# Consultancy on Commission?

- Link: https://fundraising.co.uk/2009/10/07/consultancy-commission/
- Published: 2009-10-07T10:19:21+01:00
- Author: Simon George

**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)

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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!

There, that’s got that off my chest! For more on payment of consultants, see [WG Consulting](http://www.wgconsulting.co.uk/about-us/faqs).

 

## Comments

### By: johnthompson

- Link: https://fundraising.co.uk/2009/10/07/consultancy-commission/#comment-3775
- Published: 2009-10-07T11:14:16+01:00

I’ve been asked this question on several occasions and make similar points in response.
If pressed further, I’ll also give specific examples whereby we’ve helped clients
prepare for and secure £multi-million partnerships with the corporate sector, our
particular specialism. Many such partnerships will have initial targets of, say,
£2m to aim for through a variety of mechanisms (sales promos, events, employee fundraising
etc). However, through brilliant account management and staff & customer buy in,
some can end up doubling that. When our fixed fees are then juxtaposed against prospective
commission in such scenarios, which we’d never ever entertain, the thought of receiving
an invoice of between £200,000 and £400,000 based on 10 per cent always helps them
see the light.

 [http://www.changingbusiness.com](http://www.changingbusiness.com) 
 Change today
for a better tomorrow

### By: benbrabyn

- Link: https://fundraising.co.uk/2009/10/07/consultancy-commission/#comment-3776
- Published: 2009-10-07T12:35:08+01:00

Your first numbered point in particular resonates with our experience of popular
reactions to commission charging on online fundraising, which is why we have responded
by eliminating commission charges altogether – see [http://bmy.typepad.com/making\_giving\_better/2009/10/making-giving-free-background-and-vision-for-the-future.html](http://bmy.typepad.com/making_giving_better/2009/10/making-giving-free-background-and-vision-for-the-future.html).

Bmycharity is not a consultancy, but we too have to be able to be seen not to be“
top-slicing” donations – donors revolt at the idea that several pence in each pound
they give is being removed to pay a third party.

### By: Rarry Revan

- Link: https://fundraising.co.uk/2009/10/07/consultancy-commission/#comment-3777
- Published: 2009-10-09T12:58:02+01:00

the Institute of fundraising are soon to release their revised code on payment of
fundraisers so this should give the guidance you feel has been lacking.

With regard to face to face fundraising, any payment by commission is between a 
provider and their staff. The charity will have entered into a contract to receive
a certain nmber of donors for a set amount of money.

This is perceived to be “payment by results” as opposed to payment by commission.
Does anyone perceive there to be an isssue around payment by results?

rarry

### By: matt111

- Link: https://fundraising.co.uk/2009/10/07/consultancy-commission/#comment-3778
- Published: 2009-11-24T13:27:00+00:00

I’ve added my arguments in favour of commission-based fundraising at

[http://www.fundraising.co.uk/forum/2009/11/24/commission-based-fundraising-truth](http://www.fundraising.co.uk/forum/2009/11/24/commission-based-fundraising-truth)

Matt