Don:

Commission-based fundraising can cause problems if you are a registered 
charity. The Canada Revenue Agency doesn't prohibit paying a commission, but it 
does prohibit "conduct that results in more than an incidental or proportionate 
private benefit to individuals or corporations". CRA's guidance paper on 
fundraising by charities can be found at:

http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cgd/fndrsng-eng.html

Also of note, the code of ethics for both the Association of Fundraising 
Professionals and Imagine Canada prohibit their members for accepting 
percentage/commission-based compensation for fundraising efforts. 

If you do decide to proceed, I'd strongly suggest entering into a written 
agreement with your "volunteer" that clearly outlines the scope of work, 
duration, acceptable practices, reimbursable expenses, commission rate, etc … 
and I'd have that agreement reviewed and approved by the board. 

Finally, if you will be providing your "volunteer" with contact information for 
members and previous donors, I'd also suggest reviewing your organisation's 
fundraising policy regarding confidentiality. 


Jane Severs
Association of Heritage Industries NL






On 2017-02-19, at 1:39 AM, Don Erwin wrote:

> A volunteer member of the museum has submitted a proposal to perform
> fundraising activities with the stipulation that the volunteer receive a
> percentage of dollars secured through the volunteer's efforts.
> 
> I am looking for precedents, warnings, requirements, etc., for this kind of
> situation.  For instance, should the board require anyone doing
> fundraising, especially those earning a commission, to hold some type of
> certification in fundraising ethics?
> 
> I've found a few fundraising policies, but haven't yet found a specific
> statement on this particular situation.  If you have a fundraising policy
> that covers (or restricts) commissions on funds raised, I would love to see
> it.
> 
> Thanks!
> -Don Erwin
> Niagara Aerospace Museum
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