Marts&Lundy Study Offers New Insight into Incentive Compensation in Higher Education Advancement

Ten-year follow-up explores adoption, program design, and institutional approaches to rewarding performance

LYNDHURST, N.J., Nov. 2, 2026 /PRNewswire/ -- As advancement leaders look for new ways to attract and keep top fundraising talent, Marts&Lundy today released Incentive Compensation in Higher Education Advancement, a new benchmarking study that offers one of the few current views of how institutions use performance incentives to support their advancement teams. Revisiting research first published in 2016, the study provides current insight into program eligibility, structure, performance measures, and perceived outcomes to help leaders make informed compensation decisions. Marts&Lundy is a strategic fundraising consulting firm serving mission-driven organizations around the world.

Employee retention emerged as a central priority: every institution reporting its incentive program's goals identified retention as an objective. Improved employee performance and higher overall fundraising revenue were also prominent goals, reflecting the role incentives can play within a broader talent and advancement strategy.

The research draws on responses from 38 higher education institutions that answered whether they offer incentive compensation to advancement staff. Approximately 16% reported having a program. Among institutions without one, more than 40% said they were currently considering incentive compensation for fundraising roles.

"Advancement leaders tells us they want real data on this topic, and there has been very little to point to," said Penelepe Hunt, Senior Consultant & Principal at Marts&Lundy, who led the study. "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."

Key findings

• Retention anchors program goals. Every program reporting its objectives cited employee retention, followed by improved performance and higher overall revenue.
• Institutions are using incentives in different ways. Current programs are evenly divided between ongoing and campaign-specific structures, offering examples for leaders considering either approach.
• Eligibility centers on leadership and major giving. Advancement leadership and principal and major giving professionals are each eligible in 83% of responding programs; planned giving professionals are eligible in 67%.
• Performance measures extend beyond dollars raised. Programs commonly combine fundraising results with activity, pipeline, team, or other measures that recognize progress toward sustained performance.
• Participants report encouraging experiences. Among programs responding to the relevant questions, 80% reported increased dollars raised, and 75% rated the effect on organizational culture as positive or very positive.
• Leaders are weighing a range of considerations. Institutions exploring incentives point to philosophy, budget, culture and governance, and public institutions also cite state and collective bargaining rules. Many are focused on designing approaches to shared credit that honor the team effort behind every gift.

The report also explores award structures, funding sources, administration, and approaches to recognizing contributions across advancement teams. It offers practical guidance for leaders: engage governance and HR early, start where measurement is strongest, decide deliberately between campaign-specific and permanent program design, and build shared-credit approaches that recognize colleagues across the team.

The study was conducted through an online questionnaire in summer 2026 and included public and private institutions with and without programs. The findings are directional benchmarks from participating institutions rather than estimates for the sector, and reported outcomes reflect respondents' perceptions.

The full report is available at https://martsandlundy.com/special-report-2026-incentive-compensation-in-higher-education-advancement/.

About Marts&Lundy

Founded in 1926, Marts&Lundy helps mission-driven organizations unlock the full potential of philanthropy. The firm combines strategic advisory, analytics, campaign planning, communications, donor engagement, and technology and AI enablement tailored to each client's unique circumstances and helps shape ambitious visions, strengthen fundraising performance, and build the capacity organizations need to enable impactful giving and sustainable growth. For more information, visit https://martsandlundy.com.

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SOURCE Marts&Lundy