Why do consultancy fees seem expensive?
A common assumption is that consultancy fees are expensive. This is based on a false understanding of what costs are actually involved and also a failure to recognise the cost of alternatives (e.g. to do the work in-house, or the consequences of not doing it at all). In fact, fundraising consultancy is an investment which should repay itself many times over. Please see our case studies for examples of this. When employing a consultant, most charities pay for support based on a daily rate. Some groups assume that these fees are the consultant’s salary! In fact the consultancy has to cover a wide range of costs, before paying its staff. It is also the case that most consultants can only bill half of their working time, as they must also spend time winning new business, running the consultancy and maintaining their knowledge (e.g. by attending courses and by reading widely).
