Recently, our Auburn, Alabama office received a phone call from a private Christian school asking us to fill out an RFP (request for proposal). After review of the RFP, I could not see how they were going to select a consultant or even a few consultants to interview based on their questions. I said to myself, there has to be a better way for a school or organization to select a fund-raising consultant than to subject everyone to the tedious task of trying to fill out this long questionnaire which, in my mind, will not tell you if the company is good, bad or ugly. Anyone can make themselves look good on paper. It’s like reading a resume. Have you ever read a bad resume? I have read very few resumes that did not read like the person changed clothes in a phone booth (Superman).
Therefore, I have created this five-step process for schools and organizations to use when selecting a fund-raising consultant. This process eliminates the need for an RFP and enables non-profits to find the consultant best suited for their requirements.
STEP NUMBER ONE: Compiling a List of Qualified Consulting Companies.
Coming up with a list of qualified companies may be the most difficult step of all. First, start by calling your friends and associates at other schools or organizations in your area, or in your professional association. Find out who is doing a campaign or has finished a campaign in the last 12 to 18 months. Did the school/organization use a fund-raising consultant? If so, whom? Company names will begin to surface through this process. I prefer word-of-mouth to just going to the internet and “googling” for fund-raising consultants. A list from the internet will give you some very qualified firms, but it will also give you some wanna-be’s. Compile a list of about four to five recommended companies you want to take to step number two.
STEP NUMBER TWO: Calling to Ask Questions.
After you have selected your four or five companies, now is the time to go the internet and do your research. Print hard copies of each company’s web page so you can review thoroughly. First, look at the company’s mission statement to see if their mission statement meets your organization’s goals and objectives. Next, look at the number of campaigns they have conducted and the success they have had with those campaigns. Call three former clients for each company you are considering. Here are a few questions to ask:
(1) Would you hire this company again? If the answer to this question is “no” then the conversation is over.
(2) Did the consultant tell you what to do or did they help you do what needed to be done. In other words, did they stand on the sideline and watch the game or did they get in the game with you.
(3) How often did you see the principal of the company? Did he or she just present the proposal to you and your board or was he/she actively involved?
(4) Did the campaign meet the projected timeline? In other words, did you receive in pledges the goal amount in the prescribed time as established by the consultant?
(5) What was the cost per dollar raised? The cost of raising money today should fall in the range of between 10 and 15 cents per dollar raised. This cost ought to incorporate all related expenses, including the consultant fees and expenses of all personnel assigned to the campaign.
STEP NUMBER THREE: Selecting the Companies to Interview.
Rate the answers to the above questions on a scale of “1” to “5”, with “1” being low and “5” being high. Invite the two companies who scored the highest to come and make a presentation to you and your board. I believe you should only have two companies come and make personal presentations. More than two only complicates the decision making process. If, for some reason, these two do not make an impression on you and your board, then invite your third choice. However if you have done your due diligence in steps one and two, it will not be necessary to invite anyone else in for an interview.
STEP NUMBER FOUR: The Face to Face Interview.
Call each company and invite the principal of the company to make a personal presentation to you and your board. Follow this up with an e-mail or letter confirming the time, place and location of the meeting. It is also helpful to send the presenters a list of names of the board and staff members who will be present at the meeting. Allow at least two to three weeks lead time in scheduling visits with the two companies. Oftentimes it is very difficult for the principal of the company to schedule a meeting with only two or three days notice.
Arrange for the interviews to be held on the same day. Allow an hour and half between interviews. Ask each presenter to limit his/her comments to one hour. The thirty minutes between interviews allows the board to make comments and briefly discuss the previous presentation. Prior to the presentations the board should receive proposals from each company presenting.
Ask each board member to consider asking at least one question during each presentation. I would assume your organization will conduct a feasibility study prior to beginning a campaign. If not, I would strongly urge you to do so. Here are a few questions that should be asked to each presenter.
Feasibility Study Questions:
(1) How many interviews will your group conduct?
(2) Will you be determining a working campaign goal by using some form of factoring?
(3) Please give us a sample of the questions that will be asked?
(4) Will you be doing any telephone interviews or focus groups?
Campaign Questions:
(1) Specifically what would be your role in our campaign?
(2) How many days will you be on site?
(3) Can you tell us about other staff members that will be assigned to our campaign and what will be there role?
(4) What printed materials will be used?
(5) Will this be a volunteer or staff driven campaign?
(6) Please describe the steps you like to use when making a solicitation.
(7) What has been your average default rate on campaigns completed? This means what you can expect to receive for every dollar raised.
One or more board members should record answers to these questions for review later. Before leaving the meeting each board member should be given one former or current client of each company presenting to call for references.
Most consultants I know can “talk” with the best of them. What you are trying to find out from the reference calls, is if they have walked the “walk.” When making the call to the school/organization, the board member should ask for the number of the campaign chair and call him/her for further information.
STEP NUMBER FIVE: Choosing the Right Company
The board should reconvene in no longer than five to seven days to review notes from the two presentations and talk about the reference calls each member has made.
All things being equal, remember the following:
(1) Hire the person, not the company.
(2) Hire the person you, as CEO of the organization, can best work with over the next several months. Your personality and the consultant’s personality must be compatible.
(3) There are no shortcuts in fund-raising, so do not select someone who says this will be an easy “slam-dunk” process.
(4) Big companies are no better than small companies.
(5) And finally, hire the company that has passion and commitment to helping you succeed regardless of the challenges.
I hope this five-step approach will help you be better prepared when you and the board decide to hire professional help. Campaigns succeed more often when an organization uses fund-raising counsel, than when they do not. So, choose wisely.