Dreaming of finding non profit angel investors to launch your charity organization this year, so you can make a difference in your community? While it is a noble cause, starting a non profit organization is a completely different ballgame than beginning a standard business venture. All non profits must fall under Section 501(c) of the IRS tax code, which outlines the general types of organizations eligible for tax exemption – some 25 different classifications of what a non profit is. The most important thing to note is that your non profit organization must meet tax exempt status before you can announce it as such, or you may face stiff tax penalties. You will also want to check with the US Government website for non profit grants, for initial funding sources.
Non Profit Angel Investors are Not Your Average Investors
When searching for angel investors to fund non profit organizations, it’s also important to understand that your focus will not be on general venture capitalists. Venture capitalists are mainly concerned with providing short term funding for start-ups that can prove a return on investment. On the other side of the investment world, are non profit angel investors who are primarily concerned with providing funding that can be exchanged for equity or ownership in a new start up organization. In many cases, angel investors who are involved in providing monetary support to non profits will be interested in becoming chair or committee members and have an indirect influence on the way this capital is spent.
While non profit angel investors are typically wealthy individuals or groups of people called philanthropists, they may also be every day average citizens who want to leave their money to a worthy cause. Some may choose to provide small funding early on, but over time become regular contributors to your non profit organization to help it grow. The key is developing a non profit business plan and conducting a non profit feasibility study that will attract the right angel investors to your doors. You do this by establishing a track record of success to impress others to want to get involved, then putting yourself in the right places where non profit angel investors are likely to be.
Finding Non Profit Angel Investors – How to Impress
Board of Directors – Your most likely source of initial non profit angel investors will be the folks that are actively involved in helping you launch your organization. These may be friends, family members, or others in your community who believe in your cause. Create a simple board of directors and ask each member to contribute a portion of the funds in advance, with a promise of additional funding generated from fundraising activities. Choose board members who are influential in the community and who have influential friends as a source of future funding.
Community Events – This is a great way to attract potential non profit angel investor to learn more about you, without having to go door to door. Have an open house informational day, hold a raffle, and get the word out to the community by advertising a few weeks in advance. Or participate in other large scale community events by sponsoring booths and banners. The more people hear about you, the more likely you are to attract non profit angel investors who will want to help you fund your cause. Even small donations can make an impact in helping you reach your goals.
Get Listed in Charity Directories – There are thousands of non profit angel investors searching for ways to help make life better for others. When they want to check out a non profit organization, these angel investors start looking on charity directories and rating sites like Charity Navigator and Just Give . Oftentimes, private citizens donate to charities in memory of a loved one, for special holidays or memorials. You can often receive funding through these sources, and develop a network of non profit angel investors through this method.
Tell Your Story – To impress non profit angel investors, you must have a real and compelling story for why you want to create this non profit organization. This is your testimony of why you believe in your cause, and it can help you to get in front of the right investors. Develop a blog or website where you post about the difference your organization is making. Get others to interview you for their publications by setting up a profile on Help a Reporter Out or by inviting the local television or radio news to come out to one of your fundraising events. This is what helps to put your non profit organization in the best light.
Over time, passion and perseverance, your non profit organization will begin to bring in the funding sources needed to address your causes in a real way. Take the time to develop relationships with non profit angel investors and community activists who can help pave the way to your success.
To learn more about getting angel investing, be sure to research the may topics found here at FindVenture.com today!
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