At some point in your life, you’re going to have to ask for money. But whether you’re negotiating a raise or trying to raise capital for your business, the basic principles remain the same. Though asking for money can be a daunting task, taking the time to plan how you're going to do it can make all the difference.

But first, what if you don’t really need the extra help? 

Borrowing money might not actually be necessary 

You’re probably thinking your budget doesn’t stretch any further. But before asking a potential donor for a loan or a money, check your spending habits and look for costs you can cut back on. If you’re not pressed for time, consider saving a set amount each month, or look for ways to earn extra money.

Even if you do end up asking for financial help, you’ll have peace of mind knowing that you’ve looked at all the options. And, who knows, maybe you’ll realise you don’t even need as much money as you initially thought. 

The right way to ask..

Start by choosing the right moment and place so you can have a productive conversation in a setting with no immediate interruptions in sight. Once you’ve settled in, here are the top things to address when asking for financial help…

People give to vision, not need..

When asking for any assistance, especially when asking for money — you should never begin with an expression of desperation (unless you’re dealing with a natural disaster and true emergency).

Yes, you may urgently need the resources you seek because, without them, you may not be able to accomplish what you want. But the need doesn’t compel donors. Donors are inspired to give by the what and the why of the ask—especially the why.

“What are you trying to do?” and “Why is it important?” are the most important questions to answer. Being able to answer those two questions clearly and passionately, with evidentiary support, and your potential for success increases. Why? Because people want to support that which will be successful.

When broaching the subject, be prepared, honest and clear. Explain your why, your vision and bring in the number–crunching sheet you’ve worked out and any other documents you think are relevant. But above all, be open and let them know exactly what you need money for and why your current budget isn’t able to cope. This will help your donor understand your situation better and offer their best solution to your need.

How much money will you need 

Asking for money might get trickier if you’ve already asked them for help previously, but then realised later on it wasn’t enough. This is why it’s always a good idea not only to come up with an exact amount of money, but the right amount as well.

Don’t be tempted to ask for more than you need just to be on the safe side. Instead, mention that the amount you need is based on current circumstances, and ask whether you’ll be able to have another conversation if things change in the future. People will likely be flexible and even appreciate your forward thinking. 

So, how will you give it back 

If you’re asking for a loan, think of how you will be able to give it back. Consider repayment terms, including interest rate, as well as a timeline you’ll be comfortable with. Coming up with a repayment plan will often make the conversation with your potential smoother and they’ll be grateful you’re making life easy by suggesting a solution. 

Ps. Don’t forget to offer time to for things to be thought over — even if your donor is eager to help. If you’re asking for a substantial sum, seek expert advice through the process and offer that peace of mind for everyone involved. 

What happens if you’re not able to repay the loan, or meet the conditions.

Unexpected events do happen and circumstances can change. Be open with your donor and discuss what you should do if you find yourself unable to cope in the future. Remember your donor is there to help you, so have an honest conversation about the concerns you may have. It’s likely they’ll share the same ones, so addressing them out in the open, at the very beginning, sets the whole process of borrowing money up for success. 

—

For most of us anything we achieve boils down to the fact that we couldn’t have done any of it without someone else’s material contribution—primarily financial. Whether it was scholarships; programmatic and research support; a state-of-the-art building, equipment and supplies; or an opportunity to attend a conference, workshop or study abroad, if not for others’ selflessness, many of us could not and would not achieve and thrive.

So , considering how we ask for those resources—with respect, humility, gratitude and diligence—is vital to future prosperity.

RELATED ARTICLES