Non-profits face staffing and donor challenges: SEI

Organizations are not confident they can attract younger givers

Non-Profits & Charities

By Allie Sanchez

“With a complex market environment and baby boomer retirements, nonprofits need to focus more on reducing staff turnover, attracting new and younger donors, and retaining the donors they already have,” a recently released report by wealth management consulting firm SEI said.

The 2016 SEI Non-profit Survey Series reported that the two greatest challenges to charitable organizations currently are donor and staff retention issues.

According to the survey, 47% of respondents believe that the retirement of baby boomers, and their anticipated reduction in participation, could negatively affect their fund raising initiatives.

Further, 63% of those polled said they are not confident that their programs are compelling enough to attract a younger donor base.

“Donor retention and attraction continue to be critical drivers for the organization’s bottom line, and the fundraising environment is about to get even more challenging with baby boomers retiring,” the report said.

Further, “With an ongoing need to grow revenue year after year, nonprofit staffs must develop strategies to bring in new donations while retaining donors who already support their mission. And they need to do this soon, as existing donors might become harder to keep.”

Boomers, or those born between the years 1946 to 1964 accounted for 43% of giving, followed by Generation X, or those born in the years 1965-1980, who made up 20% of the US donor base. Millennials, who were born from 1981-1995 accounted for 11% of donors.

Staffing issues are another challenge that philanthropic organizations need to deal with.

According to the SEI report, “Nonprofits are challenged to keep fundraising staff especially when they are good at what they do and others are willing to pay more.”

SEI data also revealed that 42% of organizations that fundraise said they are unable to keep staff over the long term because they are unable to provide competitive compensation. 


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