Is your non profit organization
considering hiring a consultant to help with your
fundraising or development needs? Here are few things
to know before you engage a consultant.
1. Do you need a consultant or a staff person?
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The first
thing you need to know is whether you are looking for
a staff person to fill the role or if you need a consultant.
If you need full time work or someone to be in site on
a regular basis, you probably need an employee rather
than a consultant. Hiring a consultant is not a way to
avoid paying benefits to employees. In fact, the IRS has
strict regulations about who is an employee and who is
an outside contractor. Things like supplying and office
and equipment, supervising the person's work directly
usually mean that person is an employee and you must pay
employment taxes and possibly benefits. For a complete
list of IRS guidelines, you can email the author at Linda@cvfundraising.com.
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2.
Know the law and ethics of consulting
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While Nevada does not
require nonprofits or consultants to register in order
to do fundraising campaigns and activities, most states
do; so if your organization is headquartered outside of
Nevada you may need to check into state regulations regarding
the hiring of consultant. And of course, the AFP code
of ethics prohibits its members, including consultants,
from working on a percentage of money raised basis.
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3.
Understand what type of consultant you need.
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Consultants can offer
many areas of expertise in different areas of fundraising.
There are grant writing consultants, planned giving consultants,
event consultants, search firms, capital campaign consultants,
board development consultants, consultants who can help
you develop a plan or audit your organization's development
office. Some full service firms will provide a combination
or even all of these services. But, you need to know what
type of consultant you are looking for. Do not hire a
grant writer to run a capital campaign or a capital campaign
consultant to plan a special event.
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4.
Have you budgeted adequately for consultant fees?
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Your organization needs
to understand that you are not usually paying the consultant
for the hours they are working, but you are paying for
their knowledge, their experience and their expertise.
Often, board members who have not worked with consultants
before are not prepared to pay the fees involved because
they do not understand this concept. Also, be aware of
other costs, such as travel expenses if you are hiring
a consultant outside the area. Ask what type of hotel
accommodations they expect, what typical airfares will
run, do they charge for mileage, phone calls, faxes, etc.
Is there a charge for materials they provide?
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5.
What are the criteria you are looking for in a consultant?
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Sometimes organizations
feel it is important to have a local consultant, other
times they’re looking for someone with a national
reputation and experience. Some organizations feel it
is important to hire someone who has worked with similar
organizations; for example a YMCA may want someone who
has worked with other YMCAs. If the consultant is truly
knowledgeable about their work, these things are often
not as important as they seem. Some important criteria
to look for are: Does the consultant seem to understand
your needs? Do you feel the chemistry between the staff
and board is good? Is the consultant willing to learn
enough about your organizations and your constituents
so they can effectively help you present your case?
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6.
References and ethics again.
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Be sure to ask for references
of other clients. And ask if the consultant is a member
of the Association of Fundraising Professionals (AFP)
or another association that carries a standard of ethics.
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7.
Ask about the consultant's work style.
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Will they be providing
actual work products, or are they providing you with direction
so you can produce the products yourself? For example,
is the grant writing consultant actually writing the grant,
or reviewing and editing grant proposals you will write?
Will they be on site or do they work from their own office?
How accessible is the consultant to you by email? Make
sure the style they offer is what your organization needs.
Does their personality fit your organizations? Some organizations
want a polished sophisticated person, while other may
prefer a more down-to-earth style. You need to be comfortable
with your consultant's style.
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8.
The written contract
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You should always
have a written contract of letter of agreement with the
consultant, signed by your organization and the consultant.
This contract should outline fees and other expenses,
a schedule of when fees are to be paid, a scope of work
to be performed, a starting and ending date for the work,
and a provision to extend or cancel the contract.
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9.
Welcome the consultant into your organization.
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Be
sure that the staff of your organization’s who will
be working with this consultant get to meet them and know
what is expected of them and of the consultant. A tour
of your facility so they can get to meet program staff
and others will be helpful. And, feel free to tell the
consultant if you are unhappy or uncomfortable with anything
they’re doing.
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10.
Remember, that consultants do not raise money for you,
they help your staff and volunteers develop the skills
and relationships to raise the money.
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Linda
Lysakowski, ACFRE is one of 81 people world wide to hold
the coveted Advanced Certified Fundraising Executive designation.
Linda is the President/CEO of CAPITAL
VENTURE,
a full service fundraising consulting firm with offices
in Pennsylvania and Nevada. Linda is an internationally
recognized speaker and author of several
books. More information about Linda and her company
can be found at www.cvfundraising.com.
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