Board wants us to hire a fundraiser on commission, 15% of what they raise, no fixed salary. Something feels wrong about this but I cannot articulate why to them.
You can articulate it very precisely, and you should, because there are three separate objections and your board will only listen to one of them.
AFP and most professional codes worldwide prohibit percentage-based fundraising compensation, because it puts the fundraiser’s interest against the donor’s. That is the argument that will not persuade your board.
But practically, it does not work. Institutional fundraising has a 6 to 18 month cycle. Nobody good will work 14 months unpaid on the promise of a cut, so you will only attract people who need fast money, who will therefore chase quick retail donations and ignore the grants that actually sustain you.
Several funders explicitly ask whether you pay fundraisers a commission and will not fund you if you do. That is the argument your board will listen to.
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the third one is the one that lands with them, you are right. thank you.
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counterpoint nobody wants to hear: plenty of small orgs cannot afford a fixed salary at all, and for them it is commission or nothing. purity is a luxury.
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Then the honest answer is that they cannot afford a fundraiser yet, and the ED does it. Hiring someone into an arrangement that will fail them is not a kindness.
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…yeah alright. that is a better answer than mine.
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There is a middle option your board might accept: modest fixed salary plus a non-percentage bonus tied to activity, not amount. Meetings held, proposals submitted, renewals retained. Keeps the incentive without the conflict.
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we tried commission in 2022. he raised nothing for five months, took a corporate job, and we lost half a year. do not do it.
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