How Can You Start Raising Money as a Young Nonprofit?

It can feel completely overwhelming at first. You’ve set up your nonprofit, gotten your determination letter from the IRS and now it’s time to raise some money. You’re exhausted from all the paperwork and decision-making about your board, your mission, your website. 

And now you have to fundraise. 

Where do you start? Who do you ask? How much do you ask for? 

Does any of that matter? Won’t people just start donating as soon as you put up your site and put a donate button on it?

Yes, it matters.

And no, they won’t.  

Many nonprofit founders assume that they can start writing grants as soon as they are established and that it will be fairly simple to raise funds that way. That’s a myth. I would say that securing grants is probably one of the more difficult ways to raise money in the first two or three years of the life of your nonprofit. Not only are funders generally looking to fund organizations that have been in existence for at least three years or more, but they are also seeking out programs that have been tested and proven to be effective. It’s unusual to find a foundation that will fund a brand new project without proof of concept. 

So back to where we find the money. There really are no shortcuts. Your job in the early stages of fundraising is to build an audience, a following, a devoted fan base that believes in what you do. People fund what they believe in and what they see. If you have started a grass roots program and you have attracted some volunteers and a few committed board members, you are on your way to building the support base for your organization. Here are some tips to getting people involved, excited and ultimately supporting your work:

• Ask for money

I am always amazed to hear founders tell me that they don’t want to be too direct and come right out and ask for money. How on earth will people know you need funds if you don’t ask? People assume based on what they see and if they see that you are running a program and it is successful, they will assume that you have funding. It is up to you to tell them that you need funding in order to continue the work you are doing. 

• Be specific about how much money you need

There is a better chance of getting financial support if you explain how much money you need and what the budget or goal is. Your donors need to understand that their gift of x amount is going to have a certain impact. They also want to be part of something bigger than themselves and will often share information with their friends and colleagues. 

• Be diligent about thanking your donors

Not only should every donor be sent a thank you letter (regardless of donation amount), but I am a strong advocate for personal phone calls. Making calls to donors to thank them for their gift is a fun and rewarding exercise. You are no longer making an ask so the pressure is off, and you can simply have a relaxed conversation with your donor, getting to know them and understand what motivated them to support you. You also learn a great deal about what the public thinks of your work. 

So where can you start – today?

Your goal should be to build your email list. If you don’t have a list, you can’t solicit from anyone. And you want a list that is built organically – composed of people who are genuinely interested in your organization and the work you do. Getting them to sign up for something is the first step. Whether it’s a newsletter, a guide of some sort, or even a Substack blog – you should start creating content around the work you do. Telling stories of how people’s lives have been transformed or the painful journey your clients have been on is a way to raise awareness and also gain followers. Think about what is unique about what you do and your solutions. Tell that story. 

I mentioned volunteers earlier. They are also a great way to develop a following. Volunteers typically share experiences with friends and family, growing your network of supporters.

As you collect emails, figure out ways to bring people together in person or virtually either for a tour, a virtual open house or a friend raising event at someone’s home. Ask your church or Chamber of Commerce for an opportunity to speak about the organization. You will find that those who become your donors are interested in what you do, will come out for your activities, and will ask questions about the organization. Keep nurturing those relationships. 

Think about your financial needs and come up with a mini campaign to get your new followers to donate to. If you run a soup kitchen, for example, and you need a new walk-in fridge to store your freshly donated food, start a campaign for kitchen equipment. Or launch a campaign to feed 100 families in a 30-day period and raise the funds to do that. 

No matter how far along you are in the life cycle of your organization, there are some steps that you really can’t afford to skip. One of those is to build an organic following. Yes, it takes work and time. But if you don’t start planting those seeds now, you won’t have an audience to solicit for funding in 12 or 24 months. You might as well get started right away!