9 Untapped Money Sources You Didn’t Think Of (Plus an Insane Funding Roundup!)
Don't miss the poll at the end re: Hit SUBMIT Summer Grant Sprint!
The Funding Roundup (US Folks - a Bonanza!) is at the bottom of this newsletter.
Dear Impact Star,
Welcome back to Find Funding Faster! This week, we’re diving into 9 funding sources that can help drive your climate, regenerative, ocean, and circular economy projects forward. Consider each one, and pick at least two that you feel are intriguing enough to experiment with.
Sound like a plan? Let’s go!
If you’re a funder, share this with your portfolio especially if you know you can’t meet all their funding needs, and they need other sources of capital. Also, share it with those you cannot fund.
1. Mission-Related Investments (MRIs)
Mission-Related investments (MRIs) are a powerful tool used by foundations to invest in ventures that align with their core missions. Look for local, national, or regional foundations — in fact, a local foundation or Donor Advised Fund may be easier to get in touch with than a large national foundation. Invite them to invest in your venture.
For example, I know a foundation that will invest directly in food waste startups in the greater Chicagoland area, but they don’t advertise it on their website.
Unlike traditional grants, MRIs can provide both financial returns and mission alignment for funders so it’s an easier ask.
If you can’t directly offer a financial return, ask yourself if you can combine with another venture to offer this to a funder — the returns don’t have to be huge.
2. Program-Related Investments (PRIs)
PRIs are similar to MRIs but are taxed like grants, allowing foundations to make high-risk investments in organizations that may never be able to pay them back or give them a return on capital.
PRIs are particularly beneficial for early-stage, high-impact projects that are unsure if they have a viable idea, but don’t qualify for a foundation’s grant funding.
Note: Some foundations don’t like to do PRIs because the tax law around them is a bit vague and they don’t have legal counsel that can advise them on it. Others use it extensively.
Sometimes, they will prefer to give you a grant instead — but there will be a line in the contract that says, “If you turn this into a for-profit venture, the grant of $500,000 turns into a convertible note.” One of my nonprofit clients received this type of funding from a foundation in the climate space.
So don’t be tied to the PRI — just use it as one of many tools to discuss with foundations that are perfect funding partners for you.
3. Impact ESG Products
Impact investors look for Environmental, Social, and Governance (ESG) investments that will deliver a return but also achieve an impact goal. These funds often receive backing from foundations, pension funds, or high-net-worth individuals.
They aren’t typically investing in these products to get exponential returns, but to make sure their endowment is aligned with their values.
Struggling to raise money for a big idea whose time has come?
Consider packaging it in a way that appeals to impact investors.
A nonprofit, The Conservation Fund, successfully issued and closed $150 million in ten-year bonds to fund their working forests program. If that’s the kind of money you need to raise, these are the types of options you need to consider. For example, Farmland LP and Iroquois Valley REITs have appealed to these investors with their unique offers. I know at least two foundations that rushed to buy both Farmland LP and Iroquois Valley’s offerings when they first came out because they filled this unmet need.
Raising a small amount of money?
Consider how you can work with groups that raise these large sums of money.
4. High Net Worth Individuals
If you’re in a specific niche that appeals to specific audiences, I don’t know any other source than….High net worth individuals (HNWIs). They can quickly write checks for projects they believe in.
These individuals often have a passion for specific causes, making them ideal supporters if you can connect on a personal level.
Working on coral reefs? I would look for scuba diving HNWIs who love the ocean with a passion. I know several projects that would NEVER have seen the light of day without a handful of committed HNWIs opening their checkbooks.
If you’re wondering — how do I connect with such people? I don’t move in these circles, you are not alone. I would recommend you start sharing your thought leadership in a way that attracts them to you. Also, ask for introductions, and eventually, if you find a shared passion, you will get their attention.
For example, Anant Ambani, currently getting married in India (the wedding is estimated to cost a cool $600 million — Justin Bieber reportedly got paid $10 million to perform) Anant’s passion is wildlife, and he has an elephant conservation center in India. If you are the foremost expert on elephant conservation, you will ultimately get his attention because of your subject matter expertise.
The downside is with this strategy, there are rarely any instant wins — building your reputation and winning trust take time. If you’re already the foremost expert in your space, then the path is much easier. But I’ve seen this work multiple times, and have leveraged this so I know it works.
A single well-placed connection with an HNWI can change the trajectory of your project. These days, social media influencers can not just fund you but also mention you once in a video or profile your organization, and help you get your entire venture funded. It’s not just billionaires who fit into this category — so think out-of-the-box.
I’ve been watching a show on Netflix about selling real estate in NYC. Instagram influencers buying up $20 million penthouses is not something I was expecting to see, but it’s happening a lot. They are much easier to reach than billionaires, and because they tend to be younger, they are more engaged in environmental and climate issues.
5. Community
Don’t underestimate the power of your own network or the power of a tight-knit community funding something they believe strongly in.
This is the approach I just recommended to someone I consulted with this afternoon. It’s a lot of work to socialize an idea, listen to (sometimes brutal) feedback, co-create the next version, and then launch your campaign, but this is the most loyal and decentralized way to fund an important impact venture.
LinkedIn connections, newsletter subscribers, and even acquaintances can become unexpected backers. Just don’t be in a hurry.
I do have a blueprint on how to speed this process up, but it is not for everyone because talking to scores of people and distilling that feedback so you can bake it into a pitch that everyone loves and wants to support is quite a bit of work.
6. Grants & Prizes
Grants and prizes… they aren’t always easy to apply for, but when you win them, they can be quite transformative. In fact, this is the approach Takachar used with much success.
Sources like the SBIR program, the Inflation Reduction Act, XPRIZE, Gitcoin grants, and green procurement offer funding without requiring you to give up equity. But it is a lot of work to write grants, apply for prizes, and win contracts from governments and other institutions. The good thing is if you work this strategy, you get a lot of free publicity, and you meet all the right people.
There are a ton of these opportunities at the bottom of this email - don’t miss the Funding Roundup!
…But what if you don’t win?
You feel you wasted a lot of time. Mentally, prepare yourself for this, so the losses don’t hit you too hard. I always ask myself, if I lose, what’s a win I can take with me from this experience?
That way, there’s something positive beyond the YES / NO decision that I don’t control that’s driving me to apply.
Usually an easy win is, “If we don’t win this grant, we can recycle it to apply for another grant or funding opportunity… or approach another funder.”
Scale your time
You can also do the first one, then get help to write the remaining applications via a Virtual Assistant or an intern. I’ve seen several CEOs use this strategy with great success.
I’m noodling on the idea of hosting the Hit SUBMIT Summer Grant Sprint… It’s a group container focused on writing a grant and getting it to the finish line.
Fill out the POLL at the bottom of this email and let me know if you’re ready or if this sounds worse than a root canal.
I’ll only host it if I get more than 10 YES votes because it’s a lot of work… I want to be sure it’s what you NEED right now. Some of you may be off for the summer and prefer doing it later in the year.
If you need something totally different, that’s perfectly fine. Just let me know what you need to Find Funding Faster.
7. Revenue-Based Financing
Leverage grants or contracts to secure loans. There are groups that provide loans (at very high interest rates) against either grant funding or revenue you’ve won but not yet received.
Let me know if you want more information about this, and I’ll connect you to some providers of this type of capital. It is a loan, so you do need to pay it back — that is the downside.
Have you used revenue-based financing?
Drop me a line and let me know your experience.
8. Subcontracting
Working with those who already have funding is probably one of the least leveraged funding tools I’ve seen new impact innovators use.
Winning small contracts from known entities that are already funded by governments, corporations, or other groups is a great way to get started. For example, one of my clients is working with a major environmental nonprofit that has hundreds of millions in capital to deploy but lacks the expertise, staff, and skills to get it done.
Eventually, you can become a contractor to the government, instead of the sub-contractor. But there’s nothing wrong in starting small. The fact is no government entity will trust you without a track record. Sometimes you need to crawl before you walk, and walk before you run.
Collaborating Vs. Competing
I suggested this strategy to a client a few years ago, and her reaction was, “We’re better than (name of a large environmental nonprofit)." She didn’t want to collaborate with this larger nonprofit because she felt the entire $8 million federal government contract should go to her organization.
They didn’t receive any funding, and she no longer works there. But she’s not alone. It’s really hard to put your ego aside to do this, and sometimes, you don’t even agree with the larger entity’s approach.
9. Accelerators and Incubators
Support and funding rolled into one.
Accelerators and incubators may not only provide funding but also offer mentorship, resources, and a supportive community.
Of course, pick the right one for your needs. I’ve coached 10+ startups in the last few months through my work with accelerators. None of them paid me for my time. The accelerator picked up the tab. And yet, I see very few new innovators leverage this resource.
Joining the right accelerator can propel your startup from idea to execution and PAY for you to access the right mentors and advisors at the right time.
Action Item
My advice would be to pick just one funding strategy, and take one week to try it on for size. Even if it doesn’t fit, you’ll learn something.
Hopefully, you were able to shortlist at least two from the list above, so if the first one you try doesn’t work, you have another potential option.
I’m curious to know which one you picked and more importantly WHY.
If you’d like me to hold you accountable, reply to this email and share it with me.
Also, any questions you have, happy to help.
Did this email got your creatives juices flowing?
Warmest,
Neesha
VOTE!
I’m noodling on the idea of hosting the Hit SUBMIT Summer Grant Sprint… It’s a group container focused on writing a grant and getting it to the finish line.
Fill out the POLL below and let me know?
I’ll only host it if I get more than 10 YES votes because it’s a lot of work… and I want to be sure it’s what you NEED right now.
If you need something totally different, that’s fine too. Let me know!
FUNDING ROUNDUP (it’s insane this week!)
United States
The Bezos Earth Fund's $100 million Grand Challenge, aims to leverage modern AI to address climate change and nature loss. The first round focuses on sustainable proteins, power grid optimization, biodiversity conservation, and visionary wildcard solutions, with grants offered to U.S.-based 501(c)(3) entities and global academic institutions. July 30, 2024 Deadline for Phase 1 applications - Anyone planning to apply? «Perfect for the Hit Submit Summer Grant Sprint!
USDA Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs Phase I with anticipated funding of $13,000,000 for SBIR and $2,500,000 for STTR each year, awards range from $125,000 to $181,500. No letter of intent is required. Program areas include Forests and Related Resources, Plant Production and Protection (Biology and Engineering), Animal Production and Protection, Conservation of Natural Resources, Food Science and Nutrition, Rural and Community Development, Aquaculture, Biofuels and Bio-based Products, and Small and Mid-size Farms. Deadline: September 17, 2024. «Perfect for the Hit Submit Summer Grant Sprint!
NOAA’s Coastal Zone Management Habitat Protection and Restoration Competition, focused on coastal habitat restoration, planning, engineering, and land conservation projects: total funding of $44.6 million, offering awards ranging from $200,000 to $6 million. Eligible applicants include coastal state or territorial CZM Programs, NGOs, educational institutions, and government agencies. Letters of Intent by August 15, 2024, and full proposals due by January 9, 2025. «Perfect for the Hit Submit Summer Grant Sprint!
The National Science Foundation's "Paleo Perspectives on Present and Projected Climate" grants aim to fill climate behavior gaps using geological records. Open to various entities, the program supports interdisciplinary research with a total funding of $14 million and an award floor of $400,000. Applications close on October 21, 2024. «Perfect for the Hit Submit Summer Grant Sprint!
The National Science Foundation's "Organismal Response to Climate Change" grants focus on studying how organisms respond to global climate changes. The program, with an estimated funding of $10 million, encourages proposals integrating organismal mechanisms with eco-evolutionary approaches. Eligible applicants include non-profit organizations, institutions of higher education, and tribal nations. The deadline for applications is November 19, 2024.
The Environmental Protection Agency's "Environmental and Climate Justice Community Change Grants Program" is offering a substantial $2 billion in grants for community-driven projects addressing climate challenges and pollution reduction. The program aims to strengthen communities while implementing thoughtful solutions to environmental issues. There are two funding tracks: Track I for large transformational grants ranging from $10 million to $20 million and Track II for meaningful engagement grants from $1 million to $3 million. The application deadline is November 21, 2024.
The NSF's "FORECAST" program aims to develop innovative capacity at emerging research institutions by training students to address climate change challenges. It offers grants for rising seniors, master's degree students, and planning grants for institutions. The deadline for applications is January 29, 2025.
The US Department of Agriculture invites applications for Conservation Innovation Grants (CIG) in Vermont. Up to $1,000,000 is available for innovative conservation projects, with awards ranging from $10,000 to $200,000. Eligible applicants from various sectors are encouraged to apply by September 30, 2024 (I know two regenerative ag organizations that won CIG grants). «Perfect for the Hit Submit Summer Grant Sprint!
The Philippines USAID-Manila is offering a grant for the Biodiversity and Resilience Activity, focusing on conservation, climate adaptation, and mitigation. The grant is open to various entities, with a closing date for applications on August 16, 2024. The activity aims to work with national and sub-national levels to develop policies, capacity, and conservation actions, with an award ceiling of $46 million and a floor of $40 million. «Perfect for the Hit Submit Summer Grant Sprint!
The NSF's "Biodiversity on a Changing Planet" grant aims to study Earth's biodiversity decline due to environmental changes like climate change. They seek interdisciplinary proposals exploring functional biodiversity connections amidst shifting environmental conditions. The application deadline is September 5, 2024, with $14 million in funding for about 12 awards. Eligible applicants include U.S.-based non-profits, research labs, and higher education institutions. «Perfect for the Hit Submit Summer Grant Sprint!
The Bureau of Ocean Energy Management (BOEM) is offering a grant to collect Fisher’s Ecological Knowledge (FEK) for better understanding of fishing in the Gulf of Maine for offshore wind planning. Eligible applicants from Maine to Massachusetts can apply for funding between $350,000 to $400,000 by August 10, 2024. «Perfect for the Hit Submit Summer Grant Sprint!
The National Science Foundation is offering grants for oceanographic facilities and equipment support, primarily for U.S.-based institutions involved in research and education. Eligible applicants include nonprofits and higher education institutions. The grants cover procurement, conversion, upgrade, and operation of platforms in ocean, coastal, and Great Lakes areas. The deadline for applications is January 10, 2025.
The Department of Energy offers a research opportunity in Mixed Algae Conversion, with a focus on advancing clean energy goals and addressing the climate crisis. The deadline for applications has been extended to July 18, 2024, and the expected number of awards is 6. Eligible applicants include nonprofits, state and local governments, tribal organizations, educational institutions, and for-profit organizations. The funding, totaling $18.8 million, is for topics including seaweed conversion to low-carbon fuels and bio-products, as well as algal biomass conversion for low-carbon agricultural products.
The Department of Energy invites proposals for waste analysis and transportation strategies, with a deadline of August 14, 2024, and $17.5 million in funding. Eligible applicants include nonprofits, tribal governments, and others. The focus is on mitigating methane emissions and pollutants from organic waste, aiding communities in waste management, and reducing environmental impacts. «Perfect for the Hit Submit Summer Grant Sprint!
The Bureau of Land Management's Alaska Threatened and Endangered Species Program offers $146,000 for projects focusing on species conservation and habitat enhancement, with an award range of $5,000 to $140,000. Eligible applicants include various government entities, nonprofits, and tribal organizations, with applications due by August 19th, 2024. «Perfect for the Hit Submit Summer Grant Sprint!
Apply for the NSF's Pathways to Enable Open-Source Ecosystems grant to support the creation and management of new open-source ecosystems. With up to $1.5 million in funding, projects can focus on scoping, planning, or establishing sustainable open-source products. Applications for Phase I and Phase II proposals are due by September 5, 2024. This is a grant I’ve always wanted to win — but the organization I was helping decided not to go for it. The competition is stiff, and universities like Harvard are applying for the same grant… so if you think you can win, reply and let me know if I can help. «Perfect for the Hit SUBMIT Summer Grant Sprint!
Apply for the NSF's Design for Environmental Sustainability in Computing (DESC) grant to develop solutions addressing the environmental impacts of computing throughout its lifecycle. With up to $2 million in funding, the program seeks novel approaches that go beyond energy efficiency to improve sustainability metrics like GHG emissions, resource consumption, and system longevity. Applications for Type III projects are due by September 13, 2024. «Perfect for the Hit Submit Summer Grant Sprint!
National Science Foundation's SBIR/STTR programs offer non-dilutive funding for innovative, high-risk R&D projects with potential societal and economic impacts. Full proposals are due on September 18, 2024; November 06, 2024; March 05, 2025; July 02, 2025; and November 05, 2025. Applicants must receive an official invitation via the Project Pitch process before submitting full proposals. The maximum Phase I award is $305,000, and proposals must be submitted through Research.gov by 5:00 pm local time on the deadline dates. «Perfect for the Hit SUBMIT Summer Grant Sprint!
Important Reminder for Climate, Renewable Energy, and Carbon Removal Innovators:The DOE will host a webinar for its Fiscal Year 2025 Phase I SBIR/STTR topics the week of July 22, 2024. Key dates to remember: Letters of Intent are due by August 26, 2024, and full applications by October 8, 2024. Don't miss this opportunity to advance your projects — we will share as soon as the link is live. «Perfect for the Hit SUBMIT Summer Grant Sprint!
The 2024-2025 Environmental Protection Agency’s SBIR Solicitation is also open from June 26, 2024, to August 21, 2024 (Solicitation/BAA number: 68HERC24R0185). The EPA seeks proposals for novel environmental technologies in areas like clean and safe water, air quality and climate, homeland security, circular economy/sustainable materials, and safer chemicals. Proposals must be submitted through FedConnect. «Perfect for the Hit SUBMIT Summer Grant Sprint!
Global (Various Parts of the Word)
The Blue Action Fund is offering grants to NGOs for projects in the Eastern Tropical Pacific focusing on new or better-managed marine protected areas (MPAs) and enhancing coastal community livelihoods. The aim is to contribute to the UN Convention on Biological Diversity’s target of conserving at least 30% of marine and coastal areas by 2030. Applications close on August 15, 2024.
P4G partnerships typically receive grants averaging USD 350,000, implemented over 18-24 months. They fund projects that contribute to climate mitigation or adaptation in areas like climate-smart agriculture, renewable energy, and water resilience. Examples include Africa GreenCo, which reduces energy prices and expands renewable energy supply in southern Africa, and the Smallholder Solar Pump Alliance, which improves access to climate-smart irrigation in Ethiopia.
The NDN Collective's Community Action Fund provides urgent response grants averaging $15,000 (up to $40,000) for Indigenous-led efforts in the U.S., Mexico, Canada, Borikén/Puerto Rico, and U.S. territories. Grants support direct actions, climate disaster responses, and community organizing. Applications are open until October 31, 2024, or until funds are expended.
Watch out for next week’s issue — it will have many more funding opportunities to choose from. Need something specific? I’ll see if I can include something especially for you if you reply and let me know what you’re looking for.
Only Because The Lawyers Made Us:
Impact Stars and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
💌 Made with Love in Raleigh, NC for Systems Changers and Impact Innovators Everywhere. I only get to do what I do — because you do what you do. So THANK YOU.