Meeting with Boss--negotiation thoughts?? Consulting?

NicoleWI

Summary: I work in major gifts fundraising for a big non-profit. I have been here 12 years and clearly this is  very relationship-based/trust building field, so I have valuable contacts built over time. I went down to PT this summer as a public transition out, as I can't do PT permanently and don't want to continue FT. I will be leaving at EOY and my successor is someone I've worked with for several years. 

My boss wants to take me to lunch TODAY and I have a feeling it's to talk about options for after I leave. I wouldn't mind doing some consulting or project work from home for awhile to keep my foot in the door, but I don't want to over commit and I also have no clue about compensation. Does anyone out there have any clue what I would ask for compensation? If I would be doing consulting type work without benefits, is there any way to figure out a possible rate of pay using my current salary?? Is there any "rule of thumb" or anything out there? If this is indeed even what we discuss, I'm not going to commit to anything, but I have NO idea what I would even ask for. I might be like Dr. Evil asking for "one million dollars!" in Austin Powers when that's WAY too low.

SaraTF

I am currently consulting, and in general, a consultant gets paid more than a salaried employee. You'll have to pay your own taxes, which your employer usually contributes to, and you won't have benefits. You can calculate your current hourly rate by taking your salary and dividing by 52 weeks and then by 40 hours (or however many hours you currently work per week). This is probably a good starting point for negotiations. You might add on a bit for extra taxes you'll pay and the lack of benefits.

NicoleWI

Thank you! 

I didn't even think about taxes. How the heck does that work? Do they give me some kind of tax form or do I have to calculate something on my own??

SaraTF

They'll report your taxes to the IRS and give you a form at the end of the year. However, the IRS will want you to pay taxes (if you owe any) quarterly. It's not too difficult to estimate how much you'll owe.

*sparky*

You want to inflate your current hourly rate (calculated the way the PP suggested above if you are salaried) by at least 30% for a comparable pay rate. 

Pips09

A consultant is usually paid 25-30% more than an employee.That can give you an hourly rate to start at. You'll be responsible for paying your own taxes at the end of each year, so keep in mind you may want to save the extra to help pay for taxes.

NicoleWI

Update: Thank you! This is very helpful. We had a very general discussion and are going to talk more next week about options for me to maybe do some work for a couple days a week from home.