Mr. Goodman was visited by tzedakah collectors who came on behalf of many Torah and tzedakah institutions. He greeted them pleasantly and, when appropriate, offered them a cup of coffee as they explained the cause for which they came.
Over the years, Mr. Goodman developed a personal connection with one of the meshulachim, Rabbi Rosen.
“There is something I’ve been wondering about for a long time,” Mr. Goodman said one day.
“What is that?” asked Rabbi Rosen.
“What is the salary arrangement for tzedakah meshulachim?” Mr. Goodman asked. “Do they get paid a flat salary or a commission based on what they collect?”
“There are different arrangements,” replied Rabbi Rosen. “Some get a flat salary, while others get a commission, a percentage of what they collect. Many have some combination, a base salary and an additional amount based on commission. A commission encourages us to work harder!”
“So when I donate $100 or $1,000 to your cause,” said Mr. Goodman, “only part of it really goes to the organization; part of it goes to support you! When you collect money for yeshivos, needy families, or sick people… thank G-d you are self-sufficient and healthy!”
“That is true, but I view myself as part of the organization,” replied Rabbi Rosen. “There are also administrators, secretaries, and many other organizational expenses that are covered through your donation.”
“But most other workers have set salaries, commensurate with their work,” argued Mr. Goodman. “On the other hand, for every dollar I donate, you take a part off the top!”
“Personally, I don’t see the difference,” replied Rabbi Rosen. “Each person has a contract based on what’s appropriate for their type of work.”
Mr. Goodman called Rabbi Dayan and asked:
“Is it acceptable for the meshulach to take a percentage of the donation? Is this counted as part of my tzedakah?”
“Poskim of recent centuries have justified the practice of allowing tzedakah fundraisers to take a percentage of what they collect,” replied Rabbi Dayan.
“Maharam Galanti, a disciple of Rav Yosef Karo in Tzfas over 400 years ago, mentions the practice of receiving a quarter to a third, and rules that the stipulation is binding” (Responsum #7; Knesses Hagedolah, Hagahos Beis Yosef, C.M. 331:7).
“Maharsham (5:77) was asked by the Rabbanim of Teveria 150 years ago about the practice of increasing the stipend of meshulachim in accordance with the amount they raised through their efforts in addition to their salary for the travel. He allowed this based on the Gemara (Arachin 6b) that Rabi Yanai, who was a gabbai tzedakah, would borrow and return excess tzedakah for his personal use, since this ultimately resulted in a benefit for the needy through his collecting more. Here, too, the meshulach will toil harder to raise more money if he gets a share of it. Maharsham similarly mentions the Gemara (Rosh Hashana 23b) that Sanhedrin would use public funds to make lavish meals for witnesses of the new moon, to encourage them to come forth.
[For this reason, it is also permissible for tzedakah organizations to give gifts to donors, to encourage them to donate, if the directors deem it ultimately profitable.]
Nonetheless, Rav Moshe Shternbuch, shlita, (Teshuvos V’hanhagos 2:475) writes that the percentage must be reasonable, since the donors clearly intend that the bulk of the donation go for the intended cause. If the fundraiser takes an excessive amount, he is cheating the donors and it is considered theft. Poskim discuss how much is still considered reasonable” (see Hilchos Tzedakah 19:1).
“From the donor’s perspective, the entire amount is considered tzedakah, since the salaries are part of the operating costs and overhead of the institution” (Tzedakah Umishpat 7:23[44]).
“Despite this,” concluded Rabbi Dayan, “nonprofit organizations nowadays are increasingly moving away from commission-based fundraising to flat-rate salaries with overall performance-based bonuses, like other workers” (see also Hayashar v’Hatov, vol. 12, p. 32 ff).
Verdict: Poskim have allowed commission-based tzekadah collecting, to encourage the meshulach to toil harder, but the percentage must be reasonable. This amount is also considered tzedakah for the donor. Nowadays, this arrangement is becoming less common.
