A US study on challenges facing its nonprofit sector makes one thing clear: the capacity to attract and retain high-quality development directors is lacking—threatening the ability of many nonprofits to raise resources.

The newly released study, a joint project of CompassPoint and the Evelyn and Walter Haas, Jr. Fund, found high levels of turnover and lengthy vacancies in development director positions throughout the sector.  What’s more concerning, the study shows, are the deep-rooted issues that contribute to instability in the development director role. Chief among these issues are a lack of basic fundraising systems and inadequate attention to fund development among key board and staff leaders.

As a result, many nonprofits find themselves trapped in a vicious cycle where they are unable to raise resources in order to succeed.

The report is organized around three main challenges and concludes with a set of recommendations to jumpstart a national conversation about how we can all help nonprofits move their fund development forward.

• Revolving door. Organizations are struggling with high turnover and long vacancies in the development director position.
• Help wanted. Organizations aren’t finding enough qualified candidates for development director jobs. Executives also report performance problems and a lack of basic fundraising skills among key development staff.
• It’s about more than one person. Beyond creating a development director position and hiring someone who is qualified for the job, organizations and their leaders need to build the capacity, systems, and culture to support fundraising success. The findings indicate that many nonprofits aren’t doing this.

Breaking the cycle

The study offers urgent calls to action for the nonprofit sector, citing key steps that nonprofit executives, funders, and sector leaders should consider as they address the challenges detailed in the report. The calls to action are as follows:

• Embrace fund development, a mental model shift across the sector.
• Elevate the field of fundraising.
• Strengthen and diversify the talent pool.
• Train boards differently.
• Apply the transition management framework to the development director position.
• Invest strategically in grantee fundraising capacity.
• Leverage technological innovation—embrace creativity.
• Set realistic goals for development.
• Share accountability for fundraising results.
• Exercise fundraising leadership.

Michelle Jondreau is a communications professional with an avid interest in all things HR. On top of that, she hails from the nonprofit world and as such has a keen understanding of sector trends and issues. Follow her @majondreau.