In our previous article, we explored why nonprofits are turning to consultants – and the risks that come with overreliance. But knowing when to hire a consultant is only part of the equation.
Equally important is understanding how power, influence, and expectations shape the consulting relationship. Who really sets the agenda — the nonprofit, the funder, or the consultant? And how can organizations ensure that consultants serve their mission, not the other way around?
In this article, we examine the power dynamics at play in nonprofit consulting – and share strategies for making consultant partnerships work for your organization.
Not all consultants are created equal. The nonprofit consulting landscape ranges from solo practitioners to boutique firms to global companies. With this variety comes a complex web of power dynamics involving large consulting firms, philanthropic funders, and nonprofits. Being mindful of these dynamics can help nonprofit leaders navigate relationships and make more informed choices.
Size and Access: Large, prominent consulting firms (think McKinsey, Boston Consulting Group, or Bridgespan in the nonprofit realm) bring prestige and extensive resources – but at a price. Their fees can easily run into the hundreds of thousands of dollars for a project. Only the wealthiest nonprofits or foundation-backed initiatives can afford these firms’ high fees (often upward of $250,000). In practice, smaller nonprofits are effectively shut out from hiring big-name consultants, and instead tend to work with smaller firms or independent nonprofit consultants. That isn’t necessarily a bad thing – in fact, smaller consultancies often have closer local knowledge. But it does create a stratified system: large organizations get one style of consulting (data-heavy, nationally oriented), while small organizations get another (network-driven, locally oriented).
Funder-Driven Consulting: Often, foundations play a pivotal role in consultant engagements – either by funding them or by using consultants as intermediaries. This can tilt the power balance. Nonprofit consultants paid by a foundation may feel beholden to that funder’s viewpoints or reporting requirements, sometimes above the nonprofit client’s perspective. In other words, if a foundation hires a nonprofit consultant to evaluate a grantee, the consultant might consciously or unconsciously prioritize the foundation’s definition of success over the grantee’s own. The power dynamic here is clear: the funder and consultant sit on one side, the grantee nonprofit on the other. If not managed carefully, this dynamic can leave nonprofits feeling evaluated and dictated to, rather than supported.
Furthermore, nonprofit consultants can amplify funders’ influence over strategy. When major foundations hire consultants to develop initiatives, those consultants often shape the agenda that grantees are expected to follow. The nonprofits end up implementing plans and reporting metrics conceived by outside experts, aligning with the foundation’s theories. This dynamic can marginalize the lived experience and insights of the nonprofits and the communities they serve.
Consultant Accountability (or Lack Thereof): Traditional accountability loops are weak when it comes to large consulting engagements. A nonprofit executive director is accountable to their board and the community for the success or failure of a strategy. But a consultant, especially one hired through a funder, is typically accountable only for delivering the agreed-upon deliverables (a report, a facilitation process, etc.), not for the long-term outcomes. As noted, nonprofit consultants “remain removed from their decisions” and don’t live with the consequences If a plan underperforms, a funder might blame the nonprofit’s execution, and the consultant moves on to the next client. This power asymmetry means nonprofits need to assert their own agency: to push back on recommendations that don’t feel right, and to demand that nonprofit consultants really listen and incorporate local knowledge. Otherwise, the default mode may allow consultants to dictate terms without bearing risk for results.
Levelling the Field: What can nonprofits do about these dynamics? Awareness is the first step. Nonprofit leaders should enter consulting relationships with eyes open to power imbalances – whether it’s the clout of a global firm’s brand, the influence of the party paying the bill, or simply the deference often given to an outside “expert.” During initial discussions, it’s fair to ask consultants how they approach power dynamics. Will they talk to front-line staff and community members or only the executive team? How will they handle input from funders or board members? A savvy consultant should be able to have an honest conversation about these questions. In fact, thought leaders recommend directly addressing power dynamics upfront with your nonprofit consultant. Consider: Who is funding this project, and should they be involved in the process or kept at arm’s length? Who are the “loudest voices” in your boardroom, and how might you and the consultant manage their influence so that staff and community voices aren’t drowned out? By collaboratively acknowledging these factors, you and your consultant can strive for a more balanced engagement.
Finally, funders have a role to play in recalibrating power dynamics. Grantmakers who fund consulting for nonprofits should resist the urge to micromanage those engagements. The best scenario is when funders act as supportive partners – footing the bill, but letting the nonprofit and consultant set the course based on on-the-ground needs.
In summary, large consulting firms and funders can bring tremendous resources to a nonprofit, but they also bring power dynamics that, if unchecked, can sideline the very people the nonprofit exists to serve. Nonprofits can still benefit from these partnerships – and sometimes they are the only way to access high-level expertise – but it’s critical to maintain a clear sense of who ultimately should be “running the show.” The answer should be you, the nonprofit, in service of your mission and community.
Engaging a nonprofit consultant is a significant investment and opportunity. How can nonprofit leaders ensure that the consultants you hire help – rather than harm – your nonprofit? Drawing on sector experts’ advice and lessons learned, here are key strategies for selecting, managing, and learning from consultants:
1. Be Clear on Why You Need a Consultant: Start by defining the problem or gap you’re trying to address. Are you seeking temporary capacity (e.g., an interim CFO or fundraiser during a vacancy)? Do you need specialized expertise (technology, legal, strategic planning) that your team lacks? Or an objective outsider to facilitate tough conversations? Having a clear purpose will guide whom you hire and how you measure success. Avoid the trap of bringing in a consultant as a reflex or because a funder offered funding – know why you’re doing it. Also consider alternatives: might training your staff or hiring a short-term employee be better for this need? Use nonprofit consultants when they are the best tool for the job, not as a default.
2. Question Your Assumptions (and Your Board’s): Don’t automatically go with the most famous firm or the person your board chair recommends without due diligence. Bigger isn’t always better, and familiarity doesn’t always equal fit. Ask yourself: Which consulting firms or individuals are doing great work with organizations you admire? Those might be the partners who share your values or understand your cause, even if they’re not household names. Similarly, examine what evidence of success you find most compelling. Do you prefer a data-driven plan full of charts and metrics, or a narrative approach with rich stories of impact? Different consultants have different styles – some dazzle with spreadsheets, others shine at community engagement. And crucially, clarify the values and voices that should guide the work. If you value equity and inclusion, for example, you might want a nonprofit consultant who will prioritize listening to marginalized stakeholders, not just funders. Bring these priorities up in interviews. A good consultant will respect and even relish these inputs, whereas a bad one might dismiss them (a red flag).
3. Do Your Homework on Candidates: As the old saying goes, “trust, but verify.” In the consulting world, there is a wide range of quality and experience. Vet consultants rigorously before hiring. Check multiple references – and not just the handpicked ones they provide. Ask peers in your network if they’ve worked with this person or firm. Request samples of their work (reports, plans, deliverables) to see their style and substance. Inquire about their track record: What results did their past advice produce? Reputable consultants should be willing to connect you with a couple of past clients who can candidly speak to the outcomes. To avoid that pain, ensure the consultant’s skills match your specific needs. If you need a strategic facilitator, someone who only has subject-matter expertise (or vice versa) might not deliver. Pay attention not just to their knowledge, but their approach – are they good listeners? Do they respect nonprofit culture? Do they overpromise? Remember that nonprofit consultants are not regulated – anyone can claim to be one – so it’s on you to screen out the “bad apples”.
4. Compare Costs with Value – and Prepare for Sticker Shock: Nonprofits are often surprised by consultant fee quotes. Daily or hourly rates for highly skilled consultants can exceed those of staff salaries, because they must cover their own benefits, admin time, and profit. If a consultant charges $20,000 for a project that would take an employee six months, compare it to six months of that employee’s salary plus benefits, overhead, and the value of their experience. In some cases, the nonprofit consultant may actually be more cost-effective, especially if they bring expertise you couldn’t afford on staff permanently. However, be strategic about how you spend consulting dollars. You may decide to hire a top-tier analyst for a financial project, but use a grassroots facilitator for community feedback sessions, for example. This targeted approach ensures you’re paying for what matters most to your mission. Also, always get a clear proposal with deliverables and a budget cap to avoid cost overruns. If the price still gives you pause, consider negotiating the scope or phasing the project.
5. Define the Scope and Expectations Clearly: One of the most important steps is to be crystal clear about the work a consultant will do (and won’t do). Ambiguity is the enemy of success. Write a detailed consultant agreement or scope of work outlining the goals, deliverables, timeline, and reporting structure. Specify who the consultant will work with, how often check-ins will occur, and any key milestones or decision points. Without clarity, nonprofit consultants might either flounder or, worse, steer the project toward activities that benefit them more than you. A well-defined scope, aligned with your objectives, helps prevent scope creep and keeps the consultant focused on what you actually need. It’s also wise to articulate what a successful engagement looks like: Is it a written strategic plan? A resolved HR policy issue? $100K raised in new grants? Define the metrics or outcomes so you can evaluate the consultant’s performance at the end.
6. Treat Consultants Differently Than Employees (Because They Are): A consultant is not a full-time staff member, and the relationship should reflect that. Unlike new employees who need broad onboarding and time to acclimate, consultants should be engaged only with the people and tasks necessary to get the job done. Time is literally money, so be intentional about their involvement. Ensure staff understand that the consultant’s role is focused and that they are paid to produce specific results, not to join the office culture long-term. At the same time, do provide them with the information and access needed for them to be effective – just do it efficiently. One best practice is to assign a point person or internal coordinator for the consultant. This person serves as the liaison, schedules interviews or site visits, and gathers documents the consultant might need. The internal point person also helps the consultant “get the voice of the organization right” and ensures they access key information. In short, manage the consultant actively – don’t assume they will magically integrate. Set up weekly check-ins or status emails. Give feedback throughout, not just at the end. By managing them well, you’ll get the most productivity for your investment.
7. Keep Power Dynamics in Check: As discussed earlier, be mindful of the power balance and make it a conscious part of your consultant management. If a funder is paying for the consultant, clarify roles upfront – does the funder expect updates or a copy of the report? If you, as the client, want the consultant to act in your interest even if that differs from the funder’s expectations, say so. Similarly, if you know certain board members or donors have strong opinions, brief the consultant on group dynamics. You might decide, for example, that community input is essential to your project. In that case, instruct (and empower) the consultant to include community meetings or interviews in the process, even if it means some extra time. By doing so, you prevent scenarios where, say, a consultant only talks to your executive team and a couple of major donors and then delivers a plan that misses frontline perspectives. Encourage consultants to hear from a diversity of voices – and have your team facilitate those connections. If there’s concern that the consultant will simply mirror the loudest voice in the room, address it. If at any point you feel a consultant is overstepping or imposing ideas that conflict with your mission/values, speak up and course-correct.
8. Integrate Learning and Build Capacity: A top benefit of hiring consultants is the chance to learn from their expertise – so make sure you capture that value. Think of a consultant not just as a pair of hands to do a task, but as a teacher and capacity-builder for your team. For example, if you hire a nonprofit consultant to improve your fundraising strategy, have one of your development staff shadow parts of the process or assist in creating the plan. Ask the consultant to explain their rationale and methods as they go. Request templates or tools from the project that your team can reuse. When the engagement is over, do a debrief with your staff: What did we learn? What new skills or insights do we have now? Perhaps a training session could be built into the contract – e.g., after delivering the new strategic plan, the consultant runs a workshop with staff and board on how to execute it and keep it updated. By consciously treating the engagement as a learning opportunity, you ensure the benefits last beyond the consultant’s tenure. In successful cases, nonprofit consultants leave behind not only a product but a stronger organization.
9. Monitor and Evaluate Outcomes: During and after the nonprofit consulting project, evaluate how it’s going. Are interim deliverables of good quality? Is the consultant responsive to feedback? Don’t hesitate to recalibrate if needed – better to address issues early than end up with a disappointing result. Once the project is done, measure it against the success criteria you set at the start. Did the consultant help achieve the desired outcome (e.g., a grant was won, a program expanded, a crisis averted)? Also solicit feedback from staff and stakeholders who interacted with the consultant. Their perspective can reveal if the process felt inclusive and valuable. If the results are positive, document that impact – it can justify the expense to funders or your board. If results fell short, analyze why: Was the scope off? The consultant’s performance lacking? Unforeseen obstacles? Learning from one engagement will improve future ones. Remember, nonprofit consultants deliver recommendations, but implementation is usually on you. So part of the evaluation is also: Did we, the nonprofit, follow through on the consultant’s work? If not, was there an internal barrier we need to address (e.g., staff capacity, buy-in)? In essence, treat consulting engagements with the same rigor you’d treat a grant project – track outputs, outcomes, and learnings.
By following these practices, you can turn consulting into a powerful tool for your nonprofit’s growth rather than a costly gamble.