The AHP Statement of Professional Standards and Conduct, section eight, highlights the complexities of the issue.

Section VIII. Their acceptance of a compensation method freely agreed upon and based on their institution's usual and customary compensation guidelines which have been established and approved for general institutional use while always remembering that:
1.Any compensation agreement should fully reflect the standards of professional conduct; and,
2.Antitrust laws in the United States prohibit limitation on compensation methods.
AHP believes that Percentage Based Compensation is unethical but they cannot say it is illegal. According to the FTC it is not illegal and the damages if awarded are tripled therefore it would put us in legal jeopardy to say it is illegal.

AHP writings on the Percentage Based Compensation:
(Articles available by request )

AHP Connect
McGinly, Bill. “FYI: The Association revists its Statement of Professional Standards and Conduct,” AHP Connect, Jan 1998.

Carruthers, Sue. “Percentage Based Compensation: A moral, ethical issue.” AHP Connect, March/April 1999.

AHP Journal articles:
McGinly, Bill. “As I See it: Percentage Based Compensation: Fund raising ethics and the Law.” AHP Journal, Fall 1992. Request/Purchase article

Other websites of interest:

“Weighing ethical questions when considering percentage – based pay,” in Chronicle of Philanthropy, Dec 11, 2008.  accessed via the Internet  8/8/2011.

AFP Position Paper: Percentage-based Compensation: View document

Harrison, Bill, J, CFRE.Is percentage based compensation unethical?