Why Fundraisers Should Transition Donor Information Before They Quit
If you have worked in the nonprofit fundraising field for any time, you will experience a variety of job transitions. These transitions are complex. Some are smooth, but, in other scenarios, you may be fired or laid off. Regardless of the circumstances, what happened to the donor information each fundraiser amasses during their tenure?
In each job transition I experienced over several decades, I received no transition of data information or donor relationship information. I started from scratch, learning systems, processes and people. If you do not obtain information going into a position, why should you provide detailed information on your way out of a position?
There are more than 125,000 fundraisers in the United States, according to the latest data from the U.S. Bureau of Labor Statistics. That figure is expected to grow 6% by 2033 — faster than average for all occupations. On average, 10,000 openings will occur each year for fundraisers over the next decade. These workers will transfer to different occupations, organizations or simply retire. As each fundraising position changes, the process of donor information transition begins.
With a high rate of turnover and a short average tenure, the issue of protecting donors and donor information is vitally important to nonprofits. The loss of donor data could lead to the loss of donors and cost nonprofits millions of dollars over time.
Policies and Procedures Necessary on the Nonprofit’s Side
Not all of the burden of donor data transitions falls to the departing employee. Nonprofits should plan for staff turnover in advance, according to a guide from Indianapolis-based fundraising consulting firm, Johnson Grossnickle Associates (JGA) (opens as a pdf). In addition to being flexible during transitions, organizations should ensure they have the tools and procedures in place to maximize the efficiency of collecting donor data and the ease of transitioning it to new staff during transitions. Cross-training staff and having a plan for transitions will help with keeping donors engaged — even when the fundraiser turnover occurs.
It is especially important not only to properly transition donor information but donor relationships as well. I strongly recommend the nonprofit’s CEO join the new fundraising officer’s visits with all significant major, principal and planned gift donors that staff disruptions affected.
A donor who had a long-term relationship with one fundraising professional needs to know the transition will be smooth and continuous. The donor also needs to realize they give to the organization, not the fundraising individual.
Nonprofits should also schedule an exit interview with departing employees to review data security policies.Work closely to educate human resources on the uniqueness of development information, especially if there are potential conflict issues with departing employees. This is especially important if the organization made the decision to release the employee.
As an example of a poor organizational transition, a major donor who had also committed to a significant planned gift worth several million dollars called me after I transitioned from a high-level development position at the nonprofit she supported. I had left strategic information for my replacement. Despite that, no one at the nonprofit continued the relationship with her. As a result, she stopped giving and pulled her planned gift commitment.
That made me sad because she had been a board member, chair of a capital campaign and owned multiple companies with great growth potential. Transitioning donor information must be a high level nonprofit institutional priority.
Ethical and Career Considerations on the Fundraiser’s Side
With respect to donor relationships and information, there are ethical standards that must be considered. The Association of Fundraising Professionals created the “Code of Ethical Standards.” Adopted in 1964 and last updated in 2023, this code governs the association’s members to practice with integrity and an obligation to safeguard the public trust.
“Recognize information created on behalf of an organization, including donor and prospect information, is the confidential intellectual property of that organization and may not be taken, shared with, or transferred to other entities,” according to the code.
Nonprofits are responsible for monitoring employee behavior. As a fundraising professional, the right way for a departing fundraising employee to leave their position ethically is to leave all donor information with their current employer including personal donor contact information. It is also important to inform all your donors — whether they are in your portfolio or not — of your departure and to introduce them to your replacement.
It is important to be ethical with donor information and transparent with donors. Ensure all donor data is updated and organized in the nonprofit’s database before leaving. Work closely with your replacement, if possible, to provide donors’ giving histories, interests, communication preferences and long-term strategies to discover linkage, ability and inclination.
Ensure your job transition is a positive one. Failure to help your former organization may hurt your reputation and with future references. Do not burn a bridge on the way out.
Looking back on my career, one of the best feelings I ever had was when I left a fundraising position and made the decision to provide significant detailed donor information and strategy on my significant portfolio prospects for my replacement. No one told me to do this. That decision led to several significant seven-figure gifts for the institution long after I had left. While another fundraising professional took the credit for these ultimate gifts, I smiled knowing I helped play a role in their success. That made me happy as it is all about helping the profession.
The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.
Duke Haddad, Ed.D., CFRE, is currently associate director of development, director of capital campaigns and director of corporate development for The Salvation Army Indiana Division in Indianapolis. He also serves as president of Duke Haddad and Associates LLC and is a freelance instructor for Nonprofit Web Advisor.
He has been a contributing author to NonProfit PRO since 2008.
He received his doctorate degree from West Virginia University with an emphasis on education administration plus a dissertation on donor characteristics. He received a master’s degree from Marshall University with an emphasis on public administration plus a thesis on annual fund analysis. He secured a bachelor’s degree (cum laude) with an emphasis on marketing/management. He has done post graduate work at the University of Louisville.
Duke has received the Fundraising Executive of the Year Award, from the Association of Fundraising Professionals Indiana Chapter. He also was given the Outstanding West Virginian Award, Kentucky Colonel Award and Sagamore of the Wabash Award from the governors of West Virginia, Kentucky and Indiana, respectively, for his many career contributions in the field of philanthropy. He has maintained a Certified Fund Raising Executive (CFRE) designation for three decades.
