Dear All,
I have been reading with interest the recent contributions on consultants. I've noted two points of view in particular:
1. Contracted in consultants will charge you way more than what an employee will cost.
2. Avoid consultants who take a percentage of income generated.
Apologies to contributors if I have over simplified this.
Having been both an employee and a consultant I have a slightly different take on this: of course it's a wicked old world out there and that means that museums and heritage sites need take a 'commercial' approach to life these days. (Sorry if the word 'commercial' gives anyone the vapours...). Concerning point #1 above it all depends on how well you scope the brief: in my experience where the cost of consultancy starts to outweigh the cost of an employee are 'open ended' consultancy arrangements which go on and on and on...remember also that with an employee you have the on-costs of pension, sick and holiday pay, insurance contributions etc. A tightly definted fixed term consultancy contract on the other hand can be a cheaper option.
On point #2, I don't agree at all: I am all for incentivisation! Indeed, if you are looking to retain external fundraisers I would strongly recommend you set the deal up such that they get a percentage of what they raise for you as their fee! If they don't raise anything, they get nothing and your museum pays nothing. If they raise money, then they get their fee and the museum gets some additional income. Surely that has got to make sense? I've worked on a percentage basis as an Accounts Payable Recovery specialist ( detecting unclaimed allowances, double payments, tax errors. etc.,) and knowing you don't get paid unless you work darn hard for your client certainly focusses the mind! The skill, in my opinion, is deciding what percentage gives both the consultant a fair cut and equally a good return for the museum!
As an inbetween model I have seen a national museum in the UK who employed fundraisers (as employees on their payroll) with a specific monetary target to raise in funds over a set period of time. At the end of that time the contract comes to an end - unless of course both parties want to renew it. Again, this leaves no one in any doubt as to the objective and it is up to those applying for the job to assess whether it is a reasonable expectation!
I appreciate that my contribution focuses on only one aspect of the consultancy discussion.
Best Wishes to all,
Jerry Symonds - Senior Internal Auditor
Historic Royal Palaces
England
----- Original Message -----
From: Julia Moore
To: [log in to unmask]
Sent: Thursday, January 17, 2008 4:38 PM
Subject: Re: [MUSEUM-L] Consultants
In addition, consultants should not be expected to work from your facility unless their contract is long-term (like more than a year) and there is a demonstrated need for them to be on your premises to work closely with your staff on a daily basis; in that case, you need to review the laws on independent contractors, work-for-hire statutes (if they are doing something for you like create forms, or maybe write curatorial statements or other copyrightable things), etc. to make sure what you are providing them with and how you interact with them maintains their independent contractor status. For example-if you tell them they have to be there from 9 to 5 daily, give them all the equipment they need, require them to store their work product in files and on servers controlled by you and direct their daily work just like you do with the rest of your staff, they may not be able to be called independent contractors and you might be required to pay payroll taxes and provide benefits. However, providing them with a workspace with desk and phone (and possibly a computer terminal, but this is disputed) and some pens/paper for them to use if they are working in your museum for the day or week is generally OK. Safe is pointing them to a spare desk and phone and requiring them to bring everything they need if they want to use it (but the consultant will bill you for the supplies if they are purchased and used exclusively for your contract).
As architects we sometimes do long-term big projects where we are called to relocate assigned creatives out of our home base because the client has set up a project office and they want all their design consultants in one place to interact on a daily basis; the client may provide all the necessary equipment like computers and plotters, however, they are hands-off with directing the daily work and the consultants can proceed with their services as they see fit. This does not violate the independent-contractor status of our professionals.
Julia Muney Moore
Public Art Administrator
Blackburn Architects, Indianapolis, IN
(317) 875-5500 x219
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From: Museum discussion list [mailto:[log in to unmask]] On Behalf Of nicholas burlakoff
Sent: Monday, January 14, 2008 1:18 PM
To: [log in to unmask]
Subject: Re: [MUSEUM-L] Consultants
John,
I have both used consultants in the areas you specify and been such. The pay varies, but a good rule of thumb is at least 50% over similar cost for a full-time employee in your area. I charge a minimum of $50 per hour, depending on the job, if I like the institution, support the mission, etc. Remember, the consultants pay their own taxes and business expenses and not all of them are employed without interruption. On the other hand, you are saving on vacation costs, medical, etc. Experience with consultants varies (as it does with employees and employers). One article I read said that if at the end of the consulting period you are not in court, all went well. I think that is too cynical a statement but it does underline the reality that a good and clear contract is mandatory. Another rule of thumb: if consultant asks for percentage of income generated, run away from that. Pay only per diem or event. Percentage arrangements are against ethical norms of professional fundraisers, and can involve in- kind donations, and then you are stuck paying cash money for goods you may not want. Example, I once got a donation of two semi's of envelopes from a paper company. If a consultant had generated that donation and was on a percentage basis I would have had to pay cash for $100,000 worth of envelopes. As it was, we had envelopes for the next five years, gave a bunch to every other non-profit in town, sold some to various businesses, and donated the rest to a municipality that needed paper recycling volume. Caveat emptor, but it is a good way to get quick and often excellent help for a modest investment. Peace, Nick
-----Original Message-----
From: John Martinson
Sent: Jan 14, 2008 9:04 AM
To: [log in to unmask]
Subject: [MUSEUM-L] Consultants
Has anyone in their museums used a consultant for planning, reorganization,
events, fundraising, conservation, etc.? Or have you used a consultant
to serve as "temporary" employees to do a specific (fix the problem type)
job instead of hiring a full time public relations, event planner, and so forth?
What are the common fees for such services? And the "big" question --
was there any major problems or perks for association with such services?
Thanks in advance.
John
Boise, ID
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