Making the Most of Your FSP Investment
Percentage-based fee
I include this so I don’t leave someone wondering, but the bottom line is that percentage-based pricing is considered unethical by the Association of Fundraising Professionals. It is not illegal. But since it can cause a person to, in the worst case, exploit a potential donor, it is considered unethical. For example, if I know I will earn 5 percent for every dollar I earn going door to door for your NPO, I may not be as honest as I should be, and I may try to take advantage of someone to get a larger donation (so I get a larger paycheck). If you want to learn more about this subject, you can read the AFP’s position paper here.
Pamela Barden is an independent fundraising consultant focused on direct response. You can read more of her fundraising columns here.