by Dr. Kevin Dean, President & CEO, Tennessee Nonprofit Network
I was on a panel discussion once years ago that changed my perception of nonprofit consultants. While I am in no way the arbiter of competent consulting, this one really changed my view of nonprofit consultants. I used to think they were all made equally, that every consultant out there was a visionary ally of your work, the always-expert in the room. Turns out, not every consultant is the perfect consultant. Some are great, some are okay, and some are…not.
Imagine a room full of bright-eyed, bushy-tailed nonprofit leaders, eager to absorb pearls of wisdom from a seasoned consultant. They were grappling with the perennial challenge of funding their vital missions. And the sage advice dispensed? The groundbreaking, paradigm-shifting strategy that would surely catapult them to financial stability?
“You don’t need all that complicated fundraising stuff,” the consultant declared with an air of profound certainty. “Just have a fish fry every now and then. Eventually, some major donor will wander in, taste your delicious hushpuppies, and BAM! Million-dollar check.”
WAS SHE SERIOUS?! The collective silence in the room was thick enough to spread on a cracker. I, sitting in the corner, felt a slow-motion cringe engulf my entire being. Diversifying funding streams? Engaging individual donors? Cultivating corporate partnerships? Apparently, all unnecessary. The humble fish fry was the answer to all their woes.
This, my friends, is a cautionary tale. A stark reminder that not all who wield the title of “consultant” are created equal. It’s also a prime example of what not to do.
I know the siren call of nonprofit consulting gets burned out nonprofit employees, recovering corporate folks, and retired government officials salivating at the mouth, and for many, it should! You envision yourself a sage, a guiding light, swooping in to bestow wisdom upon earnest organizations striving to make the world a slightly less chaotic place. You see yourself facilitating transformative strategic planning sessions, crafting compelling development strategies, and generally being the superhero these do-gooders desperately need.
And then reality hits you with the force of a thousand grant rejection letters.
Having spent years on the front lines of the nonprofit sector, both as an internal staffer and, yes, as a consultant myself, I’ve witnessed the full spectrum of consultant-client interactions. I’ve seen the magic happen – the insightful strategies that unlocked new potential, the expertly facilitated retreats that forged stronger teams, the fundraising plans that actually, you know, raised funds. I’ve seen some consultants stay around for years, doing amazing things for so many nonprofits. I’ve also seen so many consultants last just long enough to screw up their reputation and go back to the dark, sad halls of corporate America. Below are some recommendations for new consultants as they try to navigate this tricky nonprofit consulting world.
The Truths About Being a New Nonprofit Consultant (and Some Advice That Won’t Leave You Smelling of Deep Fryer Oil):
1. Come from a Place of Humility:
The nonprofit sector is filled with passionate, dedicated individuals who are often working tirelessly with limited resources. They are the experts in their missions, their communities, and the unique challenges they face. As a new consultant, your role isn’t to swoop in like a know-it-all savior. It’s to listen, to learn, and to offer your expertise in a way that is respectful and collaborative. But seriously, spend most of your time listening. It’s part of the discovery process. If you go straight into “fixing” something without learning why or how it is broken, you’ll fail.
Don’t: Hype yourself up with grandiose claims and promises you can’t keep. Avoid jargon-laden pronouncements that leave your clients feeling confused and inadequate. Remember, you’re there to serve them, not the other way around.
Do: Approach each engagement with curiosity and a genuine desire to understand the organization’s specific context. Ask thoughtful questions. Acknowledge the expertise of the staff and board. Your value lies in bringing a fresh perspective and specialized skills to their existing knowledge. And listen. Listen. Listen. Listen.
2. Focus on Lived Experience and Learned Knowledge:
Your journey to becoming a consultant likely stems from your own experiences within the nonprofit world or related fields. This lived experience is invaluable. You understand the pressures, the triumphs, the unique culture of the sector. Combine this with the knowledge you’ve gained through education, training, and professional development. This blend of practical understanding and theoretical frameworks is your superpower.
Don’t: Rely solely on anecdotal evidence or generic business advice. While your personal experiences are important, they need to be grounded in sound principles and best practices within the nonprofit context. If you don’t have lived experience in a particular area (example: why are you advising executive directors if you’ve never been an executive director), go get that experience first and then become a consultant.
Do: Articulate how your specific experiences and learned knowledge are relevant to the challenges your potential clients face. Share examples of how you’ve successfully navigated similar situations in the past (without breaking confidentiality, of course).
3. Network Like Your Livelihood Depends On It (Because It Kind Of Does):
The nonprofit world thrives on connections. Building a strong professional network is crucial for finding clients, staying informed about sector trends, and even finding potential collaborators. Attend industry events, join relevant associations, and actively engage in online communities.
Don’t: Treat networking as a purely transactional exercise. Don’t just collect business cards and disappear. Focus on building genuine relationships.
Do: Be authentic and genuinely interested in others. Offer your support and expertise even when there’s no immediate benefit to you. Nurture your connections over time.
4. Find Ways to Center Yourself as an Expert, Not a Salesperson:
Nonprofits are mission-driven, and their leaders are often wary of anyone who feels overly focused on the bottom line (their bottom line, not yours). Position yourself as a trusted advisor, a knowledgeable resource, rather than a slick salesperson trying to close a deal.
Don’t: Use aggressive sales tactics or make unrealistic promises. Avoid high-pressure pitches.
Do: Share valuable insights through blog posts, webinars, or presentations. Offer free initial consultations to understand their needs and demonstrate your expertise. Let your knowledge and thoughtful approach speak for themselves.
5. Be Sure to Know What You Specialize In :
The nonprofit sector is broad and diverse. Trying to be an expert in everything from grant writing to board governance to social media marketing is a recipe for burnout and mediocre results. Identify your areas of deep expertise and focus your consulting practice accordingly. There is nothing more off-putting than a consultant who says they can do it all. Pick your specialty, hone your practice, and do it really, really well. A jack-of-all-trades is just knowledgeable enough to be catastrophic.
Don’t: Take on projects that fall outside your skillset. It’s unfair to your clients and ultimately damages your reputation. Saying “no” can be a sign of strength and integrity.
Do: Clearly define your areas of specialization in your marketing materials and conversations with potential clients. This allows you to position yourself as a true expert in a specific niche.
6. Getting Clients is About Building Relationships and Trust:
This is the one that so many aspiring consultants get wrong. Nonprofits often operate on tight budgets and are making significant investments when they hire a consultant. They need to feel confident that you understand their mission, their values, and their challenges, and that you are genuinely invested in their success. This trust is built over time through consistent communication, active listening, and delivering on your promises. If I’m giving you $25,000 to write our strategic plan, I need to trust you. That doesn’t happen overnight. Find ways to build trust with potential clients. If they end up giving you the side eye, you can kiss your contract goodbye.
Don’t: Expect clients to flock to you overnight. Don’t underestimate the power of word-of-mouth referrals.
Do: Prioritize building strong relationships with potential clients. Take the time to understand their needs and tailor your approach accordingly. Be responsive, reliable, and transparent in your communication. Listen, listen, listen.
7. Network with Other Consultants:
The consulting world doesn’t have to be a zero-sum game. Connect with other consultants in your field. This isn’t the Hunger Games. You don’t need to kill them with an ax from a big metal cornucopia, Katniss! Share resources, exchange ideas, and consider potential collaborations. You might even find opportunities to subcontract on larger projects, which can be a fantastic way to build your portfolio and gain experience.
Don’t: View other consultants as your rivals. Avoid gossiping or speaking negatively about them.
Do: Embrace an abundance mindset. Recognize that there’s plenty of work to go around, and collaborating with others can actually expand your opportunities. Find ways to subcontract to build your experience and connections.
8. Don’t Badmouth Nonprofits and Other Consultants:
Seriously, just don’t. Venting about a challenging client or criticizing another consultant might feel cathartic in the moment, but it’s unprofessional and can damage your reputation within the close-knit nonprofit community.
Don’t: Engage in negative talk or gossip. Maintain a positive and respectful attitude in all your interactions.
Do: If you have concerns about a client or another consultant, address them professionally and privately, if at all. Focus on solutions and maintaining a positive professional image.
9. Create a List of Your Consulting Firm’s Guiding Values/Principles:
What principles will guide your consulting practice? Integrity? Collaboration? Client-centeredness? Social justice? Defining your values will help you attract clients who align with your approach and make it easier to make decisions about the projects you take on.
Don’t: Be wishy-washy about your values. Don’t compromise them for the sake of a paycheck.
Do: Clearly articulate your guiding principles in your marketing materials and client communications. Be prepared to turn down opportunities that don’t align with your values. This demonstrates authenticity and builds trust.
10. Understand Your Tax Situation as a Consultant:
Congratulations, you’re a small business owner! This comes with exciting freedoms and… complex tax responsibilities. Unlike being an employee, taxes won’t be automatically deducted from your income. You’ll need to understand estimated taxes, self-employment tax, and eligible deductions.
Don’t: Ignore your tax obligations. Don’t wait until April 15th to figure things out. Trust me on this one. That $10,000 surprise for me was not a fun discovery (true story).
Do: Consult with a tax professional who understands the nuances of self-employment. Set aside a portion of each payment for taxes. Understand your deductible expenses. Save yourself the stress (and potential penalties) down the road.
11. Start Small and Build Up:
You don’t need a fancy website, a sprawling office, or a team of associates to get started. Focus on securing a few manageable projects that align with your expertise and allow you to deliver excellent results. Building a strong portfolio of successful engagements is far more valuable than launching a massive but untested operation.
Don’t: Feel pressured to go big right away. Avoid overcommitting yourself in the early stages. Don’t take big projects that may be out of your wheelhouse.
Do: Carefully select your initial projects. Ensure you have the capacity and expertise to deliver exceptional value. Document your successes and use them to build your credibility.
12. When You Don’t Have Expertise, Find a Subcontractor:
No one knows everything. If a potential project requires expertise outside of your wheelhouse, don’t try to bluff your way through it. Be honest with the client and suggest bringing in a qualified subcontractor. This demonstrates integrity and ensures the client receives the best possible support.
Don’t: “Fake it ‘til you make it.” This can lead to subpar results and damage your reputation.
Do: Build a network of trusted consultants with complementary expertise. Be transparent with your clients about when you’re bringing in additional support. This collaborative approach can actually strengthen your value proposition.
13. Continuously Professionally Develop Yourself:
The nonprofit landscape is constantly evolving. New funding trends emerge, technological advancements reshape communication and operations, and best practices are continually being refined. To remain a valuable asset to your clients, you must commit to ongoing professional development. This includes staying abreast of industry news, attending workshops and conferences, pursuing relevant certifications, and engaging with thought leaders in the field.
Don’t: Become complacent in your knowledge and skills. Assume that what worked yesterday will work today. Resist adopting new technologies or exploring innovative approaches.
Do: Dedicate time and resources to your professional growth. Read industry publications, participate in webinars, join professional organizations, and seek out mentors or coaches. Embrace a mindset of continuous learning and adaptation. Your commitment to staying current will directly benefit your clients and enhance your credibility.
In the ever-shifting sands of the nonprofit sector, your ability to adapt, learn, and offer cutting-edge insights will be a key differentiator. Make professional development an integral part of your consulting practice, not just an occasional afterthought.
The Journey, Not the Destination (and Definitely Not Just Fish Fries):
Becoming a successful nonprofit consultant is a journey that requires a blend of expertise, empathy, and a healthy dose of humility. Forget the magical fish fry solution. Real impact in the nonprofit sector comes from thoughtful strategy and dedicated effort from a consultant who understands the nuances of this unique and vital world. So, embrace the challenges, learn from your experiences (and the missteps of others), and strive to be the kind of consultant who truly empowers nonprofits to thrive. The world needs more of those – and far fewer fish fry evangelists.