Fund-Raising Group Clarifies Ethics Policy on Bonuses

The National Society of Fund Raising Executives has changed the wording in its code of ethics to clarify when it is appropriate for fund raisers to receive performance-based compensation.

According to the code, fund raisers may not receive bonuses, finders’ fees, or commissions on revenue that is received in the form of a charitable gift. But the wording change is intended to make it clear that fund raisers may receive such rewards for other types of revenue they generate. For instance, fund raisers who negotiate marketing deals with companies would not violate the ethics standard by taking a percentage of the money produced by the deals.

Officials of the fund-raising group say the wording change does not represent any major shift in its position. However, they said the clarification was required because of the growth in new ways for charities to obtain financing. It was also intended to correct a common misperception that fund raisers may not accept bonuses even if marketing and advertising employees do, says Colette Murray, a fund-raising consultant who is the society’s vice-chair for external relations.

The ethics code frowns on commissions for charitable gifts because the society believes that donors could be upset to learn that a fund raiser was benefiting from successfully soliciting a gift.

For more information, contact the society at 1101 King Street, Suite 700, Alexandria, Va. 22314-2967; (800) 666-3863; e-mail nsfre@nsfre.org.