This is the 12th and final fundraising blog in a series aimed at helping musicians find the different paths towards achieving funding for their recordings. This is primarily to assist those involved in the Freedom Solutions Recording Plan or FSRP.

It takes a creative approach to fundraise money. Ask any professional fundraiser or non-profit organization. You have to have the drive, creativity and the ability to take a lot of no's before even a single yes.

There are a lot of other avenues to finding funding besides just going directly to individuals. This is key since most people will exhaust all options with the individuals they go to directly before they have achieved their full budget.

Visit the previous fundraising blogs that are posted each Wednesday for different ideas and approaches on how to obtain the capitol you need for your project.

The investors / loans for your project.

Sometimes, to fast track a project, the concept of loans or getting investors is a possibility and a way to get moving a little faster, but you have to be careful. Finding the right person to loan you money or invest in your project is important. If you just go out and try to get someone to loan you money without looking at the stipulations, it may get you into trouble.

The idea of getting a loan or investment for your project, while still being a donation of sorts, works by finding someone to give you a loan where you would only have to pay them back that amount over an extended period of time with little or no interest.

These investors/donors make a donation by giving you a loan for an extended period of time with out the normal stipulations of interest rates, percentages of profits, or for that matter, a piece of the pie. You still control the music, you still control your career and you still control your percentages.

Unfortunately, there are a great deal of scams and loans out there, especially for the arts and music, so you need to look at what you might get along with the cash. What kind of agreements are they asking for? Remember, it is the goal to look for funding that is either donated or lent in a way that allows the donor or investor no ownership of you or your music. If you get a loan that takes a high interest rate or where the lender becomes involved in sales percentages, publishing, or royalties, then you are basically going against the concept.

These kinds of loans and investments are best from people that you know or have a strong and direct contact or second contact to. They should be people that have faith and trust in you and would invest upon knowing they will receive a return. Asking for a donation with no or low interest, as well as an extended pay off time, is the best approach.

Fast tracking can help bring a project to fruition faster. Funding the studio elements as well as some of the promotional materials can give you the additional ammunition to go after donors to cover the remaining costs and pay back the investors. It is not about going into debt, it’s more about fast tracking the recording process to help things move quickly, while at the same time being able to have more in place for approaching the donors that you will be going after later on. It is important to not lose sight of the loans you receive and remember to keep the same push and attitude that you’ll need to raise the money you don’t have yet. Continue with that approach and you will succeed.

Most of the time though, I really recommend for you to stay with the fundraising and trying to not accrue debts that have high interest rates and small print attachments that will effect you later on.
Be smart, pay attention to the details and read the fine print and you will be fine with this method or any. The more you understand it, the better you’ll know how to approach it.

 

© Loren Weisman