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When is the Right Time to Hire Fundraising Counsel?
By: Craig Hall, Vice President
Fundraising success in today's very competitive philanthropic arena is becoming more difficult each year, regardless of an organization's size and scope. Donors are more savvy than ever about their philanthropic responsibilities, they expect a higher degree of professionalism and organization and they demand more accountability from those organizations which they support. For all these reasons, nonprofit organizations -- now more than ever -- are turning to outside fundraising counsel.
Determining the right moment to engage counsel seems to be the $64,000 question for many nonprofits and there are nearly as many answers to the question as there are organizations asking. Each nonprofit has its own unique mission, challenges and pace – therefore, the right answer for the organization down the street may not be the right answer for yours. So before you pick up the telephone or search the web, consider the following indicators to determine if the time is right for your organization to engage counsel.
Understanding the Role of Counsel
The role of the fundraising consultant is to help your organization raise money. Counsel cannot successfully do this without the eventual commitment and involvement of your organization's administrative and volunteer leadership. Professional counsel will enable your organization to draw upon the depth of experiences not usually possessed by a single institution. Typically, counsel is retained for one or more of the following services:
- Overall Fundraising Audit
- Board Training and Development
- Annual Fund Management
- Capital Campaign Audit
- Planning and Feasibility study
- Campaign Management
- Interim staffing
- Executive search
- Prospect Screening / Research
Code of Professional Ethics
All reputable fundraising firms subscribe to a strict code of fund raising ethics established by the American Association of Fund Raising Counsel (AAFRC 1986). The code states:
1. Firms provide fundraising services to non-profits seeking philanthropic support
2. Firms should base their fees on services provided and personnel time spent, not on a percent of funds raised
3. The head of firms must demonstrate at least a six-year record of experience in the fundraising field
4. No firm will exaggerate claims of past achievement or guarantee results
5. No payment of cash will be made by a firm to a director or trustee as compensation for using his or her influence for engaging fundraising counsel
6. All firms should charge equitable fees for services and initial meetings with prospective clients are not usually construed as services
What to look for in a fundraising consulting firm?
Organizations should always try to engage counsel which possesses experience, and expertise in similar nonprofit settings. It is important to check with past clients and others who know the firm and the proposed individuals with whom you will be working.
When considering counsel, determine through face-to-face meetings whenever possible:
- The types of organizations which counsel has previously served
- The types of services delivered
- The approach counsel employs to achieve desired results
- Feedback mechanisms counsel uses to determine client satisfaction
In addition, counsel should be asked to provide you with a minimum of three client references.
Advantages of Counsel
1. Counsel can provide an objective viewpoint to the institution, and it often has more credibility with the chief executive officer and board members
2. Counsel brings credibility because it can call on a broad range of experience with the similar institutions.
3. Consultants are paid to motivate the CEO and board to work effectively and efficiently
4. Counsel can ensure that the most time is spent with the critical top 10% of prospects, while at the same time keeping an eye on the entire campaign: anticipating needs, prodding staff to get assignments made, providing support, and suggesting systems and strategies to be implemented
5. Counsel offers a sounding board to the experienced development director who has no other knowledgeable people close at hand
So, when is it time for you to consider hiring a fundraising consultant? We would be happy to help you explore the answer to that question. Call our offices today at (toll-free) 800-608-7955, or simply e-mail us at contact@grahampelton.com Our initial consultation is always free, and requires no obligation.
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