You are starting a new fundraising venture; how would you go about it?

In the course of qualifying for a potential project, I was just asked to respond in writing to four essay questions. I decided to share this result with you because it's kind of an interesting question. (You should have seen the other three!)
_________________

The possibility of starting with a blank sheet is intriguing. In my career, even when I have been brought in to create a new revenue stream, I have always inherited the history and culture of an existing organization with deeply embedded values and practices that limited what was acceptable within the environment. While I have spent a career creating change within such organizations, it is tantalizing to consider forming an organization from the ground up in its early stages.

Without hesitation, I would start with an in-depth conversation with the person or persons who initiated the new undertaking. First, I would seek absolute clarity on the endeavor’s justification, its raison d’etre. Whether it is organized as a for-profit or non-profit is beside the point. That’s the how, and right from the start, I need to understand the why. Or, said in another way, I want to know the void that would be created if the venture ceased to be. Surprisingly, not all organizations or founders are clear on this. They might be able to recite a mission statement by rote, but there’s no real understanding of the cause that is being championed or there is ambiguity about the unmet need that led to the creation of the organization.

At this early stage, it would acceptable, even desirable, if the direction of the project was not yet fleshed out. Nevertheless, I would attempt to discover the two or three driving forces behind the likely priorities of the organization, answering in broad terms the question: “How will the money be spent?”

Finally, I would query the founders on how they envision others being involved, answering the question: “What do we want others to do to support our cause?” This might range from lending expertise to being an ambassador in the community, referring us to others who might be interested, or opening doors to others who can influence the project’s outcome. Regardless, others would most certainly be invited to make their own commensurate investment in our work.

Following this exchange with the founders, I would cobble together a one-page tool for sharing the story of our purpose and our priorities, and presenting the opportunity to become involved. Later, this would evolve into a case for support and a formal funding plan or chart of gift opportunities. For starters, though, a simple plan for how much we need, over what period of time, and how we will get on our way is all that’s required to start the discussion with likely supporters. This plan might be as basic as declaring that we need ten angel investors at $x each. It might even entail approaching one benefactor to underwrite the entire project in its start-up phase. More likely, I’d draw a three-level pyramid (with one lead gift, several substantial commitments, and many moderate contributions, together totaling the start-up cost. Whichever approach I chose, I would make the total amount rational by framing it within the context of the vision. In addition, I would stamp the word “DRAFT” on the page.

Then, I would begin to find and single out a group of persons who are known to care (or are presumed to care) about the cause. In existing organizations with half-way decent fundraising records, the starting point is looking at people who are already giving to the cause or, failing that, identifying who may have benefited from past encounters and who might feel a measure of gratitude. Where no donor or beneficiary history exists, I would work to identify connections with the founder’s family, associates, friends, and acquaintances. I would seek out related or similar communities that have already organized themselves, both online and off-line, and that might share an interest in our issue. This process would not take too long, as the list serves only as a launching point for networking and conversation.

After that, I would work to personally visit with likely supporters, ideally one-on-one or, alternatively, in small groups. With each one, I would lay out the purpose and probable programs of the enterprise, and engage in a dialogue about the plan for funding. Knowing that they are being approached at the early stages of organization, I would ask for their response to the concept, and invite their involvement at a leadership level.

In a relatively brief period, a substantial amount of starting capital would be raised, and the program could commence. After some consensus has been built from early investors “buying in” to our plans, we can elaborate on the programmatic priorities and add detail to the development of additional supporters and revenue generation. We will, of course, continue to keep the early supporters engaged by updating them on what their investment has made possible and by finding opportunities for their ongoing involvement.
_________________

So, how would you have answered this question?