9 Types of Funding Pitches

Nick Fellers — Wed, 04 Nov 2009 17:28:17 +0000

Made a reference list this AM of some of the framing devices or pitch types I/we often use to rationalize the ASK. In an abridged form:

• The Gap: Using a gap number to justify the ASK.

o Tuition: Tuition is $6K, cost per student is $8K. Gap is $2K. Could ask someone to underwrite THE GAP for five students.

o Project: Receive federal grants to the tune of $45K/year for $60K/year program. Ask someone to fund the gap for three years = $15K/year or $45K ASK.

• Leverage: We need to raise X to generate 10X.

Note: Yesterday I was on the phone with an organization that needs to raise $5M to generate $1Billion. To make my point. They need to raise $5M to generate $1,000,000,000,000.

• The Widget: Break down projects/programs/model into a cost per person or cost per unit. Package this as the ASK. Typically, I use the widget to create the simplest and strongest sell.

o “One kid for one year.”

o See also: See Chipotle vs. Max and Erma’s

• Funding the Prototype: This is a different way of funding your annual operating budget for a start-up. Communicate how your model works and what is needed to make the model happen… can then run a funding pyramid.

Example: This year we need $1.1M to build the prototype.

Going to need:

o 1 @ $200K
o 2 @ $100K
o 3 @ $75K
o 4 @ $50K
o 6 @ $25K
o Etc.

• Funding the Vision: Think of this as funding the model/prototype and future projects/priorities for the next 3-5 years. If you will, this is ‘the campaign pitch’ but with a more holistic view of ALL funding priorities. Within Funding the Vision:

o Leadership Commitments: Top tiered commitments that validate the funding plan.

o Momentum Commitments: TIMELY gifts. Could be Leadership or not… but means so much because of the timing. Provides a lot of leverage, energy, etc.

• TRANSFORMATION: Justifies all caps on that one. Sometimes it’s simply about a number that would completely TRANSFORM our organization, the investor, etc. This is a rationale that extends far beyond a ‘campaign lead’.

• Project Sponsorship: “Can you underwrite the medical program for three years @ $30K/year?”

Note: If it were me… get rid of the notion of asking people to fund ‘operating’ or ‘infrastructure’. Literally everything you do can be packaged as a project, priority or program.

• Angel Investment: “We’re going to need 10 investors at X to get this idea off the ground. We’re taking something of an angel-investment type-approach. Can you be one of these angels?” – Very much about timing, the level, the funder, etc.

• Strategic Partner: Often a corp or fdn that provides ongoing, high-level funding support on an ongoing basis. It’s a great relationship because you [the org] are a means of delivering on the funder’s priorities in the community or sector.

Obviously, you don’t need all of these. I’m hoping the brief descriptions can spark some answers to common questions like:

• “What do we ask for?”
• “How do we package our operating to justify a big ask?”
• “How do we rationalize the number?”

—————-Update Added Nov 9 ————-

I forgot one.

Protection: This is a rationale or way of asking someone to ‘protect’ and annual investment with a planned gift/legacy gift. More on that here.

You’re in Sales… Get Over It

Tom Suddes — Wed, 14 Mar 2007 14:50:41 +0000

Nick and I have been working with some really impactful organizations that, like many of you, came late to the idea that:

“God gives every bird food.
He just doesn’t throw it into the nest!”

At the moment we’re working with an Abbey in Northern California. Beatitude House in Youngstown. The International Baccalaureate Association in Geneva, Switzerland. Father Joe’s Villages in San Diego. American Numismatics Association. Junior Achievement. And many others.

We were with the American Lung Association’s National Development Conference last Thursday and 50 Christian Brothers’ schools on Friday. In two weeks I’m speaking with CEOs and Development Teams from all the YMCA’s in North America.

One part of our MESSAGE is always the same:

NOTHING HAPPENS UNLESS YOU’RE OUT SELLING…YOUR VISION. YOUR IMPACT. YOUR MESSAGE. YOUR IDEAS. YOUR RETURN ON INVESTMENT. Etc., etc., etc.

All of these organizations, and all of you, are deeply committed to your CAUSE and your ORGANIZATION.

Yet, none of you have been ‘TRAINED IN SALES’!

(You’re not alone. Even the Nation’s business schools provide no SALES TRAINING. Yet, in this ‘FOR PROFIT WORLD,’ SALES drives [almost] every company. Without it, all products and services remain ‘on the shelf.’)

I’ve spent my whole adult life in SALES, much of it selling ‘INTANGIBLES’ (large gifts/commitments for great causes and cases).

Nick and I are out ‘PRACTICING’ our craft/art every day.

Here are three really big things that may help you on your next VISIT/’SALES CALL’.

DISCOVERY
SHARE THE STORY –> PRESENT THE OPPORTUNITY
AUTHENTICITY

ACTION:

Write this on a little card.
Look at this every time you go to visit/meet with a Qualified Prospect or Potential Investor.

THE SHORTHAND.

DISCOVERY. Where’s the best place to find out ANYTHING you want to know about your INVESTOR/PROSPECT???FROM THEM!Remember: SELLING IS NOT TELLING!
ASK QUESTIONS. More importantly, LISTEN TO ANSWERS!

Here are three great questions to help you with your DISCOVERY.
- WHY are you engaged/involved with us?
- Which of these three things (buckets) is most important to you?
- Can you help us Fund this Vision?
SHARE THE STORY –> PRESENT THE OPPORTUNITY. SHARE THE STORY is exactly that. SHARE. THE. STORY.Everybody in the organization can share THEIR ‘story’.
You must also be able to capture the ‘STORY’ of your organization… your cause… your vision.

Then, PRESENT THE OPPORTUNITY This is NOT about ASKING PEOPLE FOR MONEY!!!
- It’s about PRESENTING THE OPPORTUNITY for them to make an IMPACT!
- To move from SUCCESS TO SIGNIFICANCE!
- To SAVE LIVES. To CHANGE LIVES. To CHANGE THE WORLD!
Special Note: Ask your Board Members or Volunteer Leaders whether they’d rather go out and ‘ASK THEIR FRIENDS FOR MONEY’ …or
SHARE THE STORY –> PRESENT THE OPPORTUNITY.
AUTHENTICITYFirst, this is about being YOURSELF! If you just started with the organization, say so; and, then explain why you made that decision. If you spent 10 or 15 years working with your organization, explain WHY you devoted that kind of commitment to this cause.Additionally, AUTHENTICITY is about total candor. Sometimes even BRUTUAL HONESTY. (“You’re one of our top investors. You helped us build this plan and we know you want to see it succeed. Can you take the LEAD?”) Nick had a great line last week that was about as AUTHENTIC as you can get. “I have one goal with you today: to have your jaw drop at the unbelievable impact that this organization is having on children. That’s it.”
CLOSE: For those of you out VISITING and PRESENTING… I hope you can use these simple but powerful reminders.

For the rest of you…

Get out of the office. (GO PRESENT OPPORTUNITIES.)
Stop doing research. (DO DISCOVERY… ON THE VISIT.)
Stop doing proposals and grant writing. (GO SHARE THE STORY AND PRESENT THE OPPORTUNITY.)

forimpact.org » presenting-the-opportunity

9 Types of Funding Pitches

You’re in Sales… Get Over It