No donor, big or small, wants to see large amounts of their donations going to individuals outside your organization. So what is the alternative to commission-based fundraising?
Most donor organisations discourage commission-based fundraising, not because of the costs of campaigns or even the commissions paid to the fundraiser, but because of the hidden developmental costs to the organisation.
What is commission-based fundraising? Someone from outside the organisation undertakes to raise funds in the name of the organisation in exchange for a flat commission on the funds raised. The cash-strapped NGO does not contribute any funds towards the costs of fundraising, does not have to increase its salary bill to employ a fundraiser and only incurs an expense after funds have been raised. In fact, usually the organisation provides no more than information and some logistical support. Sounds like a really good win-win, doesn’t it?