What is your time worth?

As a self-employed person I have no predictable income. What I earn is completely dependent on how much work I do, how many clients I have, what rate I charge, and when and how quickly I complete their work. The best description I have heard for this is the ability to turn time into money.

Understanding and actually applying this concept are two different things. A successful business person I know says she only looks at her time one of two ways. She either spends it doing business, i.e. generating an income, or having fun.

It’s my belief that all charitable organizations can and should follow this principle. Although you may be compensated by the hour, the reality is you’re getting paid to generate something, be it funds raised, clients served, members recruited and staff inspired. Taking it a step further, the rest of your time “on the clock” is spent putting the “fun” into fundraising – connecting with people, forging partnerships and strengthening your team.

Once you begin to think like this, what is possible and what is top priority becomes crystal clear.

Example:
Let’s be conservative and say your goal is to raise $150,000. You take four weeks of vacation in a year, leaving 48 weeks to work. Most people can only expect to average at best about five productive hours each day. That means you only have about 25 hours a week to complete your day-to-day items and to meet your goal.

In one year, you have 1,200 available hours to raise that $150,000. The value of your time has now increased to $125 per hour! Obviously, the more responsibility you have, the higher your value. This applies whether you are the major gifts person, the executive director or the communications coordinator. Take the next step, and identify the key functions or buckets that occupy your time. Examples include staff and committee responsibilities, meetings with donors and funders, or coordination or production of regular materials or events, such as annual meetings, reports, or newsletters.

How much time does that leave you to do the many things that have either been added to your responsibility this year (it never decreases, does it?), or are on your carried-forward list? I’ll bet, not that much.

As you start to think of your time this way, as well as that of your staff and colleagues, it can really shift decisions on what matters most. If you aren’t doing the work that’s worth $125, or helping your organization earn it faster, you’re not spending time wisely. Put another way, if you’re spending more time doing tasks that are less important, you are costing your organization money. It can’t reach the goal if you’re doing $10 an hour jobs. Re-examine those priorities, delegate, or eliminate, and start turning your time into money.

As a loyal subscriber you’re the first to be invited to my upcoming teleseminar Think Rich: The Entrepreneurial Mindset for Nonprofit Executives on March 13. This session explores lessons learned from the private sector and how to apply the best of them to nonprofits. It offers a stimulating look at how to think like you’re in business while staying in touch with your “softer, gentler” side. You’ll get bonus information you can use immediately following the session, so register now to get your priority reservation. Space is limited.

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