Online fundraising, a solution popular with individuals on numerous occasions to easily collect small amounts and larger sums.
For any association, fundraising represents a crucial issue regarding the sustainability of the structure and / or its ambition.
If you’ve never tried fundraising to raise money, the process may seem daunting or overwhelming, but if you follow these easy steps, you’ll have everything you need to start and succeed. Fundraising for you or loved ones.
1- Do not wait until you need money to start the process
Get out of your office and tell your story. You must first develop a relationship with the potential investor. Don’t wait until you need financing to knock on investors’ doors. They are much more interested in the potential of a person and that of the team than in the idea of the project.
The secret often lies in human contact. It’s not when you urgently need a cash injection that you need to make initial contact with investors.
It may be good practice, for example, to meet as many of them before the planned fundraising. “Introduce yourself as well as your business, talk about your business activities & returns to see them a few months later to explain the progress made”.
Start by defining your goal (for yourself and your potential donors). People are more likely to donate money to a clearly defined cause. If, for example, you collect money for a medical intervention, do not just indicate the total amount of the intervention; also specify the additional costs such as loss of income, rehabilitation, drugs, and medical devices.
2- Put yourself in the place of the potential investor
If a venture capital fund receives 100 applications a day – there are many new companies seeking funding – take it for granted that your application must stand out. The investor waits for the right opportunity to use his checkbook. He/she seeks to understand the potential of your proposal. It tries to identify the best time to invest in your start-up.
3- Be persistent and prevent blows
“Initially Google (the big business giant) was refused more than 125 times by potential investors,” Moral of the story? Be tenacious. Go see a hundred other investors, if necessary. Find the one who will trust you, the others will follow.
Evaluate the time it takes to reach your fundraising goal and set a deadline. This countdown creates a sense of urgency that makes donors more responsive. If your deadline is determined by an external factor (another person, entity, or event), make it clear to potential donors.
4- Do not take into account your current valuation
It can sometimes be difficult to give up part of your share capital in exchange for the expected funding. After all, a venture capital company invests to get a stake in the business. Some entrepreneurs thus tend to seek the largest possible home run: they seek the most generous financial valuation there is. “Perhaps it would be better to let go of a larger share of equity & become the next Google, than to keep 99% of the shares and not become the technological icon hoped for”.
Therefore, keep your focus rather on the potential of your activities and not on the expected valuation in the short term. In any case, and beyond the financial aspect, venture capital companies can make you benefit from their advice, their networks and their experience.
5- Tell your story
Your story should answer simple questions that readers may ask themselves: who, what, where, when, why and how. What will the funds be used for? What is your connection to the cause? How will the donations collected help you (or others)? Why is particularly important in fundraising (Why does the recipient need donations?
Once your story is written, try to find a good title for your fundraiser, which will capture or summarize the purpose of your fundraiser in one line or phrase that stands out. Just like a film or book title, the title of your fundraiser can attract the attention of supporters or make them flee (before they even become interested).
6- Ask friends and family to join your team
A little help from your friends can make your fundraising easier, funnier and more effective. Make a list of your friends who can help you based on their experience and their affinity with the beneficiaries. For example, an ecologically sensitive friend may want to help you raise money for an event related to a recycling operation. Or maybe someone who has lost a loved one with cancer could join you in raising money for a cancer walk. See if you can find three or five teammates, even if they don’t have much time for you. You can distribute the work (one can take care of the press releases, while the other can manage the acknowledgments).
7- Talk about it around you
Everyone will want to help you publicize your project, but it is important to prepare this step well in advance.
As soon as you put your fundraising online ask trusted relatives (friends and family) to give you their opinion on your page. Consider good suggestions for tweaking your story, improving your photos, etc. Then, solicit your extended network (yours and that of your teammates) to receive donations. Why do this? Because people who know you less well will be more likely to donate if they see that you have already received funds.
Once your own network has donated, share your fundraising massively with everyone (including local media). If you have created a Facebook page for your fundraiser, you can possibly pay to increase the visibility of your publication, if the cost is offset by the donations received. Also consider soliciting local businesses, perhaps asking one of them to host a fundraising event. The more visible it is, the more donations you will receive. Regularly remind people who have not yet donated and who are likely to make a donation.
8- Show your appreciation
Do not neglect or underestimate this step. When people give you fund, it’s not an end in itself, consider that they are just starting to take an interest in your cause. If you see it that way, thanks will be the beginning of a long-lasting relationship with them, a kind of open door to the rest of your story. Simple personalized thank-you letters are a simple way to show your appreciation and strengthen ties with them.
In addition, it may take a certain period of time before you have access to the funds in your corporate bank account. Arm yourself with patience: a round of funding cans last 6, 9 or 12 months.
Raising money is about asking for help, but when it is done well, it becomes more of an experience that transforms people who invest, rather than a cry for help. The beauty of fundraising lies in the union and mutual aid implemented to achieve a common goal. With this detailed method of collecting money and the resources we have provided, your business funds are on the right track. So launch your business today and grow that with the help of digital marketing.
Raunak is a Mechanical Engineer by qualification & Marketer by passion. He is the co-founder of Maiden Stride, a leading digital marketing agency that provides world-class search engine marketing services and website & application development.