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How to Hire a Fundraiser:
    New Talent Acquisition and Management in the
                  Nonprofit Setting
                  David A. Mersky

                      July 11, 2012




A Service
   Of:                                Sponsored by:
INTEGRATED PLANNING
            Advising nonprofits in:        www.synthesispartnership.com
            • Strategy
            • Planning                                    (617) 969-1881
            • Organizational Development   info@synthesispartnership.com


A Service
   Of:                                            Sponsored by:
www.mission.do




A Service
   Of:                  Sponsored by:
Today’s Speaker




                                    David A. Mersky
                                Founder and Managing Director
                                   Mersky, Jaffe & Associates
Assisting with chat questions:                                                          Hosting:
Jamie Maloney, Nonprofit Webinars                               Sam Frank, Synthesis Partnership

A Service
   Of:                                                Sponsored by:
How to Hire a Fundraiser:
     New Talent Acquisition and
  Management in the Nonprofit Setting


                                     David A. Mersky
                                   Founder and Managing Director

                             Mersky, Jaffe & Associates
                                           July 11, 2012

©2012 Mersky, Jaffe & Associates
Stay tuned until the end…

        …for an offer
       that you cannot
            refuse.
©2012 Mersky, Jaffe & Associates
©2012 Mersky, Jaffe & Associates
The State of Philanthropy in
      America Today



©2012 Mersky, Jaffe & Associates
The number of 501(c)(3) organizations, 2002–2011
2011 charitable giving
Total = $298.42 billion
The NGO Human Resource Environment

     • NGOs confront a most serious issue
              – Little or no movement at the top
              – Challenge to retain talent
     • Succession crisis
     • On the other hand, organizational
       professional leadership talent deficit
       particularly in development and fundraising

©2012 Mersky, Jaffe & Associates
Talent Deficit: Challenges
• Alternative career choices
• No clear career-tracking nor plans for retention
• View professional development and continuing
  education as a luxury
• Greater complexity/uncertainty in the sector
• No self-imposed CPE requirements


©2012 Mersky, Jaffe & Associates
Talent Deficit: Challenges
     • Growing number of nonprofits
                               – 200,000 + since 1975
                               – 10% of national workforce—19% in NYC
                               – Next 12 months, 28% of NGOs with $1 MM + revenues
                                 plan to make senior management hires=24,000 vacancies
     • Major communal bodies have lost 60% of
       their donors over the past 40 years
     • Insularity chokes off a sense of larger
       movement to improve our cities, our nations
       and the world
©2012 Mersky, Jaffe & Associates
Prescriptive Approaches
     • Educate our boards and leaders about the challenges
       and crisis
     • Have serious, intentional conversations about
       succession planning—professional and volunteer—at
       board meetings
     • Value professional development and continuing
       professional and volunteer education
              – We need visionary funders
              – Agencies should tax themselves 1% to 2% of budget for CPE

©2012 Mersky, Jaffe & Associates
Prescriptive Approaches
• Recognize that a professional career has phases
        – Each requires a different kind of development
• Create standards and benchmarks so organizations
        – can measure itself against its own talent management
          and retention goals
        – Can compare themselves against others by sector,
          geography, size, etc.


©2012 Mersky, Jaffe & Associates
But…
     …it makes little sense to spend time and money to
     train and develop your team—particularly the
     fundraisers—when they lack the capability for
     sustainable improvement.
     • ―Mishiring‖ is an epidemic
     • 20% to 33% of all fundraisers lack the capacity to be
        successful


©2012 Mersky, Jaffe & Associates
Past Hiring Methods
                          No Longer Apply
     • A bad hire—a person who does not make it
       through the first year—can cost 150% (200%
       to 250% for senior executives) of the first
       year’s compensation plus lost opportunities
     • Multiply these costs by your employee
       turnover


©2012 Mersky, Jaffe & Associates
Past Hiring Methods
                          No Longer Apply
     • Past record of stellar performance
              – Different organization, different competitors,
                different offer, different donors
     • Accuracy of resume
              – Rigorous and methodical reference checking is
                now a must
     • Your ability to ―read‖ people, i.e., your ―gut‖
              – More often than not hurts hiring effectiveness
©2012 Mersky, Jaffe & Associates
A Formal Hiring Process
     • The goal is to get the right people on the bus
       and invest in them = talent management and
       retention
     • To do that
              – Get off the seat of your pants
              – Create a formal process to provide an objective
                assessment of each candidate—the most critical
                success factor in hiring today
©2012 Mersky, Jaffe & Associates
©2012 Mersky, Jaffe & Associates
Steps for Smart Hiring
  • Form a three person hiring team
  • Agree on how the position and the organization will be
    described in a consistent way to all candidates
  • Write an accurate job description—not ―walk on water‖
  • Create a resume screening filter to eliminate unqualified
           – Respond to everyone with appreciation
           – Keep people informed as to where they are in the process




©2012 Mersky, Jaffe & Associates
Steps for Smart Hiring
• Build a profile for the role
        – Skills—a developed aptitude or ability, such as
                         – Listening
                         – Presenting

        – Traits—an inherited or innate characteristic, such as
                         –   Tenacity
                         –   Intelligence
                         –   Drive for self-improvement
                         –   Integrity
                         –   Positivity
                         –   Flexibility
                         –   Curiosity
                         –   Coachability
©2012 Mersky, Jaffe & Associates
Steps for Smart Hiring
     • Engineer 1st, 2nd and, if required, 3rd round interview
       questions
     • Develop a rigorous reference-checking procedure
     • Build simulation and role-playing exercises into
       interview for final candidates
     • Build a relationship with a predictive testing provider
     • Create individualized on-boarding plan for each new
       hire

©2012 Mersky, Jaffe & Associates
I Know What You Are Thinking…
•           Where am I going to find the time to do all of
            this?
        –           “I do have a day job!”
•           Look at the numbers:
        –           Building the process=10 hours
        –           Taking the first candidate through the process (rather than ―tell me about
                    yourself…‖)=5 hours

•           Raise your success rate from 2 out of 3 to 3 out of
            four where one wrong hire might cost $250,000
    ©2012 Mersky, Jaffe & Associates
©2011 Mersky, Jaffe & Associates
Some final thoughts…

• Practice what you preach—Always Be Prospecting
     – Prospecting is a process—not an event
     – Set aside time each month to prospect and interview
       fundraising talent




©2012 Mersky, Jaffe & Associates
Some final thoughts…

• Go for EQ not IQ
     – Emotional intelligence is more valuable than a 4.0
     – Here are three EQ traits:
              • Assertiveness
                      – Don’t waste time—theirs or prospects—on unqualified opportunities
                      – Know how to state what is needed from prospect
              • Empathy
                      – Turn off WII-FM
                      – Show genuine, sincere interest in prospects and donors
              • Flexibility
                      – Open to new ideas
                      – Uses new information which comes at ever faster pace.
©2012 Mersky, Jaffe & Associates
Some final thoughts…

              • Flexibility
                      – Open to new ideas
                      – Uses new information which comes at ever faster pace

• Check and hire for values
     – Cultural fit
     – ―Tell me about a time when you helped one of your
       peers or another department and received no
       recognition or reward.‖

©2012 Mersky, Jaffe & Associates
Some final thoughts…

  • Invest your time wisely
           – Keep new hire motivated
           – Provide continuous feedback and professional development
             opportunities
  • Private recognition nice—public approbation better
  • Make every meeting a ―money maker‖
           – Plan so that everyone walks away with a nugget to make
             them more successful that week


©2012 Mersky, Jaffe & Associates
©2012 Mersky, Jaffe & Associates
To receive two free lists of
                              questions…
1.          To ask in an initial screening interview
2.          A second round interview
3.          To ask when checking references
                              Send an email to:
                           david@merskyjaffe.com
 ©2012 Mersky, Jaffe & Associates
Mersky, Jaffe
                         & Associates
               Financial and Human Resource
            Development Solutions for Nonprofits
  800.361.8689                                           413.556.1074 fax
                                   www.merskyjaffe.com


                          OFFICES IN BOSTON AND NEW YORK

©2012 Mersky, Jaffe & Associates
Find listings for our current season
          of webinars and register at:

            NonprofitWebinars.com


A Service
   Of:                     Sponsored by:

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How to Hire a Fundraiser: New Talent Acquisition and Management in the Nonprofit Setting

  • 1. How to Hire a Fundraiser: New Talent Acquisition and Management in the Nonprofit Setting David A. Mersky July 11, 2012 A Service Of: Sponsored by:
  • 2. INTEGRATED PLANNING Advising nonprofits in: www.synthesispartnership.com • Strategy • Planning (617) 969-1881 • Organizational Development info@synthesispartnership.com A Service Of: Sponsored by:
  • 3. www.mission.do A Service Of: Sponsored by:
  • 4. Today’s Speaker David A. Mersky Founder and Managing Director Mersky, Jaffe & Associates Assisting with chat questions: Hosting: Jamie Maloney, Nonprofit Webinars Sam Frank, Synthesis Partnership A Service Of: Sponsored by:
  • 5. How to Hire a Fundraiser: New Talent Acquisition and Management in the Nonprofit Setting David A. Mersky Founder and Managing Director Mersky, Jaffe & Associates July 11, 2012 ©2012 Mersky, Jaffe & Associates
  • 6. Stay tuned until the end… …for an offer that you cannot refuse. ©2012 Mersky, Jaffe & Associates
  • 7. ©2012 Mersky, Jaffe & Associates
  • 8. The State of Philanthropy in America Today ©2012 Mersky, Jaffe & Associates
  • 9. The number of 501(c)(3) organizations, 2002–2011
  • 10. 2011 charitable giving Total = $298.42 billion
  • 11. The NGO Human Resource Environment • NGOs confront a most serious issue – Little or no movement at the top – Challenge to retain talent • Succession crisis • On the other hand, organizational professional leadership talent deficit particularly in development and fundraising ©2012 Mersky, Jaffe & Associates
  • 12. Talent Deficit: Challenges • Alternative career choices • No clear career-tracking nor plans for retention • View professional development and continuing education as a luxury • Greater complexity/uncertainty in the sector • No self-imposed CPE requirements ©2012 Mersky, Jaffe & Associates
  • 13. Talent Deficit: Challenges • Growing number of nonprofits – 200,000 + since 1975 – 10% of national workforce—19% in NYC – Next 12 months, 28% of NGOs with $1 MM + revenues plan to make senior management hires=24,000 vacancies • Major communal bodies have lost 60% of their donors over the past 40 years • Insularity chokes off a sense of larger movement to improve our cities, our nations and the world ©2012 Mersky, Jaffe & Associates
  • 14. Prescriptive Approaches • Educate our boards and leaders about the challenges and crisis • Have serious, intentional conversations about succession planning—professional and volunteer—at board meetings • Value professional development and continuing professional and volunteer education – We need visionary funders – Agencies should tax themselves 1% to 2% of budget for CPE ©2012 Mersky, Jaffe & Associates
  • 15. Prescriptive Approaches • Recognize that a professional career has phases – Each requires a different kind of development • Create standards and benchmarks so organizations – can measure itself against its own talent management and retention goals – Can compare themselves against others by sector, geography, size, etc. ©2012 Mersky, Jaffe & Associates
  • 16. But… …it makes little sense to spend time and money to train and develop your team—particularly the fundraisers—when they lack the capability for sustainable improvement. • ―Mishiring‖ is an epidemic • 20% to 33% of all fundraisers lack the capacity to be successful ©2012 Mersky, Jaffe & Associates
  • 17. Past Hiring Methods No Longer Apply • A bad hire—a person who does not make it through the first year—can cost 150% (200% to 250% for senior executives) of the first year’s compensation plus lost opportunities • Multiply these costs by your employee turnover ©2012 Mersky, Jaffe & Associates
  • 18. Past Hiring Methods No Longer Apply • Past record of stellar performance – Different organization, different competitors, different offer, different donors • Accuracy of resume – Rigorous and methodical reference checking is now a must • Your ability to ―read‖ people, i.e., your ―gut‖ – More often than not hurts hiring effectiveness ©2012 Mersky, Jaffe & Associates
  • 19. A Formal Hiring Process • The goal is to get the right people on the bus and invest in them = talent management and retention • To do that – Get off the seat of your pants – Create a formal process to provide an objective assessment of each candidate—the most critical success factor in hiring today ©2012 Mersky, Jaffe & Associates
  • 20. ©2012 Mersky, Jaffe & Associates
  • 21. Steps for Smart Hiring • Form a three person hiring team • Agree on how the position and the organization will be described in a consistent way to all candidates • Write an accurate job description—not ―walk on water‖ • Create a resume screening filter to eliminate unqualified – Respond to everyone with appreciation – Keep people informed as to where they are in the process ©2012 Mersky, Jaffe & Associates
  • 22. Steps for Smart Hiring • Build a profile for the role – Skills—a developed aptitude or ability, such as – Listening – Presenting – Traits—an inherited or innate characteristic, such as – Tenacity – Intelligence – Drive for self-improvement – Integrity – Positivity – Flexibility – Curiosity – Coachability ©2012 Mersky, Jaffe & Associates
  • 23. Steps for Smart Hiring • Engineer 1st, 2nd and, if required, 3rd round interview questions • Develop a rigorous reference-checking procedure • Build simulation and role-playing exercises into interview for final candidates • Build a relationship with a predictive testing provider • Create individualized on-boarding plan for each new hire ©2012 Mersky, Jaffe & Associates
  • 24. I Know What You Are Thinking… • Where am I going to find the time to do all of this? – “I do have a day job!” • Look at the numbers: – Building the process=10 hours – Taking the first candidate through the process (rather than ―tell me about yourself…‖)=5 hours • Raise your success rate from 2 out of 3 to 3 out of four where one wrong hire might cost $250,000 ©2012 Mersky, Jaffe & Associates
  • 25. ©2011 Mersky, Jaffe & Associates
  • 26. Some final thoughts… • Practice what you preach—Always Be Prospecting – Prospecting is a process—not an event – Set aside time each month to prospect and interview fundraising talent ©2012 Mersky, Jaffe & Associates
  • 27. Some final thoughts… • Go for EQ not IQ – Emotional intelligence is more valuable than a 4.0 – Here are three EQ traits: • Assertiveness – Don’t waste time—theirs or prospects—on unqualified opportunities – Know how to state what is needed from prospect • Empathy – Turn off WII-FM – Show genuine, sincere interest in prospects and donors • Flexibility – Open to new ideas – Uses new information which comes at ever faster pace. ©2012 Mersky, Jaffe & Associates
  • 28. Some final thoughts… • Flexibility – Open to new ideas – Uses new information which comes at ever faster pace • Check and hire for values – Cultural fit – ―Tell me about a time when you helped one of your peers or another department and received no recognition or reward.‖ ©2012 Mersky, Jaffe & Associates
  • 29. Some final thoughts… • Invest your time wisely – Keep new hire motivated – Provide continuous feedback and professional development opportunities • Private recognition nice—public approbation better • Make every meeting a ―money maker‖ – Plan so that everyone walks away with a nugget to make them more successful that week ©2012 Mersky, Jaffe & Associates
  • 30. ©2012 Mersky, Jaffe & Associates
  • 31. To receive two free lists of questions… 1. To ask in an initial screening interview 2. A second round interview 3. To ask when checking references Send an email to: david@merskyjaffe.com ©2012 Mersky, Jaffe & Associates
  • 32. Mersky, Jaffe & Associates Financial and Human Resource Development Solutions for Nonprofits 800.361.8689 413.556.1074 fax www.merskyjaffe.com OFFICES IN BOSTON AND NEW YORK ©2012 Mersky, Jaffe & Associates
  • 33. Find listings for our current season of webinars and register at: NonprofitWebinars.com A Service Of: Sponsored by: