How to Start a Fundraising Consulting Business

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.

Learn how to start your own Fundraising Consulting Business and whether it is the right fit for you.


Start a fundraising consulting business by following these 9 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple step guide to starting your fundraising consulting business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

  • What are the startup and ongoing costs?
  • Who is your target market?
  • How long it will take you to break even?
  • What will you name your business?

Luckily we have done a lot of this research for you.

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.

As consultants Linda Lysakowski and Mazarine Treyz explain, 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.

What will you name your business?

Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

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STEP 2: Form a legal entity

Establishing a legal business entity such as an LLC prevents you from being personally liable if your fundraising consulting business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.

You should also consider using a registered agent service to help protect your privacy and stay compliant.

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For most small businesses forming an LLC is a great option, but if you still want to weigh all your options check our our article, What Structure Should I Choose for My Business?

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

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You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

  • This separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • It also makes accounting and tax filing easier.

Get a business credit card

  • This helps you separate personal and business expenses by putting your business' expenses all in one place.
  • It also builds your company's credit history, which can be useful to raise money and investment later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a fundraising consulting business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

For information about local licenses and permits:

STEP 7: Get Business Insurance

Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

How to promote & market a fundraising consulting business

Marketing efforts for a fundraising consultant business should focus on establishing the authority of the consultant, for the consultant's expertise is what clients pay for. Consultants can grow their reputation by speaking at events, publishing books, and offering basic training programs.

Becoming a member of the Association of Fundraising Professionals also provides credibility.

Recommended: Get started with local advertising for your business with a $300 credit from Yelp.

How to keep customers coming back

Fundraising consultants can set themselves apart from other experts by specializing in some way. Consultants might focus on serving nonprofits of a certain size, nonprofits within a particular region or nonprofits in a particular field.

STEP 9: Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

Start A Fundraising Consulting Business In Your State

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Select your state below for an in-depth guide on completing each of these steps in your home state.

Is this Business Right For You?

Anyone who is passionate about serving the public good may enjoy running a fundraising consultant business. Though they are private business owners, consultants work closely with organizations that help others.

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:

  • Discussing an organization's challenges, needs, and past efforts with leaders
  • Privately developing a strategy to address an organization’s challenges and needs
  • Collaboratively reviewing and revising a strategy with leaders
  • 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.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

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.

Next Steps

Get more ideas with our Business Ideas Tool.

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