Why Contingency Search Makes Sense for Small Nonprofits

When a nonprofit decides to bring in outside help for a hire, one of the first questions is how the search firm gets paid. It sounds like a contracting detail. In practice, it shapes how much risk your organization carries, and it is worth understanding before you sign anything.

The Two Main Models

Most search firms work on one of two models. In a retained search, the organization pays a fee up front, often in installments over the course of the search, and the fee is owed whether or not a hire is made. Retained fees are commonly set as a percentage of the role's first-year compensation.

In a contingency search, the organization pays nothing unless it hires a candidate the firm presents. The fee is also typically a percentage of first-year salary, but it is earned only on a successful placement.

Both models have their place. Large organizations hiring a CEO or conducting a highly public executive search often prefer a retained firm, with the dedicated team and formal process that comes with it. For many small and mid-sized nonprofits, though, contingency search is the better fit.

Why Contingency Works Well for Smaller Organizations

What to Look For in a Contingency Recruiter

Not every contingency firm works the same way. Some cast a wide net and send a large stack of resumes, hoping one sticks. That approach can create more work for your team, not less. The questions worth asking:

A good contingency recruiter should present a short slate of carefully vetted candidates, not a pile of resumes.

Understand the Guarantee

Most reputable firms offer a replacement guarantee: if a placed candidate leaves or is let go within a set period, the firm will find a replacement at no additional charge. Ours is 90 days. Read the terms carefully, and make sure you understand what triggers the guarantee and how long it lasts.

The Bottom Line

For most small and mid-sized nonprofits, the real cost of a search isn't the recruiter's fee. It's the months a critical role sits empty, the burden that shifts to an already stretched Executive Director, and the expense of a hire that doesn't work out. A contingency model lets an organization get specialized help on the hires that matter most, without paying for a result it never receives.

Considering a search?
Greater Good Recruitment works exclusively on a contingency basis, and exclusively with nonprofits. There is no upfront cost and no fee unless we successfully place your candidate.
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