Counting the Cost

What should I pay my grant-writer?

How much should I charge as a consultant?

Money questions are essential no matter if they come from the client side or the consultant side. It's tricky to say what's right, as a lot can depend on what feels most comfortable for the consultant and client in question. 

Nah, I'm kidding. There's definitely a right and a wrong answer. First, let's go through a couple of the more common set-ups before diving in to what I think may be most ideal for your consultant/client contract. You are free, of course, to disagree. After all, you're an adult. No one's making you listen to me. And if you're not an adult, why are you even reading this? This article goes live on Tuesday morning. You should be in class right now.

Client Pays Consultant on Commission 

Major red flag! Do not do this! Legitimate grant-writers and members of the Grant Professionals Association do NOT take a percentage of the grant or work on any type of commission whatsoever. This is considered unethical within the grants field for a number of reasons. We can talk more about this in a future post, but the gist of it is that paying from a portion of the grant can encourage grant-writers to go for larger grants which the organization may not qualify for in order to score a bigger payout. Plus, grant-writers can't control if, when, or how much money the funder will award their organization. It's just not a good set-up for anyone. I do not work on commission. 

Client Pays Consultant Per Hour

Plenty of well-meaning grant-writers and nonprofit organizations have this agreement going, including me. It works fine, as long as there is basic trust between the nonprofit and the consultant, and you're able to keep good track of your hours. My advice is to also inform your client of what you're doing down to the quarter hour at least. That way they know what they're paying for each day you clock in to work. You don't have to tell the client which hours you're working, but you do need to let them know the duration. At least, that's how I used to do it. 

The only problem with this set-up is that it can be inconsistent. Yes, you know you're getting paid a certain amount per hour, but you're relying on someone who is overworked and understaffed to remember to Zelle or Venmo you a few hundred/thousand bucks at the end of every month or worse, mail you a check. Not an ideal scenario. 

Client Pays Per Project

The gold standard! This is the ideal toward which I currently strive. You have a set package rate which you charge each month. For example, two grants plus research and documentation, etc. will cost your client X amount per month. Half is due at the start of the month, half due upon completion of the project or the end of the month. Whatever you agree to. This may require monthly renegotiation of the contract or however you draw it up. Maybe you have a monthly renewing contract unless otherwise stated. Something like that. A flat project fee is definitely the way to go. You scale it to the client's budget and needs. Obviously, you have a ceiling because you're not trying to take advantage, but not too low because you have to eat. 

Basically, you have a set rate. Maybe you have a discounted rate for smaller nonprofits, but that's it. Otherwise, it's scaled. 

Example: Let's say my rate for an average client is $5. If a new client comes up to me and asks if I can do it for $1, I'm not going to turn them away, but I will counter with maybe $3. They may offer $2.5. You see what I mean? That kind of thing.

Anyway, I hope this was helpful. Paying per project has been the most helpful strategy for me so far. Which reminds me, I need to go work on my menu of services right now. I'll leave you with today's dad joke: 

What type of tree fits in your hand? A palm tree.

See you next time!