What should be a fundraiser’s cut?

What should be a fundraiser’s cut?

The fundraiser for a non-profit organization is permitted to draw a salary from the organization according to halachah, even though he is involved in doing a mitzvah. It is considered schar batalah (or schar betailah, payment for “idleness”) as compensation for his lack of gainful employment while working to raise funds. There are a host of (good) reasons why many non-profit organizations have changed to fixed salaries rather than paying their fundraisers on a commission basis. Nevertheless, poskim allow even commission-based earnings since it encourages the fundraiser to work harder at acquiring donations for the cause.

What should the maximum commission be?

It is brought by poskim that there were established minhagim (customs) to place a cap on the percentage a fundraiser may earn. In some communities, this figure was one-quarter (25%) and in others, one-third (about 33%) of money raised. Halachic authorities decry the practice of of those who keep as much as eighty or ninety percent, or more, since there is an umdena d’muchach (obvious assessment) that the average person would stop contributing would they discover that the fundraiser retains most of it. The simplest mind—even a child— would consider a claim of “donating to charity,” as misleading or an outright sham if more than half their contribution were to remain in the fundraiser’s pocket.

A fundraiser who incurs expenses related to fundraising might be permitted to exceed the accepted “capped” commission, but the details and amount should be discussed with a rav moreh hora’ah (a practicing Rabbi who makes halachic decisions).

https://halacha2go.com?number=705

Practical Halacha: One minute a day. By Horav Yosef Yeshaya Braun, shlita, Mara D'asra and member of the Badatz of Crown Heights.