Technology companies know how to raise money. Start-up non-profit organizations and social enterprise businesses should see their example as a potential way to raise funds. If you know anything about the technology industry, you know they are great at attracting investment capital.
So, the question for me is, do you have to rely only on old money-raising methods and models for your new social enterprise? Or can you think out of the box and learn how to raise capital, take your foot off the eternal philanthropic fundraising pedal, and then move on to focus on program goals?
When you want to fund your start-up social sector organization, you need to be clear about fundraising. The most successful tech companies, which raise millions of dollars from the start, are aiming for a specific amount of money. In addition, it is also clear to them what goals they are pursuing for that money.
This type of thinking is critical and it is a mental transition from traditional philanthropic fundraising. You see, most nonprofits see their fundraising as a constant element of their operations. It happens every day and at the same time they want to run their programs.
In the technology industry, the company will increase start-up capital and focus on getting the job done. They devote all their energy to achieving their goals and proving to their supporters that they have everything they need to make it happen. Then, after achieving those goals, they go to the next stage of fundraising.
Imagine being able to raise funds, raise capital and then put that job aside and focus only on the programs!
Investing in talent
Technology companies are not afraid to put money into talent. If you want to start a non-profit or start a social enterprise, you should not be afraid of this investment. Here’s the deal you want from the very best people on your team. To make you successful, you want to hire the absolute best program director. You want the best marketer to attract your brand en masse.
But you have to be willing to explain this to your funders. I’ve written more than once before about how nonprofits get from funders and pay their employees. This is because the social sector has done a terrible job of communicating and explaining why it makes sense to pay for top talent.
By investing in talent, you will get a team of professionals who will implement it. The goals you set for your investment will be achieved if you have the right talent on board to work with you. That requires competitive money.
Demonstration of effects
The days the funeral dedicated to his pet’s charity, with little hope of any results, have already passed as they should. Today’s financiers want to see results and impact. They want results. Technology and the low cost of acquiring data acquisition tools have forced more funders (even gift givers) to put their money where they see tangible results.
You have to get the data there. Everything in today’s world is measurable. Don’t think that’s not the case. Be prepared to provide your funders with the metrics and data they need to know that you’re lucky. When you go to the second or third round of fundraising for another goal or project, they will be more willing to support your vision.
Where to look for funding
Traditionally, nonprofits have sought to raise money from major donors, institutional donors, and government. Although crowdfunding has been around for a long time, technology has allowed the social sector to become more creative in raising funds.
Also, if you are thinking of raising funds for your start-up social enterprise, then you need to think differently about raising your funds.
- Angel Investors can support your first phase of financing your activities and programs.
- One institutional funder or several large donors can get an important part of your early goals.
- Risk philanthropists are looking for the most innovative and innovative organizations to fund.
- A founder with deep pockets can support you in whole or in part in fundraising. You can have an idea and a piece of software, and your founder can help fund it in the start-up phase.
Whatever you do if you want to start a new social enterprise or non-profit organization, think beyond the traditional fundraising plan as a way to succeed. I urge you to look at the technology industry as a model for getting the start-up capital you need to succeed.