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Payment of Fundraisers on a Commission Basis

Principles to adhere to in these circumstances

The Institute believes that such arrangements should only be entered into in exceptional circumstances and advises against the general use of payment on a commission only basis.

Fundraising Consultants and Independent Fundraisers offer an important and growing source of expert advice and support to those engaged in raising funds for charities and other voluntary organisations.

It is of great importance that the method and the amount of payment, by way of remuneration to the Consultant/ Independent Fundraiser, is clearly defined in a Written Agreement between the parties concerned before any fundraising commences.

The guidance contained in this Code applies to one particular method of remuneration: the payment for fundraising services that are made on a commission only basis (for example, that the fundraiser shall receive payment of x% of the total sum raised).

In exceptional circumstances it may be the case that this form of payment arrangement remains the only option open to a charity, but where it is entered into, it should only be under the clearest limitation of time: with the precise rate of payment established and after the prior identification of the specific tasks to be undertaken by the fundraiser.

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