How do nonprofit consultants get paid?
A fundraising consultant like Team Kat & Mouse can be a tremendous asset to your nonprofit, but, like almost all good things, consultants come with a cost or an investment in the case of a great consultant. But always remember, building a solid relationship with a fundraising consultant can set up your nonprofit for long-term success that goes beyond the scope of your contract.
There are three main ways that a nonprofit consulting firm like Team Kat & Mouse will work with your nonprofit
Project fee is a fixed payment for a project within a defined period, with specific deliverables. For example, a nonprofit may pay a flat fee for a consultant to create a case for support, execute a board retreat, or write a specific grant application.
Retainer — A retainer fee is an upfront, recurring charge for more extensive, long-term projects. A nonprofit may pay a monthly retainer fee for a consultant’s help throughout a capital campaign or ongoing training and coaching.
Hourly — An hourly fee is usually paid to consultants for simple projects that don’t require much time or involvement from the fundraising consultant. For example, a nonprofit may pay an hourly fee for weekly coaching or research, or writing of grants.
Some professional fundraisers will choose to be paid a percentage of the money they raise. This is often frowned upon as it puts donor intent in question (does the donor want their funds going as commission?)
The Association of Fundraising Professionals addresses this issue in its code of ethics.
Team Kat & Mouse, consultants for nonprofits does not work on a percentage of the donation, finders fees, or other payment methods as outlined by AFP.
Additional costs might include:
Consultant travel and lodging
Design and printing
Event or retreat fees