Commission payments – why not?
At Craigmyle, we receive a wide range of enquiries, mainly from charities new to the prospect of retaining professional services and from individuals considering embarking on a consultancy career.
A question that frequently arises is, “How are consultants paid?”
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Commonly there is almost an expectation that it will be on a percentage basis and surprise to learn that not only is this rarely the case, but also that the Association of Fundraising Consultants, in common with the Charity Commission, is not at all comfortable with commission payments.
We hold this position for a number of important reasons. The payment of commission disqualifies charities from consideration by some major funding sources including distributors of National Lottery funds. It can be demotivating to potential major donors if they know that x% of a large gift is going in commission. It can encourage a consultant to use inappropriate high pressure techniques for short term returns, which put at risk the client’s relationships with supporters and seriously jeopardise potential greater support which might well emerge over the longer term. It can be fraught agreeing the figures on which commissions are based (legacies? covenant income? pledged income over a number of years?). It can cut across the spirit of partnership between consultant and client that is key.
Good consultants do not need additional motivation that a commission factor may be thought to deliver. Their motivation is the need to maintain a track record to secure their position for the future.
If you do find professionals willing to work on this basis, be sure that you are happy for them to be your ambassadors and happy with their methods.
Read more about our approach when working with clients.
Craigmyle Fundraising Consultants offers a range of services including strategic planning, bid writing and capital campaign direction. Reach out through our website today, and let’s discuss how we can help you.
