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Donations for Startup?

    • 2 posts
    May 9, 2011 5:34 AM EDT

    I feel like this is a touchy subject but is it unreasonable to ask for donations to get your business up and running? My goal is to save people money so I feel really weird about asking for money.

    1) I did apply this to kickstarter.com as a project to get the final site up per conversation with them. Then ended up declining it which is how I got to my current spot.

    2) Should I keep the donation button up on my temporary site and just take out a new credit card?

    3) Is there any way to sucsessfuly ask for donations with out sounding like a spammer?


    I'm sorry for sounding repetitive. Any ideas, advice or general help is much appreciated. :3

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    Please help get Artist Bidding up and running. www.ArtistBidding.com

    • 64 posts
    May 11, 2011 5:59 AM EDT

    There is nothing wrong with asking for donations - just make sure you treat them correctly with the IRS and your state's taxing authority.  Don't want to get in trouble there.

    Might be harder to sell it to potential donors - but do know that people like to give and help out.  Just appeal to that side of their personality.

    Ways to ask is just to ask.  If they say no - so what.  Some people will give just because you put them on the spot.  Think about all the pan handlers that merely stare at you - how many give them money (a lot).

    I say try it.  If it doesn't work - try something else.

    Best of Luck!

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    Business Money Today
    Small Business Loans & Start Up Loans

    • 926 posts
    May 11, 2011 6:56 AM EDT

    Phyr,

    There is nothing "wrong" about asking for donations.  As previously mentioned, unless you are a qualified recipient - the donations are income to you and not tax deductible to the giver.

    Choosing the right path (capital strategy) is the first key to success. Whether donations is a good (or best) strategy for you would depend upon a number of factors, starting with how much capital the business will need - now and in the future.

    If you want to discuss your specific situation, feel free to drop me a Pm or contact me directly.

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    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
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