Kim Hatton asked:
“Do the same design pricing principles apply between non-profits and for-profit businesses?”
When it comes to pricing for non-profits there are a few things I think about:
- A percentage off my normal rate
- Pro bono, cutting my rate entirely “for the public good”
- A service trade, where the client can offer a product or service that’s useful (although this is actually better suited to for-profit clients)
- Full rate (we might call them non-profits, but they’re still businesses with design budgets, needing to turn a profit to grow)
Most of my clients are for-profit businesses, but when the third sector gets in touch, sometimes I’ll choose one option, sometimes another. It depends on my workload and how strongly I feel about the cause. When a client needs a reduced rate that I can’t offer, I’ll always be happy to give feedback on ideas for no charge — a kind of free non-profit consultation.
If you work pro bono or offer a discount, send a full-price invoice as normal but show the saving, whether it’s 100%, 10%, or whatever. It’s a little reminder about the value of the project.
It’d be good to know how you work with non-profits.
Thanks for the question, Kim.