Fundraisers Aren't Allowed a Cut of the "Profits"
In the recent issue of Advancing Philanthropy published by the Association of Fundraising Professionals (AFP), the organization's president, Paulette V. Maehara, describes "The Percentage Problem." For those who don't know, the Association's members (and any reputable fundraiser) are not ethically allowed to take their compensation in the form of a percentage of dollars raised.
When I ran a struggling non-profit, I was more than once tempted to pursue a different path whereby I could reward a fundraiser for successful performance, not just a strong attempt. My (desperate) thinking: I've got no money to hire someone and if this gal can bring in some funds, why not give her a big chunk of money I don't think I can access anyway?
AFP has a white paper outlining why it is a bad idea. It's not written in English but I think you will get the drift:
1. If the self-inurement principle is violated, the mission and long-term interests of the charity may become secondary to the worker's personal interest and self-gain. The donor's (and public's) interest and needs may no longer be foremost.
2. Donor attitudes can be unalterably damaged in reaction to undue pressure and the awareness that a commission will be paid to a fundraiser from his or her gift, thus compromising the trust on which charity relies.
3. Percentage-based compensation or commissions can foster inappropriate conduct by individuals whose self-interest is oriented to immediate results, irrespective of the donor's best interests.
The white paper dates back to 1992 but given the increasingly competitive environment nonprofits face, there's no doubt this standard is more important than ever.
Posted at 1:49 AM, Apr 17, 2008 in Permalink | Comments (3)