Busting the Myth that NGOs Can’t Fund and Pay Their Staff Competitive Salaries

Nicole Leotaud and Sarah McIntosh24th May 2016

Introductions and Expectations• Join the relevant group for your organisation

– no staff (only volunteers)– 0-5 staff– 5-20 staff– 20+ staff

• You have 7 minutes to identify who is in your group and from which organisations and to identify the top 1-2 burning issues you collectively have with funding staff and would like to see addressed.

• Report back to whole group (1 minute per group)

Session goal

To provide participants with key strategies that can facilitate funding and paying their staff competitive salaries.

Session Objectives • To identify and analyse who NGOs are

competing with for staff. • To identify who is and should be involved in

fundraising for covering staff salaries.• To enhance participants’ understanding of the

contribution that long-term planning and annual budgeting plays in securing funds to pay permanent staff.

Session Objectives (cont.)• To share a range of strategies for sustainably

funding staff salaries and benefits.• To discuss what can be done when cash flow

doesn’t match expectations.

The CANARI story: securing funding to attract and

keep our amazing staff!

Caribbean Natural Resources Institute

• Registered 1989, technical non-profit institute• Operating across all of the Caribbean islands, based in Trinidad• Mission: “Promoting and facilitating equitable participation

and effective collaboration in the management of natural resources critical to development in the Caribbean islands, so that people will have a better quality of life and natural resources will be conserved, through action learning and research, capacity building, communication and fostering partnerships.”

Key lessons1. Planning and budgeting are key to success 2. Diversified funding sources are critical to organisational

sustainability …and the funding of salaries3. CANARI knows who it is competing with for staff and

understands the advantages it can offer 4. Staff in CANARI are responsible for and play an active

role in fundraising to cover their salaries 5. CANARI staff are held to account for the use of the time

that is paid for by their salaries

“Dancing your way to success”

In response to questions, rate your organisation…• Stand still – don’t know• Slow wine – weakish• Chip – medium/average• Jump and wave – strong

Strategic plan

Programme plans

Project plans

Annual plans

FY2015 budget

MacArthur Civil Society EU Food Security CDKN CC IRF SDGs

FAO Small Business Project IIED Green Economy Phase 5 Fernandes Phase 4 Admin costs

Plans at various levels are used to derive annual budgets.

• Over budgeted -> shift work to another person or shift timing of project activities

• Under budgeted -> allocate more work or look for new projects (funding) for that person(s)

• Identify if need to hire more staff or consultants

Annual budgets are used to plan allocation of staff time.• Time of each staff member across all projects and administrative

budgets is listed, then the total for all staff is pulled together• The totals are reviewed to see if staff are over or under budgeted

Dancing Statements• All staff are involved in and aware of the details of our budget

for 2016• We have a budget for 2016 that includes both unrestricted

and project income and expenditure • Our 2016 budget indicates that we will have sufficient funds

from existing or highly likely sources to pay all existing staff for the full year

• Our 2016 budget indicates that we will have sufficient funds from existing or highly likely sources to pay both existing staff and those we would like to recruit.

CANARI’s funding mix is good:

A diversity of sources

Some unrestricted funding for administrative costs

Mainly longer term funding

Dancing Statements

• We have at least four different funding sources at the moment

• We generate some of our own income by providing goods or services

• Job descriptions of technical staff specify their responsibilities in fundraising – for senior staff to lead and for junior staff to assist

• Specific annual performance targets are set specifying expectations for what proposals staff will be engaged in (number and value of proposals)

• Teams are established to work on every proposal, with a mix of senior and junior staff

• Staff responsible report to others on progress with fundraising at every fortnightly team meeting

Dancing Statements

• All our staff are aware of the importance of fundraising to cover their salaries

• All our senior/technical staff actively engage in fundraising to cover their own salaries

Monthly timesheets are used to track staff time.A target percentage of administrative time is set for each staff position and tracked.

This information is used to produce financial reports (monthly, project, biannual, and annual) of expenditure compared with budget. Creates a culture of efficiency and accountability.

Dancing Statements

• All our staff account for how they use their time

• All our staff understand that effective use of their time is critical to the sustainability of the organisation and their salaries

• Other NGOs: often exceed salary and benefits • Government: often exceed salaries and benefits (but

less security of tenure and additional perks)• Private sector: competitive to some extent but not

much experience of people switching sectors• International/regional agencies: competitive except

in instances where employees are exempt from taxes• Universities: cannot compete with good salaries +

opportunity to earn more from consultancies + security of tenure

Beyond salaries and benefits, advantages are many including that staff can achieve real results helping people across the Caribbean!

Dancing Statements

• We know who we are competing with for staff and what staff with comparable skills and experience are paid

• We can match the overall remuneration package of our competitors

Thank you!www.canari.org

Small Group Work1. Was it appropriate for Sally-Sue to become the Executive Director

when she had weak financial management and fundraising skills? If not, what would you have recommended?

2. What were some of the ideas proposed to support the long-term sustainability of salaries? What were some of the barriers to implementing these ideas? If you were the Treasurer, what would you have done to try to overcome these barriers?

3. Who was involved in fundraising for salaries? Who do you think should have been involved?

4. What could have been put in place to ensure that there were no cuts in salaries during the ABC project?

Effective HR Building Blocks Key

What is one key lesson you learned during this session?

What is one strategy and/or tool you will apply to your work from this session?

What is one concept or strategy you would like additional coaching or support to understand?