In case someone doesn't have experience with the reasons that percentage
fees are seen as unethical, just think of a case of a large in-kind
donation. For example, I once landed a $250,000+ in-kind donation for an
institution. Had I been a "percentage" fundraiser this gift would have cost
the institution, at least, $25,000. While the institution gained a valuable
asset it had no net increase of funds. The controversy of in-kind donations
is also the reason that "bonuses" should not be percentage based.

There are some major fundraising firms that demand flat fees plus percentage
fees that are called "bonuses." I strongly recommend not dealing with anyone
who asks for percentage fee or bonus, not only does it violate trust with
the donor but it's also asking for a lawsuit. The real sleaze operations
take 85-90% of donations.

Nicholas Burlakoff

-----Original Message-----
From: Museum discussion list [mailto:[log in to unmask]]On Behalf
Of Lana Newhart
Sent: Friday, March 21, 2003 7:48 AM
To: [log in to unmask]
Subject: Re: Policies regarding salary increases

Coincidently, Just the other day I was looking at the ethics for fundraisers
listed at the Association of American Fundraisers website and it
specifically states that fundraisers should not take a percentage of the
funds raised, but that a set dollar amount should be agreed upon by the
fundraiser and the party they are working for prior to the beginning of
fundraising.

Lana Newhart-Kellen
Conner Prairie

>>> [log in to unmask] 03/20/03 01:33PM >>>
Recent discussion concluded (this board I think) that it is considered
unethical to pay fund-raisers a percentage of the money they raise. However,
I would think that based on outstanding performance one could be awarded a
bonus or a salary increase.

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