Funding Elements
Practical insights from 1 re:build session on implementing funding elements in regenerative villages.
Overview
Funding Elements is a framework for organizing and integrating different funding approaches in regenerative village development. The five elements framework (earth, water, air, fire, and sometimes a fifth element) provides a structured way to understand how different funding models fit together and how to raise capital systematically. This guide synthesizes knowledge from re:build gatherings to provide practical insights for implementing the funding elements framework in community projects.
Definition
The funding elements framework organizes fundraising into five elements, each representing different aspects or stages of the funding process. This framework helps structure how to integrate different funding models into a cohesive financial structure, providing a systematic approach to capital raising.
Key Principles
- Systematic approach: The framework provides structure for organizing different funding sources and approaches
- Integration: Each element represents different aspects that work together to create comprehensive funding strategy
- Model-based: The framework works best when you have an established financial model and clear project vision
- Holistic view: The elements framework considers funding as part of a larger system, not isolated transactions
Methods and Approaches
Five elements framework: The five elements of fundraising (earth, water, air, fire, and sometimes a fifth element) provide a framework for understanding how to integrate different funding models into the actual financial structure. This systematic approach helps organize diverse funding sources into a coherent strategy.
Model-based funding: Once you have your financial model established and you're creating the project for self-actualization, the five elements framework helps structure how to raise funding. Each element (earth, water, air, fire) represents different aspects or stages of the funding process, providing a roadmap for capital raising.
Element integration: The framework helps understand how different funding elements work together—how earth (foundation/foundational funding) connects with water (flowing capital), air (communication/presentation), and fire (action/manifestation).
Benefits
- Structured approach: The framework provides clear structure for organizing diverse funding sources
- Integration clarity: Helps understand how different funding models fit together into cohesive strategy
- Systematic planning: Enables systematic planning of funding approach rather than ad-hoc fundraising
- Comprehensive view: Ensures all aspects of funding are considered, not just individual sources
- Strategic alignment: Helps align funding strategy with project vision and financial model
Key Insights
Five elements framework: The five elements of fundraising (earth, water, air, fire, and sometimes a fifth element) provide a framework for understanding how to integrate different funding models into the actual financial structure. This systematic approach helps organize what can otherwise be a complex and overwhelming process.
Model-based funding: Once you have your financial model established and you're creating the project for self-actualization, the five elements framework helps structure how to raise funding. Each element (earth, water, air, fire) represents different aspects or stages of the funding process, providing a roadmap that guides capital raising efforts.
Foundation first: The framework typically emphasizes establishing foundational elements (earth) before moving to other aspects, ensuring solid base for subsequent funding efforts.
Examples and Case Studies
Framework application: Projects that use the five elements framework demonstrate how this systematic approach helps organize diverse funding sources—from foundational capital (earth) to ongoing revenue streams (water), communication and presentation (air), and active manifestation (fire).
Model integration: Projects that integrate the funding elements framework with comprehensive financial models show how the framework provides structure for organizing funding while maintaining alignment with financial projections and project goals.
Best Practices
- Establish financial model first: Develop comprehensive financial model before applying the funding elements framework
- Understand each element: Take time to understand what each element represents and how it applies to your funding strategy
- Plan systematically: Use the framework to plan funding approach systematically rather than reactively
- Integrate elements: Ensure all elements work together cohesively rather than in isolation
- Maintain flexibility: Use the framework as guide while maintaining flexibility to adapt to opportunities
- Align with vision: Ensure funding elements align with project vision and values, not just financial needs
- Document approach: Document how you're applying the framework to maintain clarity and communicate strategy
Implementation Guide
To implement the funding elements framework in your regenerative village project, consider the following approach:
Phase 1: Foundation (Months 1-3)
- Develop comprehensive financial model for your project
- Understand project vision and self-actualization goals
- Learn about the five elements framework and how it applies to funding
- Identify which funding sources align with each element
- Begin foundational planning (earth element)
Phase 2: Framework Application (Months 3-6)
- Map existing and potential funding sources to elements framework
- Develop strategy for each element (earth, water, air, fire)
- Plan how elements integrate into cohesive funding approach
- Create funding timeline that incorporates all elements
- Begin implementing foundational funding (earth)
Phase 3: Execution (Months 6-12+)
- Execute funding strategy using elements framework
- Maintain integration between different elements
- Adapt framework application based on results and opportunities
- Continue systematic approach to capital raising
- Monitor and adjust as needed
Phase 4: Ongoing Management (Ongoing)
- Use framework to organize ongoing funding needs
- Maintain systematic approach to capital raising
- Integrate new funding opportunities into framework
- Continue aligning funding with project vision and financial model
- Refine framework application based on experience
Challenges and Considerations
Framework understanding: The elements framework requires understanding of how different elements relate to each other and to funding sources, which may require learning and practice.
Model requirement: The framework works best when you have an established financial model, so projects need to develop financial planning before fully applying the framework.
Flexibility: While the framework provides structure, it requires flexibility to adapt to different project contexts and funding opportunities.
Integration complexity: Integrating multiple funding elements into cohesive strategy can be complex, requiring careful planning and coordination.