Can a 501c3 hire a consultant to raise money for the organization? If so, can the consultatnt be paid a percentage of what is raised and are there limitations as to what the consultant fees are?

Can a 501c3 hire a consultant to raise money for the organization?

Yes, of course. There are lots of consultants who specialize in working with non-profits to develop fund raising plans. There are also companies that will actually run the fund raiser.


If so, can the consultant be paid a percentage of what is raised and are there limitations as to what the consultant fees are? Yes. But charities that go this way tend to get low marks from the various rating agencies because less of the money donated is actually used for the stated purpose. I would strongly suggest that you use your own constituents to do your fund raising - management, board members, and volunteers. These are the people who know and understand your organization and can talk to potential donors from the heart, so to speak. If you use an outside consultant to actually raise money the board and management really need to keep a tight rein to ensure that this person treats your constituents well and doesn't give you a bad reputation. Unlike a volunteer, a consultant is motivated only by money and may come across as too pushy.

Agreed, yes they can but as stated, when the books of the charity is reviewed those groups that rate a charity don't rate these highly. What is looked at closely is the amount of donations that go directly to help those, and the amount of overhead.

For example many of the "car donation" places are merely middle men who take the cars, and sell them and then a percentage goes to the charity. ( often a very small percentage)