Why You Need a Philanthropic Consultant

Why You Need a Philanthropic Consultant | September 2024

Americans are generous. Giving grew to over $557 billion last year, yet in the CapDev Compass 2024 survey, over 100 nonprofit leaders (65%) ranked competition for philanthropic dollars as their top external challenge.

You might say we are biased, but as a consulting firm, we are often asked about how our work with nonprofits is going. The response is generally that we see a significant increased need both for the services of nonprofits and for our consulting guidance. Bottom line: nonprofits are busy, and so are we.

So why would a social impact organization part with funds from its hard-earned budget to hire consultants? Consider the key areas where philanthropic strategies are most needed and their value to donors.

To help, we offer this Guide to Philanthropy Advisory Services:

What is the role of a philanthropic advisor:

Core responsibilities of a philanthropic advisor can include:
- Discerning key areas of need for philanthropic support
- Assessing current donor data and providing analysis and guidance to build donor relations and overall support
- Developing or refining a strong case for support for giving to the organization
- Identifying potential sources of major giving and advising to build connections with individuals, foundations, and businesses
- Building confidence in key leaders to leverage relationships and garner major asks
- Developing a campaign or development plan, and guiding implementation of that plan
- Assessing the feasibility of potential campaign plans
- Teaching roles of engaging board and staff and how to strategize and make key asks
Expertise and skills required of philanthropic advisors include:
- Knowledge of the basics of nonprofit governance and best practices
- Knowledge of philanthropic leaders in the region
- Understanding of priority focus area of grantmakers
- Ability to assess, guide and direct a development program
Value proposition: A philanthropic advisor adds value to a nonprofit organization’s philanthropic efforts by providing well-informed thinking and strategy that the organization would not have unassisted, resulting in increased giving and greater long-term sustainability through support of the organization.

What is the process of engaging a consultant:

Assess first: most consulting engagements begin with a briefing or some type of situational analysis to provide the consultant with insights into the current needs or the organization and goals for the proposed project
Follow the proposal: a good consultant will have provided a detailed proposal and will start the engagement with a timeline to guide the project
Delivery: at the conclusion of an engagement the consultant will offer to present its report or findings in a deliverable, most often a report and accompanying presentation to key leaders
Implementation: based on the findings of the process above, the consulting firm will make a recommendation to assist the nonprofit in implementing the recommendations of its plan with costs and timing included
Evaluation: the consultant you hire should offer an exit interview opportunity for the nonprofit to give candid feedback on the engagement

How to choose a consulting partner:

Do your research: ask nonprofits you respect for their input on recent fundraising consulting engagements
Set up screening calls or meetings: share your concerns and needs with potential consultants to narrow your list
Gather proposals: ask interested consulting firms for a detailed proposal with a timeline, costs, and references included
Evaluate: list the criteria of the ideal consulting partner and assess firms based on considerations such as experience and expertise; mission alignment; geographic location; knowledge of your community and sector; fee structure; communications, and cultural fit
Interview: We highly recommend in-person interviews with potential philanthropic advisors. Nonprofits making a major investment in their mission need to feel a good match with the firm they hire. Ask to meet the consultant to be assigned, and prepare a list of questions.
Respond: consulting firms have shared their time and deserve a response to know whether or not they will be selected for the engagement and why

The future of philanthropic advising:

There is always something new in emerging philanthropic trends, such as use of A.I., impact investing, and online giving platforms. Be sure to ask philanthropic advisors how they make use of technology in transforming their services with nonprofit clients.

All that said, if you don’t listen to us, hear the words of our clients – they say it best:

“Capdev folks really took the time to get to know our organization – our strengths and our opportunities to improve. This investment in the front end made their consulting more valuable in the end.” – Dubose Egleston, Head of School, Porter Gaud, Charleston SC

“Development is as unique a skill set as I have ever experienced, and it is reassuring to know I have such support. In Navy lingo we call this defense in depth!” – Capt. Terry Bragg, retired Executive Director, USS Battleship NORTH CAROLINA

“CapDev really provided us a framework for a successful capital campaign. In our feasibility study we learned valuable lessons about where we needed to improve before kicking off a campaign. For me, their methodology for delivering successful campaigns proved itself, and I believe our investment in them and our adoption of their processes are what helped us exceed our goal.” – Rob Hudspeth, Executive Director, Appalachian Regional Healthcare Foundation, Boone, NC

“I’m personally and professionally grateful that Capital Development has been with us in the role of campaign counsel.” – Lynn Brantley, President & CEO, Capital Area Food Bank, Washington DC

Let us help:

If you’re seeking expert guidance to maximize the impact of your philanthropy, CapDev can help. Our team of experienced advisors can partner with you to achieve your philanthropic goals. Contact us today to learn more.

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