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How to Fund Your Cause in 5 Ways

It is difficult to know how and where to get the money to make that difference

1

Starting a business or funding a change is a challenge. You have to worry about space, staff, merchandise, and several other concerns. But perhaps the biggest challenge is finding the money to get started. Everything, from renting space to acquiring supplies, requires money. Unless you’re wealthy or have a nest egg stashed away, you’ll need a way to raise the money. The good news is that you have several options.

 

1. Save the Money. How soon are you planning to start your business?

If it’s more than a year in the future, then you can start a savings account. Perhaps you’re only considering starting a business. Or maybe you’re still in the stages of deciding exactly what you want to do. That gives you some time to build a little nest egg for business purposes. Instead of eating out, save that money by preparing your meals at home. Instead of purchasing that new Lexus you’ve been eyeing, why not get an affordable used Lexus instead? Once you put your mind to it, you’ll find all sorts of ways to save money.

 

2. Turn to Crowdfunding

Crowdfunding is one of the most popular ways to raise money. There are several reputable crowdfunding sites popular with investors and the general public. The way it works is you post a project for which you’d like funding. It helps if your project serves the public in some way or provides some sort of perk for investors. If people think your project is worthy, then you’re likely to attract investors.

 

Each crowdfunding site has its own personality. You’ll want to research the sites to see which one best matches your project. Some of the sites only let you access the funds if your goal is reached. So if you get a goal of $5000, but only raise $4000 by the deadline, you won’t get any of the funds. But some sites let you keep whatever you raise, even if it’s below your target amount.

 

3. Find Personal Investors.

These investors are generally known as “angel investors.” They seek out ideas and businesses in which to invest. These investors have the money, you just need to convince them your business is a wise investment. In most cases, an angel investor will expect a share of the company in return for their investment. Just keep in mind that the investors and all transactions require registration with the Securities and Exchange Commission (SEC).

 

4. Apply for a Small Business Administration (SBA) Loan.

The SBA is a government agency that works with lenders to issue loans to small business owners. The goal is to help US residents build strong small businesses that stimulate the economy and provide jobs. The SBA doesn’t lend the money directly to the business owner. But it makes guidelines for lenders, micro-lending institutions, and other organizations that actually provide the loans.

 

5. Apply for a Microloan.

A microloan is usually for people wanting to start a non-profit organization. And it’s usually for people who can’t qualify for a traditional bank loan. Microloans are small and possibly a good option if you need less than $50,000 to get started.

 

Investigate Your Options

Take your time when deciding which funding sources to pursue. You need to fully understand what’s involved, what’s expected in return, and any other conditions attached to the money. Research online. Speak with other small business owners, and learn all you can about various lending sources. You’ll also need a business plan or financial forecast to show potential investors. They need to know that you’re serious about your business and know exactly how to use the money.

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Page last edited Nov 08, 2018 History

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