“I have a nonprofit client who isn’t using all my consulting retainer hours, but they’re still paying me. What should I do?”
Getting paid simply to be on-call sounds like a dream for many nonprofit consultants. Earning more while doing less? Most of us would say, “Sign me up!”
But over in The Hive, our nonprofit consulting community, one of our members shared this very real concern. She worried wasn’t giving her clients enough value because they weren’t using all the hours they’d paid for in her schedule.
Especially in the nonprofit sector, a staff member’s commitment to an organization’s mission is often assessed by how many nights and weekends they work (without extra pay or comp time). Many of us subconsciously carry these beliefs into our consulting businesses. It can take a real mindset shift to change how you think about billing and value.
Luckily, the other consultants in The Hive jumped in to reassure this consultant. The situation wasn’t bad. In fact, it was great! The client was getting value, and so was the consultant.
As a consultant, your value to your nonprofit clients is about more than hours. You bring expertise, insights, and experiences that your clients don’t have in-house—and consulting retainers are a way they can access that value. Let’s take a look at how.
Different Types of Consulting Retainers
Retainers are often structured as longer-term contracts (from quarterly to annual commitments) with a fixed monthly fee. The key is that clients are reserving “up to” a certain amount of time, deliverables, or access to you. For example:
- Retainers by the hour: Each month, the client agrees to pay for “up to” a pre-defined number of hours at your specified hourly rate. For example, a retainer with an experienced grant writer might cover 15 hours of grant work per month at $150 per hour. The client pays the total amount due (15 x $150) each month regardless of hours used.
- Retainers by deliverable: If you work on a project-based pricing model, you might decide to structure a retainer around deliverables vs hours. In this case, instead of 15 hours per month, our grant writer’s consulting retainer might allow for up to two grant reports or similar written products per month.
- Retainers to secure availability: Sometimes, clients just want to have access to your expertise, strategy insights, and mentorship when they need it. This type of retainer might reserve a specified number of meetings or sessions with you each month.
Tips for structuring retainer contracts
When developing a retainer contract, be sure to:
- Set a clear scope and expectations: Most consultants are familiar with the challenge of “scope creep”—where a client ends up needing more from you above and beyond what you agreed to. The clearer you are in the scope of work in your contract, the easier it will be to avoid scope creep.
- Identify what happens if the client needs support out of scope: Once you’ve clearly defined the scope, spell out what happens when the client needs work out of scope. Will they pay per hour? Per project? Getting specific on these add-on fees will also help control scope creep.
- Address the “rollover” question: Clients will often ask if they can bank unused hours or deliverables for the future. There are several ways to answer this. In a “use it or lose it” model, clients pay each month for the agreed-upon services whether they use them or not; nothing is rolled over. Some consultants do allow services to roll over each month, with an expiration at the end of the contract. Others allow some services to roll over from month to month but cap the total amount to avoid having a workflow crisis in the future.
- Emphasize the value you provide: When you’re writing a retainer contract and communicating with the client, be sure to emphasize the value the client is receiving, rather than just focusing on the list of services. For example, do you have a waiting list for new clients or projects? If so, a retainer agreement offers the client the security of a spot on your schedule.
How Consulting Retainers Benefit You and Your Clients
Getting paid simply to be “on call” can feel strange at first. Many of us are conditioned that, to be successful, we should always be working long, grueling hours. So, it can be disconcerting when a client is paying for 15 hours of your time in a given month, but only using five. It might even feel like you’re “getting away with” something.
But the reality is that retainer pricing models provide significant benefits for both clients and consultants.
Benefits of retainers for nonprofit clients
With a retainer contract, nonprofit clients get:
- An expert on-call—who doesn’t need salary, benefits, or fringe.
- Guaranteed access to your time and insights.
- Prioritization in your client load.
- Predictable monthly costs and easier budgeting.
- Peace of mind that when they need support, you will be available.
Benefits of retainers for nonprofit consultants
For nonprofit consultants, a retainer-based model offers much of the same security, plus the ability to scale your business more sustainably.
When working on a retainer model, nonprofit consultants get:
- Predictable monthly income for the duration of the contract.
- Paid for your expertise and value, not just the hours you put in.
- Ability to plan longer-term in your business because you aren’t hustling to pay basic bills every month.
- Higher average hourly rates—as long as you take key steps to control scope creep.
- Security to say “no” to clients who aren’t ideal, because you aren’t desperate and already know where your income will be coming from.
Getting Started with Retainer Models
If you’re ready to take the leap to more sustainable and profitable income models, check out our Consulting Conversation: Mindset Shift: Pricing, Billing, Contracts, Hourly and Project Pricing.
