If you’re a nonprofit leader or startup founder searching for grant funding, you’ve likely asked a common question: “Can I just pay a grant writer a percentage of what we receive?”
It seems logical. After all, many professionals work on commission. But in the world of philanthropy and grant writing, the answer is a resounding no — and for very good reasons.
1. It Violates Industry Standards and Ethics
The Association of Fundraising Professionals (AFP) and the Grant Professionals Association (GPA) both prohibit commission-based compensation for grant writers. Why? Because it creates a conflict of interest and undermines the integrity of the grant-seeking process.
Commission-based models:
- Incentivize grant writers to pursue quantity over quality.
- Encourage applications for ill-fitting grants just to chase a potential payout.
Foundations and government funders expect that their funds will support programs and services—not retroactive payments to consultants. They also frown upon proposals that bundle consultant pay into the requested budget unless it’s clearly justified and aligned with the project scope.
2. Grants Are Not Guaranteed
Unlike sales or fundraising events, grant funding is never a sure thing. Even the most skilled and experienced grant writer can’t guarantee a win. There are too many variables—competition, priorities of the funder, available budget, and internal capacity of your organization.
Paying based on whether or not a grant is awarded shifts all the risk to the writer, who may spend dozens of hours on a proposal with no compensation. That’s not sustainable or fair.
3. It Undervalues Strategic Work
Grant writing is not just typing up a few paragraphs. It involves:
- Researching funders that align with your mission
- Strategizing how your programs match the funder’s goals
- Gathering data, developing budgets, and crafting narratives
- Editing, formatting, and navigating submission portals
This is professional, skilled labor — the kind that deserves fair, up-front compensation. Working on commission suggests the work is only valuable if a grant is awarded, which is both misleading and dismissive of the expertise involved.
So, How Should We Pay Freelance Grantwriters?
- Project-Based Fees: A flat rate for each grant or set of grants.
- Hourly Rates: Especially helpful for short-term engagements or grant readiness assessments.
- Retainers: Monthly contracts that allow for steady support, including prospect research and application development.
- You might be able to offer bonuses (with caution): In rare cases, organizations may negotiate incentive bonuses based on organizational fundraising milestones — but not tied directly to grant awards, and only in alignment with funder requirements and ethical standards.
Final Thoughts
Grants are powerful tools to grow your mission—but they require investment, strategy, and patience. Hiring a grant writer is like hiring a lawyer or an architect: you’re paying for expertise, not a guaranteed outcome.
If you’re serious about securing grant funding, commit to the process. Budget for professional support. And remember: strong grant writers don’t work on commission, because integrity and impact come first.
Karen Hodge 