For purposes of this paper:
• Percentage-based compensation for charitable contributions is defined as any compensation that is based on a percentage (sometimes referred to as a commission) of charitable contributions raised.
• A finder’s fee is a fee paid for bringing a donor to a not-for-profit organization for the purpose of charitable solicitation.
• A bonus is a form of compensation based on performance (but not on a percentage of charitable contributions raised) that is paid as an incentive to performance in addition to a salary or fee. The Association of Fundraising Professionals (AFP) believes that individuals serving a charity for compensation must accept the principle that charitable purpose, not self-gain, is paramount.
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