Five Myths and Success Strategies around Using a Fundraising Consultant
India Philanthropy Advisors Network (IPAN) is a group of senior advisors and consultants specializing in supporting U.S.-based nonprofits that focus on human development and environmental preservation in India, as well as those mobilizing philanthropic support from Indian Americans for other impactful causes. While fundraising is a core area of expertise, their services also include other areas, such as executive search, human resource management, governance, prospect research, and compliance. The following is the first in a series of thought pieces from IPAN. The primary authors are IPAN founding members Kris Cafaro, Vijay Chitnis, Alex Counts, Poonam Prasad, Sharmila Rao Thakkar, and Gouri Sadhwani. IPA has published this because we believe that using consultants effectively is a skill that organizations in our own network would benefit from, and that reading this article may help refine that skill. You will note that IPA's Executive Director is a signatory. He is a part-time employee of IPA and does consulting as well.
Revenue is the lifeblood of any business, whether large or small. The same holds true in the nonprofit world, where fundraising is a primary source of revenue generation. While some nonprofit organizations have an in-house development team that oversees the full range of fundraising efforts, many organizations rely on fundraising consultants for tasks including planning and running discrete campaigns, generating and approaching potential donors, or cultivating and stewarding existing donors.
It’s important to recognize that fundraising is not just asking for money – it’s the culmination of effective relationship-building, marketing, branding, storytelling, networking, and communication. It is the outcome of building trust, demonstrating impact, and inspiring belief in a shared mission and vision. The most effective consultants know this well, and provide skilled assistance in navigating this complex type of nonprofit fundraising.
Despite the widespread use of fundraising consultants, numerous myths persist about whether, when, how, and why to partner with them. In this piece, we seek to debunk five of the most prevalent misconceptions and also share advice on how to get the most out of your consulting relationship, and follow that with some success strategies.
Myth #1 - The consultant should bring their own network of contacts to add to their client’s pool of potential donors, which will lead to increased fundraising success. In other words, the consultant’s rolodex of donors will help solve the client’s fundraising challenges.
We believe that it is generally unfair to expect consultants to share their personal or professional contacts for use in a client’s fundraising efforts. It is especially inappropriate for a client to not disclose this expectation in initial conversations, and later suggest it was implied. (Many of us have encountered this situation.) In some cases, a consultant’s disclosure of personal contacts could even present a conflict of interest with other clients, particularly if those contacts originated from previous engagements. Fundraising consultants are not obligated to grant access to their personal networks.
As consultants, we believe that our primary role is to help organizations optimize their existing relationships, strategies, and brand to increase funding and attract new donors in a way that is sustainable over the long term. Many organizations leave significant potential untapped simply by not engaging effectively with their most capable donors and prospects. Improving that engagement is exactly what good consultants can help them do. In most cases, the best new donors a nonprofit will attract come through introductions from existing donors – peer-to-peer engagement. As consultants, our role is to guide organizations in leveraging these relationships to expand their donor base.
We emphasize that it would be unethical to introduce a client to potential donors they are unaware of or don’t have access to if our own connection to those donors is the result of work with another client.
Myth #2 - The nonprofit organization should pay the consultant a “commission” based on how much money they raise, to act as an incentive to raise more money.
The practice of paying consultants based on funds raised is widely discouraged in the U.S. nonprofit sector. Group member Alex Counts (also a co-author of this article) has researched specific policies and guidelines on this issue, finding that the National Council of Nonprofits, Association of Fundraising Professionals, and the Pennsylvania Association of Nonprofit Organizations (among others) all consider it inappropriate and even unethical to pay consultants based on a percentage of funds raised as it may incentivize the wrong activities and could risk donor trust and relationships. He wrote a short article on this topic since it comes up so often. While pay structure might vary from consultant to consultant, commission-based compensation is not best practices. Consultants can charge hourly, per project, or through retainer fees. If the client determines that their efforts are not yielding results, the contract can expire rather than be renewed, or in extreme cases can be ended early (if the contract allows for this).
Myth #3 - The consultant can effectively work on their own to raise money, replacing the need for in-house staff capacity focused on resource development.
Contracting with a fundraising consultant does not mean that the consultant alone is responsible for fundraising success. The organization’s staff and Board members play a significant role in the development efforts. While a consultant is likely to be experienced in fundraising practices, it’s the staff and Board members who know the work best and are often the most effective at sharing their passion and knowledge of the organization with donors. Their active input, engagement, and leadership are essential to building a successful and sustainable nonprofit fundraising strategy that leads to return on investment.
Ideally, organizations will work to cultivate in-house staff focused on resource development who can carry forward plans developed by the consultant, including around long-term stewardship of existing donors and solicitation of new ones. One-time fundraising campaigns run by a consultant do not guarantee long-term financial success, but can serve as a starting point for the staff to build on.
Myth #4 - It is reasonable to expect significant fundraising results within 6 months of hiring a consultant.
Expectation of rapid results often stems from nonprofits feeling the need to justify expenses associated with hiring a consultant and, in the current environment, a sense of mounting pressure to ensure the financial health of the organization. However, effective fundraising requires a deep understanding of the organization, the landscape in which it operates, and its narrative. Marketing, branding, storytelling, and developing a compelling case for support are foundational to successful fundraising. There are no “quick fixes” when it comes to investing in building a long-term, sustainable fundraising strategy. This is especially true in major gift fundraising, which relies on high touch relationship-building rather than transactional short-term interactions. Consultants can train an organization to interact more successfully with its donors and potential donors, but those relationships will not transform overnight, especially if they have been neglected in prior years.
Myth #5 - Consultant fundraising success is unrelated to the strength and size of your prospect and donor pool, and the willingness of Board members to lead by example and work towards achieving fundraising goals.
Large institutions, such as universities and hospitals, have decades—sometimes centuries—of alumni and supporters to draw from, which gives them a powerful fundraising advantage. Smaller nonprofits, especially those in startup or growth phases, are often still building that base. That doesn’t mean, however, that they can’t raise significant funds—it does mean the strategy, timeline, and expectations have to be aligned with their current stage of development. A consultant can help identify the appropriate approach given the organization's current stage in its lifecycle. But they can’t effectively achieve the best results alone. It’s particularly important that the Board and other volunteer leadership take an active, participatory role in both building the donor base and contributing to the fundraising campaigns themselves.
In addition to debunking the common myths above, below we share five ways to produce maximum benefit for your organization when collaborating with a fundraising consultant, and why these recommended paths can lead to successful outcomes.
Advised Path #1 – Build Internal Capacity First
Use your consultant to strengthen your board, donors, staff, and champions. The most valuable thing a consultant can do is to educate and equip your internal stakeholders with the skills, tools, and confidence to support fundraising by:
Opening doors through their networks
Serving as passionate and visible ambassadors of your mission
Cultivating and making major gift asks with the support of organizational leadership
Thanking donors and deepening engagement
A consultant can provide expert guidance in all of these, but this role is temporary. Your board and champions will be with your organization for the long term. By investing in their success, you create a lasting culture of engagement that will fuel fundraising success long after the consultant’s contract ends.
Advised Path #2 – Trust the Process
For a consultant to work effectively, the most important thing they need is an engaged, trusting client. If you’ve hired someone whose skills and experience you believe in, let them work without micro-management.
Ask the consultant about their methodology and approach during the selection process to ensure it aligns with your style. Over-focusing on small “deliverables” can strain trust and limit the broader insights and comprehensive strategies a consultant might offer—insights that often surface before or during moments of organizational challenge.
When you trust and enjoy working with your consultant, you get their best work. Partnership and respect inspire extra effort and creativity—so be collaborative, not controlling.
Advised Path #3 – Be Open to Adjusting the Scope
Good consultants look beyond the original scope to identify deeper barriers to meeting your goals. Consultants, as outsiders, often see issues that leaders and boards may miss.
Example: You hire a consultant to build a plan for a major donor program. After meeting your board, the consultant advises focusing first on board giving. Why? Because a board that doesn’t give at its full potential will struggle to credibly ask others to do so.
Being receptive to this kind of feedback isn’t about spending more—it’s about fixing what’s foundational so your fundraising has the best chance of long-term success.
Advised Path #4 – Play the Long Game
Sustainable fundraising is a long-term investment. Like relationships or gardens, it takes time, care, and consistent effort—there are no shortcuts.
A strategy can be drafted relatively quickly, but implementing, refining, and seeing results can take months or years. Cultivating major donors, for example, often takes 18 months from the initial contact to the gift. Rushing the process can damage trust and close doors.
Think in seasons, not weeks: plant seeds, nurture them, and wait for the right moment to harvest. Patience and persistence yield the strongest results.
Advised Path #5 – Start With What You Have
Consultants aren’t magicians—and the “golden egg” may already be in your hands. Your current donors, board, and their networks are your most natural and reliable starting point.
A strong strategy builds outward from this base, expanding your reach in circles over time. This approach creates sustainable income growth and deeper donor relationships.
If a consultant promises you their personal contact list, beware. A seasoned consultant will help you leverage your own relationships and strengthen and nurture your ability to grow them.