What is a Professional Fundraiser?
A professional fundraiser (sometimes called a commercial fundraiser for charitable purposes, professional solicitor, or paid solicitor) is a person or entity who is paid to raise money for, and directly solicit donations on behalf of, one or more charitable organizations. Unlike fundraising consultants who simply advise nonprofits in their fundraising efforts, professional fundraisers are directly involved in solicitations, which may be conducted online, over the phone, or even in-person (think door-to-door sales).
When to consider a professional fundraiser
Nonprofit employees tend to wear many hats, meaning that only part of their job is dedicated to fundraising; or they have just a small team in development. Sometimes, newer nonprofits might have trouble getting off the ground due to a lack of brand recognition.
In these cases, hiring a professional fundraiser could be the solution. Professional fundraisers know the industry inside and out; they know the trends and have the most updated donor behavior statistics. They can provide the marketing expertise that many nonprofits lack. Because they likely have worked with a number of charities, they utilize tools that nonprofits don’t typically have access to, in addition to a network of sponsors and other connections.
Not all professional fundraisers are equal
Nonprofits need to look for a fundraiser whose values align with theirs. There are also specific legal compliance issues with each state, and professional fundraisers have to get approval to solicit funds in over 40 jurisdictions. Donors should look for the same alignment and transparency when it comes to high administrative costs, i.e., how much of the money raised actually goes to the charity. An average of about 40% of donations go to meet overhead expenses, according to Charity Navigator. When working with a professional fundraiser, consider their and their partner charity’s pass-through rates.