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Running a nonprofit requires you to be a multi-tasker. You are a fundraiser, a content creator, a marketer, an event host, and a motivational speaker. You find yourself working hands-on distributing aid one day while giving a presentation on your financial status the next. While every task is essential, focusing on your strengths and letting those with advantages take some burdens off you is vital. This is where a fundraising consultant comes in handy. Fundraising is one of the most critical tasks for a nonprofit, and now you can safely share that responsibility with an experienced expert.
The article below will discuss why a fundraising consultant makes sense, their advantages to a nonprofit, how much they cost, and how best to use them. We will also share a list of prominent fundraising consultant firms with you so you can get an idea of how the market works.
What is a professional fundraising consultant?
A professional fundraising consultant is an expert who assists nonprofit organizations, charities, educational institutions, and other entities in developing and implementing fundraising strategies. Their involvement can help streamline processes, saving time and resources. With tailored strategies and professional assistance, organizations can often see an increase in funds raised.
Here’s what they bring to the table:
- Expert knowledge: They bring specialized expertise that an organization might not have in-house.
- Objective insight: Consultants provide an unbiased perspective on existing fundraising strategies.
- Efficiency: Their involvement can help streamline processes, saving time and resources.
- Increased revenue: Organizations often see increased funds raised with tailored strategies and professional assistance.
| Important: 40 states in America require charitable nonprofits and any paid fundraising consultant hired to assist the nonprofit in registering with the state BEFORE asking for donations from residents of that state. |
Read More: Can Nonprofits Lobby? How to Lobby Within the Limits
What services do fundraising consulting firms offer?
A fundraising consultant does whatever it takes to help a nonprofit increase its donations. This includes everything from teaching board members how to pitch their nonprofit to planning seasonal campaigns to even telling a non-profit what a realistic fundraising goal is.
A fundraising consulting firm, on the other hand, often specializes in niche organizational requirements—colleges, museums, water-based charities, charities in South Africa, etc.
But broadly, all fundraising consulting firms offer these services:
- Helping organizations create comprehensive fundraising plans, including setting realistic financial goals and timelines.
- Assisting in executing specific fundraising campaigns, such as capital campaigns, annual giving, or special events.
- Advising on ways to identify, approach, and build relationships with potential donors, including individuals, corporations, and foundations.
- Providing training for staff and volunteers to improve fundraising techniques and communication skills.
- Assisting with grant proposals and funding applications to secure financial support from foundations or government entities.
How much does it cost to hire a fundraising consultant?
Three primary styles of payments can be made when hiring a fundraising consultant.
Hourly: The first and cheapest is the hourly fee. This is for simple projects that don’t need full-time attention, just a weekly overview and course corrections or a few meetings. Fundraising consultants often charge hourly rates that range from $100 to $300 per hour, which is the market trend for 2024.
Flat fee: The next level is a fixed payment for a single deliverable within a time period, such as the creation of a specific grant proposal or plans for meeting financial goals for Giving Tuesday. Here, there is a great deal of flexibility in the price range. For a project such as developing a fundraising plan, managing a specific campaign, or conducting donor research, project-based fees can range from $5,000 to $50,000. It depends on the scope of the deliverable.
Retainer: A retainer fee is an upfront, recurring charge for long-term projects. It is a permanent financial commitment by the nonprofit for the duration—whatever the work. Monthly retainer fees for ongoing support can range from $2,500 to $15,000 per month.
Beyond this, the prices are determined by the work needed and the experience and expertise of a professional.
Consultants for more extensive, multi-year fundraising efforts (capital campaigns) often charge higher fees. The total cost for a capital campaign consultant is 3-5 % of the campaign goal spread across the years.
Other consultants charge a fixed amount for each grant proposal crafted for the nonprofit or each donor event they help set up.
Through common sense, a nonprofit should spend about 3-5% of the funds it raised to pay a fundraising consultant for those donations.
| Note: It is critical to remember that consultants should NOT be paid a percentage of the funds they have raised. Donors are never happy to know that a ‘broker’ essentially took a part of their charitable donations instead of giving 100% of that money to the cause. |
Consultants should be paid like regular freelancers through a pre-decided contract and the administrative budget.
How do you evaluate a good fundraising consultant?
Evaluating a good fundraising consultant involves assessing their experience, approach, and ability to align with your organization’s goals and culture. Here are key factors and tips to consider when evaluating a fundraising consultant:
Specialization: It is essential to know that only some consultants can help you. Your needs may appeal to a few donors, who may expect a specific pitch. The same goes for grants or legal requirements. Your fundraising consultant must have experience in your particular sector or field and your specific kind of fundraising – major donors, legacy donors, or monthly giving, for example.
Experience: Look for a consultant with a proven history of successful fundraising campaigns or projects similar to what your organization needs. Ask for specific examples of past campaigns and the results achieved. And make sure you verify these claims. Request references from past clients and read testimonials or case studies. Speaking directly with past clients can provide insights into the consultant’s work style, effectiveness, and outcomes.
Customization: A good consultant should be able to craft strategies that are tailored to your organization’s unique needs rather than applying a one-size-fits-all approach. They should clearly outline how they will approach your project, including timelines, key milestones, and expected deliverables. Make sure your consultant is not giving you the ‘generic’ treatment.
Values: The consultant should understand and support your organization’s mission and values. A cultural fit will enhance collaboration and the success of fundraising efforts. Evaluate whether they can work well with your board members, executives, and other stakeholders.
Transparency: Be wary of consultants who are vague about costs. Ensure their fees are within your organization’s budget and you understand what services are included in the price. Ensure the fees are indicated and spell out what you are being billed for.
Some red flags to keep an eye out for:
- Bad reviews, either in real life or online.
- Unrealistic promises, such as guaranteed results or unusually fast outcomes.
- Inability to provide specific details about their strategy or prior successes.
- Demanding a percentage of funds raised, as this violates ethical standards.
Top 5 fundraising consultant firms
Here are some of the best consultant firms working locally and globally. And yes, most of them may not be suitable for all nonprofits regarding budgets. But their style of working matters, and they should be seen as inspirations for the kind of fundraising consultant you want.
While there may be a better fit for you, look at their methods to see what success looks like.
Campbell & Company
Services: Fundraising, donor database cleaning and maintenance, general communications, and helping you find the right executives for your board.
Why we recommend it: They are famous for supporting the University of Chicago in structuring a large-scale fundraising effort that significantly exceeded its original goal. Plus, they have over 40 years of experience in fundraising.
The Ostara Group
Services: Based in Seattle, The Ostara Group specializes in helping nonprofits with various fundraising needs, including strategic planning and campaign management.
Why we recommend it: Focusing on food banks, they have driven notable increases in food donations in Seattle, showing strength in grassroots-level donor motivation.
Ketchum, Inc.
Services: A global firm, Ketchum focuses on the education and healthcare sectors but will boost efforts in any field.
Why we recommend it: Ketchum has supported several major hospital systems in organizing successful multi-year fundraising efforts, raising millions. But beyond that, as a visit to their ‘work’ page shows, they take on any client with a social bent and give them quite an edge.
Grenzebach Glier and Associates (GG+A)
Services: GG+A has provided consulting services to more than 3,000 nonprofits in higher education, healthcare, arts and culture, and civic organizations. They provide everything from analytics to donor engagement to strategic communications.
Why we recommend it: GG+A is renowned for working with leading universities, hospitals, and cultural institutions. They were involved in campaigns that supported prestigious universities like Harvard and Yale in reaching multi-billion-dollar fundraising goals.
Brian Saber and Asking Matters
Services: Brian Saber is a recognized expert in face-to-face fundraising. Through his consultancy, he trains nonprofit leaders and staff to solicit donations and build donor relationships effectively.
Why we recommend them: Saber has worked with various nonprofits to develop personalized “asking styles,” which have improved success rates in securing major gifts. While he may not be the right fit for all nonprofits, his advice and style of asking for donations are worth consideration.
Are you not in a place to hire a fundraising consultant now?
Don’t worry! We have a list of extensive resources that can help you create a comprehensive fundraising strategy.
Want some ideas? 5 Nonprofit Campaign Examples To Teach You Funding Success
Looking for inspiration? Use These 52 Nonprofit Proven Fundraising Ideas to Raise More Funds This Year
