Fundraising 101 ( "Free as in Freedom So Who Pays for the Beer?") Cat Allman Google OSCON 7/28/2011

Who Am I to Talk? Both sides of the desk Former Director of Sales, The USENIX Association Currently distribute funds to open source projects,programs and events at Google OSPO

Standard Disclaimer These are my opinions Not those of any past, present or future employer Based on my experiences - yours may vary I am not a lawyer, accountant, or tax professional: take with plenty of salt and listen at your own risk

Goal of Talk Give you the basics of how to create a plan to source financial support for your project. Plus some things to consider And some things to avoid

FOSS Projects Do Need $ Bandwidth / hosting Hardware Travel Meeting in person and the all important tee-shirts

Asking for money is hard Some wise person once said that jumping out of a perfectly good airplane is not a natural act. The same can be said of asking people for money. Most people, myself included at least at first, would rather do practically anything. So if you can do it or are willing to try – GOOD for YOU! You are doing your project a huge service.

Basics of a Plan Scope your needs Do a project budget Set your goals: quarterly, annual, long term Have a cushion Decide what you're willing to sell Consider your resources Assign responsibilities Prearrange how the money will be accepted and managed Decide on record keeping and activities tracker Develop materials

Types of potential sponsorship Small $ amounts Larger $ amounts “In-kind” Grants Employers Code for hire

Are “bounties” or per-feature fundraising ever a good idea? Sometimes Be careful!

Types of potential sponsors Individuals: contributors, friends, fans Small businesses in your community(s) Businesses that use your software Staffing vs marketing vs engineering groups Local, State, Federal Government Foundations

What do sponsors want to buy? Visibility and/or access Name/logo on project website Ads on site Help wanted vs product/company Sponsored content Email list Event sponsorships Membership in community

And - what are you prepared to sell? Decide collectively Aim for consensus Do not do anything that will hurt your community Do not sell to the wrong customer

Big or small: deciding on a strategy A mix is most likely

The devil is in the details: paperwork & time management Crucial responsibility! Get organized before raising funds! Be super organized and keep meticulous records Have oversight Don't procrastinate Plan for slow payment

Some ideas on how to accept funds First and foremost – ask an accountant Through a fiscal agent, foundation, school, company Paypal, et all for small amounts

Does your project need to have a Foundation? HUGE and important topic Fiscal agents Software Freedom Conservancy Software in the Public Interest Apache Foundation Source of info FLOSS Foundations list IRS issues

How to find sponsors First and foremost – connections Ask everyone you know Ask all your contributors to do the same Ask every professor Search engines Download logs Mailing list/project communication channels Be creative Be brave Be tenacious

Prepare your Pitch Always put yourself in your sponsor's shoes Complete info on materials Project name & URL, brief background with more details available if asked What your projects does, who it helps, why it matters to the world – and the prospect Number of people involved and where No one owes you a pony

Prepare your Pitch - Events Always put yourself in your sponsor's shoes Complete info on online materials & PDF Event name & URL Where & when Brief background on project with more details available if asked Event audience with estimated attendance Program committee or organizers with contact info Organizing body or fiscal agent on contract/price list Did I mention contact info?

Making the Ask Always put yourself in your sponsor's shoes Make it easy to give you money Complete info on materials No proprietary communication methods Be nice Ask for help and offer help

Special considerations for events Conference networks Insurance First aid Unexpected costs also Anti-Harassment policy Bathroom capacity

Pitfalls to avoid Don't sell your soul Putting donations in personal bank accounts Inflated asks Over-promising Failing to invoice Baby ducks Don't oversell Don't sell your soul

Basics of a Plan Scope your needs Do a project budget Set your goals: quarterly, annual, long term Have a cushion Decide what you're willing to sell Consider your resources Assign responsibilities Prearrange how the money will be accepted and managed Decide on record keeping and activities tracker Develop materials

Thank you for coming! Q&A Cat Allman allman@google.com