Bridging the Fundraising Knowledge Gap for Leaders
Give credit where credit is due… in a recent opinion piece in the Chronicle of Philanthropy, the author gets right to the point… fundraisers are under siege.
In the world of nonprofits, fundraising is often referred to as the lifeblood that keeps organizations functioning. Despite its crucial role, fundraising remains largely misunderstood and undervalued by nonprofit leaders and boards. This disconnect contributes to inefficiencies, burnout among fundraising staff, and even threatens the long-term sustainability of many organizations. While many leaders recognize the need for more donations, few fully grasp the intricacies of the fundraising profession. Addressing this gap is essential to empower fundraisers and ensure that nonprofits can meet their goals.
A staggering 55% of fundraisers report feeling underappreciated by their nonprofit’s leadership, according to a 2023 study by the Association of Fundraising Professionals. This highlights a widespread problem: nonprofit leaders often don’t understand the challenges fundraisers face or the skills required to cultivate donors effectively. In fact, 25% of executive directors admit they lack knowledge of fundraising, which creates a gap between expectations and reality.
This disconnect often leads to unrealistic fundraising goals being set without consideration for the resources available to the team. Fundraising professionals are left feeling unsupported and overworked, reflected in the 51% of fundraisers who plan to leave their organization within two years due to burnout and stress. When leaders don’t understand donor cultivation, major gift planning, or grant management, they are less likely to offer the support fundraisers need to succeed.
Fundraising is a highly specialized profession that requires skills ranging from grant writing and event planning to major gift cultivation and donor stewardship. Yet, nonprofit leaders often view it as a straightforward process, expecting small teams to manage large-scale operations with limited resources. The reality is that successful fundraising requires significant investment in both human capital and technology, including digital tools, data analytics, and donor research software.
Many fundraisers are expected to wear multiple hats—handling everything from event management to donor relations—without the necessary support. Leaders may see events like galas as major fundraising opportunities but fail to recognize that they are expensive, time-consuming, and often poor investments in long-term donor engagement. For many nonprofits, the cost of hosting such events can outweigh the benefits if they aren’t part of a larger, strategic donor cultivation plan.
To address these issues, nonprofit leaders must acknowledge the complexities of fundraising and commit to understanding it better. Foundations and major donors can also play a role by directing funds specifically toward building fundraising capacity. This includes providing training, tools, and support for fundraising staff, especially at smaller organizations serving marginalized communities.
Investing in fundraising infrastructure can lead to significant returns for organizations. Research from Giving USA shows that organizations with a well-resourced fundraising plan see an average 23% increase in revenue over five years compared to those without one. Leaders need to ask critical questions about their organization’s fundraising: How many fundraisers has the organization had in the past five years? What percentage of revenue comes from diversified sources? How much investment is being made in donor relations and stewardship?
And this is why I was talking about in my book…
In Vibrant Vulnerability, I emphasize that many nonprofit CEOs don’t fully understand their role in fundraising. While they may leave fundraising tasks to development staff, I argue that successful fundraising is a shared responsibility. When CEOs actively participate in donor relations—through meetings, fostering board involvement, or advocating for the mission—they significantly impact the organization's ability to secure donations.
I also highlight the isolation many fundraisers feel due to this lack of leadership involvement. When fundraisers are left to sink or swim without strategic guidance, it leads to burnout and high turnover. CEOs need to recognize that effective fundraising is not only the responsibility of the development team but a critical component of leadership. By embracing vulnerability and collaborating closely with fundraisers, CEOs can build stronger, more sustainable organizations.
Fundraising is not just a means to an end—it’s the engine that drives nonprofit impact. Nonprofit leaders must start recognizing fundraising as a profession requiring investment, training, and shared responsibility. The consequences of ignoring this reality are clear: high turnover, burnout, and stagnating revenue streams. By investing in their fundraising teams and embracing their role in the process, nonprofit leaders can build more resilient organizations that can continue to grow and serve their communities effectively.
Supporting fundraising is not just about securing donations; it’s about ensuring the long-term success and impact of the nonprofit sector.
