A Comprehensive Guide to Fundraising Consulting Firms

Fundraising is central to the nonprofit industry. It's the act of securing financial support for the purpose of furthering a charitable mission. Every day, nonprofits across the world are engaging in fundraising campaigns and activities in the hope of generating revenue for their causes.

The task of fundraising isn't always an easy one. And that's why platforms, such as Paybee, have seen a spike in popularity within the last decade. Paybee is an all-in-one fundraising platform, equipped with a wide array of tools that help nonprofits to achieve their revenue goals. From virtual fundraising events and secure payment processing, to reporting and analytics tools and event ticketing, the power of Paybee's fundraising arsenal is unmatched.

The non-negotiable need for fundraising, which is often seen as a hurdle in the nonprofit industry, has also paved the way for the existence of fundraising consulting firms. Like Paybee, the role of fundraising consulting firms is to support nonprofits with their revenue generation goals. The major difference between the two is that Paybee offers nonprofits the tools to achieve this themselves, while fundraising consulting firms are more hands-on and will likely take the reigns when launching a fundraising campaign.

Fundraising consulting firms can offer nonprofits a variety of services. They can assist with the development of fundraising campaign strategies, they can identify prospects and major donors that align with the cause of your organization, they can offer training on the best practices of fundraising, and so much more. Ultimately, nonprofits work alongside fundraising consulting firms to increase the likelihood of campaign success.

The objective of this article is to provide you with all of the information required to decide whether or not a fundraising consulting firm is required by your organization and, if so, how to choose a fundraising consulting firm that will guarantee your success. Let's begin by taking a deeper dive into the definition of a fundraising consulting firm.

What is a Fundraising Consulting Firm?

What is a fundraising consulting firm? A question often asked, which will now be answered. A fundraising consulting firm is a business compiled of experts in the fundraising field. They have a deep understanding of campaign development, campaign strategy, donor engagement, prospect research, and specialized fundraising training. This expertise is used to support nonprofit organizations with their fundraising endeavors. The primary role of a fundraising consulting firm is to guide nonprofits through planning and establishing successful fundraising campaigns.

Fundraising consulting firms offer a variety of services. As mentioned, their primary goal is to help plan and manage successful fundraising campaigns. However, this type of business will usually offer a set of smaller services that can assist nonprofits with finding their feet in fundraising, and provide them with a lasting impact for future fundraising success. Here's a list of some of the services that are typically on offer:

• Campaign Strategy Development

Strategy is one of the most crucial aspects of a fundraising campaign. It determines how your nonprofit is going to approach the entire process. Campaign strategy development might begin with the identification of a target audience; who will this campaign appeal to? Next, a fundraising consulting firm might begin crafting messages that are specifically designed to resonate with the target audience of your campaign. It's possible that a fundraising consulting firm will analyze the campaigns of other charities to pinpoint opportunities and gaps in their own strategy. To summarize, this service can be viewed as the planning phase of a fundraising campaign.

• Donor Engagement

Donor engagement is an often-overlooked cog in the fundraising machine. It's possible to view this service as a sub-service of campaign strategy development. The idea behind donor engagement is to increase the level of interaction between your fundraising campaign and potential contributors. Simply, the more engaged a potential donor is, the more likely they are to contribute to your cause. Higher levels of engagement are achieved in many ways. Fundraising consulting firms will attempt to personalize communication, establish programs for recognizing donors that go above and beyond, provide donors with regular campaign updates, and a variety of other tactics to strengthen the bond between your nonprofit and those that support it.

• Campaign Management

Once your campaign is underway, there will be a series of important decisions to be made throughout its duration. Fundraising consulting firms specialize in making tough decisions in key moments, ensuring your fundraising campaign continues to head in the right direction. Aside from decision-making, fundraising consulting firms will assist with delegating tasks, monitoring the timeline of your campaign, communicating with stakeholders, and many other important campaign management duties.

• Fundraising Training

Fundraising training can be described as a legacy service. It's goal is to leave a lasting impact on the staff members of your nonprofit organization. Fundraising consulting firms are filled to the brim with fundraising knowledge and expertise, which can be passed on to your nonprofit. Through structured training, fundraising consulting firms can assist nonprofit staff members with communication skills, social media leverage, event planning, donor retention techniques, and more. This service will have a lasting impact on your nonprofit's ability to generate revenue; think of it as an upfront investment for ongoing success.

• Prospect Research

Another service that can be considered a sub-service of campaign strategy development, prospect research is the process of identifying potential donors that align with the values of your nonprofit organization. Through techniques such as wealth screening, donor profiling, and philanthropic history analysis, fundraising consulting firms can help your nonprofit to compile a list of potential prospects that are likely to contribute to your campaign. Once said list is complete, your organization can develop a strategy for approaching prospects to maximize the potential for converting them into contributors.

• Development Support

Development support relates to the acquisition or replacement of nonprofit staff members. The goal of this service is to equip your organization with a higher baseline of fundraising expertise. Fundraising consulting firms can conduct a strict analysis of employee performance and knowledge to determine areas of weakness. Once areas of weakness have been identified, your organization can hire new staff members to fill in the gaps and/or move staff members on to make room for fresh faces.

Key Benefits of Hiring a Fundraising Consulting Firm

The hiring of a fundraising consulting firm is a huge decision, especially for small nonprofit organizations. It's best to think of this decision as an investment. Your organization incurs an upfront cost in return for a lasting positive impact on its fundraising success. Let's dive into the key benefits of hiring a fundraising consulting firm.

Fundraising Consulting Firm Benefit #1: Experience and Expertise

Fundraising consulting firms are operated by groups of individuals that are well versed in fundraising - they have a wealth of experience and expertise among their ranks. This experience and expertise translates to success; the success of your nonprofit's fundraising campaign. Often, organizations won't have the level of experience and expertise contained within fundraising consulting firms. Therefore, hiring a fundraising consulting firm helps to bolster the level of a nonprofit's experience and expertise. Furthermore, some of this experience and expertise is likely to rub off on your staff members, resulting in higher levels of success going forward.

Fundraising Consulting Firm Benefit #2: Optimized Strategies

Each nonprofit is unique, with certain strengths and certain weaknesses. To maximize fundraising success, nonprofits must lean into their strengths and attempt to negate their weaknesses. Fundraising consulting firms have the ability to identify the strengths of your organization and optimize your fundraising strategy to leverage them. For example, if your nonprofit has high levels of technology proficiency, a fundraising consulting firm might choose to optimize your fundraising strategy through the use of social media.

Fundraising Consulting Firm Benefit #3: Objective Perspective

Employees of a nonprofit are likely to share similar views and be emotionally invested in their organization's mission. This can make it difficult to view operations through an objective lens. Fundraising consulting firms have no personal ties to your nonprofit; they aren't emotionally invested in your mission. These businesses exist to make money and to support your fundraising endeavors through objective means. Therefore, the hiring of a fundraising consulting firm is the perfect way to establish an objective perspective on the operations of your nonprofit.

Fundraising Consulting Firm Benefit #4: Access to Advanced Tools

In the world of fundraising, analytical tools are extremely useful. Fundraising consulting firms often use these tools to assess the fundraising abilities of nonprofits. The tools in question might not be accessible to your organization for one reason or another. Hiring a fundraising consulting firm allows your nonprofit access to these powerful tools through proxy. For the duration of your nonprofit's consultation, you'll be able to receive valuable insights from the analytical tools used by fundraising consulting firms. This will help your organization to identify weaknesses and plug gaps.

Fundraising Consulting Firm Benefit #5: Time Efficiency

Planning, launching, and managing a fundraising campaign requires a massive time investment. Small nonprofits often struggle with this process due to manpower limitations. Think of fundraising consulting firms as a team of temporary staff members solely dedicated to planning, launching, and managing your fundraising campaign. They exist to alleviate pressure on your workforce and to make the entire process more time efficient.

Fundraising Consulting Firm Benefit #6: Improved Donor Relations

Fundraising consulting firms specialize in communications. They have the ability to understand your nonprofit's existing and target audience, and the ability to tailor communications to appeal to said demographic. From this comes improved donor relations. When communications are personalized and tailored, it helps donors to feel valued and appreciated, thus creating a stronger bond between them and your organization. With improved donor relations, your nonprofit can expect greater donor retention and continued support from its contributors.

Fundraising Consulting Firm Benefit #7: Risk Management

Fundraising is inherently accompanied by risk. Fundraising consulting firms, when hired, will assist your nonprofit with identifying risks and quashing them. If your nonprofit lacks experience and/or expertise in the realm of fundraising, there will be risks that go unidentified. The fundraising experience and expertise of fundraising consulting firms allows them to create comprehensive risk reports, ensuring that your organization does everything in its power to operate a risk-free fundraising campaign.

Fundraising Consulting Firm Benefit #8: Legacy

Legacy, in this context, refers to what's left behind after a fundraising consulting firm has concluded business with your nonprofit. Throughout the consultation, your organization will evolve in a number of ways. Your staff will gain knowledge, experience, and expertise, they'll become better equipped for future fundraising campaigns, your organization will be able to plan and manage fundraising campaigns more effectively, and much more.

Fundraising Consulting Firm Benefit #9: Innovative Approach

Fundraising consulting firms are continuously refining their approach to fundraising; they're always on the forefront of new and innovative ideas.Via consultation, a fundraising consulting firm can bring its innovative approach to your nonprofit. This ensures that your organization is using the most up-to-date fundraising strategies and maximizing its revenue-generation potential.

The benefits of hiring a fundraising consulting firm extend beyond this list. Other benefits include capacity building; the improvement of a nonprofit's ability to perform, increased fundraising revenue, and performance analysis; a report of your nonprofit's strengths and weaknesses. It's important to remember that the benefits of hiring a fundraising consulting firm might not be felt immediately, but the lasting impact on your organization will be great.

How to Choose the Right Fundraising Consulting Firm

The hiring of a fundraising consulting firm can be expensive. Therefore, it's extremely important to choose the right firm for the job. When making this decision, nonprofits must assess aspects like track records, industry expertise, and references. Below is a list of considerations to make when selecting a fundraising consulting firm:

• Firm's Track Record

Does the fundraising consulting firm have a track record of success? If the answer is yes, then they should be considered. If the answer is no, it's best to look elsewhere. A proven track record of success means that it's more likely that your nonprofit will benefit from a consultation with a firm. If they've had success in the past, they'll likely have success in the future.

• Evaluate Industry Expertise

An ideal firm will have expertise in two areas: the nonprofit industry, and fundraising. If a fundraising consulting firm ticks both of these boxes, they should be considered. Expertise comes from experience. Take a look at the profiles of executives within the firm. Do they have experience with fundraising in the nonprofit sector? If they do, then it's likely they have the expertise required for success. Other areas of expertise that are useful are communications, relations, and analysis. Your organization should also consider these expertise, to a lesser degree, when making a decision.

• Check References and Testimonials

Fundraising consulting firms that have engaged in successful consultations will likely feature references and testimonials on their website. Read through references and testimonials to understand the impact that these firms have had on other nonprofits. If the impact is positive, then this is a good sign. It's advised to avoid fundraising consulting firms that don't feature references and testimonials on their website. A lack of references and testimonials can be a sign of a poorly performing firm, or a new, untested firm.

• Understand the Services Offered

What does your organization seek: comprehensive planning and management, training, prospect research, or all of the above? Before you engage with a fundraising consulting firm, it's vital to understand the services on offer. Check that what your nonprofit is looking for is offered by the firm. If not, it's best to look elsewhere.

• Align with Organizational Goals and Values

Consider the goals and values of your nonprofit, and how closely a fundraising consulting firm aligns with them. If your organization values transparency, integrity, and respect, so should your chosen firm. If you fail to align your organizational goals and values with your choice of fundraising consulting firm, conflicts may arise that can damage the success of the consultation. A nonprofit and fundraising consulting firm pulling in the same direction can achieve a remarkable outcome.

• Review Case Studies

Many fundraising consulting firms write case studies about their previous consultations. In these case studies, you can read about all of the details relating to the services provided to another nonprofit by the firm in question. Case studies describe the work that was carried out, and the outcome of said work. If the details within these case studies reflect the experience that you desire for your nonprofit, you should consider the fundraising consulting firm that wrote them.

• Assess Communication Style

When initiating conversation with a potential fundraising consulting firm, analyze their communication style. Clear communication between nonprofit and firm is crucial for a successful consultation. Does the fundraising consulting firm communicate in a way that will allow for clear and frequent discussion with your organization? If the answer to this question is yes, then you should consider the firm. Remember that without a line of open communication, it's difficult to express your needs and preferences to a fundraising consulting firm, which can result in a poor experience.

• Check for Specialized Services

If your nonprofit is looking for a more specialized service, something other than a general comprehensive planning and management consultation, be sure to double-check the firm's list of services offered. Some fundraising consulting firms offer everything from a comprehensive consultation to a one-off training session, while others will only engage in the former. Ensure that a potential firm can offer the specialized service that your organization seeks.

• Review Pricing

Before opening talks with a firm, your organization should establish a budget for its consultation. Once established, review the pricing structures of potential fundraising consulting firms to determine whether or not they fit within your nonprofit's budget. Financially, it's vital not to hamstring your organization by overspending on a consultation.

• Evaluate Firm's Reputation

Each fundraising consulting firm has a reputation that's based on their previous interactions with other nonprofits. You can understand a firm's reputation by assessing their Google reviews, testimonials, references, and case studies. For a more in-depth analysis of a firm's reputation, reach out to their previous clients independently. Schedule a 5-minute call to quickly understand the experiences of organizations similar to yours.

• Assess Proposal Quality

Typically, a fundraising consulting firm will send your nonprofit a proposal prior to the consultation. The purpose of this document is to outline the approach that the firm will take to the fundraising project at hand. It's extremely important to thoroughly read through this document. Ensure that you understand exactly what's on offer, and what the expected outcome of the consultation is for each party. If your organization is happy with the proposed approach of the fundraising consulting firm, it can proceed with confidence.

• Evaluate Use of Technology

Modern fundraising consulting firms make use of cutting-edge technology, which allows for an efficient approach to fundraising. Look for evidence that potential firms are using the most up-to-date technology during their consultations. If they are, the firm is indicating a commitment to making the most of the time spent working with your organization and ensuring a positive outcome.

• Consider Firm's Flexibility

How flexible are potential fundraising consulting firms? There will likely come a time, during consultation, when your nonprofit requires its firm to be flexible with its timing or approach. The more flexible a firm is, the more likely they are to adapt to changing needs and preferences.

Top Fundraising Consulting Firms in the Industry

When searching for a fundraising consulting firm, the number of options can be overwhelming; a quick Google search for "fundraising consulting firm" returns a seemingly-endless list of relevant businesses. In this section of the article, we'll take a look at some of the most prominent firms in the fundraising consulting industry.

Top Fundraising Consulting Firm #1: Marts & Lundy

Marts & Lundy is a major fundraising consulting firm headquartered in Lyndhurst, New Jersey. They operate in the United States of America, the United Kingdom, Canada, and Australia. Marts & Lundy's mission is to forge partnerships with nonprofits and leverage their expertise to advance charitable missions. They aim to optimize the resources of nonprofit organization that are committed to the betterment of mankind.

Marts & Lundy is working toward shaping a world where nonprofits have the resources and tools they need to create a better future. They value service, integrity, collaboration, innovation, and leadership, while moving in the direction of a more inclusive, diverse, equitable, and accessible philanthropic landscape.

Marts & Lundy offers the following services: consulting, analytics, management and implementation, talent development, communications, prospect management, and grateful giving.

Top Fundraising Consulting Firm #2: Chase Solutions

Chase Solutions is based in Centerville, Massachusetts. They pride themselves on being passionate about their clients and the philanthropic missions that they support. Chase Solutions has a team of seasoned professionals that can assist with in-depth prospect research, outsourcing, consulting, and more.

This firm advocates for the highest ethical and professional standards. Chase Solutions subscribes to the codes of ethics of the Association of Professional Researchers for Advancement, and is a member of the New England Association for Healthcare Philanthropy, the New England Development Research Association, and the Association for Fundraising Professionals.

Chase Solutions offers the following services: in-depth prospect research, outsourcing, consulting, training, mentoring and coaching, prospect research audits and plans, developing prospect research programs, wealth screening management, screening validation, finding new prospects and funders, corporate and foundation research, and special projects.

Top Fundraising Consulting Firm #3: Contributor Development Partnership

Contributor Development Partnership (CDP) is a fundraising consulting firm based in Boston, Massachusetts. CDP was founded in 2011 as an initiative within a greater business. It has since become an independent benefit corporation that works with over 230 radio and television stations, helping to analyze fundraising performance and refine best practices.

CDP's mission is to help support a thriving public media system. Through the development of best practices in fundraising, CDP assists local stations with increasing net revenue. Local stations can use the resources provided by CDP to better serve their communities.

Contributor Development Partnership offers the following services: diversifying donor acquisition, strengthening donor retention and revenue, enhancing mid-level, major, and planned giving, and delivering actionable data insights.

Top Fundraising Consulting Firm #4: AmPhil

AmPhil was founded in 2009, with a team of individuals determined to roll up their sleeves and execute the practical advice offered to clients. AmPhil identified that there were too many firms in the industry that were willing to strategize and bolt - they wanted to be different; they wanted to stick around and see the job through. And, to this day, AmPhil pride themselves on staying true to this concept.

AmPhil believes that philanthropy is best understood as an integral part of American society. They understand that a crucial aspect of the American dream is flourishing communities full of strong, healthy families and neighborhoods. To help realize this aspect of the American dream, they support the philanthropic missions of nonprofits across the country.

AmPhil offers the following services: direct mail and digital fundraising, major gifts, strategic planning, capital and mission campaigns, customer relationship and donor database management, talent and staffing solutions, planned giving and gift planning, grant writing and communications, donor research, and donor advisory for foundations and major givers.

Top Fundraising Consulting Firm #5: DBD Group

DBD Group is a collaborative team of nonprofit professionals dedicated to helping nonprofit organizations realize their goals and fulfill their unique visions. They assist organizations with new and innovative approaches to nonprofit work via deep experience and creativity. Together with their clients, DBD Group helps to drive greater achievements and build a stronger foundation for a successful mission for the years to come.

DBD Group was founded upon several key principles. These key principles include leadership is everything, you're only as strong as the team around you, equip, inspire, and empower others, everyone means everyone, and more. Ultimately, this fundraising consulting firm is built upon the cornerstone of teamwork and the idea of supporting one another.

DBD Group offers the following services: fundraising (such as capital campaign consulting, feasibility studies, and planned giving), financial management (such as debt analysis and debt refinancing, interim CFO, and financial assessment), strategic planning, communications (such as case development, volunteer newsletters and web resources, and communication assessments), and board governance.

Top Fundraising Consulting Firm #6: Campbell and Company

Campbell and Company prides itself on building stronger organizations and communities since its inception, in 1976. Their mission is simple; they prioritize advancing the life-changing work of charitable organizations. Alongside their clients, Campbell and Company has assisted with the building of stronger communities, countless innovations in the fields of fundraising, and a more vibrant nonprofit sector.

Campbell and Company is all in for your success. Their team of experts across the United States of America is ready to compile all of the services and expertise your nonprofit requires for the challenges and opportunities ahead. Campbell and Company's team of partners refuses to stop listening, strategizing, adapting, and supporting your organization until your goals are met.

Campbell and Company offers the following services: capacity, portfolio, and pipeline analysis, mid-campaign and post-campaign analysis, engagement modeling, scenario modeling, landscape overview, custom benchmark, database counsel, standard and custom reports and dashboards, database management, prospect identification, prospect qualification, comprehensive research files, internal surveys, and external surveys.

Top Fundraising Consulting Firm #7: Ruotolo Associates

Ruotolo Associates was established in 1979 and has since amassed over 40 years of experience in the nonprofit sector. Operating from Englewood Cliffs, New Jersey, Ruotolo Associates serves a variety of clients from educational institutions to homes for children and the aged.

Ruotolo Associates values growth; they reimagine the possible, commitment; they deliver robust results, and contribution; they invest in your mission. They have a mission of their own, which is to provide specialized counsel for fundraising, planning, and communications to nonprofit organizations. To conclude, Ruotolo Associates is designed for the enduring advancement of your mission.

Ruotolo Associates offers the following services: new strategic services, fundraising strategy and planning, capital campaign management, philanthropy research and analytics, advancement/development counsel, executive search, communications, and training.

Top Fundraising Consulting Firm #8: Development Guild DDI

Knowledge, innovation, collaboration, integrity, accountability, and passion are the values that define Development Guild DDI. They're a leading fundraising consulting firm that provides campaign-related services to nonprofit organizations. They offer solutions, built using a combination of discipline and innovation, that are both strategic and deeply rooted in experience and analysis.

Development Guild DDI are big on values. Their values drive the way they connect with their clients and one another, and they attribute their success to said values. Development Guild DDI has served over 2,600 clients, has a 99% satisfaction rate, and has over 45 years of experience in the nonprofit sector.

Development Guild DDI offers the following services: executive search (such as executive recruitment, interviewing, and selection), fundraising and campaign, and strategy (such as assessment and evaluation, planning, benchmarking, and research, and board development and training).

Top Fundraising Consulting Firm #9: Petrus Development

Petrus Development is a unique fundraising consulting firm that works with Catholic organizations to help them to generate more revenue. Since 2005, they've consulted with hundreds of Catholic ministries, helping to raise over $500 million for parishes, schools, and other types of apostolates.

Petrus Development is driven by a simple idea: ministries with more money can impact more people. They can help your nonprofit to grow, regardless of its current status, through services such as launching a development program from scratch, building a major gift program, and conducting a feasibility study.

Petrus Development offers the following services: basic online advancement training (BOAT), annual manual, major gifts coaching, feasibility studies, and campaigns.

Top Fundraising Consulting Firm #10: Aly Sterling Philanthropy

Aly Sterling Philanthropy (ASP) was founded in the fall of 2007 and is currently headquartered in Toledo, Ohio. At this time, Aly, with over two decades of experience in the nonprofit sector, decided to establish a firm dedicated to creating solutions for nonprofit organizations.

ASP, more than 15 years later, is now a partnership-driven consulting firm helping to power the nonprofit sector. They work alongside nonprofits, companies, and high-net-worth individuals and families to create cohesive and mission-driven giving strategies.

Aly Sterling Philanthropy offers the following services: philanthropic advising, fundraising solutions, strategic planning, board catalyst, corporate philanthropy, and workshops and presentations.

Fundraising Consulting Services for Specific Nonprofit Needs

Nonprofits come in various shapes: educational, religious, healthcare, etc. and sizes: local, national, international, etc. Each type of charity, regardless of its shape and size, has unique needs and preferences. Fundraising consulting firms tailor their services to align with the unique needs and preferences of different organizations. The following are examples of how fundraising consulting firms can tailor their services to align with certain types of charities.

Type of Nonprofit: Small Charity

• Affordable Grant Writing

Small charities typically have small budgets, meaning that it can often be difficult for them to afford fundraising consulting services. Fundraising consulting firms might choose to offer affordable grant-writing services to small charities. This helps small charities to work within their budgets, while allowing firms to continue having a positive impact on the philanthropic landscape.

• Grassroots Fundraising Strategies

Small charities must implement innovative fundraising strategies to account for their stricter budgets. In this scenario, a fundraising consulting firm might suggest grassroots fundraising strategies. Grassroots fundraising strategies are the most basic fundraising strategies available to a nonprofit. These are typically low-cost, boots-on-the-ground, high-effort fundraising strategies. Despite their high-effort nature, great results can be achieved via grassroots fundraising strategies for little cost. This makes them the perfect suggestion for small charities with small budgets.

• Low-Cost Fundraising Tools

Small charities with small budgets must seek low-cost tools for fundraising. This will be something that fundraising consulting firms will be mindful of. They might suggest the adoption of a dedicated, all-in-one fundraising platform. The perfect example of a dedicated, all-in-one fundraising platform is Paybee, which offers virtual fundraising events, secure payment processing, reporting and analytics tools, and much more. Paybee is accessible to nonprofits of any size, helping them to streamline their operations.

Type of Nonprofit: Educational Institution

• Alumni Engagement Strategies

To educational institutions, in terms of fundraising, alumni are of extreme importance. Alumni typically account for a significant portion of donors to educational institutions. When serving an educational institution, fundraising consulting firms might place great emphasis on alumni engagement strategies. By communicating and connecting with alumni, educational institutions can maximize the fundraising potential of this generous demographic. Fundraising consulting firms recognize the importance of alumni engagement to educational institutions.

• Online Giving Portals for Schools

How do you make a donation to a school? This question is asked more for effect than to be answered - it's asked to make a point. The process for donating to a school is not common knowledge. Fundraising consulting firms might recognize this issue and prioritize the establishment of an online giving portal when working with an educational institution. With the current prominence of technology, most people will turn to the internet to find the answer to this segment's opening question. If an educational institution can immediately direct potential supporters to an online giving portal, it's much more likely that they'll make a contribution.

Type of Nonprofit: Healthcare Organization

• Donor Recognition in Medical Facilities

Fundraising consulting firms, when working with a healthcare organization, might draw attention to the importance of donor recognition in healthcare facilities. Across the United States of America, and the world, there are medical wards and wings named after those generous enough to fund their construction. For example, a University of Vermont (UVM) hospital wing, that broke ground in 2016, was named the "Robert E. and Holly D. Miller Building" after Burlington philanthropists, Bob and Holly Miller. The generous couple were recognized for donating $3 million to endow a chair in the UVM medical school.

• Healthcare Campaign Branding and Messaging

The importance of communication is often overlooked in the nonprofit sector. Communication support is a specialist service offered by most fundraising consulting firms. Regarding a healthcare organization, firms would likely highlight the crucial nature of campaign branding and messaging when fundraising in the healthcare industry. To engage with local communities, fundraising consulting firms might shift their focus toward patient success stories, clear and concise health information, health outcome statistics, and other healthcare-related communication strategies.

• Partnerships with Pharmaceutical Companies

When working with healthcare organizations, fundraising consulting firms will look toward corporations in the healthcare industry for support. Pharmaceutical companies are great business entities to target for a partnership. When pharmaceutical companies choose to support a charity, it's likely going to be a healthcare organization. Firms will recognize the distinct advantage that healthcare organizations have in this scenario and use it to their advantage.

Type of Nonprofit: Arts and Culture Nonprofit

• Corporate Sponsorships for Arts Events

Arts events can be difficult to fund because, unfortunately, many people believe that art isn't worth supporting via charity. Fundraising consulting firms might identify this issue and prioritize corporate sponsorships for arts events. Corporations can often be persuaded to sponsor arts events in return for public recognition. This places corporate sponsorships as one of the more accessible types of funding for arts and culture nonprofits.

• Collaborations with Museums and Galleries

Museums and galleries are among the big hitters in the realm of arts and culture nonprofits. This is a fact that will be identified by fundraising consulting firms. They'll use this information to attempt to collaborate with museums and galleries, which occasionally support smaller, local arts and culture nonprofits. If there's one type of organization that museums and galleries like to support, its arts and culture nonprofits. Firms will use this to their advantage when working with organizations in the arts and culture space.

The Future of Fundraising Consulting

As with all things in our wonderful world, the landscape of fundraising consulting will continue to evolve with technology as one of its major influences. The future of fundraising consulting is intertwined with topics like artificial intelligence and large language models, hybrid and virtual events, and sustainability and social impact. Below we'll break down the future of fundraising consulting:

• Artificial Intelligence and Large Language Models

Artificial intelligence (AI) and large language models (LLMs) will have a greater impact on fundraising consulting as these technologies develop. The rate at which AI and LLMs are advancing is lightning quick and it can be difficult to keep up. Fundraising consulting firms will turn to these technologies to streamline their processes. For example, AI might one day play the role of prospector. Firms will likely be able to employ AI to scrape databases for potential donors that align with the nonprofits that they serve.

• Increased Use of Data Analytics

Alongside AI and LLMs will be the increased use of data by fundraising consulting firms. Analysis and analytics are already of great importance to firms, and the use of data metrics will only continue to rise. More and more data points will become measurable and readable, and this data will be used by fundraising consulting firms to improve the successes of their clients.

• Hybrid and Virtual Events

The shift toward hybrid and virtual fundraising events is also influenced by the betterment of technology. Fundraising consulting firms are beginning to see the benefits of virtual and hybrid events; they're cheaper, they're more accessible, and they're easier to plan and execute. Organizations working with fundraising consulting firms can expect a strong push toward digital fundraising strategies. Virtual and hybrid events are especially useful for smaller charities with smaller budgets, and they can help smaller charities to achieve more ambitious fundraising goals.

• Sustainability and Social Impact Awareness

Sustainability and social impact awareness is always improving. Global warming is a serious issue that requires tackling and charities must take responsibility for their role in change. Fundraising consulting firms will begin, more and more, to push sustainable fundraising practices. This will help nonprofits to become more environmentally conscious, while continuing to have a positive effect on their communities. Alongside sustainability, firms will bring social impact to the fore. Now, more than ever, an organization's social impact is under the microscope. Fundraising consulting firms will encourage nonprofits to ensure that they're having a positive social impact through each of their initiatives.

• Blockchain for Transparency

Blockchain databases are likely to become more common. In the nonprofit sector, transparency is a core value. Blockchain databases allow for the secure and transparent storage of information. In the case of nonprofits, fundraising consulting firms are likely to promote the use of blockchain databases for storing donor information. It's the perfect information storage solution; nonprofits can store donor information safely, while continuing to operate transparently.

• Cybersecurity in Fundraising

As technology's role in the nonprofit sector grows, cybersecurity's role in the nonprofit sector grows. Cybersecurity is the process of protecting technology-based systems, networks, and programs from digital attacks. Fundraising consulting firms will identify that the protection of an organization's digital fundraising means is as important as the fundraising means themselves. Firms will also understand that it's easier to procure donors when they can feel assured that their information is safe.

• Behavioral Science Applications

Behavioral science is the scientific study of human and animal behavior. Fundraising consulting firms are already beginning to apply behavioral science to the fundraising process and as this field of science expands, so will its applications in the nonprofit sector. For example, firms might use emotional trigger analysis to determine the types of language and imagery that are most effective at eliciting an emotional response from potential supporters. Emotion plays a major role in converting potential supporters into donors. Firms understand this and will continue to prioritize emotional trigger analysis, and other forms of behavioral science, for the improvement of fundraising success.

• Incentives and Rewards Systems

Incentives and rewards systems are extremely common in the for-profit industry. McDonald's customers can earn points that can be redeemed for free food, many gas stations offer their customers the opportunity to earn points that can be redeemed for free food, drinks, and gas, etc. Eventually, fundraising consulting firms will identify that incentives and rewards systems can be implemented in the nonprofit sector. For example, a nonprofit can operate a reward system that provides incentives to repeat-donors. After 5 donations a donor might receive a branded pen, after 10 donations a donor might receive a branded water bottle, so on and so forth.

• Testing with A/B Experiments

While A/B experiments aren't necessarily a recent phenomena, they're relatively unknown to the general public and not so prominent in the nonprofit sector. An A/B experiment compares two, or more, versions of something to determine which of them has the highest performance. Fundraising consulting firms can use this strategy in a number of ways when working with nonprofits. For example, an A/B experiment might be used to test a fundraising email. Fundraising email "A" might appeal to emotion, while fundraising email "B" might utilize statistics. Firms can use the relative successes of emails "A" and "B" to determine whether supporters of an organization relate more to emotion or statistics.

Case Studies of Successful Fundraising Consulting Engagements

Fundraising consulting firms see value in sharing case studies. Case studies allow these businesses to demonstrate to potential clients that they can deliver on their promises of improved fundraising success. In this section of the article, we'll explore some relevant case studies to analyze the positive effect that fundraising consulting firms have on their nonprofit clients.

Case Study #1: DBD Group & The Hunger Coalition

"Addressing hunger issues with dignity and innovation."

DBD Group worked alongside The Hunger Coalition to perform a feasibility study. The results of this study indicated, to The Hunger Coalition, that they had a lot of people in their local community that were very passionate about serving others in a different way.

In 2020, former executive director of The Hunger Coalition, Jeanne Liston, The Hunger Coalition staff, and The Hunger Coalition board of directors worked together to raise over $8 million of capital funding. This allowed the organization to refurbish an old landscaping company warehouse, converting it into a 15,000 square-foot space dedicated to serving their community's most vulnerable regarding food insecurity.

Named "The New Bloom Food Center," this was, and still is, no ordinary food bank. It consists of spaces for community gathering, a teaching kitchen, play spaces for children, greenhouses, garden beds, and a humongous food-storage warehouse. This modern concept was designed to empower individuals, while supporting them during tough times.

Jeanne stated that DBD Group "challenged" the staff of The Hunger Coalition to "think through the entire project." The Hunger Coalition was encouraged, by DBD Group, to build a "case for support" and have a "strong plan for sustainability" once the food bank opened. The organization was recommended to "increase" their "capital goal" following the positive results of the feasibility study.

This feasibility study and project occurred during the COVID-19 pandemic, which was a difficult time for nonprofit organizations. As well as being able to navigate a successful campaign, during this tough period, The Hunger Coalition was able to secure strong annual support. Jeanne highlighted that she felt "so fortunate" that long-time and brand-new donors chose to "give so generously."

Jeanne claims that the secret to The Hunger Coalition's success in these campaigns was relationships. Over the 14 years prior to this project, she and her team established great credibility and trust in their local community.

Overview: DBD Group performed a feasibility study on behalf of The Hunger Coalition regarding the refurbishment of an old warehouse into a multi-purpose food bank. DBD Group identified that the organization could be more ambitious with their capital goal. The Hunger Coalition raised over $8 million and carried out the project successfully. They attributed their success to relationships with the local community.

Case Study #2: DBD Group & YMCA Camp du Nord

"Connecting a strong history to a vision for the future."

Located in the beautiful Boundary Waters Canoe Area Wilderness, Minnesota, YMCA Camp du Nord has hosted families and groups on the shore of Lake Burntside for over 60 years. Around 2015, the organization determined that it would like to improve its facilities, purchase a neighboring parcel of land, and endow YMCA Camp du Nord with resources for the future.

Then executive director, Niki Geisler and the YMCA Camp du Nord board of directors determined that they must move forward with a campaign.

In partnership with YMCA of the USA, DBD Group facilitated YMCA Camp du Nord's acceptance into a special capital readiness learning opportunity. This opportunity, combined with DBD Group's support, enabled the organization to refine its case for support and identify top prospects for donations and campaign leadership. Furthermore, YMCA Camp du Nord was taught best practices for planning and executing a major campaign.

The learning opportunity lasted for 10 months and, following its conclusion, YMCA Camp du Nord retained the services of DBD Group. DBD Group was tasked, by the organization, with conducting a feasibility study regarding their proposed campaign goal and projects. The study, which was completed in 2016, determined that YMCA Camp du Nord had the support required to move forward. As a bonus, the study helped to identify additional leadership and donor prospects.

YMCA Camp du Nord started their campaign, in 2017, with a "quiet" phase. Niki, and her team, began by hosting weekly listening sessions, which allowed the organization to explain its long-term vision to families and answer any questions they had. The conversations, while casual in nature, planted the seeds for future fundraising support from YMCA Camp du Nord families.

Over the following 2 years, resources and gifts were secured from various sources. In partnership with the Minnesota Land Trust, the organization was able to secure a State of Minnesota grant. Some of the capital projects were funded right away and their construction began immediately.

In 2018, the campaign went public. By combining fundraising strategies such as special events, direct response, and one-on-one asks, YMCA Camp du Nord completed its campaign successfully. The conclusion of the campaign was celebrated in February of 2019.

At DBD Group, they often say that "leadership is everything." This mantra was certainly true for YMCA Camp du Nord. Niki recruited wonderful volunteers and appointed an extremely effective community campaign committee. The community campaign committee met monthly for strategy planning and, during the summer months, implemented a summer engagement plan.

Overview: Around 2015, DBD Group facilitated YMCA Camp du Nord's acceptance into a capital readiness learning opportunity. This came after the organization decided it would like to improve its facilities, purchase a neighboring parcel of land, and endow YMCA Camp du Nord with resources for the future. The organization retained DBD Group's services following the conclusion of the learning opportunity. YMCA Camp du Nord proposed a campaign, which DBD Group conducted a feasibility report for and helped to oversee.

Tips for Working Effectively with Fundraising Consulting Firms

If your nonprofit is considering commissioning a fundraising consulting firm for the first time, it can be intimidating - it's difficult to know how to prepare and what to expect. Here are some tips for working effectively with fundraising consulting firms:

• Clearly Define Goals and Expectations

Before the consultation, it's important to understand your organization's goals and expectations. Clearly conveying this information to your chosen fundraising consulting firm will allow them to prepare the perfect strategy, tailored to your nonprofit's needs and preferences. In terms of goals, consider an overall target for your campaign. Is there a certain monetary threshold that you'd like to meet? In terms of expectations, consider aspects of the partnership like communication and time frame. Would you like clear and frequent communication, and how long would you like your campaign to last?

• Establish Open Communication Channels

Consultations are built on strong communication. It's important for both parties, your nonprofit and the fundraising consulting firm, to uphold clear, open, and frequent communication. It's up to your organization to choose how it wishes to communicate. There are many options such as in-person meetings, phone calls, and email. For the best results, it's recommended that a combination of communication methods are used. This ensures that lines remain open at all times.

• Involve Key Stakeholders Early

Key stakeholders are part of the foundation of any successful nonprofit. They should always be involved in important decisions and important projects. Before your organization has reached out to a fundraising consulting firm, you should get your key stakeholders on board - allow them to have their say. Ensuring that key stakeholders are part of the entire undertaking helps everyone to feel that their voice is heard and that they're a part of the decision making process. This will bring harmony to your team, which will help to produce stronger results.

• Set a Realistic Budget

This tip is especially important for smaller charities with tighter budgets. Fundraising consulting firms come in many shapes and sizes; some are small and less expensive, while some are large and more expensive. It's crucial that your nonprofit pays close attention to the financial implications of hiring a consultant. Exceeding budget can be detrimental to an organization and it's important that yours takes great care to avoid doing so.

• Provide Access to Necessary Data

Fundraising consulting firms often rely on data and analytics to support a nonprofit's campaign. Your organization should be certain of two things: one, that it maintains records of all possible data, and two, that it makes this data as accessible as possible to consultants. Much can be learned from the data of a nonprofit, and providing this data to a fundraising consulting firm will allow them to improve the outcome of a consultation.

FAQs

Q: How much do fundraising consultants charge?

A: This is a very subjective question. Fundraising consulting firms come in all shapes and sizes, with varying costs. According to Aly Sterling Philanthropy, one of the top fundraising consulting firms in the industry, fees vary "depending on the scope and complexity of your nonprofit's project." Most charge between "$100-$250 an hour and up to $1,000-$2,500 per day." It's important to seek quotes from fundraising consulting firms that your organization is considering.

Q: How do I choose a fundraising consultant?

A: The ideal fundraising consulting firm is different for each nonprofit. A firm should be chosen based on the unique needs and preferences of an organization. By analyzing track records, industry expertise, references and testimonials, services offered, and more, your organization can be sure to make the right decision.

Q: What does a funding consultant do?

A: The role of a fundraising consulting firm can vary depending on the services offered. Their primary job is to support fundraising campaigns but this can come in many forms. For example, some firms carry out feasibility studies to determine whether or not a project can be completed, some firms offer training to equip nonprofit staff for fundraising success, and some firms engage in donor and leadership prospecting. Fundraising consultants can perform various roles based on the needs and preferences of an organization.

Conclusion

Fundraising consulting firms are part of the fabric of nonprofit success. By offering services such as strategic planning, campaign management, and donor procurement, firms help organizations to achieve their fundraising goals. In this article, we have discussed many topics - let's quickly review them.

What is a fundraising consulting firm? A fundraising consulting firm is a business compiled of nonprofit experts who use their expertise to support organizations with their fundraising endeavors.

There are a plethora of benefits to hiring a fundraising consulting firm. The key benefits include, but aren't limited to: experience and expertise, optimized strategies, objective perspective, access to advanced tools, and time efficiency.

Choosing the right fundraising consulting firm can be difficult. It largely depends on the specific needs and requirements of your nonprofit. Here are some tips: assess track records, evaluate industry expertise, check references and testimonials, understand the services offered, and review case studies.

Which firms are the big hitters in the fundraising consulting industry? Prominent names include, but aren't limited to: Marts & Lundy, Chase Solutions, Contributor Development Partnership, AmPhil, and DBD Group.

Fundraising consulting firms can adapt their services to align with the specific needs and preferences of different nonprofits. For example, they might recommend low-cost fundraising tools to a small charity with a tight budget. Platforms, like Paybee, are cost effective and offer a suite of features that help to streamline nonprofit operations.

The future of fundraising consulting is bright and exciting! In future consultations, nonprofits can expect to hear about, and implement, the following: artificial intelligence and large language models, data analytics, hybrid and virtual events, sustainability and social impact awareness, blockchain, and more.

Case studies featuring DBD Group, The Hunger Coalition, and YMCA Camp du Nord highlight the important relationship between nonprofits and fundraising consulting firms in the process of planning, launching, and managing a campaign.

And finally, tips for working effectively with fundraising consulting firms include: clearly define goals and expectations, establish open communication channels, involve key stakeholders early, set a realistic budget, and provide access to necessary data.

Now that you've made it to the conclusion of this article, you're equipped with the knowledge required to approach fundraising consulting firms with confidence. Take what you've learned, apply it to your organization, and find success with a fundraising consulting firm - good luck!