Getting people to give you money is one of the hardest things on the planet. Ask anyone to give you clothing, food, time, a couch to sleep on, or their car for the day and you will likely be more successful than if you ask for money. Don’t be mistaken, it’s not about the value of the money. Frankly, time is our most precious resource. Yet, people seem very willing to offer their time. The scarcity of the resource doesn’t seem to matter.
Cash money has a universally defined value. One US dollar equals 0.76 Euro, 54.56 Rupees, and 6.38 Kronor. Across the planet, we can all agree how much our currency is worth in relation to other currency.
Applying cash value to the value of goods can get a little tricky. A watch is not always $50. You can pick one up for $14.99 at Target. Or you can get a real deal–save $43,355 on a blinged out Rolex on sale for $439,995.
Reputation for Excellence
What’s the value in the Rolex Oyster Perpetual GMT-Master II Ice timepiece versus the Merona round face watch with changeable strap? I’m going to venture a guess that it isn’t the sense of peace you feel when you walk onto a crowded subway wearing it.
It also isn’t really about the way the watch looks. I have an expensive watch that was given to me as a gift. It was a hand-me-down from someone who can afford the luxury of an expensive watch, two actually, since I gained ownership of this one when they bought a new fancier version. I’m not known for my lavish income and I’m guessing that people have no idea that it’s expensive. To that point, the Rolex serves to reinforce a person’s brand, not create it. A poor man wearing a Rolex looks like a poor man with a knockoff. However, for the right man, the Rolex Oyster will serve to reinforce the idea that he is doing very well indeed.
This brings me to my first point about fundraising. Rolex has developed a reputation for excellence. The value of a Rolex is higher than that of Merona which has a reputation for affordability. Those who shop for Rolex don’t question whether the particular watch is worth the price tag (of course it isn’t). They are paying for an item that will support their personal brand.
Whenever you are fundraising, you have to have the reputation for excellence so that the person giving you money will feel as though you are supporting their personal (or business) brand.
Make True Friends
Sometimes you will get very lucky and a random person holding cash will knock on your door to tell you that they want to give you the money. Ok, you’re right. That never happens.
You must create a relationship with a person (or institution) before you can ever hope to get money out of them. Apply this in your head, right now across all the situations where people exchange money.
- Customers want to know the business and product will be around for a while and that they can depend on it.
- Donors want to be (or feel) involved with the mission and activities of the organization.
- Investors want their money back in 5-7 years, and they want to have a successful portfolio to chat about at cocktail parties.
Think about it on a personal level. How often do you buy a brand you’ve never seen or heard of before? How many charity causes have you given money to? Let me guess, someone you knew was running a race or otherwise raising money for the charity and you gave to support Breast Cancer research, but deep in your heart, you gave because you wanted to see your friend happy.
Investors give money to the people they like. They have to qualify their investments by calculating whether the investment has the possibility of making them a lot of money. But it’s not the future trips to Tahiti that make them sign the check. It’s the knowledge that they get to be involved in the company as it grows, if only to drop knowing comments about the company’s burgeoning success to their friends.
You can get a lot closer to your fundraising goals by developing real relationships with the people who can help you access capital. I’m not talking about the, “let’s do lunch” schmoozing stuff here. I’m talking about remembering birthdays, being genuinely curious about how someone’s child did in their big soccer game, and really enjoying the person for reasons that have nothing to do with money.
Learn to accept failure
Failure is almost as complicated as money. When you fail, you feel way more miserable than the failure should actually feel. A failed marriage can bring an otherwise successful person to disability and depression for a year or more before they buck up and move on. Getting fired, losing a big account, having a stock portfolio crash, all these things make people feel worse than the failure actually requires. In short, we are very bad at getting over it.
When you ask someone for money and they say no, you might feel terrible. You stuck your neck out and got rejected. You might even feel like cutting ties with them. They clearly aren’t supportive. Right? To be clear, a no is not a rejection. It’s not a failure, it’s an open ended sentence…. It’s a relationship that you need to build before you can get to the possibility of a yes.
I guarantee if you try to raise money for anything, you will hear more nos than yeses. Accepting that as a part of the process will make fundraising much easier.