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September 11, 2005

The Halakhic Value Of Transparency

How important is transparency in fundraising? Is there a halakhic position on the issue? Yes there is. Rabbi Dr. Asher Meir of the Business Ethics Center of Jerusalem writes:

… Transparency in remuneration is appropriate for all leading executives, but it is absolutely critical in non-profit organizations. If an administrator is getting a mid-six-figure salary, donors should be aware of this. Likewise, if fund-raisers are getting a percentage, this must be made crystal clear to all donors. Otherwise they are being materially misled as to the use of their donations. In my experience there are major problems with giving fund-raisers a percentage if it is more than a minor fraction (around 20%), but it is not important for me to dictate policy. What is important is that donors have full knowledge of any such percentage relationship, so they know how much of their money is going to finance fund-raising…

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Rabbi Yosef ha-levi Weinberg, one of the most successful Chabad fundraisers, asked the Rebbe if he could take 50% commission from his fundraising. The Rebbe responded rhetorically, "Fifty percent?!" Since then Rabbi Weinberg takes a 49% commission.

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