Approaching the rich

Approaching successful entrepreneurs who want to, and can afford to, support the creative arts can be challenging for many small organisations (and larger ones too) who don’t have someone on their team with a fundraising background. As someone who supports a number of artistic projects, I know that approaching people can actually be a lot easier than you expect. There are no short cuts to conducting extensive research and writing tailored approaches, but here are some tips and tricks to broaden your pool of prospects and increase the number of positive responses.

You need to build long-term, mutually beneficial relationships with these people, so don’t treat potential donors as walking wallets

Make a list of who to approach

Organisations think this is the hard part of the process. But actually, it’s very easy. A survey by Ernst & Young and Fidelity Charitable found that companies led by entrepreneurs gave more than twice the percentage of their profits to charity than many of America’s largest companies. They also found that a massive nine in ten entrepreneurs said that they donated to charity. So, almost all self-made entrepreneurs are ideal targets and need to be on your list. Remember, entrepreneur-founders are people who have made their money bringing their own creative business ideas to market. That means the majority already understand the power of artistic creativity. It is creativity that made their businesses successful in the first place – so they understand the value and power of ideas. You should approach these people first. In my experience, entrepreneurs who have made their money in ‘disruptive’ industries such as technology, new media and the internet are particularly receptive.

You can find lists of successful entrepreneurs in magazines and on the web. Also keep your eye out for new disruptive start-ups in the Financial Times, Entrepreneur and Fortune as there is a constant stream of new web entrepreneurs who are prime donor targets.

Don’t filter your list by previous giving

If you do this you’ll be tempted to approach only the two or three people on the list who have a track record of donating to creative organisations. You must approach everyone on your list because there is always a first time to donate. As a fundraiser, your job is to tempt them to get involved for the first time by crafting a pitch that resonates with their experience and background.

Do your research properly

Now you have your list, you need to approach these people in the right way. Research is key. Before making contact, find out as much as you can about their background, achievements and personal interests. Build a comprehensive picture of who they are and what makes them tick. Read everything they have written. Use their products. Understand their companies. This will take a lot of time, maybe even a whole day per possible donor. When doing the research, ask yourself how this person’s skills and experiences overlap with the project you are raising money for. These are the questions that will help you successfully raise money.

Remember that you’re trying to build relationships

You should never expect a potential donor to write a cheque and move on. You need to build long-term, mutually beneficial relationships with these people, so don’t treat potential donors as walking wallets. Instead, treat them as collaborators who will also want to guide and shape the creative project. This is exactly what a recent report from Arts and Business Scotland found: “Donors [now] seek to become more actively engaged with the charities they support.”

Ask for their expertise and guidance first

Often entrepreneurs want to support the arts because they love art – at least on some level. That is why your initial approach should always contain an explicit request for the individual’s expertise and guidance. So, if you’re raising money for a theatre production, you might approach a successful tech entrepreneur asking how to incorporate new technical effects in the show or how to make it interactive and immersive. Ask them first for their expertise, lay down the foundations of a long-term collaboration, and financial support will usually follow. It is also true that this expertise is usually worth a lot more than any single cash donation.

Be open to new ideas and ways of thinking

This is radically different to how some fundraisers approach potential donors at the moment. In fact, many in the arts do not like this type of approach. They are protective about their artistic vision and feel that giving their donors a say in the process will undermine it. I understand that but I do not think that is the case at all. In fact, opening your concept to as many different viewpoints as possible is a certain way to strengthen your initial vision. Business people have a keen eye for what will catch the public imagination. They usually know what the public wants and, in this sense, their advice can be invaluable. Access to efficient and tightly controlled marketing departments would be a step towards drawing new long-term audiences.

To be successful, the artistic community must strive to draw on the knowledge of those in other fields rather than simply on their cheque book. They must abide by Shakespeare’s warning: “Never a lender nor a borrower be.”

Mahdi Yahya is an artist, investor and entrepreneur.
www.mahdiyahya.com