Getting to Your First Million: 3 Fundraising Fails to Avoid
There’s a famous fundraising adage, “You need $1 million to raise $1 million.” Before a fundraiser can secure the coveted seven-figure gift, a nonprofit needs $1 million in annual revenue. Funders and donors require this revenue level because it’s a proxy indicator of the organization’s stability. If an organization can raise $1 million, it likely has financial systems and staffing structure in place to absorb a seven-figure grant. Now, that’s well and good if you are running an established organization, but for startups, it can feel impossible to leapfrog the million dollar hurdle.
For women founders in particular, getting to the first million is essential. Through aggregate data collected from Fast Forward’s Tech Nonprofit Directory, we discovered that when women founders cross the $1-million rubicon they raise in near parity with male founders. Thirty-nine percent of tech nonprofits led by white men reach budgets over $1 million, while 35 percent of tech nonprofits led by female founders reach budgets over $1 million.