Technology companies know how to raise money. Start-up nonprofits and social enterprise businesses should take their example as potential way to fundraise. If you know anything about the tech industry, you know they’re great at raising investment capital.
So, my question to you is, do you have to only rely on the old methods and models of raising money for your new social enterprise? Or, can you think out of the box and see how to raise capital, take your foot off the perpetual philanthropic fundraising pedal and then shift to focus on the programmatic goals?
When you’re looking to fund your start-up social sector organization, you have to be clear about a fundraising mindset. The most successful tech companies that raise millions of dollars from the outset seek a specific amount of money. In addition, they are also clear about the goals they’re looking to reach with that money.
Having this type of thinking is critically important and it’s a mental shift from the traditional philanthropic fundraising. You see, most nonprofit executives look at their fundraising as an ongoing piece of their operation. It happens every day and at the same time they’re looking to execute their programs.
In the tech industry a company will raise its initial capital and then focus on doing the work. They devote all of their energy to achieving the goals and proving to their supporters that they have what it takes to make it happen. Then, when they’ve achieved those goals they enter a next stage of fundraising.
Imagine being able to go through a fundraising drive, raise the capital and then put that work to the side and focus exclusively on the programs!
Investment in Talent
Technology companies are not afraid to put money into talent. If you’re looking to establish a non-profit or social enterprise start-up, you shouldn’t fear that investment. Here’s the deal, you want the very best people on your team. For you to succeed you want to hire the absolute best program director. You want the best marketing professional who’ll get your brand to the masses.
But with that, you have to be prepared to explain this to your funders. I’ve written a number of times in the past about the push back nonprofits get from funders and paying their staff. That’s because the social sector has done a terrible job of communicating and explaining why paying for top talent makes sense.