What's Happening?
A recent survey conducted by Whole Whale, a digital consultancy for nonprofits, has revealed an increase in the average hourly rate for nonprofit consultants in 2025. The average rate rose to $159 per hour, up from $151 in 2024 and $110 in 2020. The survey, titled 'Nonprofit.ist 2025 Consultant Cost & Compensation Survey,' highlights that while some consultants charge by the hour, others do not. The data also shows that consultants with advanced degrees do not necessarily command higher fees, with those holding a bachelor's degree billing $156 per hour, compared to $149 for a master's and $140 for a doctorate. The survey further breaks down rates by gender and ethnicity, noting that Hispanic/Latino consultants had the highest average billing.
Why It's Important?
The findings of this survey are significant for both current and prospective nonprofit consultants, as well as nonprofit organizations seeking consulting services. The rising costs reflect a strong demand for specialized expertise in the nonprofit sector, which may impact the budgets of organizations relying on external consultants. Understanding these trends can help nonprofits make informed decisions about hiring consultants and managing costs. Additionally, the data provides insights into the consulting industry's dynamics, including the influence of educational background and demographic factors on billing rates. This information is crucial for consultants aiming to position themselves competitively in the market.
What's Next?
As the demand for nonprofit consulting services continues to grow, organizations may need to explore alternative strategies to manage costs, such as developing in-house expertise or seeking pro bono consulting opportunities. The survey's findings could also prompt discussions within the nonprofit sector about equitable compensation practices and the value of diverse perspectives in consulting. Nonprofit leaders and consultants alike will likely use this data to negotiate fees and structure consulting engagements more effectively. The ongoing analysis of consulting trends will be essential for adapting to the evolving needs of the nonprofit sector.
