Recently, I had a head of school ask me a question about paying a fundraiser a percentage of what they might raise for the school. “My board is filled with business people and they think this is the best way to motivate someone to fundraise more.”
I shared with him the fact that every significant national and international association connected to the advancement, development, and fundraising world has codes of ethics and principles of practices with strongly worded statements discouraging nonprofits from paying fundraisers a percentage of funds raised as compensation.
I tried to give examples and explain that it could put a fundraiser and a potential donor in an odd situation if the fundraiser really needed the gift to be made by the end of the fiscal year, but it wasn’t really the best situation for the donor to act that quickly.
In the end, though, it was clear to me that this head of school didn’t find my response particularly compelling. His response signaled that he was still thinking that paying a fundraiser based off of how much they raised could be explored. “I think,” he said, “there could be some room for innovation in this area.”
This head of school is not a client of our firm so I’m not sure what decision was ultimately made. But, I do know one thing I wish I had said differently.
I wish I had said, “Anyone you hire who would take the position as a commission-based job, probably isn’t the right person for your school. Fundraisers aren’t paid on a percentage basis or a commission basis because it doesn’t work. They are not paid this way because the best fundraisers value something more than making the most money possible for themselves. They value advancing the mission by helping others experience the joy of giving.”
Bottom lines may always be financial. They just may not be for personal gain.
