Why Commission-Based Fundraising Is Unethical—And What To Expect Instead
Let’s be honest: most people don’t know how fundraising actually works.
That includes some of the people hiring fundraisers.
We hear it all the time:
“Can you just take a percentage of what you raise?”
“If we get the grant, you get paid. If we don’t, you don’t.”
At first glance, this might sound reasonable. Risk-free, right?
But commission-based fundraising is one of the most harmful and misunderstood models in the sector. It’s unethical, unsustainable, and—frankly—unfair.
This isn’t about being picky. It’s about protecting the integrity of your mission, your funders, and the professionals you hire to support it.
Here’s why commission-based fundraising is the wrong move—and what an ethical alternative looks like.
1. It’s Not Just Unfair. It’s Unethical.
Commission-based fundraising goes against the code of ethics laid out by the Association of Fundraising Professionals (AFP) and Imagine Canada. These aren’t fringe opinions—this is sector-standard guidance.
Why? Because it creates a conflict of interest.
It shifts the focus from mission to money.
It risks misleading funders.
It damages public trust.
And yes—some funders will outright reject applications tied to commission-based consultants.
If your fundraiser is getting paid only if you win, you’re already crossing a line.
2. It Forces Fundraisers to Gamble—With Their Time, Income, and Reputation
Let’s say you hire a grant writer and promise to pay them 10% of whatever comes in. But what if the funder’s priorities change? What if your board delays approval? What if your internal documents aren’t ready? What if you don’t get funded?
Under a commission model, the fundraiser eats the cost.
That means hours—sometimes dozens—of unpaid research, writing, strategizing, and follow-up, all for a payout that may never come. You’re asking professionals to risk their livelihoods on circumstances they can’t control.
That’s not a partnership. That’s exploitation.
3. It Slows Everything Down
Instead of starting with strategy, commission-based arrangements start with negotiation. Who gets what, when, and how much? What’s fair if we win big? What’s the cut if we don’t?
All that back-and-forth delays the real work:
- Building your funder pipeline
- Aligning your programs to grant criteria
- Drafting, reviewing, submitting on time
- Building long-term fund development systems
Fundraising runs on timing, clarity, and momentum. When you make payment conditional, all of that stalls. And your funding windows? They don’t wait around.
4. It Undermines Urgency and Teamwork
Here’s a hard truth: when clients don’t have anything on the line, they tend to deprioritize the work. Calls get pushed. Documents get delayed. Strategy gets ignored.
And yet, the fundraiser is still expected to perform. Still expected to produce wins—on time, with missing pieces, and without proper collaboration.
That’s not how fundraising works. This isn’t copy-paste grant writing. It’s team-based strategic work, and it only succeeds when everyone’s engaged.
If your consultant is the only one showing up consistently, it’s not a project—it’s a problem.
5. It Treats Fundraising Like Sales—Not Strategy
Commission-based fundraising turns deeply strategic, emotionally intelligent work into a transactional sales pitch.
But real fundraisers?
We are not cold-callers.
We are not gamblers.
We are not “closers.”
We are:
- Researchers
- Writers
- Strategists
- Relationship builders
- Organizational voice amplifiers
We take years to hone this craft. We learn to navigate funder priorities, sector language, impact metrics, program alignment, and application systems. The faster and more efficiently we work, the more it reflects our experience—not a reason to get paid less.
6. It Ignores the Full Scope of the Work
Here’s what most people don’t see:
Before a grant ever gets submitted, a good fundraiser has already:
• Researched dozens of potential funders
• Built a strategic funding roadmap
• Reviewed your programs and budgets
• Aligned outcomes to funder priorities
• Drafted narratives and language that reflect your voice
• Held multiple planning meetings
• Gathered financials, stats, and support letters
• Advised on timelines, feasibility, and reporting
We don’t just write—we learn your organization. We absorb your mission. We understand your goals. We become an extension of your team. That’s what lets us speak on your behalf with clarity and power.
That’s not “just admin.” That’s high-level cognitive labour.
So ask yourself: if it’s a $1,000 grant, does a $100 payout feel fair for all that work?
Now flip it. If it’s a million-dollar grant, does a $100,000 cut feel proportionate?
Of course not. That’s the problem with commission models—they’re arbitrary. They don’t reflect effort. They don’t reflect complexity. And they definitely don’t reflect ethics.
So… What Should You Expect Instead?
If you’re hiring a fundraiser, here’s what a values-aligned model actually looks like:
- Flat-rate pricing with clear deliverables, timelines, and expectations
- Transparent fees based on scope—not outcome
- Strategic onboarding to fully understand your programs, values, and goals
- Upfront funder research customized to your priorities
- Collaborative working models where you show up too
- Flexible payment plans when needed—but not gambling models
- Respect for the cognitive load—fundraisers do deep mental work to speak as you, not just for you. That’s part of the value.
At Advocate Fundraising, we don’t take a cut.
We take a stand.
Because ethical fundraising is about trust.
It’s about clarity.
It’s about building relationships that last—on both sides of the table.
Let’s raise money and raise the bar.
#AdvocateFundraising #EthicalFundraising #NonprofitTruths #StopCommissionFundraising #FundDevelopmentMatters #SharedSuccess #SectorStandards
