Should proposal writers be paid a percentage of grant monies received, or a fixed fee?

There is no lack of heated debate on the topic of compensation for consultants. Despite the fact that professional consultant associations have called payment by percentage unethical, the practice is growing. The Foundation Center can not recommend what is best for your organization or situation, however the resources presented here represent both sides of the issue, so that you can judge for yourself.

• The Association of Fundraising Professionals states their position against payment by percentage in its "Position Paper: Percentage-Based Compensation." You might also want to look at AFP's Resource Center FAQs.

• The Internet Nonprofit Center's FAQ: "The Association of Fundraising Professionals Code of Ethics" compiles excerpts from AFP's publications on the topic.

• The Internet Nonprofit Center's FAQ: "Can Fundraisers be Paid a Percent of the Amount Raised?" lists postings from the discussion list Fundlist. The points of view represented are wide ranging.

• The Grantsmanship Center has postings from their discussion forum at "Consulting Fees for Grant Proposal Writing: An Exchange of Ideas and Information from TGCI-Forum". Once again, there are large differences of opinion represented in the discussions.

• You could also search our message board, PND Talk, using the term "fee" to see what others have been saying about this topic.

The following resources contain additional information on this topic:

• "The Ethics of Consulting Fees." Advancing Philanthropy 9 (July-August 2002) p. 12-4. Discusses why consulting fees should be based on a consultant's experience and the nature of the fundraising project, rather than a percentage of funds raised. Sidebar includes excerpts from the Association of Fundraising Professionals' "Code of Ethical Principles and Standards of Professional Practice."

• Sczudlo, Walter. "Motivation: Mission or Money?" Advancing Philanthropy 10 (September-October 2003) p. 30-2. The article explains the position of the Association of Fundraising Professionals on the topic of commissions and percentage-based pay for fundraisers.

For books and articles on compensation for proposal writers, try searching our Catalog of Nonprofit Literature (CNL), the Center's bibliographic database. You could start searching on the subjects "Fundraising--ethics" or "Fundraising--standards".

Many of the books and articles found through CNL can be located in Center Libraries and Cooperating Collections. It is best to call ahead to verify a specific library's holdings.

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