Dear List members:
 
I, too, have followed this thread with great interest.  Having made my living working as a consultant to museums on a project basis for nearly 20 years (after 15 years as a museum employee), I agree with many of the points already made, and add the following steps as a guide to a successful partnership with, and outcome from a contract with a consultant:
 
1) review and understand what defines consulting vs. employment (good sources have already been cited for this);
2) choose your consultant to meet the project needs and goals--determine the skill set and level of experience needed to get the best results and find the best consultant with qualifications and experience to match your needs;
3) meet with the consultant to clearly define the scope of work and establish terms in a written contract in advance of starting any work;*
4) compare apples to apples, and recognize the pros and cons of the different training, experience and services offered by different consultants;
5) before entering into a contract, check the consultant's references and past clients to verify that the consultant has successfully performed the type of work you need and delivered on time and within budget.
 
*Typically, I invest at least the equivalent of a day's time (frequently more) to meet with a prospective client to learn about them and their needs, help define a project scope and provide a list of services tailored to their specific needs that I can offer to help them achieve their goals, and then draft a contract.  The majority of my clients do not have experience doing the work they seek a consultant to complete, and therefore look to me to help them understand the steps in the process of a project, and to write a contract (outlining the goals, objectives, timeline, deliverables and payment schedule and other terms).   Sometimes after this (free) step is completed, a prospective client  realizes that their institution is not really ready to move forward or they don't have the needed funds available to do the project at the time.  Experienced consultants know that sometimes its the second or third person who tells a prospective client the same thing that actually gets the contract.  And, sometimes the consultant and client are not a "good fit" and you learn that by spending some time together.  This is all client development/education and considered a cost of doing business for the consultant.  Likewise, museums seeking outside help need to invest time to establish realistic project goals and objectives and to find the best qualified person to help them achieve those goals.  
 
And what about the contract costs?
1) Consultant will charge more per hour than an employee's salary calculated to an hourly rate, because salary alone is not the employer's actual cost.  If making a dollar for dollar comparison, employers should recognize all other direct and indirect costs of employees . Most non-profits spend between 20-30% in benefits for employees depending on level of responsibility, years of service, etc. Add the cost of what you pay for taxes (for example, worker's comp, social security, but not state and local taxes), insurance benefits, contribution by the employer to pension or tax-deferred savings plans, etc.   As stated by others, consultants are responsible for all of their taxes, and insurance.  They have no paid vacation, sick leave, holiday pay, comp time, or retirement saving contribution, etc.  Consultants provide their own work space, computer, cell phone, other tools and equipment, liability insurance premiums, etc. (generally no need for the museum to buy another desk, computer, install a phone, or buy basic supplies).  When all of that is taken into consideration and compared to what you would pay for a similarly qualified employee with the same training and experience level, the costs are not significantly higher--and may even be less as Jerry and Nicholas suggest below--particularly since the consultant contract should be for an agreed outcome and finite time period and therefore you are not obligating the museum to an increase in ongoing operating costs.
 
2) An independent consultant who works from home generally has a lower cost of doing business (and usually that translates to a lower hourly fee) than a consultant doing similar work within a larger firm with multiple partners and an office where they pay rent, utilities, etc. 
 
 
Many of the responses to the initial query focused primarily on the legal questions of employee vs. consultant.  Little has been said to address John's original questions about the "perks for such services."    I'd like to offer up some benefits of working with a project consultant:
 
1) A qualified consultant brings experience and a track record of success in achieving similar goals for other organizations.  Your institution benefits from not making mistakes that can be made in your first run at a project.
 
2) A consultant can focus on your project and complete the project more quickly and efficiently than an employee whose time is required to juggle routine operational needs (if you have an employee who knows what needs to be done and how to do it) or having an employee research the process and learn as they go in planning and implementing a new project.  
 
3)  Contracting with a consultant can provide an opportunity for a staff person without that same experience to work closely with the consultant (or under the direction of the consultant) to learn the process and carry it out independently in the future.
 
In the end, you get what you pay for.   If you need help with conservation, collections management, research, designing exhibits or programs, planning events, raising funds, facilitating strategic planning, or marketing your museum, qualified consultants are out there who can provide high quality services at reasonable fees.  Be a good consumer and you can get great results. 
 

Jean Svadlenak
Consultant to Museums
Kansas City, Missouri 

-----Original Message-----
From: Museum discussion list [mailto:[log in to unmask]]On Behalf Of nicholas burlakoff
Sent: Saturday, January 19, 2008 4:56 AM
To: [log in to unmask]
Subject: Re: [MUSEUM-L] Consultants

Jerry- I agree, that in fact ,consultants can be much less expensive than employees. One can get a very good consultant to do publicity for a major event for $25,000 and that would not be a good salary in the US. Particularly on either coast.

On the question of percentage of income. I strongly disagree with you. First, and foremost, percentage of income is against the stated ethical norms of American Fundraising Professionals. This means that any person or organization that  ask for a percentage is automatically suspect since they are not in compliance with a professional norm (so they are either ignorant of it, or are ignoring it--neither is a positive recommendation). Besides that, on the practical aspect we have the whole issue of in-kind donations. There is nothing wrong with an incentive bonus for reaching or exceeding a goal, on the other hand. They can be a gift or even built into a contract. I once received a $5,000 bonus because I turned a $70,000 donation into a $150,000 donation. This bonus was particularly nice because it was not in my contract ,and the Board voted on it as a surprise for me. Good things do happen.


-----Original Message-----
From: jerry symonds <[log in to unmask]>
Sent: Jan 19, 2008 5:29 AM
To: [log in to unmask]
Subject: Re: [MUSEUM-L] Consultants

<[log in to unmask]>
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: [log in to unmask] href="mailto:[log in to unmask]">Julia Moore
To: [log in to unmask] href="mailto:[log in to unmask]">[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

  

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
<[log in to unmask]>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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