[Firehouse]

If I were involved with setting up a new chapter I'd get a printout of alumni from the area and start making phone calls. I'd get recommendations from the national headquarters - ie. who do they know in the area who's a big donor to their own chapter or to national, or who has been involved as a volunteer on some level. I'd try to put together a list of potential volunteers, looking primarily for guys over 40, or at least over 30, and also looking for one or two 'Godfather' types who can write checks.
I'm a big believer in not asking recent graduates to bear any responsibility for alumni programs. It's too soon, they're still too familiar with the undergrads, they usually don't have the time or family flexibility to take on that role. They will want to stay in touch with their friends, and the Alumni Association should make it easy for them to do that.
I'd gather around me a corps of alumni who are excited about being involved with their Fraternity again, and who would be willing to help create a model chapter. I'd make it clear that the entire burden of creating a viable and effective alumni program falls on their shoulders, and that alumni will have to pay their own way. I do not believe that the undergrads should ever pay for alumni functions, nor should they be involved in running the alumni association, including the production of newsletters, solicitation of funds, etc.
Here's what the undergrads will be told: YOUR job is to create a great fraternity chapter - the best on this campus or any other. OUR job is to raise money and maintain a strong alumni association. In terms of their relationship with the alumni, the undergrads are schooled in the proper responses. They must always welcome the alunmi and treat them with deference (unless someone misbehaves). And, they will be told very directly: these men are giving money so that you can receive the benefits of strong alumni support. Someday - not today or not even soon, but someday - we will come to you and we will expect you to give money to provide for the undergrads just are you are being provided for now. That will be your responsibility.
In just about every town of any decent size there should be at least a couple of Godfather types. These men have money, are willing to write checks and enjoy the attention they recieve from the undergrads for their generosity. They like the recognition, and the opportunity to help their fraternity succeed. In some cases, they don't even have to be alumni - they can be brought into the mix by friends and special-initiated, and given the opportunity to be involved and to support the cause through their generosity.
Ideally, I'd like to have a year's head start before we began rushing on the campus for a new chapter, but that never happens. Any lead time at all would be valuable. In practical terms, the alumni group and the new chapter will probably mature at about the same rate. In both cases it's important to move quickly and aggressively. If your new chapter doesn't grow quickly it's probably not going to grow at all, and end up stuck at mid-level size and prestige. It's the same with the alumni association. Impresive, energetic alumni want to be associated with a like-kind type of undergrad chapter.