When boards come to understand their organization needs to raise extra funds to deliver their mission, enthusiasm often gravitates towards launching a public appeal with a big announcement, a press release, or a fundraising event. This is a natural way for volunteer boards to think about big goals, but in reality, by the time you “go public,” a campaign should be nearly complete, with almost all of the funds already committed.
Boards that don’t understand this, risk failing immediately out of the gate and wasting valuable time. One useful way to build understanding on your board is to use an analogy they may already be familiar with: venture capital funding rounds.
Just as startups raise capital in stages—Seed, Series A, Series B, Series C—fundraising campaigns progress through phases that build momentum and credibility before opening up to the general public.
Why a Venture Capital Analogy?
Your board may be familiar with the basic terminology of venture capital, from their own professional spheres or media coverage of investments and startups. Donors behave much like investors. They expect proof of concept before committing significant resources and they have different risk tolerances. Public campaigns succeed because the groundwork is laid, much like initial public offerings (IPO’s), which follow years of prior work and investment.
Stage 1: Pre-Campaign / Feasibility = Seed Funding (3-4 months)
The pre-campaign phase is similar to seed funding. It covers initial costs and validates an idea:
- Secure board alignment and leadership commitment.
- Allocate working capital to get the project concept and initial fundraising resources in place.
- Conduct a feasibility study to test donor interest and capacity.
- Refine the case for support based on feedback.
- Establish a campaign goal and gift chart.
The pre-campaign stage is about building confidence and ensuring efficient use of limited resources. Investing time here sets a firm foundation for success.
Stage 2: Transformational Gift Phase = Series A (4-6 months)
Transformational gifts are the first major investments. Others follow. Like Series A investors, transformational donors have a higher risk tolerance and are seeking major impact:
- Often 1-3 gifts representing 20-30% of the total goal.
- From donors who believe deeply in the vision and are prepared to lead.
These early commitments send a powerful signal that your project and campaign are real. Without transformational gifts, it is exceedingly difficult to build momentum.
Stage 3: Leadership Gift Phase = Series B (6-8 months)
The Leadership phase is where those who are ‘in-the-know” invest. Like Series B, the leadership phase should tip the campaign towards ultimate success:
- Often 10-15 gifts from board members and top prospects, pushing the campaign over 50% to goal.
- Expands the circle of major donors who validate credibility.
- Creates the feeling among donors of being a part of something meaningful.
Boards and your top donors are pivotal here as givers, but also as connectors. Their networks are critical to unlocking the next tier of support.
Stage 4: Major Gift Phase = Series C (8-12 months)
The Major Gift phase welcomes the top tier of your faithful annual supports into the effort. In venture capital terms, Series C prepares startups for market:
- Often 30-50 gifts from mid-level donors and loyal supporters, taking the campaign to 70-80% or more to goal.
- Leverage momentum from early commitments to inspire confidence.
- Continue personalized cultivation and stewardship.
By this point the campaign should be the worst kept secret in your community and you are finally ready to go public.
Stage 5: Public Phase = IPO (3-4 months)
The Public Phase is the big reveal. Like an IPO when a company joins a stock exchange, it is an invitation for the whole world to invest:
- Announcement of lead gifts, campaign goal and outcomes, and progress
- Broad-based appeals through events, social media, and community outreach.
- Engaging donors at all levels for the final 20–30%.
- Celebrating progress and inviting participation.
The public phase is your last dollar fundraising, once the heavy lifting is already done. It’s close to a victory lap.
First Dollar vs. Last Dollar
The first dollars are the hardest and most important to raise. Funds for pre-campaign work are essential to building a successful campaign. Securing the initial transformational gifts signals belief, builds momentum, and attract others. The last dollars are raised when success is already guaranteed. Boards who are serious about reaching stretch goals focus their energy on securing early commitments instead of launching a public effort immediately.
The most visible organizations you see advertising online, sending bulk mailers, or fundraising door-to-door? They’re chasing last dollars—squeezing the final returns out of an already successful case and established appeals. Those campaigns were nearly complete before most people became aware of them.
Campaigns unfold over 2-3 years and ultimately succeed by focusing on first dollars and last dollars in stages. Helping your board understand the big picture of campaign structures will set your organization on the right path. Try using the venture capital funding round analogy to help!