Raising Pre-development Funding

1. Obtain a commercial loan using other assets as collateral. Many local banks and foundations can sponsor the start-up phase of projects.  Oftentimes these lenders will ask to be repaid with the first round of permanent financing awarded to the project.  Terms can vary widely depending on the initial feasibility assessment of the project, as well as the types of assets an organization or person has to guarantee the loan.
2. Ask a friend or member of the organization to either loan or invest money into the project. If a member loans the money and the project proceeds successfully through pre-development and into construction, it could be paid back soon after the project opens.  If they invest the money, they would have an appreciating share of the property for some pre-determined period of time.  Depending on the legal structure and financial health of end project, the investor could potentially receive dividends from their investment over time.
3. Secure a sponsorship or grant from a mission-aligned company, nonprofit, or foundation. Many organizations will view a partnership with MotiveSpace as a strong sign of initial support for the project.  Oftentimes companies and foundations want to see that a community member has secured donated time and materials to a project, before they are willing to contribute.  MotiveSpace’s Directors act in this capacity to help give mission-aligned projects a competitive edge.
4. Work with the future occupants or community stakeholders early on. Involving your community from the outset of a project can take longer to get through some of the pre-development stages.  It can be more fun, though, and a way to take some of the burden and risk off the shoulders of one organization.  A variety of fund-raising strategies, from bake-sales, canvassing, and community events can fall into this method of fund-raising.
5. Run a Crowd-funding Campaign. Consider vetting the project concept on a crowd-funding platform like Kick-starter, or the Point. Crowd-funding platforms can be powerful ways to motivate existing supporters, and to find new ones. If MotiveSpace has vetted the project concept and approved it for support, then pledging some portion of our in-kind fees on a crowd-funding platform can be another strong way to further motivate people to donate.