วันเสาร์ที่ 22 พฤษภาคม พ.ศ. 2553
วันศุกร์ที่ 7 พฤษภาคม พ.ศ. 2553
Understanding Private Investment in Private Equity
Most people are afraid of knowing more and learning more about some of the common banking and investment terms used. They leave them to banking experts, but this should not be the case, for some basic knowledge of the banking sector can help a great deal. It makes one understand what takes place, and how one can benefit from it.
A private investment in private equity is also known as a PIPE. This is where by there is a financial l agreement in which a certain company issues public securities privately to an investor at a lower market value. This is done with intent to help the company raise extra capital. PIPE deals are arranged between the investor buying, and the issuer, which is the company. Although this is done privately, the company's securities are traded publicly. These securities may include stock, or any other equity. A PIPE arrangement may also see the company selling not only the public stock, but also trade convertible debt like the company's bonds. In instances where the preferred stock is traded, this is known as traditional private investment in public equity deals. On the other hand, where bonds and other convertible debts are sold, this is known as structured private investment in public equity deals.
A PIPE deal can also take place when a private company merges with a public company in a process called alternative public offering. This means that the public company will sell its stock to the private company at rates that are discounted. By so doing, the private company is saved the time consuming work involved in registering for IPOs. PIPE deals can help companies that are facing difficulties in finding new financing. These deals are in fact more ideal for smaller companies which may find it harder to secure new capital.
A private investment in private equity is also known as a PIPE. This is where by there is a financial l agreement in which a certain company issues public securities privately to an investor at a lower market value. This is done with intent to help the company raise extra capital. PIPE deals are arranged between the investor buying, and the issuer, which is the company. Although this is done privately, the company's securities are traded publicly. These securities may include stock, or any other equity. A PIPE arrangement may also see the company selling not only the public stock, but also trade convertible debt like the company's bonds. In instances where the preferred stock is traded, this is known as traditional private investment in public equity deals. On the other hand, where bonds and other convertible debts are sold, this is known as structured private investment in public equity deals.
A PIPE deal can also take place when a private company merges with a public company in a process called alternative public offering. This means that the public company will sell its stock to the private company at rates that are discounted. By so doing, the private company is saved the time consuming work involved in registering for IPOs. PIPE deals can help companies that are facing difficulties in finding new financing. These deals are in fact more ideal for smaller companies which may find it harder to secure new capital.
วันพุธที่ 5 พฤษภาคม พ.ศ. 2553
Understanding What Deflation Means
Though most people don't like to hear the term deflation because they understand that it affects them negatively, it is an issue that cannot be pushed aside easily nor can people persist in ignoring it. This fact is understood more so by the banking system because it greatly affects the way the run things. Deflation is simply the opposite of inflation and it refers to a time when prices are on a decline. When this occurs, it means that though money still has it's value, prices of commodities in the market are on a decline. In most cases, this is caused by four major factors. These include; there is no enough money in the market, the goods are in high demand, the market needs more money and the demand for goods is shooting up.
When this occurs, most people think that the best solution is to have more money injected into the economy, however this should not necessarily be the case. Professional economists argue that deflation is caused by various factors which could be affecting the economy at that particular moment and the state does not have to be negative because deflation can work on two weighing scales, one, there is the good deflation and the bad deflation and it is up to them to analyze which one the economy is going through before making any change. On the one hand, bad deflation is caused by a decline in supply of money while good deflation is caused by an increase in the supply of goods.
As such by pointing these factors out, it becomes easier for the banking system to identify what measure need to be put into place in order to reverse the situation. By creating a balance, it might be possible to revert deflation and get rid of this issue that has been dogging the economy since 2001 and which currently, is proving to be a real problem.
When this occurs, most people think that the best solution is to have more money injected into the economy, however this should not necessarily be the case. Professional economists argue that deflation is caused by various factors which could be affecting the economy at that particular moment and the state does not have to be negative because deflation can work on two weighing scales, one, there is the good deflation and the bad deflation and it is up to them to analyze which one the economy is going through before making any change. On the one hand, bad deflation is caused by a decline in supply of money while good deflation is caused by an increase in the supply of goods.
As such by pointing these factors out, it becomes easier for the banking system to identify what measure need to be put into place in order to reverse the situation. By creating a balance, it might be possible to revert deflation and get rid of this issue that has been dogging the economy since 2001 and which currently, is proving to be a real problem.
วันจันทร์ที่ 3 พฤษภาคม พ.ศ. 2553
Finding Foundation Support For Non-Profits
U.S. foundation and institutional giving represent approximately 15 to 20 percent of total giving to charitable organizations (source: GivingUSA Foundation). While the majority of charitable giving comes from individuals-approximately 80% if you include bequest gifts-a significant amount of money can be raised for your organization through foundation support. Here are some strategies to help you in your search:
1. Know Where to Look
2. Research Prospects Thoroughly
3. Stick to your Mission and Prioritize
4. Follow the Guidelines
5. Cultivate the Relationship
Know Where to Look
If you are new to the whole process of finding foundation support, you are not alone! Organizations such as the Foundation Center and the Chronicle of Philanthropy have a ton of resources to point your in the right direction. The Foundation Center hosts an online directory of the nation's top foundations with a user friendly search engine to search for the right prospects by geographic location and field of interest; they also provide a free training on how to use the database.
Additionally, look at the Annual Reports of organizations that do similar work to you; many post an electronic version on their websites where they often list foundation giving. This can be a tremendous resource for finding institutions that have a proven alignment with your work. Use these resources and make a list of potential prospects to research.
Research Prospects Thoroughly
I recently went through a list of 150+ foundations and institutions that I compiled from various referrals. While the task was somewhat daunting, I learned some valuable lessons; research your prospects thoroughly and take notes! Simply putting a "no" next to a name is not enough. Take the time to add a few more details such as "This foundation only serves California and Washington...we only work in Texas." For the ones that might be a fit to your project or mission, put together a prospect worksheet for each foundation that answers questions such as the funder's giving capacity, top priority areas, and deadlines. (We'll come back to these worksheets later!) When you are done with your list document the ones that are a definite no fit-while this list may seem useless to you now, it is important research for your organization. Six months down the road when an eager board member suggests the No Fit Foundation, you can reference your list and save yourself 5-10 minutes of duplicate research.
Stick to your Mission & Prioritize
Take one more detailed look at your prospect worksheets. It's important at this stage to be strict and stick to your mission. If the foundation is clear about their priority areas don't waste valuable time and organization resources trying to make your project seem to fit. Your project is worth funding, but that doesn't mean everyone wants to fund it. Spend your time on the right prospects!
Next, prioritizing your prospects is key. First, look to see which foundations on your worksheets have deadlines that are quickly approaching. Of these, which should you move forward on? How much potential funding is available and which has the best match with your project? Next, look for the Great Fit Foundation that doesn't have a set deadline. Put this lead as one of your top priorities and set yourself a deadline for your submission. Finally, schedule the remaining leads on your fund-raising calendar. If a prospect has a deadline in 11 months, schedule a reminder on your calendar for 8-9 months so you have time to meet with program staff and get in touch with the foundation contact.
Follow the Guidelines
This is the golden rule of foundation fund-raising! Know your funder's guidelines inside and out. You are about to ask them for a significant contribution to your organization so make it as easy as possible for the person(s) who will be charged with reviewing your submission. If they set a page limit, don't go over it; if they ask for questions to be answered in a particular order, don't cut and paste a proposal from another foundation application just because it got funded. Stick to the guidelines!
Now, what if you find a Great Fit Foundation but it says they don't accept unsolicited proposals? Don't give up. Many foundations say this, but will still often accept a Letter of Inquiry (LOI). This is often a 1-3 page document where you can send an introduction to the foundation describing your project and how it aligns with their mission. Use the foundation's own guidelines as a model for how to frame your letter. You have only a couple of pages to make your case, so be clear, concise, and compelling.
Cultivate the Relationship
Cultivating foundations is just as important as cultivating individual donors. While foundations do fall under "institutional" giving, they are still run by people and ultimately it is people-the grants manager or executive director-who are making the decision to fund your project. Building a relationship with the contact person at the foundation is absolutely vital. If it's a larger organization, perhaps look for a program assistant or officer. These people are often the gatekeepers, so making a personal connection by phone will help you track down the right person. When you've found that person, ask for just 5-10 minutes of their time to discuss the foundation and its potential fit with your program. Many foundation staff are happy to speak with you-they would much rather spend 5 minutes on the phone determining that you maybe aren't the right fit, rather than spending hours reviewing your proposal! Not to mention, wouldn't you?
Cold calling a foundation can be scary, but with just a few minutes of preparation, you'll hang up the phone feeling empowered. Write down some key words from the foundation's website, as well as from your own program materials that align with those priorities. Finally, jot down a few questions that you can ask directly. e.g. "Your website indicates that you give grants ranging from $10,000 to $200,000; does that range apply to first time applicants?" Sometimes foundations don't give more than $25,000 to a first time applicant; knowing this ahead of time can save you from getting rejected for asking for too much.
1. Know Where to Look
2. Research Prospects Thoroughly
3. Stick to your Mission and Prioritize
4. Follow the Guidelines
5. Cultivate the Relationship
Know Where to Look
If you are new to the whole process of finding foundation support, you are not alone! Organizations such as the Foundation Center and the Chronicle of Philanthropy have a ton of resources to point your in the right direction. The Foundation Center hosts an online directory of the nation's top foundations with a user friendly search engine to search for the right prospects by geographic location and field of interest; they also provide a free training on how to use the database.
Additionally, look at the Annual Reports of organizations that do similar work to you; many post an electronic version on their websites where they often list foundation giving. This can be a tremendous resource for finding institutions that have a proven alignment with your work. Use these resources and make a list of potential prospects to research.
Research Prospects Thoroughly
I recently went through a list of 150+ foundations and institutions that I compiled from various referrals. While the task was somewhat daunting, I learned some valuable lessons; research your prospects thoroughly and take notes! Simply putting a "no" next to a name is not enough. Take the time to add a few more details such as "This foundation only serves California and Washington...we only work in Texas." For the ones that might be a fit to your project or mission, put together a prospect worksheet for each foundation that answers questions such as the funder's giving capacity, top priority areas, and deadlines. (We'll come back to these worksheets later!) When you are done with your list document the ones that are a definite no fit-while this list may seem useless to you now, it is important research for your organization. Six months down the road when an eager board member suggests the No Fit Foundation, you can reference your list and save yourself 5-10 minutes of duplicate research.
Stick to your Mission & Prioritize
Take one more detailed look at your prospect worksheets. It's important at this stage to be strict and stick to your mission. If the foundation is clear about their priority areas don't waste valuable time and organization resources trying to make your project seem to fit. Your project is worth funding, but that doesn't mean everyone wants to fund it. Spend your time on the right prospects!
Next, prioritizing your prospects is key. First, look to see which foundations on your worksheets have deadlines that are quickly approaching. Of these, which should you move forward on? How much potential funding is available and which has the best match with your project? Next, look for the Great Fit Foundation that doesn't have a set deadline. Put this lead as one of your top priorities and set yourself a deadline for your submission. Finally, schedule the remaining leads on your fund-raising calendar. If a prospect has a deadline in 11 months, schedule a reminder on your calendar for 8-9 months so you have time to meet with program staff and get in touch with the foundation contact.
Follow the Guidelines
This is the golden rule of foundation fund-raising! Know your funder's guidelines inside and out. You are about to ask them for a significant contribution to your organization so make it as easy as possible for the person(s) who will be charged with reviewing your submission. If they set a page limit, don't go over it; if they ask for questions to be answered in a particular order, don't cut and paste a proposal from another foundation application just because it got funded. Stick to the guidelines!
Now, what if you find a Great Fit Foundation but it says they don't accept unsolicited proposals? Don't give up. Many foundations say this, but will still often accept a Letter of Inquiry (LOI). This is often a 1-3 page document where you can send an introduction to the foundation describing your project and how it aligns with their mission. Use the foundation's own guidelines as a model for how to frame your letter. You have only a couple of pages to make your case, so be clear, concise, and compelling.
Cultivate the Relationship
Cultivating foundations is just as important as cultivating individual donors. While foundations do fall under "institutional" giving, they are still run by people and ultimately it is people-the grants manager or executive director-who are making the decision to fund your project. Building a relationship with the contact person at the foundation is absolutely vital. If it's a larger organization, perhaps look for a program assistant or officer. These people are often the gatekeepers, so making a personal connection by phone will help you track down the right person. When you've found that person, ask for just 5-10 minutes of their time to discuss the foundation and its potential fit with your program. Many foundation staff are happy to speak with you-they would much rather spend 5 minutes on the phone determining that you maybe aren't the right fit, rather than spending hours reviewing your proposal! Not to mention, wouldn't you?
Cold calling a foundation can be scary, but with just a few minutes of preparation, you'll hang up the phone feeling empowered. Write down some key words from the foundation's website, as well as from your own program materials that align with those priorities. Finally, jot down a few questions that you can ask directly. e.g. "Your website indicates that you give grants ranging from $10,000 to $200,000; does that range apply to first time applicants?" Sometimes foundations don't give more than $25,000 to a first time applicant; knowing this ahead of time can save you from getting rejected for asking for too much.
สมัครสมาชิก:
บทความ (Atom)