Can a nonprofit hire a professional fundraiser to secure funding for special events or donations and can the fee come from a commission of a designated percentage of funds raised?
Nonprofits may hire fundraisers and pay them from the amounts collected. There is no statutory restriction that I am aware of which would prevent the nonprofit from paying the solicitor a percentage of the amount collected, but the Association of Fundraising Professionals and other professional groups say it is unethical to do so. Members of those professional groups will not work on a commission basis.
You should also check to see whether your fundraiser must register as fundraising counsel or professional solicitor under any relevant state charitable solicitation registration laws.
Wednesday, May 9, 2007