The Relatable Nonprofit Blog

How to Price Nonprofit Consulting Services: A Guide for New Consultants

blog consulting nonprofit sector Apr 21, 2025

How to Set Nonprofit Consulting Rates with Confidence

One of the biggest challenges new nonprofit consultants face is figuring out how much to charge. Price too low, and you’ll struggle to make a sustainable income. Price too high, and you might scare off potential clients.

So, how do you set your rates in a way that reflects your expertise, aligns with nonprofit budgets, and ensures your consulting business is profitable?

This guide will walk you through the different pricing models, common mistakes to avoid, and how to confidently set your rates as a nonprofit consultant.

Common Pricing Mistakes New Nonprofit Consultants Should Avoid

Before diving into pricing strategies, let’s address the most common mistakes that hold consultants back from earning what they deserve.

Charging Hourly Without a Clear Strategy

Many new consultants default to hourly pricing because it feels simple, but this can lead to unpredictable income and undervaluing your expertise. Nonprofits aren’t just paying for your time—they’re paying for the results you deliver.

Underpricing Due to Fear or Assumptions

New consultants often set low rates because they worry nonprofits can’t afford them. But nonprofits regularly invest in consultants when they see the value. Charging too little can make you seem inexperienced or low-quality.

Forgetting Overhead, Taxes, and Expenses

Unlike a salaried job, consulting income doesn’t include benefits, taxes, or business expenses. Many new consultants forget to factor these costs into their rates, leading to lower-than-expected take-home pay.

Top Nonprofit Consulting Pricing Models: Pros & Cons

Nonprofit consultants typically price their services in one of three ways: hourly, project-based, or retainer pricing. Each model has its pros and cons.

Hourly Pricing for Nonprofit Consultants

Best for: Short-term projects, one-off consultations, or new consultants testing the waters.

Simplifies billing for limited-scope tasks
Flexible but can cap your earning potential

Typical hourly rates:

Entry-level: $50–$100/hr
Mid-level: $100–$200/hr
Experienced: $200+/hr

Project-Based Pricing for Defined Nonprofit Deliverables

Best for: Deliverables like grant writing, strategic plans, or campaign strategy.

Aligns pricing with outcomes
Easier for nonprofits to budget

Sample project rates:

Grant writing: $2,500–$10,000
Strategic planning: $5,000–$25,000
Fundraising strategy: $3,000–$15,000

Retainer Pricing for Ongoing Nonprofit Support

Best for: Long-term services like board development, executive coaching, or grant management.

Predictable revenue stream
Builds trust and consistency with clients

Sample retainers:

Fundraising consulting: $2,000/month (10 hrs)
Grant support: $1,500/month
Executive coaching: $500–$1,500/month

How to Calculate the Right Rate for Your Consulting Services

Now that you understand pricing models, let’s break down how to calculate your rates with confidence.

Start with Your Annual Income Goal

Set a financial target and reverse-engineer your rate based on:

Estimated taxes and expenses (~30%)
Billable vs non-billable hours
Desired work-life balance

Example:
To earn $100,000/year with 20 billable hours per week:

$100,000 ÷ 48 working weeks = $2,083/week
$2,083 ÷ 20 hours = ~$104/hour

Benchmark Against the Nonprofit Consulting Market

Check what others charge by:

Experience level
Location (major city vs small town)
Industry reports or consultant networks

Price Based on the Value You Provide

If your work drives major outcomes—like securing grants or boosting donor retention—your pricing should reflect that ROI.

Tips to Confidently Present and Justify Your Pricing

Many new consultants feel nervous discussing their rates. Here’s how to frame your pricing with confidence.

Lead with Value, Not Price

Explain the impact your services deliver before naming your rates.
Example:
“My strategic planning helps nonprofits boost funding and engagement—clients often see 20–30% more donations in a year.”

Offer Tiered Packages for Flexibility

Give clients choices at different price points:

Strategy session: $2,500
Full strategic plan: $7,500
Six-month coaching: $1,500/month

Handle Budget Objections Professionally

If a client pushes back:

Ask about their budget
Propose phased approaches
Break payments into installments

Final Thoughts: Build a Sustainable Nonprofit Consulting Business

Setting your nonprofit consulting rates isn’t just about covering costs—it’s about reflecting your expertise, ensuring long-term sustainability, and delivering value to nonprofits.

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