Benefits of hiring a consultant

Hiring a consultant can be an incredibly helpful resource for a nonprofit organization. Especially for teams that have minimal staff, consultants can be a huge benefit as they can create customized solutions for your organization that provide strategic direction for your team, or they may have specific skills that do not exist within your current team. With their expertise, consultants can uncover growth and improvement opportunities that might not be obvious to your team.

When engaging consultants, it is often top of mind for many nonprofits what the fees will be and whether they will be affordable. While it may be your instinct to reach out to a consultant without a budget, this is unlikely to return the results you’re looking for.

Reasons why nonprofits do not have a budget

There are several reasons why a nonprofit might inquire about services with a consultant without providing a budget. First, many organizations, especially smaller ones, may have never worked with a consultant and are simply not familiar with the associated costs. In these cases, they may reach out to several consultants to help determine a realistic budget for their project. Additionally, sometimes organizations are seeking grant funding to cover the costs of a consultant. As part of their grant application, they may be required to include the consultant’s cost in advance. Another reason could be the need for board approval. A staff member might contact several consultants to gather the necessary information for their board of directors to secure approval before determining the budget. Lastly, a lack of financial planning could be a factor. If an organization identifies the need for a consultant but has not budgeted for it in advance, they might seek a consultant without a predetermined budget.

While these are all valid reasons as to why an organization would not have a budget in mind, without a budget, an organization may face significant challenges in finding a consultant willing to respond to their inquiries. Consultants may be hesitant to engage with an organization without a clear understanding of the financial commitment involved and scope of the project leading to a lack of responses. Additionally, the organization might struggle to compare proposals effectively, as consultants often provide a wide range of cost estimates without a defined budget framework. This can result in wasted time and effort, ultimately hindering your organization’s ability to move forward with their project.

So here are four possible reasons an organization may not receive any response to their consultant inquiries.

1. The inquiry seems insincere. A consultant may view a question about their services without a budget as an indication that the organization is not truly serious about the project or their services. Not sharing a budget can be perceived as unprofessional by the consultant and suggest that the potential client may not be ideal to work with, leading to ignored inquiries and missed opportunities, as consultants prioritize clients who demonstrate preparedness. Furthermore, word may get around that an organization is consistently seeking consultants without a budget, making it difficult for the organization to attract a reputable consultant in the future.
2. Not a good use of time. Like any professional, consultants value their time. Without a budget, it is impossible to determine the scope of a potential project. When meeting with a potential client, instead of having conversations about potential solutions, the discussions lack clarity, and are not productive. Until the organization knows how much of an investment they would like to make, the initial discussions will be less than fruitful and not a good use of the consultant’s or the nonprofit’s time.
3. Difficulty determining the project objective. Consultants want to work with clients where they can showcase their success and demonstrate that their solutions are effective, allowing them to promote their services to potential clients. Without a budget and a clear understanding of the project’s components, a consultant cannot provide customized solutions for your organization. Without clear goals, such as increasing your donor retention rate, or raising awareness for your organization, a consultant cannot devise a strategy that works best for your team. Additionally, without measurable outcomes, neither the consultant nor the team will know if they are moving in the right direction or if adjustments need to be made. Most consultants would avoid this scenario because they want to ensure their methods are working so they can share their success stories with new potential clients.
4. High Risk. Reputable consultants prefer clients that have a certain level of planning and preparedness, regardless of the organization’s size. Organizations that do not engage in financial planning could be seen as higher risk, or a consultant may infer that this could lead to other problems later in the project due to a lack of planning. Consultants may choose to work with organizations that appear more organized and be hesitant to work with those that seem disorganized or unprepared.

Overall, hiring a consultant can be an invaluable asset for nonprofit organizations. However, not including a budget may lead a consultant to perceive your organization as one that is not ready to move forward with a project or initiative. Without a budget, an organization might miss out on opportunities to engage with a consultant who could offer exceptional expertise, optimize your resources, and provide support that significantly enhances your organization’s ability to achieve its mission and make a lasting impact in the community.

As someone who loves numbers, video games and fantasy fiction Rochelle can be found playing video games or watching an action or fantasy fiction movie with her family. As the Co-founder of Story Point Consulting, she helps people working or volunteering at small nonprofits and charities find the right donors, effectively communicate with supporters, and strengthen relationships with them once they generously give their support. If you are a small Canadian organization looking for practical solutions to help you with your fundraising, sign up for our newsletter.