Startup cost
$500–$5k
TRUiC Business Ideas
How to Start a Fundraising Consulting Business
Decision Snapshot
Fundraising Consultant
Idea Score
69
Profit margin
41%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Flexible
Part 1 - How to start a Fundraising Consulting business - Background
Nonprofit organizations rely on volunteer efforts and donor contributions, so they often need help raising the support they need. Fundraising consultant businesses help nonprofits develop and implement strategies that raise support.
The National Center for Charitable Statistics reports that there are over 1.5 million nonprofit organizations in the United States. With so many nonprofits, there is a significant demand for consulting services.
Our guide is in 3 parts:
- Part 1 - How to start a Fundraising Consultant business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a fundraising consulting business?
The costs associated with opening a fundraising consultant business are minimal, for consulting doesn’t require specialized equipment. Business owners need marketing materials, a computer, a phone, and a mode of transportation. Most business owners already have what they need aside from the marketing materials.
What are the ongoing expenses for a fundraising consulting business?
There aren’t many ongoing expenses for a fundraising consultant business. The main costs include marketing and transportation expenses.
Who is the target market?
Fundraising consultants work for nonprofit organizations of all sizes and in all areas. After all, most nonprofits would benefit from raising more money.
How does a fundraising consulting business make money?
Fundraising consultant business owners make money by charging for the time they spend helping a nonprofit organization.
Nonprofits will sometimes offer a percent of the total funds raised as compensation. Commission-based compensation structures should be avoided, however, because they’re considered unethical. When presented with such an offer, consultants should explain they charge for the time they work.
How much can you charge customers?
Fundraising consultants frequently charge by the day or hour. Consultant Tony Poderis reports that daily rates for experienced consultants range from $500 to $1,500-plus per 8-hour day. Hourly rates can run between $100 and $125 per hour.
How much profit can a fundraising consulting business make?
A fundraising consultant business can earn a significant annual revenue. Working only 1,200 billable hours each year, a consultant could earn $75,000 (based on a $500 per 8-hour day rate). Consultants who work more or charge over $500 per day can see six-figure annual incomes.
How can you make your business more profitable?
Some fundraising consultants expand their business by adding other nonprofit consulting services. For example, Campbell & Company also assists with executive searches, communications and strategic decisions.
Day-to-Day and Growth
What happens during a typical day at a fundraising consulting business?
Fundraising consultants spend much of their time strategizing with leaders of nonprofit organizations. Depending on where in the consulting stage they are, a consultant might spend their day:
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Discussing an organization’s challenges, needs, and past efforts with leaders
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Privately developing a strategy to address an organization’s challenges and needs
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Collaboratively reviewing and revising a strategy with leaders
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Implementing a strategy, which may include coaching or training an organization’s members
Much of this work is done in meetings with either one person or a small group of people. In the final stages of the process, consultants might present strategies and ideas to larger groups.
What are some skills and experiences that will help you build a successful fundraising consulting business?
Because they will be helping others strategize and plan successful fundraising events, fundraising consultant business owners must be experts in the field of nonprofit fundraising.
When becoming an expert, there’s no substitute for real-life experience. Fundraising consultants should have years of experience working as a fundraiser for a nonprofit before striking out on their own. Having experience will give consultants credibility and help inform their strategies when working on challenging problems.
In addition to working as a fundraiser, business owners should also read extensively on the topic and attend training sessions led by others in the industry. Books, like The Generosity Network and Nonprofit Fundraising 101, explore relevant topics in depth. The Association of Fundraising Professionals has a number of events, webinars, conferences, courses, and other training opportunities that cover many different topics.
What is the growth potential for a fundraising consulting business?
Many fundraising consultants work only for themselves, but a few grow their businesses to include more people. Campbell & Company and Graham-Pelton are a couple larger businesses that have a few dozen consultants. Amy Eisenstein has a one-person business.
What are some insider tips for jump starting a fundraising consulting business?
What previous clients have to say about a fundraising consultant business greatly influences the business’ future success. Satisfied clients can provide referrals, while displeased clients may have negative comments that damage a business’ reputation beyond repair.
The best way to avoid unhappy clients is to set expectations before working for a client. Some nonprofits expect a consultant to come and solve all the organization’s fundraising woes or do all the required work. Consultants can’t simply wave a magic wand and say a few special words to fix problems, though. Instead, they should clearly state what they’re able to do up front so the client knows what will be done.
How and when to build a team
Many fundraising consultants have successful careers without ever hiring an employee. Those that do decide to grow their business beyond what one person can do typically hire an administrative assistant and then another consultant. These hires are made when the workload requires extra help and revenue supports employees’ wages.
Part 2 - Is a Fundraising Consulting business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Fundraising Consultant business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Fundraising Consultant Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Fundraising Consulting business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.