By Linda Lysakowski, ACFRE
CAPITAL VENTURE CEO/President
Originally published in the AFP International Information Exchange
According to a recent survey, more than 40% of nonprofits expect to pay more than $50,000 in consulting fees in the coming year. So,
how does a nonprofit find the right consultant? If your organization is considering hiring a consultant to help with fundraising or
development needs, here are few things to think about before you engage a consultant.
Do you need a consultant or a staff person?
The first thing you need to know is whether you are looking for a staff person to fill the role or if you need a consultant. If you
need full time work or someone to be on site on a regular basis, you probably need an employee rather than a consultant. Hiring
a consultant is not a way to avoid paying benefits to employees. In fact, the IRS has strict regulations about who is an employee and
who is an outside contractor. Things like supplying an office and equipment, supervising the person's work directly usually mean that
person is an employee and you must pay employment taxes and possibly benefits. For a complete list of IRS guidelines, check the IRS
website. Read more
