a Director of Development position.