A nonprofit consultant is often well versed in many aspects of the nonprofit sector and can provide fresh ideas, offer best practices, and bring an objective, outside perspective to decision making to help nonprofits thrive.
Here are some things to expect from a nonprofit consultant.
- Appropriate experience and qualifications.
- Clear understanding of the goals of the project.
- Customized solutions based on your needs.
- Ability to complete the project on time and within budget.
- Recommendations from previous clients.
- Timely proposal that clearly defines the scope of work.
- Properly registered, licensed, and/or insured depending on the type of services provided.
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When is the Best Time to Hire a Nonprofit Consultant
There are many reasons why a nonprofit may be helpful. Here are key times to consider working with a consultant:
When the nonprofit reaches a pivotal stage.
Consultants can be helpful when organizations are being established, as they advance from one stage of growth to the next, and during periods of exponential change. These transitions can produce anxiety and growing pains which may be minimized by external help and expertise.
When you need an objective assessment or evaluation.
This is often the first step a consultant takes to fully understand the organization, its structure, governance model, needs, and challenges. In some cases, the issue presented as the problem is a symptom of a bigger or more complex issue. The result of the assessment typically includes a list of recommendations the consultant may be able to address as a second step in the project.
When you need to resolve a problem.
Although there are no silver bullets, a knowledgeable consultant can analyze a situation and provide clarity by identifying issues to be addressed. Sometimes the problem, or part of the problem, is staff or board members, which can be difficult to recognize from inside the organization.
When you need assistance with fundraising or development.
Consultants do not bring buckets of money or lists of donors that will instantly make gifts to your nonprofit. They can, however, help you identify good sources, decide how much to ask for, improve the quality of your request, evaluate fundraising strategies, help you write a fundraising plan, teach volunteers and staff how to ask for a gift, and suggest effective ways to build relationships.
When you need help with planning
Consultants can bring a wealth of experience to the planning process. This includes short-term “action” planning, long-range strategic planning, tactical or scenario planning, and leadership succession planning.
4 Questions to Ask Before Hiring a Nonprofit Consultant
To help determine if now is the right time to hire a consultant, consider these four questions:
- Is there a specific challenge or opportunity that requires expertise not available within the organization or would benefit from an objective perspective?
- Have board and staff leaders equally shared in the decision to seek external support?
- Are board members and staff leaders prepared to devote additional time to achieve the desired outcome?
- Are funds available to invest in the project?
When NOT to Hire a Nonprofit Consultant
There are times when hiring a nonprofit consultant is not the best solution.
The organization is on the brink of bankruptcy.
Although there are consultants who specialize in organizational turnarounds, most do not rush in and save the day after months or years of financial deficits and failed attempts by the organization to resolve the issues.
Referee a disagreement or when a board decision has already been made.
A consultant’s job is not to referee but, instead, to teach problem solving skills and create a plan to put systems in place for dealing with disputes. A consultant can help guide the leadership in making quality decisions that point the organization in the right direction.
When the consultant knows the answers before you ask the questions.
We love what author and fundraising consultant Jeff Brooks says are the three reasons a consultant has ready-made answers: (1) they only know one thing; (2) it worked somewhere else; or (3) there’s a hidden agenda.
To ask donors or members for money.
A consultant is an advisor and partner in helping directors and staff build trusted, long term donor relationships. Asking donors or members for money is best done by board members and staff.
Commission-based fundraising is considered unethical by the Association of Fundraising Professionals’ Code of Ethics. Learn more at www.AFPglobal.org/ethics.
Before you call a consultant
Here are ways to prepare before calling a nonprofit consultant to assist your organization.
- Define the issue and project for which you need help.
- Know your budget and the amount of time staff and/or volunteer leaders have available to commit to the effort.
- Be ready to answer questions about the organization including its governance structure, bylaws, strategic plan, needs, challenges, and goals of the project.
- Know how you define success for the project.
Sharing this information will help a nonprofit consultant determine if and how they can help.
Hiring a Nonprofit Consultant can be Cost Effective
Recruiting and hiring staff isn’t always an option. It is often assumed that employees cost less than consultants, but that is not always the case. Choosing to work with a consultant enables a nonprofit to hire a high-level expert for a fraction of the cost of hiring a full-time staff person with similar knowledge and experience. The rate per hour may be higher for a consultant, but there are no payroll taxes and benefits to fund. Onboarding time is often quicker, as well.
How to Pay a Consultant
Consultants typically charge for services in one of three ways:
- Project fee
- Monthly retainer
- Hourly rate
Be sure to discuss your goals and ask questions before agreeing to a fee structure.
We are Here to Help
For nearly two decades, Stansbury Consulting has provided management consulting services for not-for-profit organizations throughout the Southeast. The Tallahassee-based firm specializes in assisting nonprofits and associations in the areas of fundraising, leadership, and planning.