Hi Vaidehi, thank you so much for taking the time to write all this, it is definitely helpful :)
The benefit of setting up a legal entity in Romania is that it would allow me to get donations. The benefit of a website is also donations. I can’t really have an NGO and ask for donations without having a website to show. It doesn’t have to be a complex or expensive website, but I do need something. I could even remove website creation from the budget, but then I would have to create it myself and this would consume more of my time. But yes, I can definitely remove the focus from creating content (i.e. blog and social media).
I guess one aspect that I perhaps should make more explicit is how easy it is to get donations in Romania via the tax incentives I mentioned. I talked to my employers and they said many companies allocate their donation budgets based on recommendations by employees, which are relatively rare, so usually each recommendation gets a big chunk of the donation budget. If everybody who comes to our meetups convinces their companies to donate 1k EUR to us, and if at least some of them donate 3,5% of their income taxes, we could raise some funds quite easily. I actually know a Romanian member of the EA community (currently based in Berlin) who has been encouraging me to set up an NGO because she has a company and wants to also convince her family to donate 3,5% of their income taxes to something impactful, but currently this is simply impossible. I don’t necessarily have to focus on getting as much money as possible in the short-term, but I do think it’s useful to have the legal structure in place so we can slowly start to get donations. My hope is that one day our donation revenue will be greater than the funds we receive, but this is something I can aim to achieve in a long-term basis, so I don’t need to dedicate much of my time to this within the next 6 months.
Does it make more sense now? I will update the application in the meantime and try to cut more from my goals and make it more focused and less ambitious, but in principle I still think it’s important to have a basic website and a legal entity ready to receive donations, even if I don’t focus on fundraising.
Is an earning to give or donations focused the right strategy in Romania, or is something else is more impactful?
My guess would be exploring this more would be good, I think the case has not really been made yet. I’m more excited about filling the need for software engineers.
So my point about e.g. the website isnt really about asking for funding for it for not, or focusing on content or not, but rather about whether the high level goal (effective giving) makes sense as your strategy.
My hypothesis is that focusing on donations is a good strategy in Romania because of the tax incentives I mentioned. Because this is a new project, I am approaching everything experimentally. The plan is to test my hypothesis by estimating how many hours per week I spend on activities related to fundraising, and then measuring how much money I raised in the end of those six months. If the amount of money per unit of effort seems too small, then I will conclude that my hypothesis was wrong. If the amount is decent, then I will conclude that it was right. Of course, it’s hard to put a number on what “decent” is in advance. It’s also worth noting that I expect this effort to be cumulative: if during year 1 I make effort E1 and money M1, I would expect to have M1 again in year 2 without all that effort because once we make it to the list of NGOs a company contributes to, it’s easy to stay there. Therefore, even a modest return in the end of 6 months can be enough encouragement to continue the experiment.
The only case I can make in favor of this hypothesis a priori is to say that the people in my company have experience both raising funds and offering them and that they estimated that I could easily raise $5-10k in my first year. And I think their estimate is plausible because I think I could easily find 10 members in our community who can convince their companies to donate $1k per year to us. Then as the community grows we should develop relationships with people in more companies, perhaps bigger ones that can donate larger sums, especially if we focus on tech outreach.
This is another reason why I think these 2 goals are actually interconnected: the activities involved in achieving one goal are also helpful in achieving the other. In some way, if I pursue only the tech goal, I feel I will be wasting opportunities to raise funds. Every developer that I attract to EA is somebody that I can both add to a database of EA-aligned developers, and also ask them to convince their employers/companies to donate to us. The actual hard part of the work is attracting these developers to EA, once they’re part of the community, asking them to talk to their employers is the easy part.
I mean, sure, I could be wrong about all that, but this is something we can only find out if we try it. Do you think my hypothesis is so implausible that it’s not worth testing?
Hi Vaidehi, thank you so much for taking the time to write all this, it is definitely helpful :)
The benefit of setting up a legal entity in Romania is that it would allow me to get donations. The benefit of a website is also donations. I can’t really have an NGO and ask for donations without having a website to show. It doesn’t have to be a complex or expensive website, but I do need something. I could even remove website creation from the budget, but then I would have to create it myself and this would consume more of my time. But yes, I can definitely remove the focus from creating content (i.e. blog and social media).
I guess one aspect that I perhaps should make more explicit is how easy it is to get donations in Romania via the tax incentives I mentioned. I talked to my employers and they said many companies allocate their donation budgets based on recommendations by employees, which are relatively rare, so usually each recommendation gets a big chunk of the donation budget. If everybody who comes to our meetups convinces their companies to donate 1k EUR to us, and if at least some of them donate 3,5% of their income taxes, we could raise some funds quite easily. I actually know a Romanian member of the EA community (currently based in Berlin) who has been encouraging me to set up an NGO because she has a company and wants to also convince her family to donate 3,5% of their income taxes to something impactful, but currently this is simply impossible. I don’t necessarily have to focus on getting as much money as possible in the short-term, but I do think it’s useful to have the legal structure in place so we can slowly start to get donations. My hope is that one day our donation revenue will be greater than the funds we receive, but this is something I can aim to achieve in a long-term basis, so I don’t need to dedicate much of my time to this within the next 6 months.
Does it make more sense now? I will update the application in the meantime and try to cut more from my goals and make it more focused and less ambitious, but in principle I still think it’s important to have a basic website and a legal entity ready to receive donations, even if I don’t focus on fundraising.
Is an earning to give or donations focused the right strategy in Romania, or is something else is more impactful?
My guess would be exploring this more would be good, I think the case has not really been made yet. I’m more excited about filling the need for software engineers.
So my point about e.g. the website isnt really about asking for funding for it for not, or focusing on content or not, but rather about whether the high level goal (effective giving) makes sense as your strategy.
My hypothesis is that focusing on donations is a good strategy in Romania because of the tax incentives I mentioned. Because this is a new project, I am approaching everything experimentally. The plan is to test my hypothesis by estimating how many hours per week I spend on activities related to fundraising, and then measuring how much money I raised in the end of those six months. If the amount of money per unit of effort seems too small, then I will conclude that my hypothesis was wrong. If the amount is decent, then I will conclude that it was right. Of course, it’s hard to put a number on what “decent” is in advance. It’s also worth noting that I expect this effort to be cumulative: if during year 1 I make effort E1 and money M1, I would expect to have M1 again in year 2 without all that effort because once we make it to the list of NGOs a company contributes to, it’s easy to stay there. Therefore, even a modest return in the end of 6 months can be enough encouragement to continue the experiment.
The only case I can make in favor of this hypothesis a priori is to say that the people in my company have experience both raising funds and offering them and that they estimated that I could easily raise $5-10k in my first year. And I think their estimate is plausible because I think I could easily find 10 members in our community who can convince their companies to donate $1k per year to us. Then as the community grows we should develop relationships with people in more companies, perhaps bigger ones that can donate larger sums, especially if we focus on tech outreach.
This is another reason why I think these 2 goals are actually interconnected: the activities involved in achieving one goal are also helpful in achieving the other. In some way, if I pursue only the tech goal, I feel I will be wasting opportunities to raise funds. Every developer that I attract to EA is somebody that I can both add to a database of EA-aligned developers, and also ask them to convince their employers/companies to donate to us. The actual hard part of the work is attracting these developers to EA, once they’re part of the community, asking them to talk to their employers is the easy part.
I mean, sure, I could be wrong about all that, but this is something we can only find out if we try it. Do you think my hypothesis is so implausible that it’s not worth testing?