‘Fundraising: Overcoming your fear of asking for money’
David Kirk is a former Rhodes scholar, All Black and Rugby World Cup winning captain and currently the co-founder and managing partner of Bailador, an ASX-listed investment fund. In addition, he is the chair of both the NZ Food Network and KiwiHarvest.
OPINION: Anyone who starts their own not-for-profit will need to overcome any reluctance to ask for money. The five sources of funding for social ventures are:
Donations from individuals large and small
Grants from private trusts and foundations
Grants from local and central government
Sponsorship by corporates
Sale of services or products associated with the work they do
Which source of funds it is most appropriate for your social venture to pursue will be determined by the specifics of your situation.
Most people don’t like asking other people for money but going in with the right mindset when raising money is very important. Here are some bullet points with some of the fears and concerns we all have and corresponding thoughts on what we need to tell ourselves to get into the right mindset.
Fear or concern:
My project isn’t worthy, other people probably deserve the money more than me
They probably won’t want to give; I’ll just be annoying them
I’ll be in their debt and that feels uncomfortable
The Truth: What to tell yourself
This is a great idea, I have stressed-tested it, the need is clear to see, and I know my work will address the need
For a project that resonates people do want to give. I am giving them an opportunity to do something they will feel good about
That’s ok. They will only give if they want to. I would be pleased to support an important cause for them if they asked me
The single best way to overcome these and other fears and concerns when asking for money is to have a clear and simple pitch prepared. The pitch can be as simple as a 30-second verbal explanation, or it can be a 30-page Powerpoint presentation.
First approaches should generally be simple, quick and verbal to gauge interest. Often, the aim is to set up a meeting.
Whatever the length or sophistication, the pitch needs to address the following points in order:
The problem
What your plans are to address the problem
What you need/are asking for from the potential donor
The benefit you will deliver with theirs and other donations
How you will measure success
How you will report on progress
Put even more simply the pitch goes: Problem – Plan – Ask – Outcome – Report.
Above all, you have to be organised, prepared, energetic and committed when asking for money. Potential donors need to believe you are going to be successful and people want to be associated with success.
Inevitably, because we are talking about start-ups, you will be starting small. The fund-raising goal you should have in mind should be the amount you need to run your social venture for long enough to achieve milestones that demonstrate you are achieving success and doing so efficiently and in a manner that is scalable.
As you get bigger you will need to transition from a group of small supporters to fewer larger supporters. This requires more professional presentations. You will also need to diversify sources of funding. At times a particular source of funding, say local business support, will be easier to get than at other times. Having a range of sources of funding is an important protection if you lose one source of funding.