Throughout 2009, we've seen a growing number of individuals asking about career resources and job listings for nonprofits. This has been no surprise, given the effects of the economic crisis and the job losses in both the for-profit and nonprofit sectors. With many organizations having cut back on staffing or temporarily frozen hiring, more and more job seekers have been looking at independent consulting as a possible solution.
For the right person, working as an independent consultant can have many advantages, including setting one's own schedule and priorities, working with a variety of clients, and developing a wide range of personal skills and experience. However, like any start-up, launching your own consulting business involves some financial risk and a great deal of personal commitment. While working independently often provides for greater personal freedom, it may also involve an inconsistent work load and an unpredictable income. Consultants must be well-organized and self-disciplined in order to effectively manage their time and resources while working with several different clients at any given time. Some other considerations include:
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Experience/credentials – As a consultant, you are the product. Nonprofit organizations select consultants based on their experience, education, and other credentials, as well as on personal referrals and relationships. Before setting out on your own, you will need to consider whether or not you have the experience necessary to advise different types of nonprofits on a wide variety of topics. You may also want to consider certification, such as Certified Fund Raising Executive(CFRE), or even graduate or professional education to build your knowledge base.
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Contracts/fees – Consultants must know how to develop effective contracts with clients. You will also need to research other consultants' fees and develop your own fee system. Will you charge by the hour, or on an annual or project basis?
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Specialization – Nonprofit consultants may begin as generalists, but most will eventually focus on one or a few aspects of fundraising, management, or grant writing. Know your preferred areas as well as those in which you do not wish to consult.
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Physical space – On the more practical side, you must determine where to set up your work space. Working from home may seem comforting, but can be distracting or tiresome. Having an office outside the home can help provide focus and a routine, but will usually require money for rent payments.
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Lack of benefits – While individuals are often able to increase their earnings by shifting to consulting, this can be offset by the loss of insurance coverage, retirement funds, and other benefits associated with institutional employment.
At the Foundation Center-San Francisco, you can find a number of books and articles on becoming a nonprofit consultant, including:
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How to Become a Grant Writing Consultant: A Start-up Resource Guide for Your Home-Based Business (2nd ed.), by Beverly A. Browning (Buckeye, AZ: BBA, 2005) Call Number: 705 BRO HOW
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So You Want to be a Consultant! by Henry Goldstein (Alexandria, VA: Association of Fundraising Professionals, 2006) Call Number: 710 AFP GOL
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Start Your Own Grant-Writing Business: Your Step-by-Step Guide to Success, by Preethi Burkholder (Irvine, CA: Entrepreneur Press, 2008) Call Number: 705 BUR
You can find additional books and articles on this topic by performing a subject search in the Catalog of Nonprofit Literature for the term "Consultants".
Other helpful resources can be found online, including the following recommended web sites, blogs, and discussions:
- So, You Want To Be A Philanthropy Consultant – Philanthropy411 Blog
Includes a list of questions to consider before starting a consulting business, along with links to additional consulting resources.
- Becoming a Consultant: Is This the Job for You? – Chronicle of Philanthropy
This transcript of an online discussion moderated by the Chronicle of Philanthropy includes answers to many frequently-asked questions about becoming an independent consultant in the nonprofit sector.
- How Can I Become a Freelancer?– Puget Sound Grantwriters Association
Contains tips and advice for individuals thinking about becoming an independent grant writer. The web site also includes more general resources for grant writers, including additional FAQs and fee-setting guidelines.
- Hanging Your Consultant Shingle in the Nonprofit Sector– Fieldstone Alliance
Provides advice for those considering becoming consultants, as well as answers to frequently-asked questions about working independently with nonprofits.
- Ten Characteristics of Excellent Nonprofit Consultants – Georgia Center for Nonprofits
Describes the qualities of an effective nonprofit consultant.
(This post is from Stephen Sherman, Reference Librarian, Foundation Center-Atlanta)
Revised chapters contain updated information on strategic and operational issues, such as long-term planning, marketing, and earned income. The new edition also provides a special discussion of the strategic issues facing nonprofits during times of recession and severe economic downturn.
