Private Air New York

www.privateairny.com Private Air | Spring 2021 33 PHILANTHROPY Do Your Homework Get the Board on Board e first step in ensuring a successful experience when hiring a philanthropy advisor is making sure the stakeholders are in sync and there is consensus about what role the advisor will play. Does everyone agree that hiring an outside advisor is important? What amount of time and financial resources will the foundation devote to working with a philanthropy advisor? Most importantly, what will the scope of work be for the advisor? Lack of clarity on any of these fronts will erode the potential for success. e Better the Plan, the Better the Results What issue do you want the advisor to address? What problem needs a solution? e clearer the goals and parameters that the foundation provides, the more effective the advisor can be. ink through, for example, whether the advisor will have a primary point of contact at the foundation (either a staff member or a board member). Is the expectation that he or she might interview various members of the board and, if so, are all the board members aware of this plan and willing to make themselves available? Make sure the timeframe you set for the work is realistic given the availability of the board members and the scope of work. Identify measures of success as a way to communicate to the advisor what you are looking for and to ensure you have a common understanding of the goal. While you cannot—and probably should not—predict the outcomes, you can be clear about what questions you want asked and your expectations concerning the result. For example, you cannot determine in advance if the Board will choose a multi-year grant strategy that is driven primarily by a Requests for Proposals (RFP) process, but you can let the advisor know that you want him or her to help the foundation arrive at a grantmaking strategy that will both suit the interests of the Board and address priority concerns. Preparation Is Good for the Foundation and Good for the Advisor Gathering background materials on the foundation (information about the founders as well as its history, grants, bylaws, policies, meeting minutes, etc.) in advance for the advisor to review will be a valuable and time-saving step that can provide critical context for his or her work. It will accelerate the advisor's ability to partner effectively with the Board and get to the heart of the work. Saving time saves money, but also builds confidence with the Board, as they will recognize that the advisor has done his or her "homework" on the foundation. Define a Successful Search Strategy (a.k.a. If You Build It, ey Will Come) Planning a search and vetting process will ensure an efficient use of resources to find the most qualified advisor. Begin by determining who will be the search lead and participants at all stages of the process from the initial preparation and vetting of proposals, to the interviews, reference checks, and final selection. Narrow your search by developing a position description or Request for Proposals (RFP) that defines the scope of work and the qualifications that you seek. Consider asking candidates to describe their areas of expertise, recommended approach to addressing your needs, fee for service, payment protocol, and at least two references. Share this material through the many vehicles available for finding qualified candidates, including colleagues who understand your organization's operations and challenges, trusted sources such as professional networks and membership organizations, and social media tools such as your company or foundation website. To address a more complex scope of work, consider approaching firms with an array of specialties. Understand the Business Model A consulting firm or individual advisor typically determines fees by looking at the scope of work, analyzing the amount of time required to complete the project, placing a value on that time, and establishing a fixed total amount. Note that the fee associated with an individual's time can vary widely due to factors that are critical in determining the right fit. For example, a consultant's breadth and depth of experience in the field and expertise with a particular issue may factor into the fee, with more novice advisors charging less than more seasoned practitioners. A more complex project may require a firm to use more than one consultant or have specialized analysts conducting research in the background. A consultant's location may necessitate travel to the foundation or sites being analyzed, and fees often vary depending upon an advisor's regional base of operation. Finally, an advisory firm's size is a factor, where a nationally based company with multiple sites and overhead requirements will most likely charge higher fees than a single independent consultant. An advisor's billing structure can also vary, ranging from a monthly retainer with an agreed-upon start and completion date and anticipated project deliverables, to a flat fee

• Cover