AFP asks Congress to prohibit commission-based fundraising

Howard Lake | 26 July 2004 | News

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The American Association of Fundraising Professionals (AFP) has asked the US Congress to prohibit commission-based or percentage-based compensation by fundraisers and fundraising consultants.

The recommendation came from AFP President and CEO Paulette V. Maehara to U.S. Senate Finance Chairman Charles Grassley and committee staff members at a roundtable on charity regulation on 22 July. “Few new initiatives could do as much to limit future fundraising abuses as outlawing percentage or commission-based fundraising,” she said.

Commission-based fundraising continues to excite passion amongst fundraisers in North America and the UK. It has regularly cropped up on the UK Fundraising Forum and set off heated debates.

AFP was one of nearly 20 speakers at the roundtable. Although she covered other issues, such as encouraging better enforcement of non-profit legislation, Ms Maehara’s presentation at the roundtable focused on the abuses of percentage-based compensation for fundraisers.

In the UK the Institute of Fundraising does not recommend the payment of commission to fundraisers, suggesting a contract with a fixed fee as the preferred method of doing business.

About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale. He is the founder of Fundraising Camp and co-founder of GoodJobs.