Why I Don’t Write Grants on Commission (And Neither Should You)

By Willie Finklin, CFRE – The Grant GOAT
Member of Association of Fundraising Professionals (AFP) & Grant Professionals Association (GPA)

If you’ve ever asked a grant writer to work on commission, let me stop you right there. Not only is it unethical, but it’s also a recipe for disaster for both the nonprofit and the grant writer. I’ve had this conversation more times than I can count, and I’m here to break it down once and for all.

What Does “Commission-Based Grant Writing” Even Mean?

When you ask a grant writer to work on commission, you’re essentially saying, “Do all the work up front, and I’ll pay you if we get the money.” On the surface, that might seem fair—no risk for the nonprofit, right? But here’s the problem: writing a grant proposal is labor-intensive, highly strategic, and requires both skill and time.

The grant writer does the work whether or not the grant is awarded. They deserve to be compensated for that effort—just like any other professional.

Let me make this clearer with two real-world examples:

Example 1: The $3 Million Federal Grant

Let’s say you’ve hired a grant writer to write a proposal for a $3 million federal grant, and you offer them a 15% commission. That means if the grant is awarded, you’re offering to pay them $450,000. On the flip side, if it’s not awarded, they get nothing.

Now think about that: $450,000 for one grant. Not only is this unreasonable, it’s against federal guidelines. The Office of Management and Budget (OMB) strictly prohibits percentage-based compensation for grant writers because it encourages inflated budgets and unethical practices. And even if you did want to pay $450,000, most grants don’t allow their funds to be used for pre-award costs like grant writing.

Example 2: The $10,000 Local Grant

Now, let’s flip it. Suppose you’re applying for a $10,000 grant, and you’re offering 15% commission. That’s $1,500. If the grant writer spends 40 hours researching, writing, and editing the proposal, that’s $37.50 an hour.

If you were to hire them outright at the industry standard of $85 to $150 per hour, that same 40 hours would cost between $3,400 and $6,000. The grant writer would be getting less than half their value—and only if you win the award.

My Real-Life Experience: When the Work is Done But the Money Never Comes

I’ve been in this game long enough to have seen it all. I’ve written grant proposals for organizations that, for whatever reason, didn’t get awarded. But here’s the kicker—months later, I’d find out that the exact same proposal I wrote was resubmitted, sometimes with minor edits, and this time, they got the money.

Do you think I got a call? A check? A “thank you” email? Not a chance.

The truth is, if I’m working on commission, I’m left completely in the dark. I might never know that my work was used to secure funding because most foundations don’t publish their award recipients, and nonprofits aren’t always forthcoming. That means I could be owed thousands of dollars and have no way of knowing it—unless I sue. And suing a nonprofit? That’s a lose-lose situation for everyone.

And what happens if the grant isn’t published? Or if I’m never informed it was even submitted again? I’m completely left out of the loop. Not only would I have to rely on their honesty, but I’d also have to hope I find out in time to take legal action if necessary. The reality is, I shouldn’t have to chase down my own compensation.

Why Grant Writers Should Never Work on Commission

1. It’s Unethical: The Grant Professionals Association (GPA) and the Association of Fundraising Professionals (AFP) explicitly prohibit commission-based pay. It’s in their codes of ethics for a reason—because it compromises the integrity of the work.

2. It’s Against Federal Guidelines: Federal and state grants do not allow pre-award costs to be paid retroactively, and percentage-based pay is strictly forbidden.

3. It Inflates Budgets and Damages Trust: If a grant writer is working for a percentage, they have every incentive to pad the budget. Grantmakers see right through that, and it damages the reputation of the nonprofit.

4. It Leaves Grant Writers Vulnerable: If the organization fails to submit a report, mismanages funds, or simply doesn’t get funded, the grant writer’s work is wasted—and they don’t get paid.

5. It Hurts the Mission: When organizations don’t have enough money left to execute the project effectively because a chunk went to a grant writer’s commission, it’s the community that suffers. If they don’t have the resources, the target population is left underserved, programs fall short, and the nonprofit risks its reputation for failing to meet its grant objectives.

6. It Jeopardizes Future Funding: When an organization underperforms due to insufficient funds (because the grant writer took a large percentage), it can damage relationships with funders. Funders keep score—they remember who performed well and who didn’t.

The Bigger Problem: Grant Readiness Isn’t Just Writing—It’s Building

Here’s the reality: most people seeking grant writers have never run programs, lack basic policies, don’t have budgets, and are nowhere near grant-ready. In larger nonprofits, these elements are handled by multiple departments:

• Program Development: Executive Directors or Program Directors design the vision and strategy.

• Finance Department: They handle budget creation, expense projections, and financial forecasting.

• Quality Assurance (QA): This team develops outcome measures, selects measurement tools, and builds tracking methods.

But in smaller organizations, all of this often falls on the grant writer. What you’re really asking for is not just grant writing—you’re asking for program development, financial planning, and evaluation design. That’s not a one-person job. That’s a team’s worth of expertise.

If you went to a CPA to file your business taxes and didn’t have your bookkeeping done, they would let you know upfront that it needs to be completed first. And if they have to do it for you, it would be a separate charge. Why? Because that’s different work.

The same is true with grant writing. If a grant that should typically be completed in 20–30 hours now takes an additional 15–20 hours to develop extra components—like the program design, outcome measures, and budget planning—then why would that not be considered extra work?

That’s not just grant writing—that’s program development. And like any other specialized service, it comes with its own costs and time requirements.

Final Thoughts: Ethical Grant Writing Builds Ethical Nonprofits

I am Willie Finklin, CFRE – The Grant GOAT, a proud member of the Grant Professionals Association (GPA) and a Certified Fund Raising Executive (CFRE), governed by the Association of Fundraising Professionals (AFP). I adhere strictly to their ethical standards because I believe that integrity is the cornerstone of nonprofit success.

These are ethical ways to pay a grant writer:

1. Hourly Rate: $50–$150 per hour depending on experience and project scope.

2. Flat Fee per Proposal: Based on the complexity and length of the application.

3. Monthly Retainer: For ongoing support, research, and strategy development.

4. Performance Bonus (Fixed, Not Percentage): As a thank-you for success, not a commission.

So the next time someone asks me if I’ll write a grant on commission, my answer is simple: No.
I believe in building lasting, ethical change—and that starts with how we value the work.