When was the last time you raised your nonprofit consulting rates?
As a nonprofit consultant, one of the biggest factors in achieving your business goals is deciding how much to charge for your consulting services. And many of us start out pricing our services too low (we have big hearts, after all).
This means that, eventually, we need to tell current clients that we’re raising our rates. The first time can be nerve-wracking! A million doubts run through your head: What if a client says no? What if they ask a million questions? What if they don’t renew my contract?
Luckily, if you follow a few basic guidelines, raising your rates can be surprisingly easy—and clients more amenable than you might expect.
5 Steps to Raise Your Consulting Rates
Deciding on your services and consulting fees is one of the cornerstones of becoming a nonprofit consultant. It’s also something that is always evolving. In fact, some nonprofit consultants successfully adjust their fees every year! Let’s take a look at how.
Step 1: Set your new consulting fees
The very first step is deciding on your new rates. You’ll want to follow the same process you did when researching and setting your rates initially:
- Map your business goals. How many hours do you want to work and how much do you want to earn? This may change over time and that is okay.
- Conduct market research. How in-demand are your services and how much are others charging? Is the market full of your ideal clients or are they few and far between?
- Focus on your value-add. This is different than the tasks you complete. For example, are you a grant consultant who makes the grant research and writing process seamless and stress-free for your clients? Many nonprofits will pay a premium for that service.
- Try project-based pricing. When you become more efficient at the services you deliver, project-based pricing can help you raise your rates even as you reduce your hours.
The good news is that raising your consulting fees is much easier than setting them the first time. You already have a first-hand understanding of how much time different services require, which of your services are most in demand, and which of your services you want to expand.
Step 2: Schedule client outreach on new consulting rates
Once you know your new rates, you’ll need to give existing clients advance notice. If you have a current contract, you can increase your rates (or switch to project or retainer pricing) during contract renewal conversations. Plan to start that conversation 2-3 months before your current contract is up.
If you’re in between contracts or working on an as-needed basis with some clients, plan to give at least 1-2 months’ notice of rate increases or changes.
Step 3: Start with email when communicating about consulting fee changes
When raising your rates, you want to be sure there is no mistaking or misunderstanding. That’s why your first point of communication should be a clear, simple email (see example below).
This email should be sent to your primary point of contact with each client. Because it’s in email, your point of contact can easily share your message for internal review and approval. You can also offer a call or meeting to discuss the changes and answer any questions your clients may have.
Step 4: Use value-based messaging when describing your new rates
In your initial email and in follow-up communication, focus on the value you provide the client. Don’t get bogged down in WHY you are raising your rates or changing your billing approach. They know the cost of providing services is increasing. But they also know that you deliver great results—remind them of that value!
Step 5: Answer questions about rate changes promptly
Clients may have questions about how new billing approaches, like project-based pricing or retainers, may work. Answering promptly reminds them that you are responsive, reliable, and a trusted partner to their team.
Sample Client Email to Raise Consulting Rates
Writing a rate increase email doesn’t have to be complicated. In fact, simple is better. Here’s an email one of our coaching clients sent about her rate increase:
Hi [Primary Point of Contact],
I hope your year-end fundraising is going well! I’m looking ahead to 2025 and wanted to connect about our work together.
I so enjoy working with your team — you all do great work! If you are still looking for as-needed grant writing support, I’d love to continue working with you.
With that in mind, I wanted to let you know that, as of January 1, I’ll be raising my hourly grant writing rate to $150. If you have any questions, I’d be happy to discuss.
Thank you so much and I look forward to the chance to continue supporting your organization.
The client’s response? Gratitude for the advance notice and next steps for creating an updated contract.
Need support raising your consulting rates?
Let’s be honest: even if you know all the steps, sometimes raising your rates as a consultant is still nerve-wracking! If you’re feeling stuck or just need help developing customized messaging, you can grab a One-hour Consultation on Demand and I’ll help you work through the details, craft your messaging, and build your confidence.
