How to Pick a Profitable Niche for Your Nonprofit Consulting Business (Even When Everyone Says It Won't Pay)
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Why the "broke" sector everyone warned you about might be your biggest business opportunity
Everyone told Betty Xie the arts sector was broke.
She niched into it anyway - and built a thriving fractional fundraising business with a growing team, 5-7 retainer clients, and a business model that lets her team work from anywhere in the world.
If you're a nonprofit consultant terrified of picking the "wrong" niche, this is for you.
THE NICHE CHOICE THAT MAKES CONSULTANTS PANIC
Here's what I hear from consultants all the time:
"What if I pick a niche that doesn't have money?"
"Won't I lose opportunities by being too specific?"
"Everyone says arts organizations are broke—how can I possibly make a living there?"
Betty heard all of it. And she went all-in on arts organizations anyway.
Not because she ignored the warnings. Because she understood something most consultants miss about nonprofit consulting niches.
WHY THE "RISKY" NICHE ISN'T WHAT YOU THINK
THE REALITY CHECK: The sector everyone's scared to touch isn't automatically a bad business decision.
When Betty started Forward Avenue, her fractional fundraising firm, the arts niche actually chose her. Her network fell naturally into arts organizations. She'd worked in the sector. She understood the culture, the challenges, the language.
And here's what happened when she leaned into that specificity instead of running from it:
// She stood out immediately instead of blending into a sea of generic consultants
// Arts organizations saw themselves in her work and referred her to others in the sector
// She developed muscle memory for common challenges—like coaching clients through "you can't ask artists to give" mindset
// Her messaging became crisp because she knew exactly who she was talking to
The clarity didn't limit her. It liberated her.
Click on the image to hear Betty explain how choosing the right niche can help you stand out, attract the right clients, and build a profitable nonprofit consulting business - even in a sector others overlook.
THE TWO BIGGEST MYTHS ABOUT NICHING IN NONPROFIT CONSULTING
MYTH #1: PICKING A NICHE MEANS MISSING OUT ON OPPORTUNITIES
Betty was terrified of this too. Would people think she couldn't fundraise for other types of charities? Would she miss out on potential clients?
Turns out, the opposite happened.
When you niche down, you become the obvious choice for your ideal clients. You're not just another consultant—you're THE consultant who gets their world.
Betty's discovered something powerful: when you're clear about who you serve, people outside your niche still reach out if they like your approach.
MYTH #2: THE "BROKE" SECTOR CAN'T AFFORD YOU
This belief is code for "no one's figured out how to position themselves properly yet."
Arts organizations will absolutely pay for strategic fundraising support. Betty's team is proof.
The real issue? Most consultants don't know how to have the right conversations. They apologize for their rates. They buy into the scarcity story before the client even gets a chance to.
Betty coaches her clients out of scarcity mindset - including beliefs like "we're all competing for the same funding dollars" and "you can't ask artists to give." That mindset work? It's as valuable as the tactical fundraising strategy.
HOW TO KNOW IF YOUR NICHE WILL ACTUALLY PAY
Stop Googling "most profitable nonprofit niches" and ask yourself these questions instead:
// Do you have natural connections in this sector?
Betty's first clients came from her existing network in the arts. Your niche doesn't have to be where you spend your ENTIRE career, but it should be where you already have credibility and relationships.
// Can you anticipate the mindset challenges they'll face?
When Betty starts working with a new arts organization, she already knows they'll struggle with asking artists to give. She's built frameworks to address this. That's the power of repetition within a niche—you get good at solving the same problems efficiently.
// Does the sector resonate with your values and passions?
Betty's also a filmmaker. The arts sector isn't just her business niche; it's where her heart is. When you care about the work, that authenticity shows up in everything from your discovery calls to your proposals.
WHAT CHANGES WHEN YOU COMMIT TO YOUR NICHE
Betty went from "I'm never having a team" to strategically hiring one full-time senior consultant and two part-time contractors.
She's planning to grow from 5-7 fractional clients to 8-9 next year.
Her senior consultant is currently working from Brazil for a month and a half - because Betty's built systems and flexibility into her business from day one.
This didn't happen despite niching into the arts. It happened because of it.
THE REAL RISK ISN'T PICKING THE WRONG NICHE
The real risk is staying so general that nobody knows what you actually do.
When you're "a nonprofit consultant who helps all organizations with everything," you're asking potential clients to do the work of figuring out if you're the right fit.
When you're "a fractional fundraiser for arts organizations," the right clients see themselves immediately.
Clarity is kindness. It's also good business.
YOUR NEXT MOVE IF YOU'RE STUCK ON NICHE
Stop waiting for the "perfect" niche to announce itself. Start with where you already have traction:
// Look at your last 3-5 clients or where you were in-house. What do they have in common?
// Where does your network naturally cluster?
// What sector do you understand at a cellular level because you've lived in it?
// What kind of work lights you up instead of draining you?
Your niche doesn't have to be forever. But picking one, even imperfectly, will move your business forward faster than staying stuck in a generalist purgeholding pattern.
The sector everyone warned you about might be exactly where you build something incredible.
Ready to build a fractional consulting business that actually works?
// The Nonprofit Fractionals Operating System teaches you how to find the right clients, position yourself with clarity (including how to pick a niche that pays), and build six figures with just three organizations - without the burnout or bullshit. Join the waitlist here.
// In episode 19 of FRACTURE, Mandy Moody shared why she joined the OS thinking she'd get templates but got a whole business system instead - including how the community became her lifeline for making big decisions without second-guessing every move.
P.S. Want to hear the full conversation with Betty? Listen to the complete Fracture podcast episode where we dig into how she coaches clients through "you can't ask artists to give," the moment she knew it was time to hire, and how she's building flexibility into her business so her team can work from anywhere. Listen here
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