Philanthropy News Digest Message Board: Fee Structure for Consultants

FROM: Philanthropy News Digest Message Board: Fee Structure for Consultants

Fee Structure for Consultants

Posted by cwoods on 9/27/2006, 8:29 am

An alum of the University in which I serve as Assistant Director for Innovation and Entrepreneurship has asked me to assist him in identifying resources/research for establishing fee structures for those programmatic advisors who offer their expertise to advance the goals of the nonprofit action agency in which he works. He made it clear that these advisors are not the Board, but rather collectively work on one of the organization's programs.

I suggested he look at the IRS regs and the fee structure they have established assigning a minimum dollar amount/hour for "volunteer" time. This figure, approaching $19/hour, is often used to calculate in-kind match requirements for grants, as well as being used in some financial reporting.

However, in terms of hourly rates applied to various expertise/skillsets, I am not certain how to advise and have come up with little. I do believe his organization should consider hiring an HR consultant with nonprofit backgrounds to tackle this project, as they would be more inclined to consider regulations that are tough in the employee/consultant differentiation as well as ethical implications, etc.

Do any of you have any experience in these areas or do you know of someone who has had similar experiences? I am hoping to identify people who have worked with professionals over and above fundraising.

Thank you for your time!