One of the primary responsibilities of the consulting role is to support your organization’s inclusion effort. Despite the consultant’s role, your organization is still in charge of leadership. However, a 501c3 consultant can act as an educator, catalyst for deepening change, or resource. A leadership role at the organization would be to lead the process toward more inclusion through the Inclusiveness Committee, staff, board members, and the executive director.
It may be a smart idea to hire a 501c3 nonprofit consultant or team of consultants to help with the following tasks:
- Detailed Guidance: Participates in the inclusiveness initiative in conjunction with the Inclusivity Committee, facilitating meetings and processes throughout the planning and execution process.
- Gathering of Information: Consultants gather information through an information-gathering phase where they prepare and collect data. In interviews and focus groups, consultants who act as consultants for an organization can obtain more honest answers since they are neutral in the way they approach the organization.
- Competence in multiculturalism/diverse training: In my role as a 501c3 consultant, I provide diversity and inclusion training for organizations to create inclusive environments and make stakeholders more aware of how they may exclude or disadvantage representatives of diverse communities. The facilitator ensures that continuity between training sessions by collaborating with you throughout. The entire training can be handled by a consultant or consulting team, or content specialists can be hired for various components.
- Analysis: Your consultant uses the evaluation plan to determine how effective your training was, and the progress you have made in making your program inclusive. After reviewing the response to your Request for Proposals (RFPs), you may need to adjust the roles defined for your consultant. This is based on whether he possesses the skills required to perform the tasks you have defined for him. You can ask your 501c3 consultant to play one or more of the roles listed above, depending on the needs of your organization and the consultant you choose. He or she can work with the company for an entire day, provide multiple pieces of training, or assist with a specific issue. When you hire a consultant, the amount of time you spend with him or her will be determined by your organization’s requirements and budget.
How Much Do Nonprofit Consultants Charge?
A consultant’s rate varies based on three factors: experience, type of consulting, and type of engagement. On average, nonprofit consultants charge between $85 and 152 per hour. The highest-priced consultants can charge upwards of $300/hour, while less experienced consultants may charge as little as $50/hour. If there is no relationship with the consultant, nonprofits should expect to pay between 10% and 20% more. As discussed below, different types of nonprofit consultants charge varying rates.
Which nonprofit consultant types are there, and how much do they charge?
Nonprofit consultants are classified into seven different types: professional fundraisers, management consultants, fundraising consultants, foundation and grant writing consultants, event consultants, marketing and digital marketing consultants, and technology consultants.
Professional Nonprofit Fundraiser –
A freelance fundraiser is often hired to help nonprofits with specific fundraising needs. A professional fundraiser is critical to projects like capital campaigns. This would be a development representative. In addition, highly skilled, experienced nonprofit fundraisers work for up to $150 per hour when they charge by the hour.
Management Consulting Services –
Generally, consultants provide expert advice in areas such as management, marketing, human resources, finance/accounting, budgeting, etc., but they don’t design or develop campaign materials. A survey conducted by Nonprofit Source from 2017 found that management consulting service consultants charge hourly rates ranging from $75 to $225, depending on their level of experience.
Technology Consulting –
Services range from network and telecommunications design, troubleshooting, and implementations to database management, analysis, and programming. Instead of being computer support technicians, nonprofit technology consultants use technology to improve how a nonprofit function, makes decisions and tracks progress. They charge a higher hourly rate due to the complexity and depth of their expertise. Their hourly rates range from $75 to $110.
Fundraising Consultants –
Strategic planning, public relations, prospect research, grant writing, feasibility studies, case creation, and other services are provided by these professionals. Nevertheless, they don’t often provide hands-on volunteer management or event coordination. An hourly fee of $50-$75 is charged, plus 15%-20% for large projects like capital campaigns (which can take up to 18 months to complete).
Within this field, some specialties exist including, but not limited to:
Proposal management and grant writing fees typically range from $150 to $400 per hour, plus a fee for each draft.
To find new donors, prospecting fees range from $200 to $400 per hour with an additional 15%-20% on large projects such as capital campaigns that can take up to 18 months.
Typically, Event Management Consulting fees range between $100 and $150 per hour, depending on the extent of the services and market conditions at the time.
Cause Marketing and Social Media consulting fees typically range from $100-$150 per hour, depending on the scope of their services as wellas market conditions at the time of the request.
Depending on an expert’s level of experience, nonprofit 501c3 consultant charge a range of fees.
Can nonprofits offer consulting services?
The Internal Revenue Code defines non-profit organizations as associations, funds, and corporations operated exclusively for charitable purposes. A charitable organization, a scientific organization, a sporting organization, an organization that tests public safety, or an organization that fights cruelty to animals or children can fit this description. As part of Section 501(c)2, holding companies of tax-exempt organizations are also exempt from taxes.
Groups of religious organizations
Despite the fact that churches and religious organizations in the United States are tax-exempt, they must obtain 501(c)3 status. Churches and religions have been sorted out in a proper way so as to benefit from tax exemption, eliminating potential controversies.
Public Charities
Public charities rely on funding from the general public, government programs, and private foundations. In the United States, some of the most popular charitable organizations include the American Red Cross, Catholic Charities USA, and the American Cancer Society.
Privatized foundations
In private foundations, income is primarily generated from investments and endowments. Private foundations in the US, including the Bill & Melinda Gates Foundation, are 501(c)3 organizations. Almost every state has a smaller but equally effective foundation.
Organizations concerned with education
The IRS has set additional criteria for schools that are not-for-profit corporations, called 501(c)3 schools. In many cases, even if you have recent experience with colleges and universities, you can receive 501(c)3 status from the IRS for primary and secondary schools. Tax-exempt organizations can also approve trade schools such as hairdressing academies as well as professional programs.
Organizations dedicated to science and literature
In addition to 501(c)(3) status, organizations that conduct research for the public good are also eligible. In the American Chemical Society, for example, scientific inquiry is supported throughout all fields of chemistry and chemical engineering. Moreover, literary organizations can also apply for 501(c)3 tax-exempt status with the IRS.
Athletes’ organizations for amateur athletes
It is also possible to form a 501(c)3 charitable organization that is a local, regional, or national amateur sports organization. 501(c)3 amateur sporting organizations are scattered throughout the United States, ranging from Little League associations to the Boston Amateur Baseball League, as well as the NCAA.
Conduct tests to ensure public safety
In addition, this type of organization may be classified as educational or scientific. Among these overlaps is the Insurance Institute for Highway Safety, which is concerned with reducing the number of deaths, injuries, and property damage caused by accidents involving motor vehicles. Scientific studies are used by this non-profit organization to inform and educate the public and the insurance industry.
