There are IRS rules regarding percentages of income a non-profit is allowed through such means, if support from the public in the form of contributions is minimal.
If the main thrust of the plan is to offer to sell and promote the products and services of commercial businesses and vendors, and this program will take considerable time and effort, balanced to paying a commission to the staff facilitator, then I would sugges that you think about abandoning the plan.
Maybe my article, which is somewhat based on this idea, will be of use:
Should Your Organization Sell Products And Services To Raise Money?
http://www.raise-funds.com/2001/should-your-organization-sell-products-services-to-raise-money/

– Spectacular and well-received performances;

– Large expense budget, enough to operate a large and complex organization;

– Five years of successful operation, which means you should have a reasonably-sized, appreciative, and some moneyed audience—patrons needing to be asked in the right way for money;

– You are already paying a host of people, so adding one more—a critically important individual—must be done.

Biting the bullet now, and getting a seasoned and capable pro will help begin to have those board members know a good deal about fund-raising, and have them do something about it.
You do have income from the performances. You can have working capital from the board members and from those patrons whom you know could give major gifts.

The only way to go:

— When Should a Non-Profit Organization Hire its First Development Director?
http://www.raise-funds.com/2006/when-should-a-non-profit-organization-hire-its-first-development-director/

— What’s a Good Director of Development Worth? 
http://www.raise-funds.com/2005/whats-a-good-director-of-development-worth/
And when you do hire that person, remember to read again, and to discuss with your colleagues, the article above so you do not hire on a contingent-pay basis, but with an annual salary.

There is indeed great risk to the non-profit. No non-profit’s survival should ever be in the hands of any one person to bring in the revenue. It’s far more than just not being compensated when she or he does not bring in revenue. Others on staff will not be compensated as well. Worse, the dozens, hundreds, even thousands of people in need depending on the programs and services of the non-profit, are left high and dry. The job of seeing to it that the necessary funds are raised, is that of the non-profit’s Board of Trustees. Non-profits are public entities, and as such, belong the community. The operation of them is the responsibility of a volunteer board of trustees who must take on fund-raising as their duty.

I appreciate that a for-profit sales rep does as well have risk to her or his livelihood, including her or his family’s financial security, but should the rep not bring in enough revenue, the company does not go under. The product is still available in the marketplace, but for sure, not the food bank that so many people counted upon once the revenue support stream was not sufficient.

Your well-articulated countering argument is appreciated. I know it well, as you can see from my article, which juxtaposes the concepts of a commercial sales transaction to the very different non-profit solicitation of a donation. I came from nineteen years with General Electric marketing light bulbs, then on to twenty years as Director of Development for The Cleveland Orchestra. So, I know well the customer/sales and donor/gift process of each, and I have seen and worked the differences and similarities of each.

For example, take a look at the following one-page document:
http://www.raise-funds.com/wp-content/uploads/2010/09/pdf-51planning51-non-for-profit.pdf

Note the many similarities as you have correctly implied, but the marked and stark differences in mission and bottom-line, must be taken into account to make impossible the commission compensation arrangement to work for the non-profit fund-raising professional.

Here is an example of the real difference between the sales rep and the development officer. It’s a brief summary of what was an actual experience I had as consultant for a major organization.

During my sixteen months in service, I worked a great deal to develop and fine-tune fund-raising plans where there had been none previously. annual, endowment, capital, sponsorship, and underwriting campaigns were all fully developed and were phased into the duties of the organization’s first-ever Director of Development. He was hired on a straight salary while I was there.

Soon, he was up and running, doing well, and I concluded my engagement. In a routine phone call some months later, just to check in to see how he was doing, it became readily clear that he had not progressed much, if at all, in the development of any fund-raising campaign but the Annual Fund.

There were no cultivation activities, no building of a volunteer solicitation team led by the Board, or any effort expended for long-term funding. He was just dead set to get to the Annual Fund number goal set out for him. Why? Because after I left, the next salary review had him set to work to a bonus of $5,000 to be given to him should he meet the Annual Fund goal by the end of the campaign and Fiscal Year. Just about all of the warnings I give in my article were at work in this case, and were not heeded. All future development/cultivation plans were abandoned in favor of the immediate reward, and the need to himself bring in the revenue for this year’s ability to make a living. I rest my case.
Thanks again for your welcome interest.

For 24 years I have been a straight commission sales rep, working for “for-profit” companies. Early in my career I made very little and rubbed nickels together to make ends meet. The more I learned, and the more relationships I built, the more my income grew. I have grossed over $400k per year in some years, less than$100k in others. Those of us in this business ride the economic boom and bust, carving out a living and supporting our families the best we can.

What is the cost of my efforts to the company? A straight 10% of sales. I am a known quantity and my rate is built into the operating cost of goods. Whether that company has one rep or 100 reps in the field, the cost per sale is still a steady 10%. When I close a large sale, I celebrate, if I close a number of small sales, I celebrate. If I receive an order that is spread out over months or potentially years, I receive my commission upon payment. If I leave a company with receivables on the books, I continue to receive my split of commissions for those months or years, even after I leave. It is a nice bonus in my income that is paid because it was earned.

The for-profit world uses independent reps and have built a system that works. Independent Reps want these jobs because they are potentially lucrative. We stay on the job for many years because our early investment grows year over year.

Non-Profits must embrace commission development because it does provide an opportunity for those who give of their time and effort to earn a living wage. It encourages development professionals to continue to build relationships with donors and foundations. It provides a financial base for their effort to become a career, not just a summer job. Best of all, there is no risk to the nfp. If the development agent brings in revenue, they get paid, if they do not, they will not be compensated. Their survival is tied to the health and welfare of the nfp.

Thank you for allowing me to express my opinion.

RW