Q&As

The boards of nonprofit organizations typically use consultants in some of the following areas: fundraising, board orientation and board development, strategic planning, executive search, facility planning, membership promotion, public relations, and special events. Consultants can play different roles. Sometimes they serve as advisors, analyzing situations, diagnosing problems, and proposing but not implementing solutions. A strategic planning consultant would be in this category. Other consultants perform particular tasks, such as conducting a search for a chief executive or presenting a board development workshop. Depending on your needs, you may contract with an individual or a firm.

In addition to providing services, consultants offer an important side benefit: their objective outside perspective on the organization can be stimulating for board and staff.

What are the steps in choosing a consultant?

• Identify the scope of the project and confirm the need for a consultant.
• Outline the tasks you want the consultant to perform.
• Prepare a written description of the project scope and timetable.
• Search for potential consultants.
• Request proposals from individuals or firms.
• Evaluate the proposals and check references of previous clients.
• Choose a consultant and enter into a written agreement.

How should we begin?

Begin with a clear understanding of what you want the consultant to accomplish.

Relationships with consultants often fail because the goals of the project were not determined in advance and communicated clearly to the consultant. Follow the steps above, put your goals in writing, and give this description to the consultants from whom you request proposals.

What can we do to prevent conflict-of-interest situations?

Self-monitoring is the best preventative measure. Institute a system of checks and balances to circumvent actual or potential conflict of interest, beginning with well-defined operating policies on all matters that might lead to conflict. Most important, create a carefully written conflict-of-interest policy based on the needs and circumstances of the organization. Ask each board and staff member to agree in writing to uphold the policy. A conflict-of-interest policy should be reviewed regularly as part of board self-assessment.

Where can we find a consultant?

Word of mouth is the best source. Ask other organizations for the names of consultants who have worked with them. Consult professional associations such as the Association of Fundraising Professionals, the Public Relations Society of America, or the Association of Executive Search Consultants. Some of these groups have codes of ethics and professional practice guidelines for their members. You may find one consultant who is clearly the best person for the job. But depending on the project and the organization's procedures, you may want to interview several before making a choice. In either case, do not select a consultant without asking two or three previous clients for an honest assessment of the consultant's work.

What qualifications should we look for?

A consultant should have qualities similar to those you would expect of a professional staff member:

• expert knowledge in the subject area of the project
• experience with projects similar to yours
• a respected track record with other clients
• a working style that fits well with your organization

What criteria should we use when evaluating proposals?

Balance the importance of experience and quality with your budgetary needs. Questions to consider include

• Does the consultant have the appropriate experience and qualifications?
• Does he or she understand the goals of the project?
• Can he or she complete the project on time and within budget?
• Does he or she ask creative questions about the organization and the project?
• Do previous clients give favorable reports on their working relationships with the consultant?

What should be included in a contract or letter of agreement?

Written agreement with a consultant can be prepared by either party. It is sometimes helpful to have an attorney review the agreement. The agreement should

• describe the scope of the project
• outline the tasks involved
• describe the reporting system
• specify the nature of the final product (written report, oral presentation, a combination)
• set the timetable
• establish the fee and payment schedule

How can we promote a successful working relationship with a consultant?

Clarity, candor, and mutual respect contribute to a smooth partnership between the organization and the consultant. On the organization's side, the elements of a good relationship include

• clear expectations stated before the project begins
• adherence to the terms in the agreement
• a well-defined reporting system, usually stipulating that the consultant works through the chief executive
• open communication in person and by telephone, including checkpoints for measuring progress such as interim reports or regular meetings
• follow up at the end of the project to let the consultant know the impact of his or her work on the organization

Should board members serve as paid consultants to the organization?

The professional expertise that board members contribute to an organization is an important part of board service. Hiring board members as paid consultants, however, can raise the potential for conflict of interest. Board members can put their professional knowledge and skills to the best use by helping the organization choose the best consultants from the fields with which they are familiar.

NOTE: Assistance with board training and development activities, including board self-assessments and retreats, is available through BoardSource.