Two Canadian charities are taking steps to distance themselves from a company they had hired to conduct door-to-door fund-raising campaigns after a Toronto Star investigation found that the company was paying their fund raisers commissions based on how much they raised.

Sick Kids Foundation and World Vision Canada both admitted that they had hired the company — Fundraising Initiatives Inc.— and both told the newspaper that they were not aware that the company had been using a commission-based system.

Both charities dropped the company when they were confronted by the newspaper about the commissions.

Their responses have received mixed reviews.

“I’m disappointed both groups issued such weak responses without using this as an educational moment to discuss the need for cost-effective member- acquisition programs,” a anonymous blogger wrote on Don’t Tell The Donor, a blog about fund raising. “However, they are both probably embarrassed, scared, and looking to put this behind them as fast as possible.”

Mark Petersen, executive director of the Bridgeway Foundation in Ontario, Canada, writes on his Open Hands blog that the two organizations have acted admirably.

“I’m glad both charities have stopped this practice. I have high respect for World Vision’s work, and have seen it up close and personal in several countries,” Mr. Petersen writes. “This report doesn’t make me stop giving to World Vision – and their quick response at shutting down this practice makes me respect them more. “

What do you think? Should the Sick Kids Foundation and World Vision Canada have been aware of the fact that their fund raisers were using a controversial incentive system? Click on the comments link below this post to share your thoughts.