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Arguments Against Commissioned
Based Fundraising
By David
Cuthbert.
As the
search for competent and capable fundraising professionals increases
so does the education of employers and the terms and conditions of
employment need closer scrutiny.
At SAIF we are continually questioned regarding our stance on
commissioned based employment and will, without any hesitation argue
against this working arrangement.
We are informed of isolated cases of this practice working well but
often it is without the knowledge of the donors, which we believe is
also unethical.
If you pay a commission then it should be revealed within your
project proposal or a line item of the budget.
The following points motivate towards ethical fundraising and a strong
warning against commissioned based activities.
1 . Donors
today want to know that their money is being used to meet the need for
which they responded.
When a slice is made available to a solicitor they will
question his or her motive!
2.
Donors will question in their minds how much of their donation
that is given to a solicitor actually gets through to the organisation
they represent.
3.
Cultivating gifts from large donors is a long-term activity.
This does not suit a commissioned based fundraiser who wants to
strike a decision or make a deal" as quickly as possible.
4.
You should be convinced that effective fundraising is far too
complex for simple solutions such as paying a commission.
Some gifts take years to negotiate and achieve.
5.
The tracking of commission-bearing income requires detailed
administration.
With a number of fundraising and PR activities taking place
simultaneously how do you separate those gifts that are generated by
the "sales-person" and those that are not?
To what extent can you ascribe the influence of the commission
fundraiser in each situation?
6.
Major donors do not have ready money, but might be prepared to
pledge a gift over a period, either in regular payments or by a lump
sum on a future date.
What happens if the pledge is not met - do you still pay the
commission, or ask for it back?
7.
Volunteer boards or staff will resent the fact that they might
have done a lot of work developing prospective donor's interests, and
the fundraiser comes along is paid for "clinching the deal".
8.
There is no guarantee to the fundraiser that the prospect will
respond positively, so the frequency and incidence of success are
always in doubt.
If the going gets tough for them they find a way to escape.
9.
In order to bring in an income the fundraiser will be tempted
to shorten the negotiation process by securing a "yes" at a
lower gift level than the full potential of the donor.
10. Commissioned fundraisers will be prepared to say anything about
your organisation and your work just to gain favour with donors.
What are they saying about you?
What is this doing to your hard-earned image?
Will this ensure a long-term partnership with the donor - the
essence of sustainable and reliable funding
11. Funders are looking for a relationship with those who spend their
money. Many
major funders are not prepared to negotiate with these so-called hotshot
fundraisers.
We have discovered that some funders state this in their
guidelines; Transnet, Coca Cola to name but a few.
If you still, after reading the above, believe this to be a safe and
ethical practice then we invite you to write an article in favour of
commission based fundraising with endorsements from your donors.
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