The Important Difference Between Fundraising Counsel and Fundraising Professionals
Ethical fundraising practices are at the core of our field. We’ve all heard the occasional horror story of misused donor funds at non-profit organizations or staff or board members blatantly stealing money or goods from organizations. Not only is it wrong, but it also puts a long-term black mark on your organization.
It’s difficult for nonprofit organizations to survive through and ultimately thrive after an ethical nightmare.
New York State is one of a handful of states that has an active Charities Bureau within its Attorney General’s Office. While this does add a new level of required paperwork for non-profits, fundraising counsel, and professional solicitors, the oversight provides another level of protection for donors. In a recent News10 Article, New York State Charites Bureau points out that many non-profit organizations use professional solicitors — also known as fundraising professionals — to raise money for their organizations. During initial conversations with prospective clients, I am often asked about The Killoe Group’s approach to raising funds.
This scenario highlights the critical differences between professional solicitors and fundraising counsel.
Fundraising Counsel
Fundraising Counsel is a partner to its non-profit clients. The counsel is typically paid an agreed-upon project fee or monthly retainer. Fundraising Counsel never has access to the funds raised, does not receive a percentage of the funds raised, and their fee is not based on performance. While these factors can be difficult for some organizations and their board members to accept, this type of relationship ensures a partnership model and fosters collaboration. With our model of helping non-profit organizations develop and implement strategies, The Killoe Group services are that of fundraising counsel.
We help you do the work — we don’t just tell you what to do.
Professional Solicitors
In contrast, professional solicitors are individuals or organizations hired to raise money on behalf of a non-profit. The compensation for these fundraising professionals is based on how well they produce — simply put, they receive a portion of the donation.
The 2021 NYS Attorney General’s report, referenced in the News10 article mentioned above, found that professional solicitors received more than half of the total donation amount for 47% of the 339 fundraising campaigns surveyed.
Given this astounding finding, I encourage non-profit organizations to avoid utilizing professional solicitors. While it may be appealing to have more individuals soliciting and raising funds for your organization, this practice fails to build a truly authentic relationship with donors.
Philanthropy is the art and science of asking a donor to make a transformational gift that meets the needs of their community.
Relying on fundraising professionals — rather than advisory, strategic fundraising counsel — fails to maximize the value and positive change created by a donor’s gift. This is not only unappealing to donors but can also lead to major losses for non-profit organizations, inhibiting the achievement of their missions.
About the Author
Michael J. Buckley, CFRE is a career fundraising professional and Founder and Managing Partner of The Killoe Group. His firm assists nonprofit organizations increase revenue, exposure and capacity through smart, data driven, successive decisions and effective planning. Mike’s experience and passion for the profession of fundraising have made him a sought-after speaker, consultant and presenter. The Killoe Group’s broad experiences include annual campaign audits and management, capital campaign leadership, feasibility studies, interim program leadership, board governance, strategic planning and capacity building.