Consultancy on Commission?
Howard Lake | 7 October 2009 | Blogs
I’ve lost track how many times over the years I’ve been asked by prospective clients to provide consultancy on commission. It happened again recently and it’s always a bad sign, especially when it’s the first question! You just know it’s not a serious enquiry.
It really is time we nailed this one and that charities understood that they get what they pay for by doing their homework and buying experience – not taking a punt on someone who will work for nothing, in the hope of making a living. So at the risk of boring any old hands, here is why reputable consultants do not work on commission:
1. Donors hate it and are less likely to give if they hear the word commission (see for example the furore about face-to-face commission payments)
2. The Charity Commission (no pun intended) has always frowned on it
3. The Association of Fundraising Consultants (the main membership body for consultants) forbids its members to charge commissions
4. The IoF Code of Practice says that “such arrangements should only be entered into in exceptional circumstances”
5. If the charity is committed to the project as part of its agreed strategy, it should be willing to pay the price and carry the risk itself
6. Many assignments are unsuited to commission working – e.g. developing a fundraising strategy, designing a legacy campaign, doing a fundraising review, conducting research, developing a case for support etc
7. It is short termist, yet good fundraising is strategic and focuses on long-term relationships, not quick hits.
8. There are ethical issues – for example, should a consultant receive a share of a large gift which may or may not have resulted from their efforts? (this can also lead to disputes between charities and consultants)
9. It is very difficult to measure the direct return in some fields of fundraising. It can also take months or years to measure the impact of a campaign.
10. Good consultants are committed professionals who respond well to being treated as such and not as sales reps on commission!
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There, that’s got that off my chest! For more on payment of consultants, see: http://www.wgconsulting.co.uk/about-us/faqs
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.