Tag Archives: NINOs

Sins of Commission

A central principle of nonprofit development is that individuals should not get paid on a commission basis.

According to the Association of Fundraising Professionals, paying nonprofit fundraisers commissions is unethical because the self-interest of the staff member can distort the solicitation process. A gift needs to be right for both the donor and the organization, and it needs to be driven by a genuine charitable impulse.

When the fundraiser’s compensation is directly related to realizing the gift, all sorts of bad things can happen. The conversation between solicitor and donor can turn coercive and misleading. Donors may be pressured to make the gift before they are ready. The solicitor may encourage gifts that are not in the best interest of the organization. Moreover, even if such a compensation scheme were ethical, it would rarely be fair, since the gift that arrives in 2014 is probably as much the result of earlier cultivation by the organization as the efforts of the current staff member who happens to make the ask or open the envelope. Continue reading

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Wall Street Muscles In

I really wish I’d been wrong in my earlier warnings about the growth of commercial donor-advised funds. But the latest Philanthropy 400 rankings from the Chronicle of Philanthropy indicate that the Wall Street acquisition of the nonprofit sector is, if anything, ahead of schedule.

It turns out that for the second year in a row, the second-largest “philanthropy” in terms of funds raised in the U.S. is an entity called Fidelity Charitable. Fidelity Charitable’s growth rate was an astonishing 89% over the year before, and with donations of $3.2 billion, it is positioned to overtake United Way Worldwide (that is, the combined United Ways of the entire country), which only grew 1% and raised $3.9 billion.

How is something named Fidelity considered a charity at all, let alone one that is poised to become the nation’s largest? Here’s a history lesson. Continue reading

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