Consultant Guide: When and How Boards Should Hire Outside Experts

No board can be an expert in every domain. The smart use of external consultants allows your board and leadership team to fill knowledge gaps, get objective perspectives, and accelerate big decisions. But engaging consultants well requires forethought and governance.

Why Boards Hire Consultants (and When)

Boards commonly bring in consultants for:

• Strategic planning facilitation and environmental scanning

• Financial modeling, audit support, or long-term sustainability plans

• Legal and compliance audits (governance review, bylaws updates)

• Fundraising campaigns, major gift strategy, or donor communications

• Technology implementation, cybersecurity assessments, or systems upgrades

The decision should come when internal capacity or objectivity is lacking—and the risk of doing nothing is greater than the cost of expert help.

Best Practices for Board-led Consulting Engagements

Here’s a guide to making those engagements effective:

1. Clarify the objective up front
   Be precise about the problem you want to solve or decision you want to inform.

2. Define scope and deliverables
   Avoid open-ended gigs. Use clear timelines, milestones, budgets, and success metrics.

3. Vet consultants carefully
   Prioritize those with nonprofit experience, references, and relevant domain expertise.

4. Ensure board-staff alignment
   The consultant should be a bridge, not a wedge. Engage committees early.

5. Seek and manage knowledge transfer
   Capture the rationale, tools, and institutional learning—not just final reports.

6. Post-engagement debrief
   Review outcomes, what worked (or didn’t), and how internal capacity should evolve.

Building Your Consultant Directory

Your consultant directory is a living tool for board and staff use:

• Categorize by function (governance, finance, legal, fundraising, tech)

• Document key contact info, track record, project fit, and rates

• Update annually—check references and remove stale options

When you face a strategic pivot, seek new systems, or face governance renewal, you’ll already have a pool of trusted experts. Pair this with your board’s governance knowledge from A Detailed Guide to Board Governance.

Real-World Example

Suppose your nonprofit wants to launch a capital campaign but has never run one before. Your board’s campaign committee hires a fundraising consultant to:

• Perform a feasibility study

• Develop messaging and case statements

• Establish donor tier strategy

Meanwhile, the board’s executive committee ensures regular status updates and reviews metrics—not micromanaging, but staying in the loop.

Takeaway: Consultants should augment—not replace—board thinking. Use them strategically, ensure alignment, and institutionalize learnings.

Don’t have your own Consultant Directory yet? We can help! Reach out to our growing list of Experts and Consultants who are happy to connect and potentially engage with your organization.