How to Get Funding for Your Organization
As expected, my workshop this month on funding got my biggest turnout. As promised, I’m going to share some of the resources from my workshop.
The Basics:
Getting funding means telling a story about who you and your organization are, what you’ve done, what you want to do, and how funding will get you there. Storytelling usually involves sharing numbers and financial statements with the funders.
The List:
During my workshop I provided a list of funding sources. It’s not perfect or complete, and often just links to other, longer lists. But here it is!
Notable Stuff You May Not Hear About Elsewhere:
There are soooooo many websites talking about funding, so I thought in my workshop, and here, I'd highlight some things that I rarely see elsewhere.
- Credit unions are often more helpful than other financial institutions for small business. They are often kind and supportive and don’t rush you out the door, and have small loans in mind for people just getting started. They are co-operatives, so when you do business with them, you become a voting member. Power to the people!
- Grants are only occasionally available if you’re for-profit. But if you’re looking for funding for a charity or nonprofit, the library can provide you with access to Grant Connect for free, and your heart will be full with all sorts of options
- Peer to peer lending online is just starting in Canada, but takes out the middleman for loans. It's regular people loaning to other regular people, looking for a small return on their investment. Canada’s first large and credible online platform is: www.lendingloop.ca
- Community bonds may be another way to fundraise if what you’re doing has an environmental or social focus
- Not everything needs money – think outside the box if you can barter goods and services with people in your life and other professionals.
- Social media for cooking?
- Reviewing business plans in exchange for language lessons?
- Babysitting in exchange for home office space?
- Character. While many loans and grants rely on your history in working with money, some look at your character. For example, Rise Asset Development provides low-interest loans for people who self-identify as having a history of mental health or addiction challenges. They loan don’t require you to have assets such as a car or house for security. They even have loans to help you attend expensive but important events for your business.
- Crowdfunding can work, especially if you need cash upfront, but requires a lot of hustle, strategy, bugging people, and rarely “goes viral” in the way people think it will
- Angel investors/venture capital seem cool because of shows like Shark Tank and Dragons Den, but they are rarely an appropriate funding stream for early stage businesses. There are lots of resources on getting these types of funders out there, but they are often only for businesses with very large growth targets. If that's you, put some time into researching it, but most small business people I speak with are just looking for a comfortable life for themselves and their families, and the route for that doesn't have to be these types of funders. If you are going that route, and are in a few fields like cleantech and fintech, then see if MaRS will take you on as a client! They have lots of free resources as well, from templates to contracts to pitch advice.
- Not all government websites are hard to navigate. There is an excellent portal to funding and other supports on Industry Canada’s website.
- Think long and hard if you are the right person/organization before applying for a certain type of funding. We have a huge list of tips and questions to ask yourself, and ways to prepare, on our financial literacy website.
Finally, what you’ll need for many sources of funding, especially loans:
- Business plan
- Often legal residency in Canada, or a partner who is a citizen
- Proof of what you’ve done so far (financials, etc)
- Cash flow and sales projections
- Sometimes audited financial statements
- Credit score (usually ~650 or higher)
- References
- Resume, team bios
- Suit up! Not all, but many sources of funding want you to look “professional” if you are going in person. That’s why I like applying for grants – I can do most of it in my pjs!
- Humility – if you haven't raised any money yet, most funders won't give you lots of funding until you've already raised a bit. It may make sense to start asking for smaller amounts and building up to the larger ones, and it may take many asks and applications. So be prepared and don't be discouraged, but be careful with your time.
If you don't get funding, make sure to ask for feedback so you have ideas for improving future applications. It's a marathon, not a sprint, so take care of yourself through this process 🙂
Books on Finding Funding, Grant Proposals and Business Plans
If you're looking for books on finding funding, of course the library has lots! Some titles a librarian found for us include:
Business Plans that Get Investment by David Bateman.
Funded: The Entrepreneur's Guide to Raising Your First Round by Katherine Hague.
Funded! Successful Grantwriting for Your Nonprofit by Richard Hoefer.
The Grant Writing and Funding Coach by Deborah Griffiths.
Your Guide to Preparing a Plan to Raise Money for Your Own Business by Iain Williamson.
Write Your Business Plan by Entrepreneur Media.
One thought on “How to Get Funding for Your Organization”
Wow! That is a wonderful blog. The entrepreneurs who attended your Funding! Funding! Funding! workshop will definitely appreciate this as well as all business-minded patrons too.