Being a freelance Fundraiser can be rewarding and flexible, but it also comes with some financial challenges. You need to manage your income, expenses, taxes, and savings effectively to avoid stress and uncertainty. Here are some tips to help you keep your finances in check as a freelance Fundraiser.
One of the first decisions you need to make as a freelance Fundraiser is how much to charge for your services. You want to be competitive, but also fair and profitable. To set your rates, you need to consider your skills, experience, value, market demand, and overhead costs. You also need to decide whether to charge by the hour, by the project, or by the outcome. Whatever you choose, make sure you communicate your rates clearly to your clients and have a written contract that outlines the scope, timeline, and payment terms of your work.
Establish competitive yet profitable rates. Consider your skills, experience, and the market demand to balance what your services are worth and what clients are willing to pay. Decide whether you'll charge hourly, by the project, or based on outcomes.
How you charge is just as important as how much: Hourly hustle: Ideal for ongoing projects where the scope might change. Project power: Perfect for well-defined projects with a clear start and finish. Outcome obsessed: Charge based on the results you achieve (think increased donations!). Pro tip: Always have a written contract outlining the scope, timeline, and payment terms. It protects you and avoids any future misunderstandings.
As a freelance Fundraiser, you need to keep track of your income and expenses for accounting and tax purposes. You can use software, apps, or spreadsheets to record and categorize your transactions. You should also keep receipts and invoices for proof of income and deductions. Tracking your income and expenses will help you monitor your cash flow, plan your budget, and avoid surprises at tax time.
Tools like Mint or You Need a Budget (YNAB). They help me track expenses, set goals, and stay disciplined. Additionally, I automate savings with apps like Acorns or Qapital, ensuring I consistently put money aside for the future. Finally, I regularly review my financial situation using tools like Personal Capital to make informed decisions and adjust my strategy as needed.
Utilize software, apps, or spreadsheets to record all financial transactions accurately. This habit ensures you’re ready for tax season, helps you monitor cash flow, and assists in budgeting to keep your finances healthy
One of the benefits of being a freelance Fundraiser is that you have more control over your income. However, this also means that you have to be disciplined and consistent with paying yourself a salary. You should set aside a percentage of your income every month as your personal income and transfer it to your personal account. This will help you separate your business and personal finances, avoid overspending, and save for your future goals.
Discipline is vital in managing your finances. Allocate a set percentage of your income to pay yourself consistently. This separates your personal and business finances and helps avoid overspending
As a freelance Fundraiser, you are responsible for paying your own taxes, including income tax, self-employment tax, and sales tax if applicable. You should estimate how much tax you owe based on your income and deductions and save for it throughout the year. You can use online calculators, tax software, or a professional accountant to help you with this. You should also pay your taxes quarterly to avoid penalties and interest.
Being a freelance Fundraiser requires you to invest in your business to maintain and grow your reputation, skills, and network. You should allocate some of your income to cover your business expenses, such as marketing, training, tools, insurance, and memberships. You should also invest in your professional development, such as attending events, taking courses, or hiring a coach. Investing in your business will help you stay competitive, relevant, and valuable to your clients.
As a freelance Fundraiser, you don't have the security of a regular paycheck, benefits, or pension. You need to plan for emergencies and retirement by creating a savings fund and a retirement plan. You should aim to save at least three to six months of living expenses in a separate account for emergencies, such as illness, injury, or loss of clients. You should also contribute to a retirement plan, such as an IRA, 401(k), or SEP, and take advantage of tax benefits and compounding interest. Planning for emergencies and retirement will help you protect your financial future and peace of mind.