Building Strong Foundations: The Case for Prioritising Professional Development in Philanthropy
It’s not a groundbreaking revelation that staff wellbeing and burnout are huge challenges our sector is facing right now (see this blog from the Centre for Effective Philanthropy), and the sector-wide lack of investment in professional development has a lot to answer for.
We’re all aware that it’s a tough economic climate, and typically, ‘nice-to-have’ operational costs are the first thing to go when organisations need to focus on delivery. Instead, programmatic spending is seen as the priority. And it’s not just non-profit organisations, it’s come to my attention over the last 6 months especially that it’s grant-makers and foundations too. In fact, my experience with I.G.’s #FixTheFlow Fellowship suggests that grant-makers are investing even less in professional development than charities and other non-profit organisations.
I’ve now seen two cohorts of incredible Funder Fellows representing some brilliant grant-making organisations go through the #FixTheFlow Fellowship programme. I’ve had some very thoughtful & honest conversations with them, and I have no doubt they will go on to drive change in their organisations and for the sector. However, there’s no denying the scales are unbalanced, with many more Fundraising Fellows joining the programme than grantmakers, all of whom report a lack of the formal training and tools needed for them to do their jobs well.
So, I have been reflecting, and asking myself, what is driving this lack of investment?
What’s interesting is that even the existing research and articles on this phenomenon are largely geared towards the non-profits that foundations support, rather than the foundations themselves. Take this report, ‘State of Nonprofits, 2024: What Funders Need to Know’ from the Centre for Effective Philanthropy, as an example.
However, our institutional knowledge as experts in the philanthropy sector, and the countless anecdotal evidence we hear from our Fellows, allows us to point to a few key reasons for this under-investment:
Mission & purpose-driven work: The mission of many grant-making organisations is what drives them. They are committed to serving their grantee partners & communities. As such, the opportunity cost of investing in professional development internally - that grant-making organisations then have less to commit to the grantees and communities they serve - is simply too high.
Budget constraints: We don’t need to tell anyone reading this that the economic climate continues to present serious challenges for the whole sector. Keeping overheads low is a concern for non-profit and grant-making organisations alike. For grantmakers, there is also the added challenge that many over-committed funding during covid. The impacts of which are still lingering, as foundations continue to honour these commitments, and try to meet the current and evolving needs of non-profits & communities everywhere.
Staff turnover: Organisations are often fearful of investing in their team’s professional development, and then moving on from the organisation shortly after. Research from the Council on Foundations revealed that although grantmaking organisations implemented record salary increases in 2023, staff turnover rates have continued to increase too.
Organisational Culture: Whether it’s traditional hierarchical structures or a general lack of understanding around the long-term positive impacts of investing in their teams (no matter what stage of their career they are at), organisational culture can be a huge barrier to seeing the value in investing in staff development.
This all makes sense, and when I think about it with my fundraiser & relationship manager hat on, I get it. Of course, spending more on impact ‘must’ be the most logical decision. When you’ve got grants to make or services to deliver, funders and board members to answer to, and needs to meet that far outweigh the demand, this is the default mindset we are all guilty of. Now with the ability to step back, and look at things with my advisor hat on, I want to challenge that line of thinking - by spending more on impact and less on your staff - you’re actually achieving less impact…
Here’s how:
Your team’s capabilities don’t match the impact they are expected to achieve: It’s not their fault. Grantmakers are often hired with good transferable skills, but are not supported to develop the specialist skills & expertise they need to do their job well or exceptionally. Senior leaders in grantmaking organisations need to embody the same ethos they are adopting in their approaches to supporting non-profit partners - it’s not always about money - and capacity strengthening is, in fact, an incredibly impactful means of support. This will categorically make your organisation more impactful, as people will be better at their jobs!
Reduces your team’s sense of belonging & care: This shouldn’t be underestimated. People feeling like their organisation cares about them is a huge driver of retention.
Leads to higher levels of staff turnover: When people don’t see opportunities for personal progression, organisational mission and purpose will only motivate them so far. It is a combination of the two that will maintain loyalty. When professional development opportunities are scarce, you’ll see your staff looking elsewhere.
Prevents your team from creating a shared culture: If teams do not feel they are a part of shaping the internal culture and future direction of travel of an organisation, as well as the wider system, satisfaction in the workplace can begin to dwindle.
Perpetuates unequal power structures: Power is unequally distributed across the social and environmental impact sector. Before looking at how to shift power into the hands of grantee partners, doesn’t it make sense to look internally?
Making meaningful change externally means first, investing in the capacity and wellbeing of your own staff, ensuring they are set up to do so in the most effective and meaningful way.
