Marts&Lundy Examines Fundraising Incentives

Marts&Lundy has released a benchmarking study of incentive compensation for higher education advancement teams, based on responses from 38 institutions. Approximately 16% of respondents reported having an incentive program, while more than 40% of institutions without one said they were considering incentives for fundraising roles. Every institution reporting program goals identified employee retention as an objective. The firm’s Incentive Compensation in Higher Education Advancement revisits research first published in 2016.

Findings From 38 Institutions

The online questionnaire, conducted in summer 2026, included public and private institutions with and without incentive programs. The findings are directional benchmarks from participating institutions, rather than estimates for the higher education sector.

Among programs responding to relevant questions, 80% reported increased dollars raised and 75% rated the effect on organizational culture as positive or very positive. Respondents also identified improved employee performance and higher overall fundraising revenue as program goals.

Penelepe Hunt, Senior Consultant & Principal at Marts&Lundy, said:

“Advancement leaders tell us they want real data on this topic, and there has been very little to point to. This research gives leaders a clearer view of how peers are approaching incentive compensation and practical insight into designing programs in a way that strengthens their institution's goals, culture, and collaborative approach to fundraising.”

Program Design And Eligibility

Current programs were evenly divided between ongoing and campaign-specific structures. Advancement leadership and principal and major giving professionals were each eligible in 83% of responding programs, while planned giving professionals were eligible in 67%.

Programs commonly use fundraising results alongside activity, pipeline, team, or other measures. Institutions considering incentive compensation cited philosophy, budget, culture, governance, and, for public institutions, state and collective bargaining rules.

Guidance For Advancement Teams

The report examines award structures, funding sources, administration, and shared-credit approaches across advancement teams. Its guidance includes engaging governance and HR early, starting where measurement is strongest, choosing between campaign-specific and permanent program design, and recognizing colleagues involved in each gift.