Guest Post: The Case for Charging for Volunteer Services

Sara Jones was my first nonprofit board mentor. She excels in helping those in the nonprofit sector think about the financial and strategic consequences of their decisions. When I told her I was investigating nonprofit consulting and thinking of doing some projects for free, she made her case for always charging something for professional services. The organization will treat you more professionally, and you will act in a more professional manner, she argued. But I'll let her speak for herself:

Okay so I was asked to be a guest blogger and to speak about theories around the value of contribution and what is an appropriate “billable rate.” At first I was stumped as to what to write and was then advised if all else failed, talk about how to rent a flat bed and drive a truck that goes psshhhh when you step on the brakes. Personally, if you ever get the opportunity to drive a big rig its worth it and I guarantee you will never quickly pull in front of any truck ever again in your life. Lets get back on track with the original idea: your personal billable rate and how do you derive that number.

When I was first struggling with how much do I charge as a consultant, I was advised to do some research in my field and then charge a “number that made me a little uncomfortable.” To this day I still employ this formula. I continue to test and refine my theory but I think it works for most situations. Now, I am not saying price yourself so outside of reasonable that you seem ridiculous. It’s personal. Probably, there is a number that is comfortable and well within your ability to get paid such a number. Then there is the number that is just a touch higher. For example, if you are used to getting say $60 an hour, your next client go for $75-$100. Lets me just say this—even if you are just starting out never ever ever charge nothing or a cut rate. It says something about how you value yourself and how you value your work. Sure, inexperience is one thing so charge a rate that is still a little uncomfortable but it always will be north of zero.

Charging a rate that makes you feel uncomfortable also sends a message not only to your client (that you have value, worth and deserve and expect to be paid well), but also reinforces a message to yourself. For most, this uncomfortable feeling is just the sort of motivating force we need to step into and act the part. In other words, it creates a door that once you walk through you align yourself and your work product with this rate. Once you put it out there it becomes true. And pretty soon that rate will feel comfortable and then I say take it up again.

Let me know how it works for you. From my limited sample set so far my theory seems to hold---what do I know? I’m learning too.

Have fun,Sara Jones
Guest blogger, general contractor, wannabe truck driver and business consultant