The #AskaCFO series is a weekly Q & A with CFO James Vanreusel. James answers questions ranging from corporate finance, FP& A, Investor Relations, Professional Development, Business Growth, Fundraising, M& A and more
In Episode 12 of #ASKaCFO James Vanreusel of Vanreusel Ventures discusses the topic how a young non profit organization can begin their due diligence and begin to raise money.
Due to the lack of resources, young non profits have not invested the time needed to create a strong team, and structured systems. In any given year, we see a cash crunch, and a large amount disappears from the books. Most importantly, management misses the opportunity to demonstrate to key stakeholders – donors, implementing partners and government – what is the cost to achieve real impact. Getting your ducks in a row before you attempt to raise funds and investing the time and money in due diligence processes and will catapult your business past the obstacles of raising funds, and quickly move your company forward to the next stage.
At Vanreusel Ventures, we have developed a due diligence process that helps us understand how well an organization is doing, how investable it is, and at the same time inform CEOs of our operational concerns. We have increasingly seen a correlation between dysfunctional governance and bad financial Performance.
Our goal is to create a service that can persuade young organizations to invest early in the systems that will help them scale and compile evidence of the cost effectiveness of their interventions. We have created a 3-month accelerator system that will launch you forward and past the obstacles holding you back from raising money fast.