I do some pro bono work for a local non-profit social services agency – designing, building, and maintaining their web site. A similar agency saw my work and asked to meet with me. They had a basic site until 2007, began a major redesign with volunteers, but never finished it. They like the work I did, but reminded me that as a non-profit they have some budgetary concerns.
I’m sensitive to that, but I already do a lot of pro bono work and am trying to get my web design company in a more stable revenue position. I’m meeting with them next week, and will assess their needs. I’d like to get the work, assuming I can be paid a fair price.
The giant question is how to determine what that fair price is. I typically charge a project fee, based on my (usually horribly low) time estimates and an “internal” hourly rate (not revealed to the client). Between my optimistic (unrealistic?) time estimates and some scope creep than inevitably wiggles in, I often end up doing more work for less money and just feel frustrated.
So how do you pitch a non-profit with a price they can handle? (I have no idea how much funding they get or what their web budget is.)
You should charge what you feel is fair, not what they feel is fair - it’s YOUR time and YOUR skill you are SELLING. There is no refund on your time!
At some point you have to make a living and can’t always cut everyone a deal, and if they think it’s too much, don’t sweat it – try getting some companies instead
First you need to figure out what your hourly rate is going to be - something that you are comfortable with.
Then estimate the project including scope creep and client ridiculousness, etc. and prepare a full estimate as you would for an ordinary customer. Make sure that your change order policy is clear and that the hourly rate is listed so that the client gets a reminder that you are not a non-profit and are doing valuable work for free.
If they start to grow the project or otherwise ask too much of your time, use your discretion. If you want to cut them some leeway then fine. Otherwise just wait for the next time they ask you for something and very nicely tell them that this has turned into so much unexpected work that you would soon have to start charging them. They will stop being so demanding 99% of the time.
Also, don’t forget that non-profits always cry poor and they are professionals at getting donations of time and money. Then again, some of them have a budget for web services and would happily pay.
The winning mentality when doing pro bono work is this:
You do the project because you like the non-profit and you want to help them, and you’ll do your best on their project. But, you can only do so much and if you reach that point you can gracefully end it or start charging. You do your best to satisfy them, either way.
I simply give a normal estimate, then cut my would-be profit in half or more. Non-profits can be demanding at times, so give yourself extra time to complete the project. I always tell them it’s going to take longer to complete due to the discount, which sometimes is the case. I guess maybe that helps sell it as well because in their mind they’re trying to calculate how you are able to give them a discount.
Non-profits can also be a lot of fun though and I’ve had some cool experiences with the people because NGO stuff is an interest of mine as well.
(I’m the OP) Thanks for all the thoughtful replies. Yes, I’m trying to keep in mind that I provide a valuable service and am entitled to earn a living doing it. But I’m also a struggling new business, quite desperate, er, let’s say motivated, to gain new clients. I believe there’s a snowball effect in web design, where the more clients you have, the more you’ll get (your portfolio is larger, you can get more testimonials, and existing clients can send referrals). So I’m trying to ramp up my client base while protecting my time.
After I posted my question, I did some digging. The nice thing about 501(c)3 non-profits is that some of their financial data is public. I was able to find this agency’s 2007 IRS Form 990, which showed an operating budget of about $3.5 Million. Most of that went to staff salaries and the programs they provide, so I’m under no illusion that they’re sitting on a giant pile of cash just waiting to give it me. But I will remember that number while I’m working up my price quote. And I’ll also keep in mind the comment that one of you made about non-profits being expert at fund-raising and getting volunteers to do stuff for free.
The bottom line is that I have to honestly evaluate the work and how much they’re willing to pay me. If it’s not going to feel fair to me, I have to politely decline the work.
That’s true to a large extent, but if your ‘seed’ client gets a bargain price, this is how it works:
Original ‘seed’ client pleads poverty and gets a bargain basement quote for their 20 page website.
They recommend you to someone else, who wants a 10 page website. This new client will expect to be quoted substantially less than the client with the 20 page website. If you succumb to this ‘logic’ (as many people do, it seems) you’re now working for absolute peanuts.
Inevitably the 10 page client now recommends you to a 5 page client…
Now, when a decent client without a sob-story comes along, you don’t have any time to do their project, because you’re dealing with the shameless scope creep that many of these low budget clients will attempt to get away with. People who pay ‘nothing’ seldom value what they get, so don’t expect gratitude, either! They will run you into the ground if you let them.
There are better ways of getting new clients than relying on referrals. Referrals can be great, of course, but you have relatively little control over how many you get, when you get them or what type of organisation is referred to you.
A systematic, professional sales and marketing campaign, in which you pro-actively approach precisely the type of client you would like to work for (eg in terms of company size, budget, industry, location etc), will bring you a regular stream of ‘good’ clients who are easier to service and far less likely to waste your time or disappoint you financially.
I think you need to reconsider your approach. The fact that they are a non-profit has nothing to do with your rate. Your rate is determined by the market, your skills/service, and your ability to reach your market effectively. That rate is the value of your work - that value doesn’t change just because you change that number.
The amount you CHARGE is different than your rate. If you routinely get $100/hr and your clients are happy, that is probably a decent and fair rate.
Now, if your objective is to help the non-profit because you like them and want to do something nice (which is commendable) then give them a discount against your regular rate. Don’t change the rate, though.
So for example if you usually get $100/hr, you would still charge them $100/hr but they would get a 25% courtesy discount. You don’t bill $75/hr, you bill $100/hr less their courtesy discount. That way you are being totally transparent, fair, generous, and protecting yourself from confusion in the future if you ever start charging (which will be awesome, non-profits can be great clients).
When working with non-profits, it’s a good idea for them to see in plain english the value of what they are getting for free from you. It makes them appreciate you more, not less.
That was really an excellent post. I agree that lowballing for bottom feeding clients can turn into a nasty grind, and isn’t the only way to get your business started.
@unit7285 and @sagewing: Thanks for your comments - very useful. With previous paying non-profits, I did exactly that: I showed my normal rate, then had a “courtesy discount” below that. With my pro bono work, however, I never invoiced. I heard a suggestion once that you should invoice but then give a 100% discount, so they at least understand the value of the work they’re getting for free.
I’m looking forward to my prospective client meeting on Monday, and plan to use this situation as an experiment. After I understand their needs, I’ll run my numbers, probably doubling my time estimates since I’m always low. I’ll apply my normal rate and let the project fee come out to whatever it’s going to come out to. I may offer a 10-15% discount off that, if the net to me still feels fair and I’m confident I can eliminate or strongly control scope creep. But I’m not going to low-ball the number or play with it so I think it will look more acceptable to them.
If they balk at the fee, and aren’t willing to reduce their requirements list (or break it into phases), I will force myself to feel OK saying, “No, I’m sorry, I just can’t provide the quality of work and level of service you deserve for a lower price.”
