How do you attract seed money for a nonprofit start-up that serves an extremely neglected, discriminated-against population, the seriously mentally ill? There is so much stigma directed towards this population and around the whole mental disorders subject generally. The purpose of this nonprofit, called No Health Without Mental Health, is to reduce stigma by public education and other communications strategies. A Stanford Medical School faculty member cofounded the project.
I can understand your excitement for NHMH. In time your work will help make mental health as well funded and respected as other types of health care. In the start-ups that I've been involved in, enthusiasm has been vital in transforming the organization from an idea to a funded organization fulfilling its mission. I'm currently involved in helping a for-profit company raise its seed funding, so I'm right in the middle of discussions about the mission, message, and fundraising strategy. In its most simple form, the challenge of seed funding involves two simultaneous efforts: finding the right donors and crafting the message and strategy that convert a potential donor into an enthusiastic supporter. With respect to finding the right donors, my experience has been that personal introductions and networking work best. I can nearly always get the meeting or phone appointment if someone provides an introduction. Perhaps some of your classmates from the GSB nonprofit program know someone to whom you should be speaking. Is there a GSB-related email distribution list where you could ask a question to find out who is funding mental health initiatives? I think that getting the message right is harder than it seems. I read that one veteran newspaper writer would spend 1 hour and 45 minutes writing and rewriting the headline for the story and only 15 minutes writing the story itself because if the headline was right, then everything else would be right as well. Perhaps you could borrow some ideas from the venture capital industry about how to pitch an idea. Here's a link to some suggestions for a venture capital pitch.
I have two last suggestions. If your meetings with prospective donors are leading to responses like "call me when you've made some more progress," then either the donor isn't the right one to fund seed stage initiatives or the message isn't yet compelling enough. You should also find out everything you can about the two or three organizations that are most similar to NHMH. You may find the names of potential donors you haven't yet approached, and you'll also get a better sense of the financial model for nonprofits. Such data may be helpful in convincing donors that your plans and forecasts are reasonable.
Comment
I agree with the comments provided but also stress the importance of demonstrating to potential donors that you have done your homework in terms of setting up your organisation.
Supporters need to feel confident that you have addressed the organisational framework and governance issues, as well as being clear about your mission and strategies. While things like policies and procedures may seem like a low priority right now, attention to such areas help to instill trust and confidence in your potential supporters.
Even more importantly - as I know from first-hand experience - when you do attract financial support you will be too busy getting on with the job to have time to deal with the back-room stuff. My NFP’s first contract was for more than a million dollars for direct-service provision and has since tripled. As a result we have spent the past three years trying to catch up and embed the things we really should have put in place before we started! The pressure and the risks can be worrying when you need to be very focused on your work.
I also suggest that your strategies for attracting funds might highlight what would happen if no action were taken to address the issues of serious mental health. As well as supporting those living with debilitating conditions, many funding bodies - especially governments and trusts - are concerned about impact. This can be both positive (eg. life and conditions improve for the individuals afflicted and their families) and negative (eg. increased burden on hospitals and health services). In my experience you need a specific tailored message for each audience you wish to target.
I wish you luck - you have entered a very difficult field.
JS
»» Posted by: Jan Samuels on April 10, 2008 01:48 PM