How to Start a Consulting Business for Nonprofits

A consultant for nonprofits is in charge of advising the organization on how to obtain grants, manage a budget, deal with the public and ensure credibility. Consultants often come into play when an organization is too large to be able to find a single person to represent the mixed views of the personnel or when an outsider is needed to provide an objective view and support.

Difficulty: Moderate

Instructions

Start Using Your Skills to Benefit Nonprofits

1. Educate yourself about loans, credits and grants. Nonprofits routinely work with them. While you will not be required to actually write a proposal (grant writers are available if needed), you will need to understand the process, so you can provide advice on the best plan of action.

2. Learn what differentiates a nonprofit from a regular company. Consulting with a nonprofit means understanding not only the business expenses of the organization, but also being able to deal with tax considerations, public awareness and advertising dilemmas.

3. Become an expert in fundraising and public image. These two points are the basic foundation of nonprofits. Understanding event planning and organizational schemes is also extremely important.

4. Start a consulting business, either virtually (you will need a website or a blog) or physically (from an actual office). Consider setting up a team rather than working on your own. This will not only allow you to consult with more than one company at a time, but it can also help you pull together resources by hiring experts in different areas.

5. Visit the website of the Association of Consultants to Nonprofits (ACN) to help you understand the different areas covered (from funds development to legal services) by a consultant (see Resources below). You can also join the association to be listed in its database, access publications and view links and online resources.

Tips & Warnings

• Evaluate your personality. The key to starting a successful consulting business is to make sure your personality allows for it. Consultants are organized, able to deal with last-minute crisis and great at networking.
• Don't start in this career if you prefer to avoid social situations. Consulting for nonprofits requires human contact on a regular basis, so if you are shy and prefer working from home, this may not be the right business for you.

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Resources

• Association of Consultants to Nonprofits (ACN) for resources and membership