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Ethics of paying fundraisers by commission

Remunerating fundraisers by a percentage of the money they bring in (‘commission’) is almost universally accepted to be unethical practice, and is banned by many codes of practice around the world.

 

Because of this, those in the profession who argue against commission can point to the fact that it is prohibited, but rarely need to mount an ethical defence of this prohibition. As we say in our new green paper: “Ethical arguments against commission have been the moral icing on the regulatory cake. But it is the regulation that has done the heavy lifting.”

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But now the regulatory prohibition has been removed from the codes in Australia (in 2021) and the UK (2025) – meaning fundraisers in those countries can receive commission payments – are those ethical arguments against commission up to the job?

 

In our green (discussion) paper Playing the percentages: Re-evaluating the ethics of paying fundraisers by commission, we conclude that those arguments need to be strengthened if they are to successfully argue against commission in places where it is not covered by a code.

 

A strong argument against commission – that has not previously been made – is that it could harm fundraisers’ psychological wellbeing. 

 

We propose 12 safeguards that should be in place to protect fundraisers and other stakeholders before commission-based pay is put in place.

 

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More information

  • Download Playing the percentages: Re-evaluating the ethics of paying fundraisers by commission – optimised for viewing on a desktop

  • Download Playing the percentages: Re-evaluating the ethics of paying fundraisers by commission, optimised for reading on a tablet

  • Download Playing the percentages: Re-evaluating the ethics of paying fundraisers by commission, optimised for printing (block colour removed)

  • Read the Rogare press release announcing the paper’s publication

  • Download the 12 safeguards that we recommend should be in place before commission can be paid to fundraisers

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Authors

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Ian MacQuillin

UK

Director

Rogare – The Fundraising Think Tank

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Ruth Hansen

USA

Associate Professor

U of Wisconsin – Whitewater's school of business & economics

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Heather Hill

USA

Director of international philanthropy

Chapel & York

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Roewen Wishart

Australia

High value and strategy director 

Xponential 

Our Associate Members

Rogare is supported in its work by a number of Associate Members – partners to the fundraising sector that share our critical fundraising ethos. Our Associate Members are:
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