Certified Fund Raising Executive (CFRE) Practice Test

If a fundraising consultant is hired part-time, how should their payment be established?

1. Based on commission from the funds raised

2. In accordance with a code of professional ethics

3. Depending on the number of hours worked

4. Linked to the overall success of the campaign

The correct answer is: In accordance with a code of professional ethics

The establishment of payment for a part-time fundraising consultant should indeed be in accordance with a code of professional ethics. This approach ensures that the consultant’s fee structure aligns with industry standards and best practices, which promote transparency, accountability, and fairness in fundraising activities. By adhering to a professional code of ethics, both the consultant and the hiring organization can maintain integrity throughout the fundraising process. It also helps to ensure that the consultant acts in the best interest of the organization and its stakeholders, which is crucial for sustaining trust and credibility within the fundraising community. In contrast, payment based on commission from funds raised or linked to campaign success could create conflicts of interest, where the consultant might prioritize personal financial gain over the organization’s mission. Similarly, simply basing payment on hours worked might not reflect the value of the consultant’s expertise and strategy. Therefore, aligning with ethical standards is the most appropriate way to establish fair and responsible compensation for their services.