How to Create a Funding Rationale Tied to Impact
There are three ways to create a funding rationale – the three P’s. You can rationalize an ask around three things:
It would be more accurate to refer to this rationale as a ‘unit’ but then we would lose alliteration. You can do the math to figure out the cost to impact one student, one class, one session, one exhibit, one visitor, etc. This could be a total cost or a ‘gap cost’.
“Could you sponsor one classroom at $5,000? (or 5 classrooms at $25,000?)”
This could include seed funds to launch a program, sponsorship for a program or gap funding for a program. The cost of the program is set against the impact of the program – You’re selling the impact of the program.
“Could you underwrite the Literacy Program at $75,000 this year and next?”
Commonly used with the ‘campaign mindset.’ Cast your vision, attach a dollar amount, articulate a funding plan then ask someone to be a piece of the plan.
“Could we ask you to take the lead on this plan?” [Pointing to the top of the funding pyramid.]