From time to time, we find or receive a question that one of our development experts will tackle. In this issue, Paula Schwartz, ISM Senior Consultant, answered a question gleaned from an ISM e-list.
Q: “Should a Development Director’s salary be based on a percentage of funds raised?”
A: A Development Director's salary should never be based on the percentage of money he or she raises. As stated in ISM's Guidling Principles for Advancement Professionals, advancement professionals are part of the school’s administrative structure, just like Division Heads and Business Managers. They are hired to perform certain functions for the good of the school. Therefore, their compensation is a fixed salary that is based on the tasks expected of them, not on the amount of money raised or the number of students admitted. The rationale for this is that if compensation is based on money raised, the Development Director will be inclined to focus only on major donors—and it takes supporters at all levels to achieve a culture of philanthropy at your school.
You can take a look at ISM's complete Guiding Principles for Advancement Professionals. These are part of the International Advancement Certification Program (IACP) that upholds the same Code of Ethical Principles and Standards for Professional Practice. You can download a free copy of the Guiding Principles poster or purchase a hardcopy ideal for framing in the ISM Bookstore.
ISM's guiding principles echo the ethical principles stated by the major advancement professional associations. Organizations including the American Association of Fund-Raising Counsel (AAFRC), the Council for Advancement and Support of Education (CASE), and the Association of Fundraising Professionals (AFP) outline the issue in the Code of Ethical Principles and Standards of Professional Practice they developed.
The Code has a four-point section on compensation and contracts organization members are bound to. AFP has the Code and other ethics and professional conduct standards on its Web site under Guidelines, Codes, and Standards (http://www.afpnet.org/Ethics/EnforcementDetail.cfm?ItemNumber=3261)
Additional ISM resources of interest
ISM International Advancement Certification Program (IACP)
Raise-funds.com What’s a Good Director of Development Worth?
ISM Web site Ten Helpful Hints for First-Time Development Directors
ISM Monthly Update for Development Directors Vol. 11 No. 3 How Much Do You Value Your Development Director
Additional resources for ISM Consortium Gold Members
Ideas & Perspectives Vol. 36. No. 2 Strengthen the Ties Between the Development Director and the School
Ideas & Perspectives Vol. 37. No. 6 21st Century Schools: The ISM Advancement Model
Ideas & Perspectives Vol. 27. No. 8 Ethical Issues for the Development Office
