The Ethics of Compensating Storytellers

As a nonprofit consultant, I am frequently asked whether or not nonprofits should compensate program participants for sharing their stories (to be used on the website, in fundraising appeals, in grant reports, etc). I have encountered people who feel very strongly either way, and those who are totally on the fence.

Let’s take a step back and understand why this question arises, why we are so divided by it, and what I ultimately recommend.

On one hand, there’s the ethical standard rooted in journalism that prohibits payment to sources for stories or information. The concern here is that compensating storytellers could compromise the credibility of the narrative. If individuals are incentivized by monetary gain, there’s a risk they may provide biased or even false information, undermining the integrity of the information. We’ve also seen in marketing how paid endorsements can dilute the authenticity of testimonials and reviews. When influencers are paid to promote a product, their endorsements lose credibility as audiences question the sincerity behind the praise.

However, from a social justice perspective, the nonprofit industry is rife with instances of financial exploitation in the form of unpaid labor, from board members and volunteers to interns and salaried staff who work more than 40 hours a week without additional compensation.In this regard, the question of whether to compensate storytellers becomes intertwined with a broader ethical examination of the fairness and sustainability of depending on unpaid contributions. It also delves into the larger societal issues of poverty, access to resources, and the valuation of labor within a capitalist framework.

So, what’s the solution?

Well, I recently participated in a panel on ethical storytelling with the brilliant Michael Kass, who made a crucial point: “There is a difference between paying for your story and compensating you for your time.”

In this regard, I usually advise compensating storytellers when there’s a substantial commitment of their time. One-on-one interviews with program participants can easily last 45 minutes to an hour, which is quite an investment.

When we request a program participant to step onto the stage and present in front of our donors, it entails a significant commitment of time, skill, and emotional labor that merits compensation. If your organization has allocated funds for a professional emcee, auctioneer, and videographer, it begs the question: why should everyone presenting at the event be compensated except the program participant? In such instances, I strongly recommend offering an honorarium or speaker’s fee.

However, I recognize that my advice doesn’t fit every situation. Having with with nonprofits in 40 countries, I know that cultural contexts and organizational resources vary widely, making it impossible to give a definitive answer on payment amounts, formats, and timing. There’s no one-size-fits-all solution to compensating storytellers—it depends on community norms, resources, and power dynamics.

This is where meaningful dialogue and collaboration with storytellers and program participants comes in. Instead of taking the final word from a consultant like me, ask your storytellers for their thoughts and opinions. By seeking their input, nonprofits can ensure that compensation practices align with the values and needs of those directly impacted. Asking questions like, “Should we offer a stipend for sharing stories?” ensures that the process makes sense for the community involved.

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