What If You Gave it Away Free?

ABILITY, n. The natural equipment to accomplish some small part of the meaner ambitions distinguishing able men from dead ones. In the last analysis ability is commonly found to consist mainly in a high degree of solemnity. Perhaps, however, this impressive quality is rightly appraised; it is no easy task to be solemn.
--from Ambrose Bierce’s ”Devil’s Dictionary”

Here’s a rant that I’d like to pass along to new consultants in the fundraising field.

With regard to pricing, you’ve probably had the urge to find out just how low you have to go in pricing your services to get the business that’s out there, right? It’s difficult to get your competitors to talk with you about their pricing, and it’s hard to know what the “going rate” is.

This is further complicated by the fact that consulting expertise is, on the whole, rather an inconsistent bundle of skills with the application of various levels of knowledge in the fundraising field being billed out at sometimes ridiculously low or high rates. “What’s a mother to do?”

Well, sit tight, because what I’ve found is that, first, there are a lot of people out there calling themselves "fundraising consultants" who really don’t have the credentials to do that outside a very specialized field or set of experiences. The really good “general knowledge” fundraising consultant who can produce solid, consistent financial results for a nonprofit efficiently are relatively rare. Second, the pricing is all over the lot. Some people are charging $35 per hour, others are charging $150, and everything in between. At least here in southeast Michigan.

What to do? Get what you need to stay solvent and accomplish your family’s financial objectives – unless, of course you want to live in the Taj Mahal and be a world traveler. But within reasonable middle-class standards, you can charge what you need to charge to make ends meet and accomplish your retirement and other objectives – such as paying ridiculous amounts for healthcare premiums now that you’re not employed by some institution!

It doesn’t matter what you charge, so long as you’re really worth it to your clients. Your reputation will be made with your first few clients, and if they’re satisfied that you know your stuff and that you can produce results that put them ahead in the fundraising game, you have no problem.

But here’s another thing I’ve discovered: Executives and board members of nonprofit organizations who are ready for a change in the way they do fundraising are willing to pay for a consultant to help them. They understand the difference between where their fundraising is and where it could be. They "get it" that to raise more money something's got to change. For the rest, even if you GAVE IT AWAY, they wouldn’t want it. The sad fact is, of course, that in any one geographic area the number of nonprofits whose board members and executive are ready for change, ready to raise more money and put their organizations ahead in the game, are relatively few at any given time.

I’ve experimented with this to some extent. I’ve offered services at discounted prices, ridiculously low prices and even for free, in order to get people to move on their fundraising objectives. But price is not the obstacle everybody says it is. Many nonprofits are just not ready, they don’t want to raise more money. They want to keep on playing the game of “Why Does This Always Happen to Me?” They won’t take you up on even an offer to work for free. And, I suspect, even if they did, when the job was done they wouldn’t act on the advice and counsel you’ve given them. They just aren’t ready.

We’ll continue this thread tomorrow. There’s more goodies to come on this theme, I assure you!