New to Nonprofit Freelancing and Consulting - What to Charge?

First off, welcome to the wild world of freelance nonprofit work, where every project feels like a unique snowflake—except some of the snowflakes are melting, and others are demanding weekly check-ins.

Before we get into the good stuff, it has to be said,

“Do not start consulting if you don’t know how to do the work! It is one thing to be a new consultant, it is another to be a new consultant who is also new to grant writing or nonprofit work. Get experience before you charge organizations for your experience.” We see some programs that are simultaneously training you to be a grant writer and a consultant, and we have concerns about this model. We do encourage exploring freelance work where you can work under the guidance of someone who is experienced.

So, if you know how to do the work well and are getting your consultancy started, keep reading…

Here’s the thing: Pricing and service structures don’t come with a magic formula that fits all scenarios, no matter what the business gurus tell you. They’re not one-size-fits-all. They’re more like one-size-fits-kind-of-okay-until-you-tweak-it-a-million-times as you learn and grow. And that’s okay! What’s *not* okay is pretending you’ve got it all figured out when you don’t and then charging a premium rate while you are figuring it out.

Being upfront about the fact that you’re still learning, growing, and refining your services is actually a strength—not a weakness. Clients respect honesty, and the right ones will appreciate that you’re committed to delivering value without pretending to be the all-knowing “grant whisperer.” So much service-based business happens from referrals. If you aren’t able to provide services equal to the $3,000 monthly retainer you have, it is going to be hard to grow your client base.

Hourly Rates Can Be Your Best Friend in the Beginning

If you’re new to freelance work, hourly rates can be exactly what you need to figure the rest out. Sure, you might hear people say that hourly work undervalues your expertise or puts too much emphasis on time instead of results (thanks, for-profit business books). But hear me out: hourly work teaches you so much about HOW you work—and about how much time this work actually takes.

You learn:

How long tasks actually take when you are the worker and the boss. Writing grants isn't just about stringing words together. It's research, strategy, and endless rounds of edits. Hourly rates help you measure the reality of your workload as it combines with the administrative requirements of running your own business.

How you work best. Are you a morning writer? A last-minute procrastinator? Someone who needs a day to mull over the narrative section before tackling the budget? Working hourly helps you map out your own style.

How much clients value your time. When clients see the hours logged for each step of the process, they begin to understand that “just writing a grant” is a monumental task involving planning, research, and strategy. So many nonprofit leaders misunderstand the time intensiveness of this work.

How to plan for growing business expenses. The way you structure your business will evolve over time and the tools and resources you invest in will likely grow along with you. Expenses are hard to figure out early on because you might not need all the bells and whistles right away.

Hourly rates are like training wheels for your business. They help you learn the ropes of consultancy, figure out what works (and what doesn’t), and prepare you to move on to more advanced pricing structures—like retainers—when you’re ready. Bonus - If you are overwhelmed by figuring what to spend money on and when, take a look at the V4G expense sheet to see what we pay for.

Retainers Make Sense When They Make Sense

Retainers are fantastic when you’re confident in the work you put in and the value it creates. By the time you’ve tracked your hours, refined your processes, and built up a track record of success, you’ll have a much better understanding of what your services are worth—both to you and to your clients.

Here’s the key: retainers aren’t just about getting paid consistently. They’re about delivering consistent value. When you’ve reached a point where you know how to scope projects effectively, manage your time, create outcomes that are clearly identified, and have some client experience under your belt, that’s when retainers become a win-win. The Grant Professionals Association conducts a salary survey every year. It can be a great place to look and compare rates.

Let’s Not Forget Where Our Services Exist

Working with nonprofits requires a deep understanding of their unique challenges, especially when it comes to funding and resource allocation. Flexibility and accessibility in your services are not just beneficial—they're essential.

We know unrestricted funds can be hard to come by in a nonprofit budget, and organizations are under constant pressure to minimize administrative costs. This is an actual statement pulled directly from a funder website:

“Demonstrate that a majority, if not all, of Foundation funds will be used for direct services. Have low administrative costs. Indirect or overhead costs not directly related to implementation of a grant will not be funded.”

You, my friend, are “administrative cost” and funders don’t want to pay for you. This standard makes it very difficult for organizations to invest in valuable services like grant writing, strategic planning, or program evaluation - also known as, invest in the people who did this work.

We have already discussed how funders often set limitations that hinder nonprofits from investing in essential services. Understanding this context can help you empathize with your clients and advocate for more equitable funding practices.

As a consultant, being adaptable in your pricing and service offerings can make a significant difference for organizations that are limited in their options. Consider offering sliding scale rates or customizable service packages that align with a nonprofit's financial capacity. This approach not only makes your services more accessible but also demonstrates a commitment to supporting their mission and creates opportunities for you to learn more.

So, if you are new to the biz, take your time. Start with hourly work. Learn the ins and outs of your craft and your business. And when the time is right, you’ll know. The confidence and clarity you gain will set you up for long-term success—and that’s worth far more than any business book promise. Any nonprofit leader who feels respected and supported by the work you’ve done won’t even bat an eye when you propose switching your contract to retainer!