How Are Fundraisers Paid? Fundraiser Compensation

Fundraisers get paid in different ways, depending on the campaign and organization’s nature. Some fundraisers are volunteers who dedicate their time and efforts without any financial compensation. Others may receive a salary or hourly wage from the organization they work for. Some work on a commission basis, earning a percentage of the funds they raise.

By understanding how fundraisers earn an income and the various models used, such as commission-based models and salary structures, we gain a better insight into the financial incentives that drive their work. Fundraisers are able to leverage their skills to build relationships and effectively communicate their cause. This skillset not only provides substantial value to their organization but can also be financially rewarding for the fundraiser.

While paying fundraisers on a percentage basis is not illegal, it does raise several concerns within the industry. The standard compensation approach is fee-for-service, which has several advantages over percentage-based compensation, such as encouraging a focus on the long-term interests of donors and charities rather than maximizing current giving.

Recruiting for CEO roles in the nonprofit sector typically considers a salary that amounts to 1%-2.5% of the organization’s revenues. The fundraising expense ratio is a measurement of revenue generation for every dollar spent on fundraising activities. In 2019, the median salary for a fundraiser was $57,970. However, because some regions have higher living costs, a fundraising salary alone may not be sufficient, and a second job might be necessary.

Fundraising Efficiency

  • Fundraising Activity/Method: Average Cost to Raise One Dollar.
  • ROI Calculation: ROI is calculated by dividing the net profit by cost and multiplying by 100.

Top earners in the fundraising field can make between $75,000 to $150,000, with the potential for even higher earnings. Small online donations, shoe drive fundraisers, and other strategies can accumulate significant funds for schools and charities. Nonprofits are generally expected to allocate at least 65% of their budget to program-related expenses and not more than 35% to fundraising.

Leave a Comment