Nonprofit Consulting Essentials

Consultants are playing an increasingly important role in the challenging world of nonprofits. Yet despite the demand for consulting services, nonprofit professionals often lack the necessary insight into how best to choose and work with a consultant.

Nonprofit Consulting Essentials is a vital resource both for nonprofit leaders selecting and working with a consultant to guarantee the best use of their agency’s resources, as well as consultants seeking a clear understanding of the more subtle dynamics that define a successful consulting practice working with social sector organizations.

Drawing on Penelope Cagney’s years of experience as a top-level nonprofit consultant, Nonprofit Consulting Essentials is filled with keen insights and in-depth interviews with the founders and leaders of influential consulting firms. Throughout the book, Cagney outlines a number of concrete consulting strategies that can serve as additional tools for managers seeking to resolve complex organizational development issues.

Nonprofit Consulting Essentials also offers recommendations to nonprofit leaders and consultants to make their relationship the best it can be. Once a solid alliance is formed, they can tackle complex organizational challenges together, such as fundraising and marketing, governance and management, and organizational development.

Cagney explores what it takes to make the consulting experience a success and covers vital topics such as: the key differences between consulting with nonprofits versus for-profit organizations, the primary areas of nonprofit consultation, making the consulting relationship work, the special ethical considerations of consulting in the sector, and understanding emerging trends in consulting.

Nonprofit Consulting Essentials reviews the best practices and thinking in the nonprofit consulting practice, providing leaders and consultants a way to ensure a robust organization in the future.

Foreword xi

Preface xv

Acknowledgments xxi

About the Alliance for Nonprofit Management xxv

Chapter 1: What Nonprofits Need from Consultants 1

The Influence of For-Profit Thinking in the Nonprofit Sector 2

Reasons for Dominance of For-Profit Thinking 3

In Defense of Nonprofit Organizational Strengths 5

How Nonprofits Are Different 7

Ten Important Distinctions Between Nonprofits and For-Profits 8

Chapter 2: The Importance of Process in Nonprofit Consulting 15

The Value of Process 15

Using Process Consulting 17

The Importance of Process in Complex Organizational Change: Tales of Two Mergers 19

Chapter 3: The Stages of the Consulting Process 31

Stage One: Engagement 32

Stage Two: Getting Down to Business 36

Stage Three: Implementation 44

Chapter 4: Fundraising and Marketing 49

Fundraising 50

Marketing 61

Emerging Issues and Trends Affecting Fundraising and Marketing 67

Chapter 5: Governance Consulting 71

Models of Board Leadership 73

Areas Where Consultants Can Help Boards Improve Performance 75

Emerging Issues and Trends Affecting Governance 85

Chapter 6: Management and Organizational Development Consulting 89

Traditional Management Consulting 90

Organizational Development Consulting 90

Models of Management Consulting to Nonprofits: Nonprofit Consulting in For-Profit Firms 91

Management Consulting Needs of Nonprofits 100

Chapter 7: International Consulting 115

What Is Fueling the Growth of International Nonprofits? 116

The International Consulting Landscape 119

The Special Consulting Challenges of International Nonprofits and INGOs 122

Special Qualities and Skills of International Consultants 125

Chapter 8: What Works: Building a Strong Relationship Between Consultant and Nonprofit 129

Making a Match That Works 130

Maintaining a Relationship That Works 139

Chapter 9: What's Next: A Look at the Future of Nonprofits and Consulting 145

Trends Affecting Nonprofit Consulting 145

How the Consulting World Is Changing 152

Educating the Nonprofit Consultants of the Future 157

Resource A: Development of Nonprofit Consulting in the United States 165

Resource B: Advice for Consulting Firms 173

Resource C: Ethics, Standards, and Consultant Certification 195

Resource D: Finding Consultants 209

Resource E: Further Reading 213

The Author 221

Notes 223

Index 235

PENELOPE CAGNEY is an active consultant and principal of The Cagney Company. A recognized authority on nonprofit consulting, she is a sought-after presenter for international conferences and webinars, as well as a frequent contributor to publications worldwide.

Consultants are playing an increasingly important role in the challenging world of nonprofits. Yet despite the demand for consulting services, nonprofit professionals often lack the necessary insight into how best to choose and work with a consultant.

Nonprofit Consulting Essentials is a vital resource both for nonprofit leaders selecting and working with a consultant to guarantee the best use of their agency’s resources, as well as consultants seeking a clear understanding of the more subtle dynamics that define a successful consulting practice working with social sector organizations.

Drawing on Penelope Cagney’s years of experience as a top-level nonprofit consultant, Nonprofit Consulting Essentials is filled with keen insights and in-depth interviews with the founders and leaders of influential consulting firms. Throughout the book, Cagney outlines a number of concrete consulting strategies that can serve as additional tools for managers seeking to resolve complex organizational development issues.

Nonprofit Consulting Essentials also offers recommendations to nonprofit leaders and consultants to make their relationship the best it can be. Once a solid alliance is formed, they can tackle complex organizational challenges together, such as fundraising and marketing, governance and management, and organizational development.

Cagney explores what it takes to make the consulting experience a success and covers vital topics such as: the key differences between consulting with nonprofits versus for-profit organizations, the primary areas of nonprofit consultation, making the consulting relationship work, the special ethical considerations of consulting in the sector, and understanding emerging trends in consulting.

Nonprofit Consulting Essentials reviews the best practices and thinking in the nonprofit consulting practice, providing leaders and consultants a way to ensure a robust organization in the future. "No nonprofit executive should be without a copy of this book on their desk. It represents the end of having to wing it when it comes to managing your investment in a consultant. You, your consultants and the results of your relationships will all be the better for the practical, insightful framework Penelope has put together here. And the scope of it is impressive, covering fundraising, marketing, governance, management and even international consulting. Say goodbye to the confusion that has typically surrounded this whole arena. Should you hire a consultant? You'll know after reading this great contribution to the field. Nothing like it has ever been compiled before."
—Dan Pallotta, Author of "Uncharitable"

"I started consulting to nonprofits back in the 1980's. If only I had this very useful book back then! It is filled with valuable insights and how-tos - a terrific resource for the field."
—Beth Kanter, Author, Beth's Blog and Co-Author "The Networked Nonprofit"

"I often hear from career-changing marketing, operations, and management professionals from the corporate world who are interested in consulting for the "good guys" -- nonprofits -- as they seek more meaning in their own lives and careers. I will direct every one of them to Nonprofit Consulting Essentials for a real-world assessment of both the benefits and potential pitfalls of becoming a nonprofit consultant. While some corporate skills are transferable, the nonprofit sector has its own unique rewards and challenges, which Penelope Cagney describes well in this book."
—Kivi Leroux Miller, nonprofit board member, consultant, and author of The Nonprofit Marketing Guide: High-Impact, Low-Cost Ways to Build Support for Your Good Cause