5 Surprising Realities About Grant Consulting

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Almost every nonprofit needs a good grant writer. For those organizations that can’t afford a full-time staff member, grant consultants can play a pivotal role.
Grant consultants are often experienced grant writers and fundraisers who’ve chosen to work with multiple organizations instead of being on staff with a single nonprofit. While many people think of grant consultants as simply people who write grants on contract, they can be so much more!
In this article, we’re going to delve into some surprising lessons we’ve learned from both working as grant consultants and coaching grant consultants. We’ll look at what grant consultants really do, the different ways they specialize and niche down, and the pricing models that are most common in the field. Plus, if you’re interested in launching or growing a grant consulting business, we’ll share some of our top tips for building a business you love.
Grant fundraising is about so much more than simply writing a proposal and hitting send. This is why grant consultants may provide a wide range of grant-related services, from grant writing to prospect research to grant reporting.
Not all grant consultants provide the same services, though. Common grant consulting scopes include:
With so many options available, we advise grant consultants to get clear upfront about how they prefer to work with nonprofits and to seek out clients whose needs align.
Many grant consultants come from a nonprofit fundraising background. With experience in every aspect of grant fundraising, these consultants know firsthand the importance of donor data management—and how nonprofits often overlook this aspect of fundraising strategy. They also know that no matter how many proposals you write, without solid grants management, success will be limited.
With this in mind, many grant consultants advise their clients on how to evaluate, select, and set up effective donor management systems. For some organizations, this means upgrading from an outdated spreadsheet to their first professional donor CRM.
Once a donor CRM is in place, consultants may manage grant-related data, support staff members’ funder outreach, and keep on top of grant deadlines. Consultants who like to see how their work leads to organizational success and sustainability tend to enjoy this more comprehensive and hands-on grant consulting approach.
The nonprofit sector is far from uniform. Organizations vary by size, budget, sector, geography, and type of work. Just like the foundations that fund nonprofits, grant consultants often specialize in working with certain types of organizations.
Grant consultants can “niche down” in a variety of ways. For example, one consultant may primarily serve arts and culture organizations in a single state, while another may specialize in working with national advocacy organizations with budgets over $5 million. Yet another consultant may choose to work only with faith-based organizations.
There are surprising benefits to niching down. Grant consultants may get to know the most active funders in their area or sector very well—often better than their clients—and can bring valuable insights to grant strategy and writing. If a consultant becomes known as the “go-to” grants expert for certain types of organizations, they may get a steady stream of referrals. Consultants may also be familiar with what makes an effective and sustainable program in their niche, enabling them to guide clients toward best practices and even stronger programs.
While niching down can feel scary and limiting at first, for many consultants, the approach pays off financially and leads to highly rewarding work.
While organizations often expect to pay grant consultants by the hour, many of the consultants we coach ultimately choose to switch to project-based billing.
Project-based billing is exactly what it sounds like: charging by a project or scope of work vs by the hour. For example, a grant consultant would charge a flat fee for creating a grant template proposal that the organization can easily customize for dozens of funders. Or a consultant might work on a retainer, where, for a flat monthly fee, they complete up to two grant deliverables per month.
While organizations may be less familiar with project-based billing, it can benefit both consultants and their clients. Consultants can more easily plan for their income and let go of the burden of tracking client hours. Nonprofit clients benefit from easier budgeting, avoid cost overruns (such as when a consultant bills more hours than expected), and be confident in the work product they will be receiving.
Grant consulting services, fees, and fee structures vary widely. For example, depending on the type of proposal and the consultant’s experience, hourly fees for grant writing alone can range from $25 an hour to over $200!
This unwieldy pricing range can create unrealistic budget expectations among nonprofits and leave grant consultants uncertain about how to price their services. In fact, pricing is one of the most common questions I get from grant consultants in my business coaching work.
That’s why I advise consultants and nonprofits to focus on the value a grant consultant is adding to the organization. For example, hiring an experienced grant consultant could free up dozens of hours on the calendar of an executive director used to writing every grant from scratch. A grant consultant could also increase the number of funded grants by crafting high-quality, targeted proposals. Or a consultant could provide the research, tools, and hands-on guidance for an organization to significantly grow its budget.
In the business world, people talk about return on investment or ROI. In general, grant consulting offers an incredibly high return on investment for nonprofits and is well worth the expense.
Building from these lessons, when we coach consultants who are launching or growing their businesses, we have a few consistent recommendations:
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