How to Choose a Fundraising Consulting Firm for Your Nonprofit

A fundraising consulting firm becomes the face of your organization in the field. The people it deploys speak to donors on your behalf, and the way they operate reflects on your cause long after a campaign ends. That makes the choice of firm less about price and more about trust, competence, and alignment. The framework below is the one we would want a board to use, whether or not they end up working with us.

Start with the fundraising model

The first thing to understand is how a firm actually raises money and how it gets paid. Reputable firms charge for services rendered, not a percentage of funds raised. Percentage-based or commission-only compensation tied directly to donations is discouraged under the Association of Fundraising Professionals Code of Ethical Standards, because it creates incentives that can work against both donors and the cause. Ask any firm to explain its model in plain terms, and be cautious if the answer is vague.

Verify registration and professional standing

Most states require professional fundraising firms and their nonprofit clients to register before soliciting in that state. Ask which states the firm is registered to operate in, and confirm that registration covers the markets where your campaign will run. Membership in the Association of Fundraising Professionals is another useful signal, because members agree to operate under a published code of ethics that governs how they treat donors, nonprofits, and the public.

Ask how the field team is trained and treated

The quality of a campaign is downstream of the quality of the people running it. Ask how brand ambassadors and outreach coordinators are trained on your mission and on the disclosure requirements they are legally bound to follow. Ask about the working environment, too. A team that is supported and fairly treated represents your cause with genuine conviction, and donors can tell the difference between conviction and a script.

Look at who the firm already represents

A firm's existing partners tell you a great deal. Ask for examples of nonprofits it currently works with and how long those relationships have lasted. Long-tenured partnerships are a sign that the firm delivers and that its clients trust it to keep representing them. You can also verify any nonprofit partner independently through the IRS Tax Exempt Organization Search tool, GuideStar, or Charity Navigator.

Clarify reporting, compliance, and transparency

Before signing anything, get specific about reporting. How often will you receive performance data? What does the firm disclose to donors at the point of solicitation? Who is accountable if a compliance question arises in a given state? A credible firm will answer these questions directly and put the answers in writing. Evasiveness here is the clearest warning sign there is.

Questions worth asking in a first conversation

• How is your firm compensated, and is any part of it tied to a percentage of funds raised?
• Which states are you registered to fundraise in?
• How do you train field staff on our mission and on donor disclosure laws?
• Which nonprofits do you currently work with, and may we speak with one?
• What reporting will we receive, and how often?
• Are you a member of the Association of Fundraising Professionals?

Universal Events Inc. is built around answering these questions clearly. We are an AFP member organization, we train our field staff on applicable state disclosure requirements, and we partner with registered 501(c)(3) nonprofits whose filings are publicly verifiable. If you are evaluating firms and want a straight conversation about fit, reach out at info@universalevents-inc.com.