Should the ED get a bonus for fundraising?
Dear Governance Matters:
Is it consistent with good governance for the Executive Director to be given a bonus based on the fundraising dollars brought in by the agency?
Does the answer to this exist somewhere online/in a publication?
While I haven't been able to find a publication or reference on the subject, my contacts in philanthropy all agreed that common sense dictates: Any Executive Director's bonus should be based on overall performance of the organization, not just on fundraising.
In other words, are the programs operating efficiently, are they in keeping with the mission, is the strategic plan being followed, is staff properly trained, is the board getting the financial records that are timely, accurate and useful?
Executive directors should be held accountable for all aspects of their job and should be rewarded when they do all of it well.
Take a look at executive evaluation section of the Board Leadership Project.
Editor, Ask the Experts