Your ethics define who you are as a fundraiser. It's part of your individual identity and it's part of our collective identity as AFP members. It's easy to find yourself in a sticky situation. Thankfully, AFP International has developed a number of resources to help you navigate a wide variety of issues. Choose a topic below to get started.

 

• Code of Ethics

• Standards & Guidelines

• Ethical Standard Deep Dives

• The Donor Bill of Rights

• Ethics Awareness Month

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Please be aware that some AFP International resources may only be available to current members.

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The Rise of Fractional Fundraising: Ethical Opportunities and Risks

May 7, 2026

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Across the nonprofit sector, a new fundraising approach is gaining popularity: fractional fundraising. Whether called fractional development, contract fundraising, or part-time development leadership, the idea is straightforward. Instead of hiring a full-time development professional, a nonprofit hires an experienced fundraiser, marketer, and/or grants professional for a fraction of the cost to help shape strategy, develop systems, and enhance donor relationships.

For many organizations, especially small to mid-sized nonprofits, this approach can be extremely beneficial. Throughout Northeast Wisconsin and beyond, we observe organizations with strong missions but limited capacity to maintain a full-time development team. Building a fractional team can provide professional expertise, intentional structure, and mentorship that might otherwise be unavailable.

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At the same time, like many evolving practices in our field, this model raises important ethical questions. As fundraisers, we are guided by the AFP Code of Ethical Standards, which reminds us that our responsibility extends not only to our employers or clients but also to donors, the public, and the integrity of the fundraising profession itself.

Before writing this piece, I took some time to reflect on that responsibility personally. I currently co-own a company that offers fractional fundraising support to nonprofits, and I wanted to ensure it was appropriate for me to discuss this topic. The AFP Code of Ethical Standards encourages transparency and disclosure when potential conflicts of interest are present. With that in mind, and after consulting with my peers, I felt it was important to acknowledge that connection while still contributing to what I believe is an important and timely conversation within our profession.

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Can Fractional Work Expand Access to Ethical Fundraising?

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One of the most promising aspects of fractional fundraising, in my opinion, is that fractional workers can expand access to professional fundraising practices. Many smaller nonprofits rely heavily on executive directors, volunteers, or board members who may lack formal training in development. A fractional development professional can help introduce donor stewardship practices, ethical gift acceptance policies, and sustainable fundraising strategies.

In many cases, this support enhances ethical practice rather than undermining it. The AFP Code reminds us that fundraisers must ensure gifts are used in accordance with donor intent and that organizations demonstrate proper stewardship of philanthropic support. Experienced development professionals are often well-equipped to help nonprofits implement systems that uphold this responsibility.

 

Managing Conflict of Interest

At the same time, the model raises important questions about conflicts of interest. Since fractional fundraisers may work with multiple organizations at once, situations can arise in which missions overlap, donor communities intersect, or organizations operate in the same geographic area. These situations are not automatically unethical, but they do need careful handling and clear transparency.

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The AFP Code clearly states that fundraisers should avoid conflicts of interest and disclose any potential or perceived conflicts. For fractional professionals, this means being transparent with clients about other engagements and proactively managing situations that could lead to conflicts of interest.

Clear expectations, open conversations, and written agreements from the beginning of a client relationship can help ensure trust is maintained.

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Protecting Donor Relationships and Information

Another important ethical consideration involves donor relationships and donor data.

One of the key principles of ethical fundraising is that donor relationships belong to the organization, not the fundraiser. When development professionals work with multiple organizations, it's especially important to keep clear boundaries around donor information and relationships.

The AFP Code emphasizes the responsibility to protect confidential information and donor privacy. Donor data, giving histories, and organizational insights must remain confidential and should never be shared with clients.

Strong confidentiality agreements, clear CRM practices, and well-designed data policies can help reinforce these protections.

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Ethical Compensation Matters

Compensation structures also deserve careful attention.

AFP has long maintained that paying fees based on a percentage of funds raised is not an appropriate fundraising practice. The AFP Code clearly states that fundraisers should not accept compensation tied to a percentage of contributions.

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This guidance applies equally to fractional fundraising arrangements. Compensation should be based on time, expertise, and scope of work, not the size of gifts secured. Commission-based fundraising models can create pressure that risks damaging donor relationships and public trust.

 

A Thoughtful Path Forward

The rise of fractional fundraising highlights a positive trend in our sector: nonprofits are exploring innovative ways to access expert knowledge and boost their fundraising efforts. Like any new model, it requires careful implementation. Transparency, clear boundaries, and following professional ethical standards are crucial.

 

The AFP Code of Ethical Standards doesn’t restrict innovation. Instead, it serves as a guide, directing new approaches while safeguarding the trust donors place in our organizations.

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As our profession continues to grow, discussions about emerging practices like fractional fundraising are vital. By openly addressing both the opportunities and risks, we enhance not only our individual organizations but also the credibility of fundraising overall.

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Ultimately, our shared goal stays the same: building genuine relationships with donors and stewarding their generosity in ways that honor both their intent and the missions we serve.

 

Sean Tiernan, CFRE
Co-Owner
Catalyzt, a nonprofit collective

AFPNEWI Ethics Chair