pam
Sep 19, 2017

Fundraising value to charity

4 comments

What % of funds raised by fundraisers is it acceptable for fundraisers to keep? If this was disclosed up front to donors what % of donors would give?

The Fundraising Ask
Sep 20, 2017

Hi Pam, professional fundraisers cannot be paid on a percentage basis (See FINZ Code of Ethics https://finz.org.nz/uploads/sites/finz/files/Codes%20of%20Practice/FINZ%20Code%20of%20Ethics%20and%20Professional%20Conduct.pdf) but in general terms the question of how much is it appropriate for fundraisers to get paid is a good one - Dan Pallotta would probably say 'more than they do now!' You are probably a donor yourself, do you still give, even knowing that the causes you give to may be paying a professional fundraiser? What '%' do you think would be acceptable?

Tom Brady
Sep 20, 2017

Hi Pam. Who do you mean by 'fundraisers'? Face-to-face street fundraisers seem to be on a campaign to hide anything that can be interpreted as a percentage and your question resonates with that debate - especially given the FINZ submission to MBIE.

I would have thought that the golden rule should be total transparency, then donors can make up their minds armed with all the facts.

pam
Sep 20, 2017

I agree with your point re total transparency however the model fundraising agencies (face to face and telephone) seem to operate is a very expensive model for charities. Charities do not have the expertise or funds to manage this process themselves.

Tom Brady
Sep 20, 2017

I agree it is expensive and that can add to the apparent value attraction. Those fundraising methods appear to offer new streams of income at no cost to the charity. Unfortunately they make profit for the agencies by leveraging off your reputation and your work - which charities tend to undervalue. There is nothing wrong with this in itself, but charities must be aware of the risk to their reputation and brand; both of which are earned over a long time and can be destroyed in an instant.

As such, any agency who recommends that their staff do not have to be fully transparent to people they approach on your behalf is asking you to carry all the risk for their profit.

Warning signs are phrases like "Donors cannot be expected to understand..." or "percentage returns in the long term". If you have any niggling doubts, there are always other ways to increase donations.

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