D o You Really Need a Consultant? And…What Is One, Anyway? Madeline Franze SSJ, CFRE Mary McFadden SSJ, CFRE September 14, 2015

2 Before we begin…  Types of consultants…  Development, Mission Advancement…  Fundraising as one part of development…  Repetition for emphasis

3 Agenda – Five Points 1. What is a Consultant? 2. When to Hire a Consultant 3. The Hiring Process 4. Working with the Consultant 5. After the Consultant Leaves

1 What is a Consultant? 4

5 Point 1 – What is a consultant? A. Qualities and skills needed B. Roles C. What a consultant might provide

6 Point 1A – Qualities and skills needed  Experience and proven competence  Hired for a time-limited, specific task  Provides assistance a task a goal a process a plan

7 Point 1B – Consultant roles  Advisor  Situation analyst  Diagnostician  Problem solver  Direct a development director search  Conduct board education session

8 Point 1C – What a consultant might provide  A deeper knowledge of best practices  Fresh thinking and new solutions  Challenge to the status quo

2 When to Hire a Consultant 9

10 Point 2 – When to hire a consultant A. To grow a development program B. To begin a development program C. When hiring a new Development Director D. To motivate staff, board ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ E. Poor use of consultants

11 Point 2A – Grow a development program *The most frequent use of a consultant*  To establish/strengthen infrastructure  To strengthen/grow fundraising vehicles  To move from fundraising to development  To establish/strengthen a culture of philanthropy

12 Point 2A 1 – Grow a development program (cont’d)  By strengthening infrastructure Written three-year plan Budget (expenses and income) Case statement Development webpage Staff Software and hardware Gift acceptance policies Office procedures

13 Point 2A 2 – Grow a development program (cont’d)  By strengthening fundraising vehicles Direct mail (assess ROI) Major gift and planned giving programs Events Foundation research / grant proposal writing Newsletters – print and electronic Social media Special programs – monthly donors, tributes, memorials, capital campaigns

14 Point 2A 3 – Grow a development program (cont’d)  To move a fundraising program into a development program Fundraising program  Focus is on dollars raised Development program  Focus is on becoming mission-centered and donor- focused in addition to dollars raised

15 Point 2A 4 – Grow a development program (cont’d)  To establish or strengthen an organizational “Culture of Philanthropy”  Indicators that the “Culture” is weak Crisis-driven A “money-pit” Responsibility of director only Director never gets out of the office

16 Point 2B – Begin a development program  Assess the organizational readiness of Board, staff, members (internal constituents)  Assess the philanthropic readiness of Larger community of donors, friends, community leaders (external stakeholders)

17 Point 2C – Hire a new Development Director  Transition plan should be in place  Analysis of what has worked/not worked  Gives direction…what is next

18 Point 2D – Motivate staff, board  Determine strengths and challenges facing Staff Board  Determine strategies to strengthen both

19 Point 2E – Poor use of consultants  The Fall Guy or Gal  The Hit Man or Woman  The Messiah  The Burden

3 The Hiring Process 20

21 Point 3 – The Hiring Process A. Doing the research B. The interview C. The contract

22 Point 3A – Doing the research  Find a consultant  Request proposals (RFPs)  Review the proposals

23 Point 3A 1 – Doing the research (cont’d)  Find a consultant Define what you want Get names from other like organizations Tap into professional groups  RCRI, NCDC, AFP, LCWR, CMSM…

24 Point 3A 2 – Doing the research (cont’d)  Request proposals (RFPs) Initial conversations Be specific in RPFs Request about three

25 Point 3A 3 – Doing the research (cont’d)  Review proposals Be sure they match your goals Review by board Review by legal counsel

26 Point 3B – The interview  What to look for “Chemistry” Consultant background and experience Process for delivering services Fee structure and billing Evidence that the consultant has done their homework on your organization Outline of next steps

27 Point 3C – The contract  Formal, written agreement with detailed service plan Contract review by board, lawyer, others  Specificity (timelines, service plan, fees)  Trust (confidentiality of information)  Reciprocity (freedom to challenge, probe, question)

4 Working with the Consultant 28

29 Point 4 – Working with the Consultant  The work relationship – a partnership Clear expectations Agreed upon objectives and timelines Keep relationship on track Frequent check-ins

5 After the Consultant Leaves 30

31 Point 5 – After the consultant leaves  Areas to examine A. Input (investment) B. Outcomes (progress toward goal)

32 Point 5A – Input (investment)  Clear commitment?  Clear and constant objectives?  Consultant access to the right people?  Adequate and the right information available?

33 Point 5D – Outcomes (progress toward goals)  Did the consultant help move the organization toward long-term goals?  What is the long-term value of the consultant’s work?

Wrap Up In the end, the most successful consulting relationships will share a single goal: the institutionalization of organizational change. The best consultants promote new systems or ways of behaving that will help people in organizations anticipate and solve problems as they arise in the future. 34

Wrap Up Questions? ______________________________________________ Contact Information S. Madeline Franze SSJ S. Mary McFadden SSJ 35