Selecting a Consultant Tips

[Tip Sheet]

According to a recent survey, more than 40% of nonprofits expect to pay more than $50,000 in consulting fees in the coming year. So, how does a nonprofit find the right consultant? Here are some tips:

List what it is you expect the consultant to do, have a list of expected outcomes and items to be accomplished, similar to a job description for a staff member.
Know whether you need a consultant or a staff member. The IRS has strict guidelines about the roles of outside contractors and staffs members.
Determine whether the tasks you need done can be done by someone internally or do you really need outside expertise.
Determine the qualities the organization thinks are most important: experience with a particular type of organization, geographic location, working style, etc.
Research the types of consultants that are available in this specific area of expertise. Some good sources are the Consultant Directory Online at AFP International, if you are in the New York, NJ area, try Nonprofit Cental NY/NJ, or your state association of nonprofits such as the Pennsylvania Association of Nonprofit Organizations (for a complete list of state nonprofit associations, check out the National Council of Nonprofit Organizations.)
Ask other nonprofits to share their experience with similar projects, i.e. if you are looking for a capital campaign consultant, talk to other nonprofits in your community that have used a consultant for a capital campaign.
Call several of the consultants on the list you have developed and determine the ones you think best meet your needs.
You may want to develop a simple RFP (request for Proposal), however be aware that many consultants do not respond to RFPs, particularly if they are multi page long with a lot of requirements.
Schedule in person interviews only with consultants you are seriously considering; it will save your time as well as theirs. Make sure you interview the consultant with whom you will actually be working.
Remember that the chemistry between your staff and board and the consultant is one of the key ingredients of a successful relationship if not the key.