By: Lisa Mead, M.S., CFRE
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As professionals, we face situations that can potentially compromise our ethics and values, sometimes without even knowing it. Have you had an organization ask you to meet with a funder and only pay you if it turned into funding? Or been told they will not compensate until the grant you wrote is awarded? These are against the values of the Grant Professionals Association and Association of Fundraising Professionals.
Reasons why this is not a best practice are complex, but the AFP Code of Ethics, numbers 23-25, outlines more:
Fair, Equitable, and Transparent Compensation Practices
We believe fundraisers should receive fair and equitable compensation for the work they do in support of organizational missions. In accordance, members are expected to:
23. Support fair and equitable compensation, which may include bonuses or merit pay in line with organizational practices but may never be based on a percentage of funds raised.
24. Decline receiving or paying finder’s fees, commissions, or compensation based on a percentage of funds raised.
25. Refrain from offering or accepting payments or special considerations for the purpose of influencing the selection of products or services
Often, an organization is led by someone who has not taken the extra step to become familiar with fundraising ethics and is charged with examining the budget. Or a pushy board member with zero grant writing experience thinks they should only pay for guaranteed results. They do not understand why commission-based grant writing and fundraising is problematic; let’s examine why.
Commission-based structures incentivize professionals to prioritize securing funding over selecting the most deserving and impactful projects. Those in the grant industry might be motivated to pursue grants with higher success rates rather than those that align best with the organization’s mission. Programs that are not sustainable may result from these efforts, and it does not end with the mission, goals, and objectives of the organization at the forefront of decision-making.
Without the pressure of earning commissions, fundraising professionals can concentrate on identifying and developing proposals for projects that align with the organization’s goals and have a meaningful impact on the community or cause. A fixed-fee or salary-based system promotes transparency in financial transactions, fostering trust between the fundraising professional and the organization. This can be particularly important for maintaining a positive reputation and building long-term relationships. Our profession relies on relationships between the organization, the funder, and the professional, and commission-based fundraising violates the foundation of these collaborations.
Stable income for fundraising professionals allows organizations to engage in long-term planning and strategy development. It enables the organization to build cohesive teams, invest in training, and create a sustainable approach to grant writing. It also reduces the inequalities that exist when only specific individuals can work for free, writing grants without pay, and hoping one gets funded.
Eliminating commissions may encourage fundraising professionals to focus on quality rather than quantity, ensuring that proposals are thoroughly researched, well-written, and tailored to the specific requirements of each grant application. Commission-based systems can create financial uncertainty for both fundraisers and organizations. A fixed-fee or salary-based approach provides stability and reduces the pressure to secure new grants to sustain income constantly. A salary-based structure also helps discourage unethical practices, such as exaggerating project impact or misrepresenting information to secure funding.
The decision to eliminate commission-based grant writing and fundraising should be carefully considered based on the specific context and goals of the organization. As professionals, we must hold our executive leadership teams and boards accountable. Ultimately, a balanced and ethical approach that aligns with the organization’s values and mission is crucial. What other ethical considerations do you think are in need of change from our profession?
Bio:
Lisa Mead, M.S., CFRE, CNP is a mission-driven and experienced leader based out of Cary, NC, with a twenty-four-year career in non-profit management, public policy, budget oversight, fundraising, public speaking, and grant writing. She is committed to eliminating systemic and social discrimination, inequality within our public systems, and marginalization of affected populations through engaging those with the power to facilitate change.
She welcomes you to connect on LinkedIn.
