News & Views

Q. How do I evaluate the fairness of the fee the consultant has proposed?

A. The guidelines of the American Association of Fundraising Council (AAFRC) offers that as much as 12 % of the total campaign goal could serve as a reliable benchmark figure for fundraising costs. EHL Consulting sets a target goal of between 6 and 10% of the total campaign, depending on circumstance. All campaigns, regardless of size, incur certain fixed costs. Generally, the larger the campaign, the smaller the percentage of the cost to raise the money. Because EHL Consulting believes that the client organization is rightfully entitled to the lion's share of the funds raised, we rarely take on campaigns of less than $1,000,000.

Many client organizations propose incentives that peg the fees to the monies raised. Steer clear of any firm that offers to take a percentage of the money raised. This unethical practice implies that the consultant's work is only dependent upon the final reward. If EHL Consulting contracts to perform fundraising services for a client, the fee is determined by the work to be performed and the effort expended will be of the same quality, regardless of campaign size.