2(e) Funding

Figure 1. Many projects will need money and there are many sources to find it (CC0).

Once you have a budget and know how much money you need for a project, the next step is to get funding. Funding refers to the money you need to make your project run. This section will explore different sources of funding and provide advice about seeking funding.

There are many sources of funding for Youth Mayors’ projects and new social enterprises. With a little energy, you can get money for your idea!

However, not all funding sources are appropriate for every purpose. It is important to consider which sources are the most likely to give you money for the type of project you are running. For example, a commercial business is not likely to give you money unless there is a business purpose that they benefit from. However, there are major companies that have foundations that donate money to great projects like yours.

It is also important to understand the pros and cons of each type of funding so you don’t find yourself in a difficult position later. Some types of funding involve giving up some ownership of the project to investors. Others involve taking on debt that needs to be paid back. In both cases, you need to think carefully about control of your project and how much risk you want to take to make it happen.

It is common to divide sources of funding into internal sources of funding and external sources of funding. For the purpose of this Field Guide, we will consider school-based funding as an internal source. The types of funding are listed in Table 1 below. There is also a mind map of the different funding sources in the Tools section at the bottom of this page. This can help you brainstorm with a team which sources you want to try.

The list below is quite comprehensive to help you learn about all kinds of funding sources, especially if you have a project that is a social enterprise and think about scaling it larger. But not all of these sources will be suitable for small-scale student projects. Additionally, some sources carry less risk than others, some may be easier to obtain, and some enable you to maintain control over your project or social enterprise. Table 1 attempts to highlight these issues. Think carefully before choosing sources of funding about which are the most suitable.

Table 1. Sources of project funding and some considerations

Generally speaking, it is probably a good idea to look for internal sources of funding before turning to external sources. As you can see in Table 1, internal sources of funding tick more boxes than external. However, there are times when it makes sense to look outside your personal or school sources of funding, particularly when you are working on a project involving a wider community.

In all cases, it is important that there is a bank account where the funds can be transferred from the source and held onto as needed. A full accounting of the use of the funds needs to go in the budget as actual spending/costs so the person or group who gave you the money knows how the money was actually spent. It is extremely important that you provide a full accounting of where the money went, not only to avoid trouble with your funders, but also to establish trust and a positive relationship that could lead to more funding in the future.

1. Don’t be shy! Just ask - it costs you nothing!

2. Keep track of potential sources of funding, with the following information (see page 2 of the Funding tool below for a table):

   1. contact information

   2. status (like requested / rejected / accepted)

   3. specific requirements (like a form that needs to be completed), and

   4. deadline (if there is one)

3. Be prepared to present your project in front of the potential donor. Explain the need and the advantages of the project for your school, community and/or the environment.

4. Do not be frustrated if the potential donor isn’t interested in funding your project. Ask for feedback about why your project was turned down and what you can do differently the next time. Keep looking!

5. Funding can be a difficult business. Only 1 of 10 donation requests is successful. Don’t give up!
   

6. If you get money from a source, keep those who gave you money informed about the progress of your project. Invite them to see your work in action if possible, especially if you are holding an event or exhibition.

1. If you are not yet ready to explore funding for a particular project, it is still useful to see what might be out there in terms of suitable local sources. Do some searching on the internet to find foundations in your country or region that might fund projects like yours. If you like, you can start to add them to the Funding mind map in the Tools section below. You can also add other ideas according to the mind map.

2. If you are ready to explore funding for your project, use Table 1 and have a discussion with your team members and / or teacher about which sources of funding are most suited to your project. Brainstorm ideas for specific sources of funding in your area and start completing the information table in the Funding Sources tool to keep track of your engagement with the sources.

Don’t forget to document your work. For a reminder about documentation, see Module 1(e).

Ideas for documentation in this section include:

• Spreadsheet with your funding sources and status, using the Funding Sources tool

Images for examples in different contexts source information:

Samoilov, Yuri. “Coronavirus.” Flickr, Yahoo!, 20 Mar. 2020, https://tinyurl.com/ya2ngksd. CC BY 2.0

Webster, Tony. “Plastic Bottles - Waste.” Flickr, Yahoo!, 16 Sept. 2012, www.flickr.com/photos/87296837@N00/7992944072. CC BY 2.0

XoMEoX. “Tree.” Flickr, Yahoo!, 28 May 2017, https://tinyurl.com/y8bw46ns. CC BY 2.0