When Should a Nonprofit Hire a Consultant Instead of an Employee?

Consultant vs. Employee: Which Is the Better Fit?

A consultant is not simply a substitute for an employee. The goal is to match the type of support to the actual need.

How Do You Decide Whether to Hire a Consultant or an Employee?

Before deciding, ask:

1. Is this an ongoing organizational role or a defined capacity gap?
2. Will we need this work at roughly the same level a year from now?
3. Do we need someone to perform ongoing assigned duties, or someone to take ownership of a defined project, problem, or outcome?
4. Do we have the expertise and capacity internally to manage this work?
5. Are we prepared for the financial and management responsibilities of adding another employee?

When Does Outside Capacity Make Sense for a Nonprofit?

Organizations do not always need more permanent staff. Sometimes they need more capacity right now.

Outside support can be especially useful when an organization is:

• launching a new project or initiative;
• managing a temporary increase in workload;
• coordinating work across multiple staff members, partners, or organizations;
• building systems or processes that do not yet exist;
• preparing for a major campaign, event, or organizational transition;
• trying to move a stalled project forward;
• filling a temporary gap while determining what long-term staffing should look like; or
• bringing in expertise that the existing team does not have.

In these situations, the organization can bring in targeted support for the work that needs to be accomplished without automatically turning a temporary capacity problem into a permanent position.

What Can Outside Capacity Look Like in Practice?

An organization may already have capable staff but temporarily lack the capacity to coordinate a major initiative, build the systems supporting it, manage communications, organize workflows, or move a time-sensitive project forward.

Outside support can fill that immediate gap while also leaving the organization with useful infrastructure—such as processes, project-management systems, communications assets, documentation, or other deliverables—that can continue to support the work after the engagement ends.

Explore nonprofit services and capacity support →See examples of this work in practice →

Common Mistakes When Deciding Whether to Hire

Hiring before defining the problem

An organization may know the team is overwhelmed without knowing exactly what capacity is missing. Before creating a position or bringing in outside support, define the problem that needs to be solved.

Is there simply too much work? Is a project missing leadership? Does the organization lack a particular skill? Are inefficient systems creating unnecessary work?

Defining the problem first makes it easier to determine what kind of support will actually solve it.

Using outside capacity for work that really requires an employee

Outside support works best when there is an appropriate scope of work and sufficient independence to carry it out.

If the organization needs someone to fill a permanent operational role, work under ongoing day-to-day direction, and assume responsibilities that are central to regular operations, an employee may be the more appropriate solution.

Waiting until everything is already on fire

Organizations often wait to seek additional capacity until staff are overwhelmed, deadlines are approaching, or important work has already stalled.

Outside support can be particularly useful during transitions, launches, major projects, funding periods, leadership changes, or temporary workload increases. Bringing in support before the organization reaches crisis mode creates more room for thoughtful planning and implementation.