A fundraiser's salary

Motek

Sun, May 04 2008, 7:34 pm

How do you think a fundraiser should get paid:

with a salary
with a % of the money he brings in
with a salary plus commission

if you think he should get a percentage of what he brings in, what % should it be?

If a top-notch fundraiser gets a donation of 2 million dollars from a donor and the institution get 1 million and he gets 1 million, do you think that's reasonable or not?

Clarissa

Sun, May 04 2008, 7:41 pm

Salary only. People who give to charities are assuming their $ is going to the charity, not to pay high salaries for those involved.

I was aghast when I found out how much money which people donate to fundraisers actually pays for the fundraiser itself -- food, decor, entertainment. I think when people write those fat checks they want it to go for the cause, not the baby lamb-chops. I know that's off topic, but it's something that bothers me. I have a friend who hosts a fundraiser every year and pays for every bit of it herself. The money she raises goes to the cause, not the event.

At any rate, I would be appalled if my hard-earned $ that I gave to cure a disease or ease poverty was actually buying somebody a summer house. Good fundraising work should pay in salary and satisfaction.

amother

Sun, May 04 2008, 8:23 pm

My husband on the side runs a small organization that no one else ever wanted to take off his hands when it got too busy for him.
He has to fundraise and he does take a percentage for himself.
I don't know how much he takes but I just want to tell you that we struggle financially and the time he puts into this organization is time taken away from home and family and other obligations and often time taken away from the opportunity to try and solve our financial problems.

what can he do? no one wants to do it for him but people want its services in the community and call him all the time.

loveit

Mon, May 05 2008, 6:00 am

I don't know how it works for fundraising consultants, but I know that people who work in development for nonprofits as an employee of the organization, not a consultant, get paid a salary, not a comission.

Even if the consultant is working off a commission, that 50% commission you mentioned above is outrageous.

To any person donating to an organization they should know that part of their donation will go to cover overhead costs, employees, building, maintanence, etc. (which is why the amother that jsut posted said that her DH does take some for himslef, but that's because it's HIS organization and needs to be able ot ake home some sort of salary to keep the organization going)

Before donating, you can ask to look at the organization's budget to see what percentage of the org's income goes back into their programming, and what goes into overhead costs so that you can get an idea of how much of your donations goes to the org and how much will be uised to help people.

sarahd

Mon, May 05 2008, 7:50 am

A certain fundraiser my husband knows was told (either by the head of the mosdos or as a psak halacha) that he could take up to 49% of the money he raised. This was compensation for the months and months he was away from home raising money for various mosdos.

I think 49% is an awful lot. I would be really upset if that much of my contribution went to line the fundraiser's pocket.

mimivan

Mon, May 05 2008, 7:53 am

sarahd wrote:

but it is hard to get volunteers to do it or people to commit to the work for less..
I think in the long run, giving the fundraisers such a big cut makes more money for the organization, because anyone who does the work knows that an unmotivated fundraiser or one who is doing it just to be nice is not so successful as a professional fundraiser.

ChossidMom

Mon, May 05 2008, 7:55 am

I agree with Marina.

Noone is going to do fundraising for a salary.

It's one of the hardest jobs in the world. As hard as it is to give money it's a lot harder to ask for it. My dad worked as a fundraiser for a school for learning disabled children for many years. He traveled around and worked really, really hard and I learned about fundraising from his experiences.

I'm sorry that people feel that their hard earned money should not go to pay salaries of the people that help the needy ones.

mimivan

Mon, May 05 2008, 8:13 am

Yes, dh works as a fundraiser now and again. I tried it by phone and it was HARD...it takes more than thick skin...alot of dedication and emunah...the fundraisers deserve their stipend.

He does stints once in a while before the chagim in the U.S., but hasn't lately because he is busy finishing school and because the dollar is so bad...

He was robbed one time ...the thief returned the money Erev Yom kippur... b'h because his boss was extremely upset.

Another time, he almost got hurt by a [gentile]...but he didn't make off with money.

A very, very hard job...

YALT

Mon, May 05 2008, 8:53 am

it's not everyday that a fundraiser will raise even $1000 - let alone 1 million.I don't think the %age should be 50% unless it's ALL he's getting!
Fundraising is very hard! Especially these days. Many ppl don't want to share so much of their money, due to the rise in costs.
But if he manages to get 2 million from someone, I do think he deserves to get himself a special treat with it. If it means he can buy a house, so that he no longer has to pay extravagant rental fees - so let it be!
the organization would not have even gotten that 1 million, had it not been for the fundraiser.

Clarrissa (and if anyone else said the same as her - sorry I don't have time to read it all now)

Where does the organization get the money for the event? From the organization's bank account.
What is the money in the bank account for? for th ecause?
If I work for a shul, and the shul doesn't charge a membership, so they depend on donations only, (which most probably means I'll be lucky if I see my paycheck on time!) should I forfeit my pay, bec. then you may not understand that the money going to the shul has to first pay shul expenses?
Who pays for electricity?gas?phone of shul?
If I dedicate my full day to this shul, as a volunteer, how do my expenses get paid?
When an organization advertises that it costs 25,000 for "the new playground", they normally include in there the costs of the piece, the workers who will install it, the time they need to pay the secretary to make the phonecalls to raise the money, etc.....
If you make an event, most of the ppl there are volunteers. Do they also need to empty their pockets to pay for the event? Many of them are also donating to the cause. Just like you. So who would pay forthe napkins and drinks?

Clarissa

Mon, May 05 2008, 8:57 am

I told the story about my friend's fundraiser because I have great admiration for her, not because I think it should always be done that way. She is a wealthy woman. I do react when I hear that certain very upscale fundraisers (in LA and NY) cost millions, because of how elaborate the decor, food and entertainment. The people who give them and the people who attend could easily afford to underwrite them. To have 50% of the take go toward funding the party seems over-the-top to me. My friend pays for her event because she can, but also because she's 100% committed to her cause. I admire that. I'm not saying that everyone should go broke paying for charity work.

loveit

Mon, May 05 2008, 9:07 am

ChossidMom wrote:

I agree with Marina.

Noone is going to do fundraising for a salary.

That's not true, I know many people that work in development and they all work for a salary that is independant of how big the gifts are that they are able to acquire for their organization. These are often highly trained people with MBA's, MPA's etc. They do this for a salary and they happen to be high salaries, but it's also demanding work.

If 50% of a gift is going to the fundraiser, then I think the donor must be compeltely aware of that because then they may decide to give their gift in another manner, like directly to the org instead of through the fundraiser.

Clarissa

Mon, May 05 2008, 9:12 am

sarahliz wrote:

If 50% of a gift is going to the fundraiser, then I think the donor must be compeltely aware of that because then they may decide to give their gift in another manner, like directly to the org instead of through the fundraiser.

Exactly. I think that people should make an informed decision about how their money is spent. If I give $200 to a charity that funds, for example, some sort of medical research, I'd like to know how much of that money goes for organizational costs (including salaries and fundraising) and how much goes for the actual research grants.

This doesn't mean I fault those who enjoy the social aspects of a big event, and happily donate knowing that half of their donation funds the event. They're still being generous. But it's up to the donor to decide if they're comfortable with this. It also may inspire wealthier donors to help underwrite the event, so that more money can go to the actual cause.

loveit

Mon, May 05 2008, 9:56 am

Yes, and keep in mind that a non profit is required to have availble and show you this information if you ask. They are legally required to be transparent organizations if they want to retain their tax free nfp status.

I think it is extremely important to do significant research into an organization before giving a major gift.

louche

Mon, May 05 2008, 10:01 am

That's why I've stopped giving to certain causes--because their head honchos make obscene amounts of money. I figure an org that can pay its CEO a million dollars doesn't need my two cents.

There's a website that tells you what heads of many not-for-profits make. The heads are not necessarily the fundraisers, though.