May 2007

WORKING WITH A CONSULTANT

It can be very efficient to secure the services of an independent fundraising or other consultant for various types of projects. This approach allows a great deal of flexibility, making it possible to tailor specific skills and experience to specific projects, rather than being committed to a “one-size-fits-all” approach.

However, it is important that you define expectations and guidelines clearly in a statement of understanding or contract prior to making a financial commitment to a contractor.

Issues for consideration:

  • Any fundraising contractor wishing to determine compensation based on a percentage of funds raised is in violation of the Association of Fundraising Professionals (AFP) Code of Ethics. This suggests that the individual is unfamiliar with accepted professional practice or is willing to engage in unethical behaviors.
  • Fees should be established prior to the acceptance of any contractual arrangements and should be either: project-based (one amount covering the entire project); or fee-based, defining total estimated number of hours required to complete the project, approval process if project exceeds estimates, and time frame within which the project will be completed.
  • If the project will be compensated based on hourly work, submission of periodic reports documenting nature of activity and time spend should be required.
  • Request a non-compete clause (for the period during and six months after the project) to ensure that the contractor is not working for a competitor at the same time.
  • Request a proprietary information clause: information/data/statistics gathered during or as a result of the project is the sole property of the client, not the contractor, and cannot be sold or shared without the express written consent of the client.
  • Ask for references: call one or more former clients to determine whether the contractor completed the project as agreed and whether stated goals were achieved.
  • Ask to review a writing sample (for grantwriters) or portfolio demonstrating type of services provided (printed materials, news articles, invitations, reports, etc.). Experienced consultants should be eager to show their work.
  • Ask whether the contractor is able to meet your time constraints and produce work on deadline. Define consequences if deadlines are not met.
  • Define circumstances and method in which either party can cancel the contractual arrangement.
  • Define circumstances that may result in non-payment of fees.

Management Assistance ProgramUnited Way of Greater Houston