T H E
martin L E T T E R
P u b l i s h e d b y M G I / S e r v i c e s a n d C o u n s e l i n f u n d - r a i s i n g a n d c o m m u n i c a t i o n s
How do consultants add value?
Consultants provide a complete solution, from problem analysis
to implementation of change, adding real value to the organizations
they work for in the process.
efore hiring consultants for a given
project or specific task, rather than
employing staff on a permanent basis,
it’s important to weigh the tangible benefits a
consultant can offer and, if you decide to go for-
ward, identify the criteria you’ll use to select
appropriate counsel.
When should you use
consultants?
Consider using outside consultants if you are:
• Setting up a new program or activity
• Expanding or upgrading your existing program
• Considering a capital/endowment campaign or
other special project
There are many types of consulting practices;
you’ll see consulting services described in differ-
ent ways. A few of the distinctions are illustrated
by the following questions.
Do you want the consultant to do a specific task
(project), such as design a direct mail plan,
introduce new technology, write new planned
giving policies and procedures or help restruc-
ture the development department? This is some-
times referred to as project or task-based con-
sultancy.
Do you want the consultant(s) to help people in
your organization think and talk through what
needs to be done about a particular task – then
leave it to the organization, rather than the con-
sultant, to complete the task (project)? This may
be called process or solution based consultancy.
In practice project- and process-based services
overlap in most consultancy projects. The type
of work you want done will affect the sort of con-
sultant you seek as well as what you can realisti-
cally expect to achieve.
Why use consultants?
Although the rationale for hiring outside counsel
varies widely, it can usually be attributed to one
of these reasons:
• As an extra resource to deal with a tem-
porary workload peak. Organizations rely
on staffing to cover an average or expected
workload over a given period of time yet,
inevitably, there will be peaks and troughs
throughout the year. During the peaks the cur-
rent staffing levels may be insufficient and con-
sultants can be used as added cover.
• To tackle a specific problem that
requires a particular skill set and/or an
external view. With today’s ever-changing
customer, technology and legal requirements,
it is inevitable that an organization will uncover
gaps in its available skill sets. In these situa-
tions it is often desirable to buy-in consultants
rather than permanently employ someone. The
consultant will not only be able to bring in the
necessary skill(s) but will also have transfer-
able knowledge from previous projects.
• To provide required skills that the
organization cannot afford to perma-
nently employ. Unique, or at least rare, skills
are expensive to buy in permanently and an
organization may find that the workload does
not justify this continuous expenditure. In
these situations consultants can be used ad-
hoc to provide cover. This can lead to substan-
tial savings when compared with the option of
employing someone.
• To benefit from the objectivity of an "out-
sider." One of the real values of consultants is
a new set of eyes looking at some problem and
re-examining the set of assumptions that led to
the problem. This includes asking questions
that permanent employees don’t dare to ask
and questions that everyone thought somebody
else had already asked. As objective observers,
consultants can analyze issues, develop an
overall plan of action, and help monitor
progress.
• To facilitate discussion and build con-
sensus.
• As a means to "reality test" plans and
strategies.
What should I get out of it?
An organization that is looking at bringing in a
consultant should first decide what would consti-
tute a positive, tangible outcome. A well-written
report that simply sits on a shelf will not achieve
the real objective of, say, testing the feasibility of
a capital campaign. The desired tangible out-
come will be a practical solution that achieves
real improvements in, for example, how your
organization communicates to the alumni.
Value-based consultant relationships start with
creation of a “consultant relationship roadmap
to creating value.” Understanding what the
organization wants to gain from the relationship
and identifying priorities will establish a baseline
for consulting services. To ensure results are
achieved as the program progresses, and is con-
tinually adjusted to match changing business
needs, a regular “value health check” of the con-
sultant program is recommended. This allows
the relationship partners to continually monitor
the pulse and the vitality of the relationship and
make adjustments, if needed, to ensure align-
ment and a focus on sustainable organization
value.
B

M G I / S e r v i c e s a n d C o u n s e l i n f u n d - r a i s i n g a n d c o m m u n i c a t i o n s
About the author…
John Martin has more than
30 years experience in the
not-for profit field, on both the
organizational and consulting
sides.Through his consulting
work with clients seeking
counsel for major capital and
endowment campaigns,
Mr. Martin has earned a
reputation as one of North
America's top strategists for
the not-for-profit sector. His
brash mix of social concern
and aggressive business smarts
has helped raised hundreds
of millions of dollars for
colleges, hospitals, human
service organizations and
arts and cultural groups
throughout North America.
He can be reached via email:
martinmgi@cs.com
Publisher: John A. Martin, CFRE
Editor: Pamela Capriotti, CFRE
Contributing Editors:
Elizabeth Hamrick
Becky Watson
John Schwietz
Published by:
MGI Fund Raising
Consulting, Inc.
600 South Highway 169,
Suite 180
Minneapolis, MN 55426
For information on our services,
call toll-free 1.800.387.9840
(U.S. or Canada)
Visit our website:
www.mgifundraising.com
Reproduction without permission is
prohibited. Brief extracts may be
made with due acknowledgment.
Additional copies are available free
of charge by contacting The Editor at
our South East office.
T H E
martinL E T T E R
How to Select Counsel?
Preparing to hire counsel
• Build consensus internally that retaining counsel has merit.
• Write an RFP (request for proposal) that clearly spells out the institu-
tion's objectives in using counsel, the qualifications and experience
you seek, and the process for submitting a written proposal for your
consideration.
• Decide what criteria will be most important to your institution in
selecting counsel, i.e., prior experience in your community, with your
type of institution, etc.
• Decide who will be involved in making the final decision.
Selecting firms to be considered
• Ask colleagues in similar institutions, both locally and in other parts
of the country, for recommendations.
• Ask your Board members for suggestions.
• Call AFP and/or AAFRC (American Association of Fundraising
Counsel).
• Keep informed about consulting firms through conferences and pub-
lications.
Conducting interviews with the prospective firms
• Ask several firms to submit their credentials for review.
• Involve the decision-makers in interviewing two or three firms.
• Ask that the individual(s) who will provide the actual services to
your organization be there.
• Use a checklist of the criteria by which you want to evaluate the
prospective consultants.
Select and notify the consultants of your decision
• Do not forget to inform the consultants that participated in the com-
petition but were not selected that they did not get the assignment.
Finalize a formal contract or letter of agreement
Criteria to Consider When Selecting a Consulting Partner?
1. Preparation for the presentation.
2. Level of interest in your program.
3. Past performance with organizations similar to yours.
4. Prior experience in your community or other communities similar to yours.
5. Capacity to assess your program and/or your readiness to undertake a cam-
paign.
6. Capability to handle your type and size of campaign or project successfully.
7. Appropriateness of proposed services to your organization's needs.
8. Creativity and flexibility as demonstrated by prior experience and the pro-
posal to your organization.
9. Ability to provide related services that your organization might need later in
the program or campaign.
10. Prior experience and competence of staff proposed to work on your pro-
gram.
11. Sensitivity to your organization and its mission.
12. Compatibility with your community.
13. Ability to work with your leadership and board; ability to work with your
staff.
14. Fee appropriate to the level and nature of the service proposed.
15. Availability to respond quickly to your needs.
16. Credibility and integrity of firm.