Consulting Fees

[Zombie Sociologist]

I recently received an offer to serve as a consultant for an NGO.  This NGO is putting forth a proposal to conduct research for the government.  I would serve as the sociologist on an interdisciplinary team that provides input on the proposal.  The project is international in scope and lasts three years with the possibility of renewing for another two years.

Does anyone have advice on the appropriate rate I should charge?  

[gov estimates]

I'd be surprised if the NGO doesn't have a standard way to calculate. If you don't have evidence of pre-existing consulting fee, standard is 1/200th your salary per day.

[more?]

For non-profits 1/200th a day might be fair, but I think more is standard if it's on an hourly basis. I've done some government consulting and as an assistant prof they started me at 115 an hour.

[ask your university]

1. This might have to be cleared with your current institution, depending on their policies. Many places will want you to notify them if it's more than X hours per week. I gathered that for this kind of thing is was pro forma, they just want to know, esp. if you might be using university resources. Or if you're off summers and doing this completely from home, then you probably don't have to notify.

2. That said, you can at the same time ask your sponsored research office about what your charge-out rate should be. I'm guessing they will have standard rate tables and/or metrics like 1/200 of your salary * 1.5 for fringe and facilities. Better to not lowball yourself - at least those numbers would be the ones they'd want in the budget if you were putting in for a NSF grant.

3. Consulting is ALWAYS more time than you think it will take, in my experience. Just plan for at least 20% more time than you think it will take. 50% if you want to put in a good buffer. It's usually worth it though.

[check faculty handbook]

look for a section with a title like "Research, Scholarship, and Creative Endeavors" and a subheading like "Entrepreneurial and Consulting Activities"

some places don't care if you consult, as long is it is no more than 1 day in 7. Others have a policy of 4 days/month.

the rate you charge is your own business (what the university would say). How you negotiate it (daily or hourly) is your own business. If you can get someone to pay you $500/hr for your time, that's legit. A good policy, i think, is to establish a rate, use it consistently for a few cases, and, if demand increases, as the supply (your time) is constant or even decreasing, the rate goes up. You can charge 1 rate for gov't, another for private. etc. etc.