The Institute of Fundraising has launched a new ‘Payment of Fundraisers’ Code of Fundraising Practice. Produced to replace the ‘Payment of Fundraisers on a Commission Basis’ Code, it is intended to provide guidance for organisations which employ fundraisers.
The Code recognises that there is a variety of different payment mechanisms which may be applicable when employing different types of fundraisers in different situations. It also defines different types of fundraiser, and looks at the characteristics of some of the most commonly used features of payment that should be taken into account when using them.
The Code states that the Institute opposes commission payments in principle, particularly those payments made on a commission-only basis. In the new Code, it is stated that commission payments ought not to be used, unless all the following conditions have been met:
- Fundraising organisations have considered the full business impact and also the impact on the wider fundraising sector of any public concerns about payment, prior to entering the arrangement;
- All other sources of fundraising investment have been explored and exhausted;
- The payments are subject to extensive scrutiny and approval by the fundraising organsiation’s trustees, or the senior executive when power has been delegated, in terms of evaluating the risk and reward of the payment mechanism;
- Safeguards are in place to ensure excessive remuneration is not awarded, for example by putting maximum caps or reducing sliding scales in place
The Code applies to all organisations engaged in paying fundraisers, no matter what the specific fundraising technique involves or who they are employed by, for example be it the charity, or another professional organisation.
Lindsay Boswell, Chief Executive of the Institute of Fundraising, comments:
'Determining an appropriate method for the payment of fundraisers allows charities to achieve high levels of performance and positive working relationships.
'It's important for us to give clear recommendation here, to help ensure fundraising is regarded as a profession - both by those within, and outside of our sector. This Code seeks to provide fundraisers and charities with the tools necessary to make such decisions.'
Valerie Morton MInstF(Cert), Chair of the ‘Payment of Fundraisers’ Code of Fundraising Practice working party, adds:
'This Code has been developed with input from a working party, wide consultation within the sector and scrutiny from the Institute of Fundraising Standards Committee.
'The challenge has been to produce a fair code which balances the needs of charities, fundraisers and the public. Fundraisers now have clear guidance to support them in following the highest standards in their day to day work.'
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For further information please contact:
Diana Mackie Tel. 020 7840 1027 / 07793 802 852
Institute of Fundraising
