Storytime.
After a year of consulting with my client and advising him that, although we are winning grants, we aren’t reaching our potential because of several internal and infrastructure concerns, he hits me with, “Would you consider a lower retainer with a percentage of winning awards?”
My first reaction is to get pissed. But to him, it may actually sound like a generous offer and would allow him to pay me when he is flush with cash.
So, I took a beat and scheduled a call with him so I could explain why his offer is incredibly flawed.
Related: 5 reasons why I only write grants on a monthly retainer
Grant professionals should not accept compensation tied to a grant award.
The Grant Professionals Association (GPA) Code of Ethics addresses commission-based compensation and states that grant professionals should not accept compensation based on whether a proposal is funded. This standard applies to consultants and employees.
GPA’s guidance is based on responsible stewardship, professional integrity, and protecting the public trust. Its recent public statement also clarifies that compensation tied to the success of a grant award can qualify as commission-based compensation, even when the service is described as a platform, tool, or other type of support.
My professional response is typically something like this:
“Thank you for the offer. I appreciate your confidence in my work. However, I do not accept commission-based or success-fee compensation. The GPA Code of Ethics treats compensation tied to a grant award as an ethical concern. I’m happy to continue working on a monthly retainer for the services provided.”
For this specific client, I pointed out that the organization hasn’t corrected several of the internal issues that would lead to higher grant awards, and that is out of my control.
If a client insists on a success fee, that is a sign to reconsider the engagement and move on to another client.
Ethical compensation protects you, your client, and the credibility of the grant profession.
Until next time,
Write Epic Grants