As a result of our net income of $83,568 in Year 2, we will be able to continue providing our essential programs and services to the community.
Our nonprofit’s balance sheet is shown below:
20XX | 20XX | 20XX | 20XX | 20XX | ||
ASSETS | ||||||
Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | -$80,431 | $3,137 | $82,720 | $192,930 | $337,623 | |
Total Equity | -$80,431 | $3,137 | $82,720 | $192,930 | $337,623 | |
$247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
The nonprofit’s net assets will increase by $35,000 as a result of our income statement.
Our nonprofit’s cash flow statement is shown below:
20XX | 20XX | 20XX | 20XX | 20XX | |
CASH FLOW FROM OPERATIONS | |||||
Net Income (Loss) | -$80,431 | $83,568 | $79,583 | $110,210 | $144,693 |
Change in working capital | -$11,340 | -$1,625 | -$2,350 | -$2,133 | -$2,409 |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
Net Cash Flow from Operations | -$54,811 | $118,902 | $114,193 | $145,037 | $179,244 |
CASH FLOW FROM INVESTMENTS | |||||
Investment | -$246,450 | $0 | $0 | $0 | $0 |
Net Cash Flow from Investments | -$246,450 | $0 | $0 | $0 | $0 |
CASH FLOW FROM FINANCING | |||||
Cash from equity | $0 | $0 | $0 | $0 | $0 |
Cash from debt | $317,971 | -$45,424 | -$45,424 | -$45,424 | -$45,424 |
Net Cash Flow from Financing | $317,971 | -$45,424 | -$45,424 | -$45,424 | -$45,424 |
SUMMARY | |||||
Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
The nonprofit’s expected cash balance of $90,188 will be used to continue providing our essential programs and services to the community.
For 20XX, we expect that most of our funds will come from private donations; however, we require some donations for our operating expenses. As a result, the nonprofit plans to apply for grants this year.
Additionally, the nonprofit is always looking for opportunities to expand its fundraising efforts with events or corporate sponsorships. The nonprofit has also begun looking into ways we can use social media to develop a stronger online presence and increase brand awareness.
Let Children Prosper is committed to transparency and accountability. We will be publishing our nonprofit’s annual report on our website which will include a financial overview as well as program and service highlights.
The nonprofit plans to seek out individual donors as well as larger contributions from businesses and other organizations.
Our nonprofit relies on donations from individuals, businesses, and other organizations.
In order to continue providing our essential programs and services, we need to secure funding from both public and private sources. Some of the ways in which we hope to secure this funding include applying for grants, holding fundraising events, and seeking corporate sponsorships.
In order to generate more donations, we will be undertaking the following fundraising initiatives:
As a nonprofit organization, we aim to engage in donor outreach and online fundraising through websites such as Facebook and PayPal. We also plan to create a nonprofit blog where individuals can stay informed about our mission and learn how they can become involved with Let Children Prosper.
We are also exploring the option of hosting an annual fundraiser that will feature live entertainment, food, drinks, and opportunities to interact with nonprofit representatives.
Our nonprofit’s Board Treasurer is also a member of the Grants Coordinating Committee for the nonprofit’s parent organization which has resources that may be useful in securing grant funds for Let Children Prosper. Additionally, the nonprofit will begin looking into using social media such as Facebook or Instagram to increase brand awareness and improve brand recognition among our target audience.
The nonprofit has also applied for membership in the National Association of Nonprofit Organizations & Executives which will provide access to additional resources and training related to nonprofit management and fundraising.
Download our non-profit business plan pdf here. This is a free nonprofit business plan example to help you get started on your own nonprofit plan.
Developing this type of business plan can be challenging for many nonprofit groups because they may lack familiarity with basic business principles such as market research and financial projections. There are several steps that can be taken to make the process go more smoothly:
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Nonprofit Business Plan Template you can finish your plan in just 8 hours or less!
Business plans aren’t only for startups and corporations; they’re equally crucial for nonprofit organizations. A well-drafted nonprofit business plan not only provides direction but also attracts donors and other stakeholders. In this article, we’ll delve into the hows and whys of writing a nonprofit business plan and walk you through the process step by step.
A business plan is like a roadmap. It charts the course, setting clear goals and detailing the strategies needed to reach your destination (e.g., business goals). Given the unique challenges nonprofits face — competing for funding, demonstrating impact, and managing resources efficiently — a business plan is indispensable for staying on track.
A nonprofit business plan is a document that outlines an organization’s operational and financial objectives, and details the strategies and resources (both human and capital) required to achieve those objectives. It serves as an internal guide for the organization’s leadership and a tool for communicating with external stakeholders.
At its core, a nonprofit organization thrives on clarity of purpose, and a business plan offers just that. It establishes a clear mission and vision, serving as a guiding light for every strategic decision and action.
Beyond this foundational benefit, a business plan fosters operational efficiency. Meticulously outlining processes and delineating roles and responsibilities ensures a streamlined workflow, preventing any overlaps or omissions that could hamper the organization’s effectiveness.
In a competitive landscape where nonprofits vie for funding, a well-articulated business plan attests to the organization’s seriousness, structure, and transparency. Donors and sponsors are more inclined to invest when they see a clear roadmap detailing how an organization will use their contributions.
Last, a business plan serves as a robust framework for performance evaluation. Setting benchmarks and expectations drives the organization toward its goals and creates a culture of accountability — ensuring that every stakeholder is aligned and contributing to the collective mission.
Like a blueprint, a business plan has several elements that are indispensable to its structure. But depending on your organization’s goals and purpose, there may be elements unique to you. Let’s consider the pillar elements of every plan:
Creating a nonprofit business plan can seem daunting, but it can be rewarding if you take the right approach. Follow this step-by-step guide to help you navigate the process:
Crafting a nonprofit business plan requires meticulous organization and seamless data collection. As you dive into the process, Jotform can help you create customized forms that streamline various aspects of your planning.
Whether you’re gathering initial research and feedback, managing donor information, registering volunteers, or even tracking impact metrics, Jotform ensures that every piece of data is organized and accessible.
Jotform’s intuitive interface and templates make it easy to design forms tailored to your nonprofit’s specific needs. Use Jotform’s business plan templates to give yourself a head start. From soliciting feedback on a new program idea to managing donor relationships to reporting on the tangible impact of your efforts, Jotform simplifies the process. You can even use the business proposal template to collect grantor signatures.
Nonprofit organizations are eligible for a 50-percent discount on paid Jotform plans.
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So you’ve got a big idea and an even bigger heart, and you’re eager to get your non-profit started ASAP. Not so fast! Without a plan, it’ll be tough to gain momentum for your mission. Before you start printing out flyers and soliciting donors, take the time to learn how to write a non-profit business plan that will set you up for success.
Before we get into the details of how to write a business plan, let’s define what it is. A business plan details the services or products your non-profit provides, the people on your team, the community you serve, your non-profit’s financials, the goals you plan to achieve, and how you’re going to achieve them.
“But my non-profit doesn’t sell anything!” you might object. While that may be true if you rely strictly on grants or donations, non-profits can and do sell goods and services. And a non-profit is still considered a type of business. Here’s how Investopedia defines a business :
“An organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations that operate to fulfill a charitable mission or further a social cause.”
There are several reasons why a non-profit needs a business plan, including:
Before you begin writing any sections of your business plan, ask yourself this: “Who is my audience?” If you’re writing a business plan to keep you on track to reach your goals, that’s one thing. But if you’re writing a business plan to persuade a banker to give you a business loan, that’s another. For the latter, for example, you might want to have a more detailed financial section that makes a strong case for your solvency. It’s good to have more than one version of your business plan, each catering to a specific audience.
Think of it as the who, what, when, where, how, and why of your nonprofit. Start by answering the following questions:
Below is an excerpt from the executive summary of Culina’s business plan . It does a great job of answering all of the above questions concisely.
“Fast Facts: Founded: 2013 Headquarters: San Francisco, CA Founder: Kent McClure Market Size: $12.5 billion Target Audience: Homeowners; property managers; insurance providers.
Quick Description: Culina is a San Francisco-based IoT and home automation company. We design an advanced smart hub technology that enables users to interconnect and remotely monitor all of their cooking devices and kitchen appliances through a single user-friendly platform.
Our Mission: To make homes smarter, more connected, and safer for families while helping them save money and conserve energy through the power of affordable, automated technology.”
In this section, describe the ways you’ll raise money and serve your community. Be as detailed as possible. Below is an example from Bplans’ nonprofit catering business template for a fictional business called Catering for Kids. Notice how it details every menu item, instead of keeping it general.
“Food Product Descriptions
Boxed lunches: a sandwich or salad with dressing packet, deli salad (i.e. pasta salad or cottage cheese, cinnamon and fresh fruit), fresh seasonal fruit, chips and a cookie. Sandwich or salad options will include:
As with any business, you need to prove that there is a market for your non-profit.
In this section, describe the customers you serve, including demographics such as income, location, and education level. How many potential customers are there? What are their needs? And how will you meet them?
This is where you prove there is a big enough pool of people and a big enough need so that you can make revenue and make a difference.
For inspiration, here’s an excerpt from a children’s non-profit in Mozambique :
“Seed of Hope’s program reaches around 100 children, boys and girls ages 3 to 18 years old, from three neighboring communities of Maputo. Many of these children are workers in the dump, leaving them without the economic means to go to school. The project also reaches about 25 adults and youth who are workers of Hulene Dumps, of which some are homeless.”
This is where you list and describe the important members of your team and their roles. Make sure to include details that highlight how their experience will help your non-profit achieve its goals.
Here’s an example:
“ Mary Johnson has been appointed as the events coordinator for [Non-profit Name]. With more than 10 years of experience planning fundraising events in the mental health space, Mrs. Johnson has the skills and network to help us end mental illness stigma and reach our goal of $250,000 in donations within the next 12 months. She is already responsible for helping us reach 30% of that goal thus far.”
As its name suggests, this section will describe how your non-profit will operate, including the legal structure, organizational structure, management team, location, product development, inventory, and any other processes you have in place for the products, programs, or services you’ll provide.
Here’s an example from Way to Work’s business plan :
“Goodwill will hire a full-time program manager whose sole responsibility is the day-to-day management of the Way to Work direct services and its three member staff. The Way to Work program manager and staff will be located in Elizabethtown at a location yet to be determined. The program manager will report directly to Goodwill’s regional manager of Program Services.”
Marketing will be crucial to achieving your non-profit’s mission because it’s how customers and donors alike will learn about what you do and how you help the community. In this section, come up with a detailed plan for how you will get the word out about your non-profit and how you will attract customers and donors to your cause.
Here’s an example from Bplans’ non-profit law business plan , written for a fictional law firm called Advocates for Legal Equal Access:
“Al will use his marketing skills learned in his MBA studies to market Advocates as an organization that offers public interest support for the greater Portland community. Approximately 40% of Al’s time will be spent fundraising/marketing. A lot of this time will be spent traveling around and meeting with the different leaders of the organizations and convincing them that Advocates is a well run organization, deserving of the company’s support.”
Notice how granular it gets, even specifying the percentage of time Al will spend on fundraising and marketing.
Email marketing is a critical part of any modern non-profit’s marketing strategy. Find out why with our non-profit email marketing guide .
Unlike for-profit business plans, your non-profit business plan will have a section on impact. This is where you will talk about your overall vision. How do you hope to change your community for the better? And get specific: What does “better” look like?
A great example of a detailed impact plan is from Kroger’s Zero Hunger | Zero Waste social impact plan . Though not part of a business plan, it features precisely the kind of detail needed in a nonprofit business plan. It begins with a clear, concise goal: “Kroger’s plan: To end hunger in our communities and eliminate waste in our company by 2025.” And it’s backed up by specific action steps, such as:
Here, you will include your current funding, revenue, expenses, assets, and liabilities. You can add graphs to make it more comprehensive, as well as include financial projections. This section is especially important if you’re soliciting donors or trying to get a bank loan.
If you have additional supporting documents you’d like to add to your non-profit business plan, you can add it at the end in the appendix. Here, you can insert brochures, annual reports, or strategic plans.
If you need more inspiration for your non-profit business plan, check out some of these free samples and templates:
Having a business plan for your non-profit comes with a ton of benefits, including keeping you aligned with your mission, increasing your chances for success, and attracting major donors.
And now that you know how to write a business plan, you can see it doesn’t have to be a tedious, drawn-out process! In fact, the simpler, the better. Start with one of the free templates recommended above, and soon, you’ll be well on your way to a complete roadmap to success.
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Business planning is a way of systematically answering questions such as, “What problem(s) are we trying to solve?” or “What are we trying to achieve?” and also, “Who will get us there, by when, and how much money and other resources will it take?”
The business planning process takes into account the nonprofit’s mission and vision, the role of the board, and external environmental factors, such as the climate for fundraising.
Ideally, the business planning process also critically examines basic assumptions about the nonprofit’s operating environment. What if the sources of income that exist today change in the future? Is the nonprofit too reliant on one foundation for revenue? What happens if there’s an economic downturn?
A business plan can help the nonprofit and its board be prepared for future risks. What is the likelihood that the planned activities will continue as usual, and that revenue will continue at current levels – and what is Plan B if they don't?
You can think of a business plan as a narrative or story explaining how the nonprofit will operate given its activities, its sources of revenue, its expenses, and the inevitable changes in its internal and external environments over time. Ideally, your plan will tell the story in a way that will make sense to someone not intimately familiar with the nonprofit’s operations.
According to Propel Nonprofits , business plans usually should have four components that identify revenue sources/mix; operations costs; program costs; and capital structure.
A business plan outlines the expected income sources to support the charitable nonprofit's activities. What types of revenue will the nonprofit rely on to keep its engine running – how much will be earned, how much from government grants or contracts, how much will be contributed? Within each of those broad categories, how much diversification exists, and should they be further diversified? Are there certain factors that need to be in place in order for today’s income streams to continue flowing?
The plan should address the everyday costs needed to operate the organization, as well as costs of specific programs and activities.
The plan may include details about the need for the organization's services (a needs assessment), the likelihood that certain funding will be available (a feasibility study), or changes to the organization's technology or staffing that will be needed in the future.
Another aspect of a business plan could be a "competitive analysis" describing what other entities may be providing similar services in the nonprofit's service and mission areas. What are their sources of revenue and staffing structures? How do their services and capacities differ from those of your nonprofit?
Finally, the business plan should name important assumptions, such as the organization's reserve policies. Do your nonprofit’s policies require it to have at least six months of operating cash on hand? Do you have different types of cash reserves that require different levels of board approval to release?
The idea is to identify the known, and take into consideration the unknown, realities of the nonprofit's operations, and propose how the nonprofit will continue to be financially healthy. If the underlying assumptions or current conditions change, then having a plan can be useful to help identify adjustments that must be made to respond to changes in the nonprofit's operating environment.
The format may vary depending on the audience. A business plan prepared for a bank to support a loan application may be different than a business plan that board members use as the basis for budgeting. Here is a typical outline of the format for a business plan:
Budgeting for Nonprofits
Strategic Planning
Contact your state association of nonprofits for support and resources related to business planning, strategic planning, and other fundamentals of nonprofit leadership.
Disclaimer: Information on this website is provided for informational purposes only and is neither intended to be nor should be construed as legal, accounting, tax, investment, or financial advice. Please consult a professional (attorney, accountant, tax advisor) for the latest and most accurate information. The National Council of Nonprofits makes no representations or warranties as to the accuracy or timeliness of the information contained herein.
Nonprofit organizations exist to meet social or environmental problems. For that reason, organizations don’t always focus on a solid financial bottom-line. However, they can’t effectively achieve their objectives without recurring donation income , human capital, and operation planning.
The structure of a nonprofit business plan is in truth no different from that of a profit-driven entity —but an important shift is in the wording, which shies away from business terminology. Another major difference is in the inclusion of fundraising and grants as primary sources of income. And while other organizations worry about taxes in the planning stage, nonprofits have little to no taxes to consider.
Here’s the components you need to write a successful business plan for your nonprofit:
An executive summary allows the organization to make a lasting first impression to the audience. This part contains the outline of the objectives, problem statement, and overall mission of the nonprofit. When you start writing a nonprofit business plan, envision it as a time-bound chance to market the firm.
Here are a few details to include in a summary:
A point to note : It’s essential to structure the executive summary as though you are addressing potential partners. As such, avoid too much jargon and technical aspects in this section.
Nonprofits target a specific group of people, or residents of one particular area. The target group has unique traits, strengths, and resources — such knowledge is crucial in the organization’s mission and sustainability. That said, it’s critical to gather a few data points and document them in your plan.
Here’s a list to include:
Find details on whether specific traits such as education or culture have a potential impact on your project. The findings will prevent mistakes and enhance your success.
Any nonprofit’s success relies on the leadership’s ability to raise sufficient funds. One of the ways to successfully fundraise is by using target fundraising personas. These may include corporate donors, private citizens, and other well-funded organizations — remember that in the end, large institutions are made up of individual people. Your persona list can guide you in identifying particular people to reach out to.
You can also use personas to identify supporters in different segments, including by income. The different characteristics of each segment will guide your approach to fundraising campaigns for that segment. For high income individuals, it is wise to organize personal visits as opposed to sending emails.
Notable nonprofits may also generate funds by creating alliances. Companies might become official sponsors in exchange for brand growth. The success of such partnerships depends on how well you’ve structured your mission.
Ultimately, the fundraising element should consist of straightforward and workable ideas that the organization seeks to utilize. When nonprofits create solid financial plans, it inspires investors and partners — which in turn attracts more than enough funds to run the organization.
This is the section that appeals to any potential partner or stakeholder. Therefore, you should provide details about your programs, execution of your mission, and the various ways your community will benefit.
For clarity, here’s what to include in this section:
This section is the heart and soul of your operations. It’s prudent to ensure it’s detailed, clear, and deliberate.
Just like businesses, nonprofits also require marketing, outreach, and advertising. Through marketing, the organization gains awareness and brand growth that helps to attract partners who will power their operations. As such, it’s essential to include these strategies in the business plan.
Some aspects to include in this section are:
For any organization, planning is part of the recipe that leads to sustained performance and a secure future. That’s why the knowledge of how to write a business plan for a social enterprise is essential. Among many benefits is the quick, positive impression it creates on stakeholders.
Without a well-crafted business plan, an organization’s operations are in jeopardy, and it may prove challenging to attract funding and goodwill from target donors. A partner like Elevation can help you to develop inspiring resources like your nonprofit logo , website, and marketing campaigns.
Nonprofits are well-known for being able to do a great deal with minimal resources....
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More than half are rolling deadlines, so take a look now and then start bookmarking for your next grant cycle. The list focuses on grants that will fund technology and marketing needs for NGOs and other non-profits.
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Angelique O'Rourke
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Updated May 10, 2024
Believe it or not, creating a business plan for a nonprofit organization is not that different from planning for a traditional business.
Nonprofits sometimes shy away from using the words “business planning,” preferring to use terms like “strategic plan” or “operating plan.” But, the fact is that preparing a plan for a for-profit business and a nonprofit organization are actually pretty similar processes. Both types of organizations need to create forecasts for revenue and plan how they’re going to spend the money they bring in. They also need to manage their cash and ensure that they can stay solvent to accomplish their goals.
In this guide, I’ll explain how to create a plan for your organization that will impress your board of directors, facilitate fundraising, and ensures that you deliver on your mission.
Good business planning is about setting goals, getting everyone on the same page, tracking performance metrics, and improving over time. Even when your goal isn’t to increase profits, you still need to be able to run a fiscally healthy organization.
Business planning creates an opportunity to examine the heart of your mission , the financing you’ll need to bring that mission to fruition, and your plan to sustain your operations into the future.
Nonprofits are also responsible for meeting regularly with a board of directors and reporting on your organization’s finances is a critical part of that meeting. As part of your regular financial review with the board, you can compare your actual results to your financial forecast in your business plan. Are you meeting fundraising goals and keeping spending on track? Is the financial position of the organization where you wanted it to be?
In addition to internal use, a solid business plan can help you court major donors who will be interested in having a deeper understanding of how your organization works and your fiscal health and accountability. And you’ll definitely need a formal business plan if you intend to seek outside funding for capital expenses—it’s required by lenders.
Creating a business plan for your organization is a great way to get your management team or board to connect over your vision, goals, and trajectory. Even just going through the planning process with your colleagues will help you take a step back and get some high-level perspective .
Keep in mind that developing a business plan is an ongoing process. It isn’t about just writing a physical document that is static, but a continually evolving strategy and action plan as your organization progresses over time. It’s essential that you run regular plan review meetings to track your progress against your plan. For most nonprofits, this will coincide with regular reports and meetings with the board of directors.
A nonprofit business plan will include many of the same sections of a standard business plan outline . If you’d like to start simple, you can download our free business plan template as a Word document, and adjust it according to the nonprofit plan outline below.
The executive summary of a nonprofit business plan is typically the first section of the plan to be read, but the last to be written. That’s because this section is a general overview of everything else in the business plan – the overall snapshot of what your vision is for the organization.
Write it as though you might share with a prospective donor, or someone unfamiliar with your organization: avoid internal jargon or acronyms, and write it so that someone who has never heard of you would understand what you’re doing.
Your executive summary should provide a very brief overview of your organization’s mission. It should describe who you serve, how you provide the services that you offer, and how you fundraise.
If you are putting together a plan to share with potential donors, you should include an overview of what you are asking for and how you intend to use the funds raised.
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Start this section of your nonprofit plan by describing the problem that you are solving for your clients or your community at large. Then say how your organization solves the problem.
A great way to present your opportunity is with a positioning statement . Here’s a formula you can use to define your positioning:
For [target market description] who [target market need], [this product] [how it meets the need]. Unlike [key competition], it [most important distinguishing feature].
And here’s an example of a positioning statement using the formula:
For children, ages five to 12 (target market) who are struggling with reading (their need), Tutors Changing Lives (your organization or program name) helps them get up to grade-level reading through a once a week class (your solution).
Unlike the school district’s general after-school homework lab (your state-funded competition), our program specifically helps children learn to read within six months (how you’re different).
Your organization is special or you wouldn’t spend so much time devoted to it. Layout some of the nuts and bolts about what makes it great in this opening section of your business plan. Your nonprofit probably changes lives, changes your community, or maybe even changes the world. Explain how it does this.
This is where you really go into detail about the programs you’re offering. You’ll want to describe how many people you serve and how you serve them.
In a for-profit business plan, this section would be used to define your target market . For nonprofit organizations, it’s basically the same thing but framed as who you’re serving with your organization. Who benefits from your services?
Not all organizations have clients that they serve directly, so you might exclude this section if that’s the case. For example, an environmental preservation organization might have a goal of acquiring land to preserve natural habitats. The organization isn’t directly serving individual groups of people and is instead trying to benefit the environment as a whole.
Everyone has competition —nonprofits, too. You’re competing with other nonprofits for donor attention and support, and you’re competing with other organizations serving your target population. Even if your program is the only one in your area providing a specific service, you still have competition.
Think about what your prospective clients were doing about their problem (the one your organization is solving) before you came on this scene. If you’re running an after-school tutoring organization, you might be competing with after school sports programs for clients. Even though your organizations have fundamentally different missions.
For many nonprofit organizations, competing for funding is an important issue. You’ll want to use this section of your plan to explain who donors would choose your organization instead of similar organizations for their donations.
If you’re running a regional nonprofit, do you want to be national in five years? If you’re currently serving children ages two to four, do you want to expand to ages five to 12? Use this section to talk about your long-term goals.
Just like a traditional business, you’ll benefit by laying out a long-term plan. Not only does it help guide your nonprofit, but it also provides a roadmap for the board as well as potential investors.
In a for-profit business plan, this section would be about marketing and sales strategies. For nonprofits, you’re going to talk about how you’re going to reach your target client population.
You’ll probably do some combination of:
Similar to the “target audience” section above, you may remove this section if you don’t promote your organization to clients and others who use your services.
Instead of including a pricing section, a nonprofit business plan should include a costs or fees section.
Talk about how your program is funded, and whether the costs your clients pay are the same for everyone, or based on income level, or something else. If your clients pay less for your service than it costs to run the program, how will you make up the difference?
If you don’t charge for your services and programs, you can state that here or remove this section.
Fundraising is critical for most nonprofit organizations. This portion of your business plan will detail who your key fundraising sources are.
Similar to understanding who your target audience for your services is, you’ll also want to know who your target market is for fundraising. Who are your supporters? What kind of person donates to your organization? Creating a “donor persona” could be a useful exercise to help you reflect on this subject and streamline your fundraising approach.
You’ll also want to define different tiers of prospective donors and how you plan on connecting with them. You’re probably going to include information about your annual giving program (usually lower-tier donors) and your major gifts program (folks who give larger amounts).
If you’re a private school, for example, you might think of your main target market as alumni who graduated during a certain year, at a certain income level. If you’re building a bequest program to build your endowment, your target market might be a specific population with interest in your cause who is at retirement age.
Do some research. The key here is not to report your target donors as everyone in a 3,000-mile radius with a wallet. The more specific you can be about your prospective donors —their demographics, income level, and interests, the more targeted (and less costly) your outreach can be.
How will you reach your donors with your message? Use this section of your business plan to explain how you will market your organization to potential donors and generate revenue.
You might use a combination of direct mail, advertising, and fundraising events. Detail the key activities and programs that you’ll use to reach your donors and raise money.
Use this section to talk about how you’ll work with other organizations. Maybe you need to use a room in the local public library to run your program for the first year. Maybe your organization provides mental health counselors in local schools, so you partner with your school district.
In some instances, you might also be relying on public health programs like Medicaid to fund your program costs. Mention all those strategic partnerships here, especially if your program would have trouble existing without the partnership.
Without milestones and metrics for your nonprofit, it will be more difficult to execute on your mission. Milestones and metrics are guideposts along the way that are indicators that your program is working and that your organization is healthy.
They might include elements of your fundraising goals—like monthly or quarterly donation goals, or it might be more about your participation metrics. Since most nonprofits working with foundations for grants do complex reporting on some of these, don’t feel like you have to re-write every single goal and metric for your organization here. Think about your bigger goals, and if you need to, include more information in your business plan’s appendix.
If you’re revisiting your plan on a monthly basis, and we recommend that you do, the items here might speak directly to the questions you know your board will ask in your monthly trustee meeting. The point is to avoid surprises by having eyes on your organization’s performance. Having these goals, and being able to change course if you’re not meeting them, will help your organization avoid falling into a budget deficit.
Your nonprofit exists to serve a particular population or cause. Before you designed your key programs or services, you probably did some research to validate that there’s a need for what you’re offering.
But you probably are also taking some calculated risks. In this section, talk about the unknowns for your organization. If you name them, you can address them.
For example, if you think there’s a need for a children’s literacy program, maybe you surveyed teachers or parents in your area to verify the need. But because you haven’t launched the program yet, one of your unknowns might be whether the kids will actually show up.
Who is going to be involved and what are their duties? What do these individuals bring to the table?
Include both the management team of the day-to-day aspects of your nonprofit as well as board members and mention those who may overlap between the two roles. Highlight their qualifications: titles, degrees, relevant past accomplishments, and designated responsibilities should be included in this section. It adds a personal touch to mention team members who are especially qualified because they’re close to the cause or have special first-hand experience with or knowledge of the population you’re serving.
There are probably some amazing, dedicated people with stellar qualifications on your team—this is the place to feature them (and don’t forget to include yourself!).
The financial plan is essential to any organization that’s seeking funding, but also incredibly useful internally to keep track of what you’ve done so far financially and where you’d like to see the organization go in the future.
The financial section of your business plan should include a long-term budget and cash flow statement with a three to five-year forecast. This will allow you to see that the organization has its basic financial needs covered. Any nonprofit has its standard level of funding required to stay operational, so it’s essential to make sure your organization will consistently maintain at least that much in the coffers.
From that point, it’s all about future planning: If you exceed your fundraising goals, what will be done with the surplus? What will you do if you don’t meet your fundraising goals? Are you accounting for appropriate amounts going to payroll and administrative costs over time? Thinking through a forecast of your financial plan over the next several years will help ensure that your organization is sustainable.
Money management skills are just as important in a nonprofit as they are in a for-profit business. Knowing the financial details of your organization is incredibly important in a world where the public is ranking the credibility of charities based on what percentage of donations makes it to the programs and services. As a nonprofit, people are interested in the details of how money is being dispersed within organizations, with this information often being posted online on sites like Charity Navigator, so the public can make informed decisions about donating.
Potential contributors will do their research—so make sure you do too. No matter who your donors are, they will want to know they can trust your organization with their money. A robust financial plan is a solid foundation for reference that your nonprofit is on the right track.
It’s important to remember that a business plan doesn’t have to be set in stone. It acts as a roadmap, something that you can come back to as a guide, then revise and edit to suit your purpose at a given time.
I recommend that you review your financial plan once a month to see if your organization is on track, and then revise your plan as necessary .
Angelique is a skilled writer, editor, and social media specialist, as well as an actor and model with a demonstrated history of theater, film, commercial and print work.
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A nonprofit business plan is a strategic document that outlines how a nonprofit organization (NPO) will achieve its mission and goals. Unlike profit-driven businesses, nonprofits focus on making a positive impact rather than earning profits. However, like any other business, they require a detailed plan to outline their strategy, operations, and financial projections.
A business plan is crucial for a nonprofit for several reasons. It helps clarify the mission statement and vision, ensuring everyone from the board of directors to volunteers understands the organization’s purpose. It’s a tool for strategic planning, helping to set realistic goals and determine the path to success. Additionally, a well-crafted business plan is essential for securing funding, as it demonstrates to donors, grantmakers, and other sources of funding the organization’s potential for making a positive impact.
A non-profit business plan is a comprehensive document that outlines an organization’s objectives and strategies to achieve them. Creating a clear nonprofit business plan outline helps structure your plan effectively, ensuring all crucial aspects are covered. Each part of your nonprofit business must be detailed in the business plan, from management and operations to financial strategies. Here’s a detailed look at each component:
– Mission Statement: Articulates the organization’s purpose and what it seeks to achieve.
– Vision: Describes the desired future position of the organization.
– Overview of Services: Briefly details the programs or services offered.
– Target Market: Identifies the community or demographic the nonprofit aims to serve.
– Financial Plan: Summarizes key financial goals and strategies, including funding sources and major budget items.
As your organization grows, it’s essential to revisit and update your nonprofit business plan to ensure it aligns with your expanding goals and operations.
– Management Team: Profiles of key management personnel, their roles, responsibilities, and expertise.
– Board of Directors: Information about the board members, their qualifications, and their role in governance.
– Operational Plans: Details on the organization’s infrastructure, staffing, and logistical considerations.
– Target Market: In-depth information about the needs, size, and demographics of the community served.
– Competitive Analysis: Assessment of other organizations operating in the same space and how the nonprofit will differentiate itself.
– Marketing Strategy: Plans for outreach, engagement, and building relationships with the community, clients, and donors.
– Description: Detailed information about the programs, services, or products provided. A comprehensive nonprofit business plan should detail your products, programs, and services, explaining how each contributes to your mission.
– Contribution to Mission: Explanation of how these services or products help achieve the nonprofit’s goals.
– Outreach Strategies: Tactics for reaching out to potential beneficiaries, volunteers, and donors.
– Major Donors: Strategies for identifying, engaging, and retaining major contributors.
– Public Awareness : Methods for increasing visibility and support for the organization’s cause.
– Daily Operations: Description of day-to-day activities and processes.
– Facilities: Information about the physical location(s) of the nonprofit.
– Technology Needs: Overview of necessary technology and equipment to support activities.
– Long-Term Goals: Clear, measurable objectives the organization aims to achieve over a longer period.
– Action Plan: Step-by-step strategies for reaching these goals.
– Impact Plan: Methods for measuring the effectiveness and impact of the organization’s efforts.
Your financial plan should include detailed financial statements such as the income statement, balance sheet, and cash flow statement.
– Balance Sheets: Snapshot of the organization’s financial condition at a specific point in time.
– Income Statements: Details about revenue sources and expenses over a period.
– Cash Flow Statements: Analysis of how cash is generated and used.
– Financial Statements: Comprehensive reports detailing financial activities.
– Projections: Future financial forecasts based on current data and trends.
Each component of the nonprofit business plan plays a crucial role in guiding the organization’s strategy, operations, and financial management. Together, they provide a roadmap for the nonprofit to follow as it works to achieve its mission and make a positive impact on the community it serves.
Writing a nonprofit business plan involves a deep understanding of the organization’s mission, the environment in which it operates, and the strategy it will employ to achieve its goals. Here’s how to approach each step:
– Clarify Purpose: Articulate the core reason your organization exists and what specific needs it addresses.
– Define Impact: Understand and describe the change or impact your organization seeks to make in the community or sector.
– Market Analysis: Investigate the needs of the community you’re serving, the size of the target market, and the demand for your services.
– Target Donors and Market: Identify potential funding sources, understand donor interests and priorities, and analyze the market for partnerships and collaborations.
– Specific Objectives: Break down your mission into achievable, specific objectives.
– Measurable Outcomes: Ensure that each goal has clear metrics for success.
– Time-Bound: Assign a timeline to each objective to maintain momentum and focus.
– Programs and Services: Detail the programs or services that will be provided to achieve the objectives.
– Marketing and Outreach: Plan how you will communicate with your target audience, including marketing materials, events, and digital presence.
– Partnerships: Identify potential collaborations with other organizations, businesses, or government entities.
– Daily Operations: Describe the day-to-day activities necessary to run the organization, from staffing and volunteer management to program delivery.
– Long-Term Plans: Outline the future growth and development of the organization, including any anticipated expansion of services or geographic reach.
– Budgeting: Create a detailed budget that includes all potential revenue streams and expenses.
– Financial Projections: Develop projections for future years, showing how the organization plans to sustain itself and grow.
– Funding Sources: Identify and describe the mix of funding sources, such as grants, donations, fundraising events, and any earned income strategies.
– Feedback Loop: Regularly review the plan with staff, board members, and other stakeholders to gather feedback and insights.
– Adaptability: Be prepared to adapt the plan as circumstances change, whether due to internal growth or changes in the external environment.
– Regular Updates: Schedule periodic updates to the plan to reflect new goals, achievements, and strategies.
By following these steps, you can create a comprehensive and effective nonprofit business plan that serves as a roadmap for your organization’s future. It will help align your team, attract funding, and guide decision-making as you work towards achieving your mission.
Why do you need a business plan for your nonprofit?
-A business plan is essential for guiding your nonprofit’s strategy, securing funding, and ensuring operational efficiency.
Where can I download a nonprofit business plan PDF?
-Nonprofit business plan templates can be found online through business planning resources or specialized nonprofit support organizations.
What’s included in this Nonprofit Business Plan template?
-Typically, it includes sections on the organization’s background, operational plan, marketing strategy, financial plan , and more.
Creating a business plan for a nonprofit is crucial for long-term success and sustainability. It requires a clear understanding of your mission, strategic planning, and a dedicated team to implement the plan. With a comprehensive and well-thought-out business plan, your nonprofit can effectively navigate the path to making a lasting positive impact. Remember, the plan is not just a document but a reflection of your vision and a roadmap to achieving your goals.
Ready to turn your vision into a reality? Contact Oak Business Consultant today and let us help you craft a business plan that sets your nonprofit up for success. Our expert team specializes in strategic planning, financial forecasting, and creating tailored business plans that drive growth and impact. Don’t wait to make a difference—reach out now and take the first step towards a brighter future for your nonprofit!
Sadaf Abbas
Sadaf Abbas, with over 16 years in the financial consulting realm, has showcased her expertise across diverse industries like Blockchain, Gaming, and SaaS. As a CFO for leading companies, she's transformed complex financial scenarios into actionable strategies. Now, as the CEO of Oak Business Consultant, her leadership has driven the firm to unparalleled heights, marking it as a benchmark for excellence and innovation. Beyond her corporate achievements, Sadaf is also a revered educator, blending theoretical and practical insights to shape the future of financial analysts and consultants. With credentials like a Master's Degree in Finance and Economics and a title of CSP, she's a force in financial analysis, business planning, and more. Dive into Sadaf's world and discover a blend of knowledge, expertise, and transformative leadership.
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Unfortunately, many founders or leaders skip creating one — which generally leads to fundraising frustrations and stalled services, among other problems.
Maybe they don’t know what a nonprofit business plan can do to help them.
Or perhaps it seems too daunting, and they don’t know where to start.
There’s also a common misconception out there that because your organization is labeled a “nonprofit” it doesn’t need to operate like a business. (That couldn’t be farther from the truth.)
Passion and enthusiasm can only get you so far. Without a guide or roadmap to get you where you want to go, you can spend a lot of time floundering.
After all, you can’t jump into your car and drive somewhere you’ve never been if you don’t have directions, can you?
So why do folks who are looking to start or grow a nonprofit not draft a business plan?
No matter where your nonprofit is in its growth or what you’re trying to accomplish, a plan will help you reach your goals faster than if you are trying to operate without one.
Your nonprofit business plan helps you figure out the direction for your nonprofit, the resources you need, and the shortest path to success.
For new nonprofits, it helps you see if you can actually gather the support that you hope you can. In short, you can determine before you begin if your idea for a nonprofit is feasible.
If your nonprofit is already up and running, a nonprofit business plan helps you decide if the funding and opportunities for growth exist for your new or young nonprofit.
Your organization doesn’t exist to make money. But a nonprofit business plan is necessary to attract major donors, foundations, Board members, and other potential partners.
You might need to apply for a business loan at some point, especially if you want to buy a building or set up a thrift store. Lenders will want to see your nonprofit business plan to get an idea of how well you’ve thought things through and to see what your revenue projections look like.
Regardless, your nonprofit needs a roadmap for the future so you can accomplish your goals and fulfill your mission.
So, let’s break it down and take a look at the pieces you’ll need to think through and include in your nonprofit’s business plan.
The most common question we get about business plans is “where do we start?”
I get it. It can be a little overwhelming, especially if you’re not naturally a planner.
Essentially, you start with the basics — your mission, vision, and goals.
Your nonprofit’s business plan will then expand on those, going into detail about what you’ll do and what it will cost.
A good plan answers a number of who, what, when, where questions like these:
Your Nonprofit Business Plan not only answers these questions in a format that’s easy to read and understand, but explains your organization and its processes clearly and factually.
Your Nonprofit’s Business Plan should include only relevant information, including these 9 elements:
1. Executive Summary. The Executive Summary is the first thing that any potential partner or supporter will read, and it introduces the mission and purpose of your nonprofit.
It summarizes the identifiable needs you are committed to filling and explains how your nonprofit will meet those needs.
Unlike for-profit businesses, you are not just selling your potential partners on the numbers and inviting them to make a profit.
You are writing a compelling story about how you are helping change the world for the better.
Because this section of your nonprofit business plan is a summary of the facts contained throughout the whole document, it is often written last.
You can customize this section of your business plan depending on your purpose in sending it out. For example, the Executive Summary might have a very different focus if you are trying to recruit an expert in your service sector to the Board versus applying for a small business loan to open a gift shop.
For instance, if your nonprofit is a 501(c)(3), you will list that in this section. (There are other types of nonprofit organizations such as fraternal beneficiary organizations, or horticulture, labor, and agricultural organizations that are structured as nonprofits as well…so be clear here.). Or maybe your nonprofit is actually an NGO based in another country.
In this section, talk about whether you have employees or are all-volunteer. Do you have (or will have) a facility? Paint a picture of your organizational structure so the reader can understand quickly what your nonprofit looks like from an operational point of view.
If yours is an established organization, you can discuss how your nonprofit was started and the milestones you have reached. Listing previous successes and accomplishments in this section can be convincing for potential partners and reassure them that you will use their funding efficiently.
If your nonprofit is just getting started, explain your vision and why you are creating your organization. Focus on the problems you see and the practical ways you intend to alleviate those problems.
3. Products, Programs, and Services. This section provides detailed descriptions and documentation of how you meet needs in your community.
This is where you describe the need and who benefits from your programs. Talk about how lives are changed because of the work your nonprofit does.
Go into some detail to describe the number of people or animals who need you, the number you serve or intend to serve, and the remaining gap who need service.
For example, if you run a homeless shelter, you should mention the number of people who are homeless on any given night in your area. Talk about the number of beds you have, the number of beds you are planning to add in the coming year, and exactly what services you provide in addition to shelter.
If your shelter offers wrap-around services or plays a key role in connecting those you serve to other vital services, talk about those, too. Do your beneficiaries have access to medical care once a month? Does your organization provide a meal? Do you have volunteer tutors who can help students who are homeless with their work? Note who carries out your programs and services and whether you use mostly volunteers or whether you have paid staff in place.
This section will convince potential partners that you are making a difference in a concrete way.
Also, talk about any other nonprofits who are addressing the same need and how your services are/will be different. Donors don’t like duplication of services, and getting grants will be tough if you can’t articulate how your approach is unique.
4. Marketing Plan. Your marketing plan should describe the specific target audiences you want to reach for both programs and fundraising, key messages you’ll use, and which methods or vehicles you’ll use to reach the right people.
Describe whether you mostly advertise and market to a local community or whether your organization is national or worldwide in scope.
This section should include specific marketing strategies and associated costs, such as:
If your nonprofit is already established, let your reader know what your marketing plan has been in the past, what has worked, and how you plan to expand it.
What do you and your staff do every day to run programs and provide services? Be specific. How much does a single unit of service cost per person? Who delivers the service? Where and how?
If you have a five-year plan for expanding operations, include that as well. Outline your ideas to move into new areas, new facilities, or new markets.
Note any expanded services. If you are planning on growing or expanding your services what would that mean in terms of operations? For instance, if you run a food bank and you are actively planning to double the number of people you feed in the next year, how will that affect operations? Will you need more refrigerated space? More trucks? More staff or volunteers? Will you expand hours? Be ready to share in the Financial section how this growth will impact your budget, both in revenue and expenses.
If you haven’t spent time making long-term plans, this is a good time to sit down with Board members and staff and think about it in detail! Decide if you’ll start the program or secure funding first (there’s a big difference!).
This section will show potential partners that you are professional, serious, and ready to act with whatever funding they can provide.
6. Evaluation Plan. This can be a separate section, or evaluation methods can be added to various other sections.
Evaluation is critical to determine your effectiveness as a nonprofit — and it’s particularly important for grants. How can you tell if a program is providing the benefit that you are promising? Potential donors and grantors will want to know how you will make sure that funds are used to their highest potential and that you are flexible enough to change if need be.
You should also talk about methods in place to evaluate various aspects of your nonprofit to make sure you’re getting a good return on investment for the time, energy, and resources you put into each area of operations.
For instance, you should monitor your marketing strategies to see what’s working to reach new people. Make sure someone is noting which social media posts are catching on. You should have a data collection system that helps evaluate which fundraising techniques bring in new donors and which techniques help you retain donors or take them to the next level.
You need to explain exactly how you will determine whether or not your beneficiaries are succeeding. For instance, how many of the students you tutor graduate high school? What is your mechanism for follow-up?
You can’t just tell people your idea is working. You need to have the data to prove it.
7. Management and Organizational Charts. In this section, explain the hierarchy of your organization and your expertise for doing the work ahead of you.
Who does what and what expertise do they have for doing it? Potential partners will feel more comfortable to know that the Director of Services for your women’s shelter has a PhD and 10 years of experience in social work.
They will also feel more comfortable knowing that you have all your bases covered in management and staff. This is a good place to outline your future staffing and management needs, including any reliance on volunteers.
Start by developing revenue projections, including anticipated sources of funding from donations, grants, etc. Your projections can’t just be guesses — they need to be based on something specific, whether it’s how much you raised last year, how much a similar organization raised last year, or on an expert’s recommendations. So, include a summary of your fundraising plan here to show how money will be raised.
In addition to revenue projections, also include a breakdown of anticipated expenses. How much of your funds go directly to those you serve? How much goes to your employees’ salaries? How much funding goes to facilities payments or upkeep? You should be very detailed in this section.
Don’t forget things like legal and accounting services, insurance, website upkeep, internet, phone bills, and utilities. If your nonprofit’s money goes into it, include it here.
Include future cash flow statements, income sheets, and balance sheets. You should let your potential partners know how you distribute these funds amongst your various programs and services. This is where your accounting practices can make or break you!
Writing out a detailed financial plan can be very revealing to you as well as to donors and foundations. It may help you identify gaps in your funding and how you plan to deal with them. It’s well worth the effort to gather this information. Not only will it make potential partners more comfortable, it will give you clarity as well!
9. Appendix. The appendix is where you should include extra information that might make the business plan too lengthy or complicated to read through.
You can include your current fiscal year budget , a list of your Board members and their bios, and other relevant documents. You can include any information that you feel is important but perhaps too detailed to include in the main body of your nonprofit business plan.
Use technical jargon or acronyms your reader might not be familiar with.
Make the document unreadably long. Instead, use the appendix for very long or dense documents.
Use only text. Break up the sections for easy reading, and use graphs and charts where you can.
Get so passionate about the cause you forget to tell your reader the nuts and bolts of your nonprofit.
Make the document easy to read. If it’s printed, print on reasonably heavy paper with at least a 12-pt. font.
Use reasonable margins. You want your reader to be able to easily read each page.
Divide the sections clearly with headers and white space.
Use color, graphs, and charts to draw the eye and keep the reader moving through the document.
Have someone, or even several someones, read and edit your nonprofit business plan. (Silly grammar errors and typos are not going to impress your reader with your professionalism.)
Update your audience and keep them excited.
Writing a nonprofit business plan is not the easiest thing in the world, but it’s definitely worth your while and gets your ideas down on paper. It may seem like a daunting task, but if you break it into sections and start gathering information, you will find that your business plan can help you find direction and the means to help fulfill your mission.
About the author: sandy rees.
I need help writing my non profit business plan
The resources listed in this article will help. Is there a specific place where you’re stuck?
Thank you so much for this! Is there a good sample you could point me to look at?
You might try googling “sample nonprofit business plan” and the type of nonprofit you have so you can find one that’s applicable to your work.
This information was informative, detailed and to the point without being too wordy. Thank you for your advice, it helped me a lot.
What is the average total page count for a business plan
It depends on how much detail you get into. Somewhere between 15 and 20 pages should give you plenty of direction.
The first step in starting a nonprofit is figuring out how to bring your vision into reality. If there’s any tool that can really help you hit the ground running, it’s a nonprofit business plan!
With a plan in place, you not only have a clear direction for growth, but you can also access valuable funding opportunities.
Here, we’ll explore:
We also have a few great examples, as well as a free nonprofit business plan template.
Let’s get planning!
A nonprofit business plan is the roadmap to your organization’s future. It lays out where your nonprofit currently stands in terms of organizational structure, finances and programs. Most importantly, it highlights your goals and how you aim to achieve them!
These goals should be reachable within the next 3-5 years—and flexible! Your nonprofit business plan is a living document, and should be regularly updated as priorities shift. The point of your plan is to remind you and your supporters what your organization is all about.
This document can be as short as one page if you’re just starting out, or much longer as your organization grows. As long as you have all the core elements of a business plan (which we’ll get into below!), you’re golden.
While some people might argue that a nonprofit business plan isn’t strictly necessary, it’s well worth your time to make!
Here are 5 benefits of writing a business plan:
Did you know that businesses with a plan are far more likely to get funding than those that don’t have a plan? It’s true!
When donors, investors, foundations, granting bodies and volunteers see you have a clear plan, they’re more likely to trust you with their time and money. Plus, as you achieve the goals laid out in your plan, that trust will only grow.
In order to sell your mission, you have to know what it is. That might sound simple, but when you have big dreams and ideas, it’s easy to get lost in all of the possibilities!
Writing your business plan pushes you to express your mission in the most straightforward way possible. As the years go on and new opportunities and ideas arise, your business plan will guide you back to your original mission.
From there, you can figure out if you’ve lost the plot—or if it’s time to change the mission itself!
The first step in achieving your goals is knowing exactly what they are. By highlighting your goals for the next 3-5 years—and naming their key milestones!—you can consistently check if you’re on track.
Nonprofit work is tough, and there will be points along the way where you wonder if you’re actually making a difference. With a nonprofit business plan in place, you can actually see how much you’ve achieved over the years.
Getting volunteers and filling nonprofit board positions is essential to building out your organization’s team. Like we said before, a business plan builds trust and shows that your organization is legitimate. In fact, some boards of directors actually require a business plan in order for an organization to run!
An unfortunate truth is that many volunteers get taken advantage of . With a business plan in place, you can show that you’re coming from a place of professionalism.
Writing a business plan requires some research!
Along the way, you’ll likely dig into information like:
With this information in place, not only will you have a better nonprofit business model created—you’ll also have a more stable organization!
If you’re feeling uncertain about building a business plan from scratch, we’ve got you covered!
Here is a quick and simple free nonprofit business plan template.
Now that you know what a business plan can do for your organization, let’s talk about what it actually contains!
Here are some key elements of a business plan:
First of all, you want to make sure your business plan follows best practices for formatting. After all, it’ll be available to your team, donors, board of directors, funding bodies and more!
Your nonprofit business plan should:
Curious about what each section of the document should look like?
Here are the essential parts of a business plan:
We’ll get into these sections in more detail below!
Feeling ready to put your plan into action? Here’s how to write a business plan for a nonprofit in 12 simple steps!
Take a look at what’s going on in your corner of the nonprofit sector. After all, you’re not the first organization to write a business plan!
All of this information will show you what parts of your business plan should be given extra care. Sending out donor surveys, contacting financial institutions and connecting with your beneficiaries are a few tips to get your research going.
If you’re just getting started out, this can help guide you in naming your nonprofit something relevant, eye-catching and unique!
Your business plan will be available for a whole bunch of people, including:
Each of these audiences will be coming from different backgrounds, and looking at your business plan for different reasons. If you keep your nonprofit business plan accessible (minimal acronyms and industry jargon), you’ll be more likely to reach everyone.
If you’d like, it’s always possible to create a one page business plan AND a more detailed one. Then, you can provide the one that feels most useful to each audience!
Your mission statement defines how your organization aims to make a difference in the world. In one sentence, lay out why your nonprofit exists.
Here are a few examples of nonprofit mission statements:
In a single sentence, each of these nonprofits defines exactly what it is their organization is doing, and who their work reaches. Offering this information at a glance is how you immediately hook your readers!
Now that your mission is laid out, show a little bit more about who you are and how you aim to carry out your mission. Expanding your mission statement to include your vision and values is a great way to kick this off!
Use this section to highlight:
Don’t worry too much about the specifics here—we’ll get into those below! This description is simply meant to demonstrate the heart of your organization.
When you put together your business plan, you’ll want to describe the structure of your organization in the Operations section.
This will include information like:
If you’re already established, make a section for how you got started! This includes your origin story, your growth and the impressive nonprofit talent you’ve brought on over the years.
This information will have its own section in your nonprofit business plan—and for good reason!
It gives readers vital information about how you operate, including:
Above all, highlight what needs your nonprofit meets and how it plans to continue meeting those needs. Really get into the details here! Emphasize the work of each and every program, and if you’re already established, note the real impact you’ve made.
Try including pictures and graphic design elements so people can feel your impact even if they’re simply skimming.
Your Executive Summary will sit right at the top of your business plan—in many ways, it’s the shining star of the document! This section serves as a concise and compelling telling of your nonprofit’s story. If it can capture your readers’ attention, they’re more likely to read through the rest of the plan.
Your Executive Summary should include:
This section will summarize the basics of everything else in your plan. While it comes first part of your plan, we suggest writing it last! That way, you’ll already have the information on hand.
You can also edit your Executive Summary depending on your audience. For example, if you’re sending your nonprofit business plan to a loan provider, you can really focus on where the money will be going. If you’re trying to recruit a new board member, you might want to highlight goals and impact, instead.
Having a nonprofit marketing plan is essential to making sure your mission reaches people—and that’s especially true for your business plan.
If your nonprofit is already up and running, detail the work you’re currently doing, as well as the specific results you’ve seen so far. If you’re new, you’ll mostly be working with projections—so make sure your data is sound!
No matter what, your Marketing Plan section should market research such as:
Data is your friend here! Make note of market analyses and tests you’ve run. Be sure to also document any outreach and campaigns you’ve previously done, as well as your outcomes.
Finally, be sure to list all past and future marketing strategies you’re planning for. This can include promotion, advertising, online marketing plans and more.
The Operations section of your business plan will take the organizational information you’ve gathered so far and expand the details! Highlight what the day-to-day will look like for your nonprofit, and how your funds and resources will make it possible.
Be sure to make note of:
This is the what and how of your business plan. Lean into those details, and show exactly how you’ll accomplish those goals you’ve been talking about!
Your Impact Plan is a deep dive into your organization’s goals. It grounds your dreams in reality, which brings both idealists and more practically-minded folks into your corner!
Where your Executive Summary lays out your ambitions on a broader level, this plan:
Your Impact Plan will have quite a few goals in it, so be sure to emphasize which ones are the most impactful on your cause. After all, social impact is just as important as financial impact!
Speaking of…
One of the main reasons people want to know how to write a nonprofit business plan is because of how essential it is to receiving funding. Loan providers, donors and granting bodies will want to see your numbers—and that’s where your Financial Plan comes in.
This plan should clearly lay out where your money is coming from and where it will go. If you’re just getting started, check out what similar nonprofits are doing in order to get realistic numbers. Even if you’re starting a nonprofit on a tight budget , every bit of financial information counts!
First, map out your projected (or actual) nonprofit revenue streams , such as:
Then, do the same with your expenses:
If your nonprofit is already up and running, include your past accounting information. Otherwise, keep working with those grounded projections!
To make sure you have all of your information set, include documents like:
This information comes together to show that your nonprofit can stay above water financially. Highlighting that you can comfortably cover your operational costs is essential. Plus, building this plan might help your team find funding gaps or opportunities!
Your appendix is for any extra pieces of useful information for your readers.
This could be documents such as:
Make sure your additions contribute to your nonprofit’s story!
Here are two great examples of nonprofit business plans. Notice how they’re different depending on the size of the organization!
This sample nonprofit business plan shows what a basic plan could look like for a hobbyists’ co-op. If your nonprofit is on the smaller, more local side, this is a great reference!
This sample nonprofit business plan is for a much larger organization. Instead of focusing on the details of a membership model, it gets deeper into programs and services provided.
We hope this sheds some light on how creating a nonprofit business plan can help your organization moving forward! Remember: you know what you want for your organization. A business plan is simply a tool for making those dreams a reality.
Is a membership program part of your business plan? Check out WildApricot ’s award-winning membership management software!
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A nonprofit business plan is a document that describes your nonprofit’s mission, goals, strategies, and financial projections. It helps you communicate your vision to donors, stakeholders, and staff, as well as guide your decision-making and operations.
Writing a nonprofit business plan can seem daunting, but it doesn’t have to be. Here are some easy-to-follow steps to create a comprehensive and effective plan for your nonprofit. If you want to learn how to start your non-profit business , Read This Guide.
Follow these simple steps to write your non profit business plan, step 1: mind your audience.
Remember that not everyone who reads your plan will be as experienced and knowledgeable as you are. You need to tailor your language and tone to suit your audience’s needs and expectations. For example, if you are writing for potential funders, you need to emphasize your impact, sustainability, and competitive advantage. If you are writing for internal use, you need to focus on your objectives, action plans, and performance indicators. Knowing your target audience is crucial for your marketing and sales. Find out how to identify and reach them with these proven tips.
Make a nonprofit business plan outline that covers the main sections of your plan. These include:
Looking for inspiration for your nonprofit business plan? Check out these 11 amazing non profit business plan example.
Think back to when you were in school. Did you enjoy reading long paragraphs of text with no visual aids? Probably not. The same goes for your readers. You want to make your plan easy to read and understand by using clear headings, bullet points, tables, charts, graphs, and images. You also want to use consistent fonts, colors, and styles throughout your document.
A business plan outline is a roadmap for your success. Learn how to write a clear and compelling one with these simple steps.
Create a specialized business plan with our writers!
Each section of your plan should have a clear purpose and flow logically from one to another. You should also use transitions and summaries to connect the different sections and highlight the main points. For example:
Step 5: display your data aesthetically.
Data is an essential part of your plan. It shows that you have done your homework and that you have evidence to support your claims. However, data can also be boring or confusing if not presented well. You want to use data visualization tools such as tables, charts, graphs, and images to display your data in a way that is easy to comprehend and appealing to the eye. You should also use captions, labels, legends, and sources to explain what the data means and where it comes from.
No matter how good you are at writing or how confident you are in your plan, you should always have someone else review it before you finalize it. An editor can help you catch errors in grammar, spelling, punctuation, formatting, logic, consistency, clarity, and accuracy. They can also give you feedback on how to improve your content and structure. You can hire a professional editor or ask a colleague or friend who has experience in writing or reviewing business plans.
Step 7: keep the tone positive.
Writing a nonprofit business plan can be challenging and stressful. You may encounter difficulties or uncertainties along the way. However, you should not let that affect the tone of your plan. You want to convey a sense of optimism, enthusiasm, passion, and confidence in your nonprofit’s mission and vision. You want to show that you have a clear direction for the future and that you are ready to overcome any obstacles or risks that may arise. By following these steps, you can create a nonprofit business plan that will impress your readers and help you achieve your goals. Remember that your plan is not set in stone. You should update it regularly as your nonprofit grows and changes.
Do you want to make a positive difference in the world while running a sustainable business? Here are 53 brilliant non-profit business ideas that you can start today.
Faq's of non-profit business plan.
Nonprofit and not-for-profit are terms that describe a type of organization that does not distribute its surplus income to owners or shareholders, but rather uses it for a social or charitable cause. Not-for-profit is usually written with hyphens, while nonprofit is usually written without hyphens.
Planning in a not for profit is creating a strategic plan that guides the organization.
The strategic plan involves: Reflecting on the mission Identifying the most important goals Determining the strategies to reach them Measuring the progress and outcomes
Planning in a not for profit also requires: Engaging the staff, board, and other stakeholders Revisiting the plan regularly as the environment changes
A non-profit example is an organization that does not distribute its surplus income to owners or shareholders but rather uses it for a social or charitable cause. Some common examples of non profits are:
Charitable organizations, such as hospitals, universities, national charities, and foundations. Religious organizations, such as churches, mosques, temples, and synagogues. Volunteer service organizations, such as labor unions, legal aid societies, and animal welfare groups. Research organizations, such as institutes, think tanks, and academic centers. Cultural organizations, such as museums, libraries, and arts groups.
A non-profit (NPO) is an organization that does not aim to make a profit, but to serve a social or public benefit.
To write a non-profit project proposal, you need to follow these steps:
Identify the problem or need that your project will address Research the existing solutions and gaps in the field Define your goals, objectives, activities, outcomes, and indicators Develop a budget and a timeline for your project Write a clear and concise summary of your proposal Include supporting documents such as letters of support, resumes, etc.
A summary of a non-profit organization is a brief overview of its mission, vision, values, programs, impact, and achievements. It should highlight what makes the organization unique and why it deserves support.
The 7 steps of a business plan are: Executive summary Company description Market analysis Product or service description Marketing and sales strategy Financial plan Appendix
– There is no definitive answer to what is the best type of nonprofit, as different nonprofits may have different goals, missions, and strategies. – However, some possible criteria to evaluate nonprofits are: impact, efficiency, transparency, accountability, and sustainability. – Impact refers to how well the nonprofit achieves its intended outcomes and creates positive change for its beneficiaries and society. – Efficiency refers to how well the nonprofit uses its resources, such as time, money, and staff, to deliver its services and programs. – Transparency refers to how openly the nonprofit communicates its activities, finances, and results to its stakeholders and the public. – Accountability refers to how the nonprofit adheres to ethical standards, legal regulations, and best practices in its operations and governance. – Sustainability refers to how the nonprofit ensures its long-term viability and resilience in the face of challenges and changes.
– Public charities: These are organizations that receive most of their funding from the general public or the government, and they usually have a broad charitable purpose. – Private foundations: These are organizations that are funded by a single source, such as a family, a corporation, or an individual, and they usually make grants to other charities rather than operate their own programs. – Hybrid organizations: These are organizations that combine elements of both public charities and private foundations, such as donor-advised funds, supporting organizations, and community foundations.
June 18, 2024 9:30pm Cathleen Armstead, Ph.D.
This blog describes the importance of business plan for nonprofit organizations, discusses the nine components, and provides a series of steps to create such a business plan.
Every business needs a strong foundation, and nonprofit organizations are no exception. But what is required for a business plan? And what does the creation process look like? Continue reading to get answers to these questions and more.
A nonprofit business plan is a statement of the organization’s plan and capacities to fulfill its mission.
Crafting a robust road map for success is crucial and often encompasses two distinct types of plans: the business plan and the strategic plan. At first glance, you might think that these plans are interchangeable. However, they serve fundamentally different purposes.
A strategic plan is focused more on the long-term vision. It's a high-level document that establishes the direction of the organization over the longer term — identifying long-range target outcomes, overarching goals, and major initiatives.
On the other hand, a business plan is a comprehensive document that outlines the operational and financial objectives of a nonprofit. It details how the organization will achieve its goals, including organizational structure, marketing strategies, and fundraising tactics.
When it comes to which plan comes first, think of it this way: The strategic plan sets your destination on the horizon, while the business plan gives you the route to get there with a detailed map and a checklist of supplies for your voyage. Ideally, your organization should begin with a strategic plan to establish your ultimate goals and aspirations, followed by a business plan to nail down the particulars of your operations plan and financial plan. In essence, the strategic plan lays down the “what” and “why,” while nonprofit business plans address the “how” and “when.”
In his groundbreaking work “Start with the Why”, Simon Sinek proposes the golden circle of intention with the why at the center of all planning. Determining your why is easy for nonprofit founders and directors. Your “why” is the reason you get out of bed in the morning. Determining the “why” for your organization can be just as simple. You and your management team want to improve the world, and your mission statement will encompass which change and which community. Establishing your “why” for your nonprofit organization is an essential first step and occurs in the strategic planning session.
Creating goals that align with the mission statement is a key component of the strategic plan. The strategic planning process sets the goals. The business plan then outlines the activities to meet these goals.
A business plan situates you in your community and describes your strengths while also pointing to areas needing enhancement. The business plan will focus on your clients and your community providing activities and objectives. The business plan will describe your marketing strategy and fundraising tactics, which will include grants. Business plans direct and focus your energy. They also demonstrate to the community what you will do and how you will do it and connect your Board of Directors with your nonprofit operations plan.
Nonprofit organizations often craft and update a strategic plan and neglect the business plan. At Sunshine Nonprofit Solutions, we recommend a business plan that is updated annually. Organizations change and communities change. Changes in community needs require updated business plans. Updated business plans are as essential as updated strategic plans.
The Nine Components of Nonprofit Business Plans
1. Executive Summary (this is usually written last)
2. Mission Statement with aligned goals
3. Description of the organization and its programs and services
4. A needs analysis of the community
5. The board of directors including the recruitment process, roles and responsibilities, and engagement
6. The staffing process includes an organizational chart, and your procedures for hiring, retaining, training, and evaluating your management team.
7. A public relations plan for communicating the needs of the community and the organization's services
8. A fiscal plan that includes a mixture of donor relations and grant funding
9. An impact plan to measure your positive results
Developing a business plan may seem intimidating, but taken step-by-step, it can emerge organically from reflection and conversations with your board of directors and staff.
The first step in creating this critical document is to clarify your organization's vision and mission statements, which will serve as the guiding star throughout your non-philanthropic voyage. This occurs during a strategic planning retreat that is both transparent and broadly inclusive of former and current clients, community organization leaders, Board of Directors, and staff.
Describe your organization. Ideally, you have developed a description of your organization that lays out what you do and for whom. This description should include the different programs and services you provide. Your website should feature this description and include testimonials. Your business plan can summarize some of the positive impacts your organization has made. Your strategic plan, your business plan, your website, and your marketing materials will all have a comprehensive and consistent description of your organization.
It can be helpful to do market research to learn what other organizations use for their nonprofit description, who their target audience is, how their target market uses digital marketing, and how their fundraising plan is structured. Doing this type of market analysis to learn about other small business operational plan structures can guide your strategic planning and organizational structure creation process.
A useful way to describe your programs and services can emerge from a facilitated discussion with your staff and Board Directors. Outlining your programs on a whiteboard can form the basis for describing your programs and services and can yield important information about what you are doing.
This step can be difficult to do alone. That’s why Sunshine Nonprofit Solutions is here to help. We can be your one-stop shop for planning services , including strategic planning, business planning, community needs, leadership development, and grant writing.
Conduct a comprehensive analysis of your community and its needs for your services. This analysis should include basic demographics of your community including gender, race, income levels, health data, education, data, major employers, and employment opportunities. Often, such data is available by zip code, and easily accessible resources can be located through an internet search. Many organizations, such as hospitals, are required to complete a community needs assessment, and such resources are invaluable in putting together your own needs assessment.
The current economic, social, and political opportunities and constraints faced by your community need to be documented. The COVID-19 pandemic is no longer an immediate health and economic crisis, but its impact is far-ranging and will continue to shape community needs.
Lay out your staffing requirements. This should include an organizational chart with reporting responsibilities, job descriptions, salary rates, training requirements, and staff support. Most importantly, your staffing plan should include a discussion of engaged employees. Engaged employees are key to nonprofit success because engaged employees go the extra mile for their clients. Engagement encompasses employee satisfaction , but there’s more. Engaged employees connect their purpose to the organization's mission. They’re also a direct result of caring and compassionate managers along with the potential for employee growth.
This leads us to the establishment of your marketing plan where you highlight how to promote your cause effectively and engage your audience. Creating a robust marketing plan for a nonprofit business requires creativity, an understanding of your audience, and a strategic approach to resource allocation. Your plan will describe key strategies that will elevate your nonprofit's visibility and impact.
Leveraging the reach of social media platforms to engage with all your audiences to the thoughtful construction of informative blogs that position your nonprofit as a thought leader are all important components of your nonprofit business plan. Crafting newsletters can create a direct line of communication with your supporters, providing regular updates and calls to action that keep your mission at the forefront of their minds.
But it’s not just about the digital world; alternative methods such as local events and aligning with community partners can forge tangible connections and foster a network of advocacy and support.
Additionally, your strategic plan should encompass a well-developed financial plan, depicting your funding strategy, budget, and financial projections. From the allure of funding to the meticulous art of budgeting — it's all about dollars and sense. We'll walk you through creating a profit strategy that not only illuminates the present but also forecasts the future with precision. A nonprofit's dream is only as good as its financial blueprint.
Whether you're a seasoned nonprofit leader or a newcomer to the sector, understanding the financial intricacies of your business plan is non-negotiable.
Learn to detail your organization's fiscal pathways, setting realistic and sustainable financial goals. Your business plan should document avenues for securing funds including donations, grants, and fundraising campaigns. Just as no two nonprofits are the same, neither are their funding sources. Tailoring your approach to funding is crucial.
Securing donations is essential for nonprofit organizations and your business plan needs to describe your strategy for donations. Your strategy needs to include events, ongoing campaigns, communication efforts, and importantly your plan for establishing and maintaining relationships with all of your donors including recognition, personalized thank-you letters, and short newsletters about your successes.
In addition to donations, nonprofit organizations rely on grant writing. Penning a grant proposal can be daunting, but it's an indispensable skill in the nonprofit world. Every sound business plan needs robust fiscal forecasts. This portion of your business plan isn't just for impressing donors; it's a navigational chart for growth and stability.
Generate your projected needs and provide potential sources of revenue. When projecting your financial future, consider both optimistic and conservative scenarios. Where every dollar counts, budgeting becomes your nonprofit's heartbeat. An actionable budget ensures every cent is accounted for and allocated in alignment with your nonprofit's goals and regulatory requirements. Good budgeting not only keeps you on track but also signals to funders that your nonprofit is efficient and accountable.
If you have not developed fiscal procedures to safeguard funds, now is the time. Your procedures will need to include procurement procedures, distribution of funds, accounting procedures, and protection of accounting software, security of funds.
Clearly articulated goals and evaluation metrics are tantamount to gauging your progress, so setting these benchmarks is an indispensable part of the business plan.
Every nonprofit organization operates to make a positive impact. Yet, without a clear plan to measure success, how can progress be effectively monitored and goals achieved? Setting clear, articulated targets is the first crucial step in our evaluation framework. With well-defined objectives, a nonprofit can steer its mission with precision. Then comes the selection of robust evaluation metrics — tangible indicators that reflect how well the organization's actions align with its aspirations.
Measuring progress is not a one-time event: it's a continuous process. Our blog emphasizes the importance of periodic assessments and adapting benchmarks tailored to your nonprofit's unique circumstances and stage of development.
Summarize your work in a short one-page executive summary and your business plan is complete.
Get assistance with building a foundational business plan with the assistance of Sunshine Nonprofit Solution. Our team offers two decades of nonprofit experience, enabling us to help you complete the daunting tasks and make a difference in your community.
Get in touch with our team to get started.
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January 11, 2024
Table of Contents
Many assume that running a nonprofit is very different from running a company. And in some ways, they are right—from their philanthropic mission to the legalities of a tax-exempt status, those dedicating their time to operating a successful nonprofit organization deal with many worries that would not cross the mind of the average CEO.
But that is not to say that there aren’t any similarities between the two. One example is the necessity of a good business plan.
If you’ve never created one before, below you will find the ultimate step-by-step guide to how to write a nonprofit business plan.
As their name implies, nonprofits are organizations that operate not for the purpose of profits, but rather in search of furthering philanthropic causes that help the world.
So why does a nonprofit need a business plan?
The truth is that a business plan does a lot more than strategizing for future profits. When done well, a business plan helps not only lay out an organization’s current standing, but it also demonstrates what it hopes to accomplish in the next three to five years, and how it will do so.
By seeing plans laid out in such a manner, one can more easily see both new possibilities and potential pitfalls. Business plans also help manage expectations so that one knows what is feasible, what is a stretch but still possible, and what is out of reach.
More than that, in the case of nonprofits, a nonprofit business plan is crucial when trying to secure support from others. Be it in the recruitment of new volunteers , in trying to sign corporate partnerships , or in applying for certain grants , when a nonprofit business plan is clear and comprehensive, it adds credibility to your organization which in turn can help you secure new sources of funding and support.
What makes a good nonprofit business plan.
Understanding why you need a nonprofit business plan is very different from understanding what distinguishes a good one from those that are only serviceable.
If you’re familiar with regular business plans, then the good news is that there are not that many differences between that and a nonprofit business plan. There will be some changes of phrases and certain sections will be adapted to reflect the charitable nature of the organization, but at the core of its structure, the two can operate in very similar manners.
A good nonprofit business plan should be:
Whoever reads your nonprofit business plan should, by the end of it, have a solid understanding of your goals, the structure of your organization, your vision for the future, and how you plan to accomplish these different things.
More than that, a good nonprofit business plan should provide you with a comprehensive roadmap for the next three to five years.
As is the case with any road trip, it is natural to sometimes go at a slower pace than expected or to deviate from the planned route due to unforeseeable circumstances; but by having planned the most efficient way to achieve your goals, you can use your roadmap to get back on track and adapt to the changes and challenges that come your way.
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Now that you understand why you need a nonprofit business plan and what qualities are featured in a good one, it is time to explore some of the elements that go into crafting a successful nonprofit business plan.
When building a good nonprofit business plan, the executive summary is the last thing you write, but the first thing—and sometimes the only thing—that anyone will read. As the name it implies, it is a summary of the entire document.
Typically, your executive summary should:
In a strong nonprofit business plan, this part of the document should give people a good idea of what your organization does by providing a summary of all the information that will be included in the business plan.
Potential donors and investors presented with your nonprofit business plan might not have the time to read the entire document. For this reason, consider also making the executive summary a soft sell as to why they should support your cause.
Don’t solicit donations, but instead make your writing persuasive enough so that while talking about your organization, your operations, and your plans for the future, you can also secure their support.
One common mistake to make with this section is including tons of acronyms and technical terms that would be unfamiliar to those not working closely with your cause.
Remember that the executive summary is meant to be read quickly so it can efficiently familiarize outsiders who may never have heard of your nonprofit, the problem you are trying to solve, or the innovative solutions you’re employing. There will be space to include and explain those technical terms later on, but the executive summary is not the place to do this.
If you’ve worked on a website, worked on incorporating your nonprofit, or applied to possible funding opportunities, then you have probably written some version of a mission statement.
Your nonprofit’s mission statement should be written with simple words and be easy to understand. It should be concise while also being specific. When written well, the mission statement should include the main ideas behind your nonprofit and how you plan on executing this vision.
While you should be able to summarize this with one or two sentences, this section of your nonprofit business plan will also give you the opportunity to go into details of how your organization will make a difference in the world.
Take this What We Do page for the British nonprofit Arts Derbyshire as an example.
This mission statement is only three sentences long, but with it, it gives you enough information to understand what the nonprofit’s goal is and how it seeks to achieve this mission.
The first two top lines explain what the aim of the organization is and why they believe this is important. Notice how the highlights draw attention not only to the nonprofit’s name (“Arts Derbyshire”), but also its nature (“strategic arts charity”) and its mission (“enrich people’s lives through art”).
The third line details how Arts Derbyshire fulfills the goal mentioned above by working together with artists and art groups and communities by providing them with strategic direction. They do not need to go into more detail than this—an overview that is concise but specific is all you need for a successful mission statement.
For more examples and tips to help you craft your own effective mission statement, check out this post on our blog.
Those who read your business plan will be interested in knowing who works in your nonprofit and what function they serve . As such, it is important to lay out the structure of your organization by describing the important positions and their responsibilities.
When discussing your team, consider answering these questions:
Not only will answering these questions help outsiders learn what distinguishes your team from other similar nonprofits by highlighting what each individual brings to the table, it also gives you a better overview of how your nonprofit currently operates and the different ways you might be able to expand in the near future.
In most regular business plans, companies will often talk about their target audience and why they believe their product is a good fit for this demographic.
While nonprofits may not usually think of their interactions with others in such terms, the truth is that you still have an equivalent of a target audience. This would be your benefactors and your supporters.
When writing your nonprofit business plan, explain how your nonprofit will benefit communities and why you believe certain individuals are more likely to support your nonprofit.
Remember that this section is not exclusive to organizations focused on human beings or human communities and activities. Be it if your nonprofit fights for animal rights or if it seeks to preserve the natural environment, you should still go into details as to how you are benefiting these causes and who your supporters are.
We tend to think of marketing and branding as sales techniques. And while that is not entirely inaccurate, to limit yourself to this definition is to possibly ignore the role they play in the success of your nonprofit.
For a nonprofit, a marketing plan is not a plan on how to sell your product or service, but rather a plan on how to reach your supporters so that they will donate to your cause. For this reason, a good nonprofit business plan will include your different outreach strategies.
Advertisements, press releases, your website, and social media platforms are ways you can reach and engage with your audience. Not only should you understand how to best promote your nonprofit through each of these channels, but you should also craft a strategy based on the strengths and weaknesses of each format. This understanding and strategies should, in turn, be discussed in detail in your nonprofit business plan.
Remember to be specific. It could be beneficial to include projections on how you believe you will grow based on your marketing plan . If you’ve done any focus groups or market tests, or if there are any potential partners you would like to work with, you can also include them in this section. If appropriate, you can also touch upon the costs of your plan.
When it comes to branding, think about the following:
All of these will be key in your communication efforts with your supporters and potential partners. You must pick something that not only fits your cause, but that will effectively motivate others to donate to your nonprofit.
Nonprofits, just like any organizations operating in our modern world, need money in order to stay afloat.
However, in the case of a nonprofit, the organization needs money not only to pay for its operational expenses, but also in order to contribute to its cause.
Your financial plan will cover all of this and more. In it, you should include details of:
Your financial plan should show how you are covering all of your financial needs while also giving you a long-term budget that helps you create projections as to how your nonprofit will grow in the near future.
Some other things you should consider including in your financial plan include:
The financial plan section of your nonprofit business plan would also be a good spot to discuss potential corporate partnerships, and how you would plan to integrate said initiatives into your overall strategy.
When taken as a whole, your financial plan should help you see gaps in your strategy and give you an idea on how to address these issues. It should also prove to potential supporters and investors that your nonprofit knows how to responsibly manage any potential donations or grants that it might receive now or in the future.
Most business plans include a section reserved exclusively to discussing profits. Naturally, when it comes to building a nonprofit business plan, this section is tweaked to reflect the not-for-profit nature of your organization.
Because your nonprofit is working to better the world in some way, your impact plan is perhaps just as important a section in your nonprofit business plan as your financial plan.
To put it simply, your impact plan shows how your nonprofit will bring change to the world.
In this section, you elaborate on the concepts presented on your mission statement. Rather than speaking in abstract terms, you will need to lay out concrete scenarios with figures and measurable goals so that your readers clearly see the ways in which your nonprofit is currently making a difference in the world and how it will continue to do so in the future.
For more tips on how to write a good impact plan, check out this post in our blog.
If your impact plan lays out the ways your nonprofit is making a difference in the world, then your operational plan details how it achieves all of that. In other words, the operational plan includes information on your daily activities, your legal licenses and certificates, your insurances, and any other relevant information related to how your nonprofit operates.
Many good nonprofit business plans will also include information on how their team is uniquely capable of bringing their vision to fruition. After all, if this is a section dedicated to the hows of your nonprofit, and your staff are the ones responsible for enacting those hows, then it makes sense to discuss their qualifications and their duties.
If the nonprofit business plan is meant to be a roadmap for the next three to five years of your organization’s existence, then the milestones are the guideposts with which you’ll measure your progress toward achieving that vision.
Some examples of milestones include:
Remember to be specific —like with your impact plan, your goals should be easily measurable, concrete, and realistic.
The appendix is where you’ll attach any sort of documents that are relevant to your business plan and to your nonprofit. You can also use this section to include some of the more technical terms and information that you were not able to fit into the rest of your business plan.
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Now that you know what goes into a nonprofit business plan, here are four tips to help take yours to the next level.
While your business plan is a roadmap for the next three to five years, that does not mean it is written in stone. There are things that even the most savvy business-minded individuals cannot predict, and so, keeping your business plan flexible by adjusting it as you grow and learn is a good way to help your nonprofit adapt to the changing times.
Furthermore, by revisiting your nonprofit business plan on a regular basis—once a month is the usual recommended amount—you can better familiarize yourself with your goals, your milestones, and your strategies.
Soon, you will be better able to answer questions your board members and potential investors might have about your organization.
Whenever you are taking on an extensive writing project such as a business plan or a grant proposal , it is important to write with an audience in mind. While it is true that you will be using this document internally, there is a chance you will also show it to people outside of your nonprofit.
By writing with an audience in mind, you lessen your chances of overlooking important details of your strategy that may seem obvious to you but would not be so for someone else.
Think of potential donors, potential partners, or even grants you might be considering applying to. Writing to those audiences will not only prevent you from using too many technical terms, but it will also help you project confidence and persuasion into your writing without it coming across as a sales pitch.
Never underestimate the power of a good outline.
While it may feel redundant to do so, outlining your business plan before you get to the actual writing will allow you to better structure this document so that it does not feel repetitive.
By outlining your business plan first, you can also see what sort of data you still need to collect and what sort of research you still need to conduct in order to support your strategies and aspirations. This way, you will not be caught by surprise half-way through drafting your nonprofit business plan because you realized you are missing a crucial piece of data.
Charts, graphs, and other visual depictions of data are a great way to make your nonprofit business plan stand out.
By breaking up walls of texts so that it feels less overwhelming to the reader, you can create an aesthetic appeal that makes your writing more digestible while also supporting your statements with hard evidence.
If you're looking to start building your own nonprofit website, get started quickly by using our Nonprofit Website Template . The template is made in Canva, an an easy-to-use creative design tool. You can jump right in, change colors, add your logo, and adjust the copy so it fits your brand.Why start from scratch when you can use one of our templates?
There are many mistakes one can make when writing a nonprofit business plan for the first time. Some of these we have alluded to already in this guide.
For example, it is important not to use too many technical terms or acronyms . Not only can that type of jargon bog down your writing, the time it takes to explain these terms and acronyms will eat away the much needed space that could be used discussing more important things.
We also mentioned before that you should not make your business plan overly long , as it could overwhelm readers with needless details. That being said, it should also not be too short, as that could mean you are missing important information.
Typically, the recommended amount is around 20 to 30 pages, but there are some that might be way below that, or way above those numbers. The right balance will depend tremendously on the specific organization, its scope, and its ambition.
Another common mistake that is easy to avoid involves formatting . While there’s no need to overthink things, pay attention so that you are not breaking the format you establish early on in the document. Not only can this be distracting and look unprofessional, it can also affect readability.
Finally, now that you know how to build your own nonprofit business plan, we’ve gathered some examples so that you can see these concepts in action.
The World Wide Fund is a massive international nonprofit operating across the globe and solving issues relating to nature and wildlife. Here you can see an example of their business plan-like document for their initiatives in Laos.
You don’t need to be an international organization to create a good business plan. Based in California, Aspire Public Schools is a charter management organization that aims to help students receive the best education possible so they can be ready for college. Constant Contact shows their 2004 business plan here .
World Vision is a faith-based nonprofit that works all over the world with the aim to help children overcome the struggles of poverty by improving access to education, clean water, health services, disaster management, and more. You can see one of their current business plans here .
Building a good nonprofit business plan can be intimidating. With the amount of research that must be done, the extensive writing, and with so many potential pitfalls, it can be easy to get lost in the details and lose sight of the whole picture. This step-by-step guide hopefully helped you learn some tips and tricks to make sure your nonprofit business plan is the best it can be.
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While a nonprofit business plan is similar to that of a for-profit company, it has a few important differences, including the need for a fundraising section.
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by Sandra Beckwith
Sandra Beckwith has been writing for traditional and online publications since she sold her first magazine article wh...
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Updated on: June 20, 2023 · 3 min read
Fundraising section is essential, keep it real.
While nonprofit organizations are purpose-driven rather than profit-driven, they have a great deal in common with their for-profit counterparts.
"We may be governed by a different part of the tax code and exempt from some—but not all—taxes, but we are businesses, too," says Rick Cohen, chief operating officer at the National Council of Nonprofits.
Like other types of businesses, successful nonprofits outline their goals and how they will achieve them in a written document known as a business plan.
A nonprofit's business plan is similar to that used by a for-profit entity but has key differences. Here's what you need to know about how to write a nonprofit business plan.
For-profit business plans detail what a company does, how it does it, who does it, and how it pays for it. A nonprofit business plan outlines that as well but approaches parts of the process differently.
The biggest difference is that nonprofit organizations focus on the problem they want to solve and how to fund programs and activities that help do that.
"Nonprofits have the added burden and opportunity of impact in their business plan," says Sara Gibson, co-founder and CEO of 20 Degrees, a consulting firm serving nonprofits. "The sector doesn't measure worth in profit—it is measured in lives and in change created. That has to be part of the plan."
Typical nonprofit business plans feature many of the following elements:
For-profit businesses might be funded initially by owners or outside investors, but the ultimate goal is usually self-sufficiency through sales. Many nonprofit organizations aren't structured or created to generate income to support their community services, so fundraising is key.
"It is critical for the sustainability of nonprofits that they are constantly being connected with grants and funders who will provide the financial resources needed for these nonprofits to continue offering quality and valuable assistance to the communities they serve," says Fernando Urbina, director of outreach for ImmigrationHelp.org.
Mikko Sperber, managing partner and founder of Fundamental Strategy, recommends taking on a for-profit business mindset when writing the fundraising section of the nonprofit business plan.
"If you build your plan to have a budget surplus at the end of your year, you then have the capital to reinvest in growing your organization and furthering your mission," he says.
The organization's communication and marketing strategy feeds fundraising goals, so be thoughtful about that piece when writing a nonprofit business plan.
"If no one knows who you are, then no one will be donating to your cause," says Mike McKnight, director of operations at Racing for Orphans with Down Syndrome.
When outlining your business plan, be realistic about fundraising and other revenue streams, then match your budget to your fundraising goal, not the other way around. "In worst-case scenarios, fundraising numbers are plugged into a budget after the programmatic expenses are figured to just offset them without a realistic plan," Sperber says.
Matching your budget to your fundraising goal is especially important because of the organization's impact on the community served, says Cohen, whose organization offers nonprofit business plan resources on its website.
"The worst thing a nonprofit can do is get to a place where people are counting on their services, but then need to close their doors, leaving those people in the lurch," he says.
To ensure your organization's business plan properly supports your mission, consider consulting with professionals such as nonprofit advisers and attorneys specializing in this sector.
Keep your nonprofit business plan handy, too. It's your organizational blueprint, but you'll also need to update it as circumstances or market conditions change.
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Nearly 7.5% of the global workforce works in the non-profit sector. To put it simply, the nonprofit sector is huge. While it may seem like a less complicated business model than for-profit entities, running a non-profit organisation is still a business.
And like any business, one of the keys to success is having a well-thought-out business plan.
Of course, if you never wrote a business plan before, the process can be daunting. So we’re here to help with a step-by-step guide on how to write an effective business plan for your non-profit.
Let's take it from the top...
Before you start writing, you must have all your ducks in a row. This means collecting data about your non-profit, such as:
If your nonprofit is new, simply compile any projections and assumptions you have at this stage. List secured funding sources or in-kind donations you’ve already received. The goal is to put together a clear picture of where your nonprofit currently stands.
Now that you have all the data in front of you, it’s time to start putting pen to paper - or, more likely, fingers to keyboard. The first step in writing your non-profit business plan is to craft a strong mission statement.
Your mission statement should be clear, concise, and easy to remember. It should also sum up the purpose of your non-profit in one sentence. For inspiration, take a look at some examples of great mission statements:
After you have your mission statement figured out, it’s time to start working on the meat of your business plan. Begin by outlining the main sections of your document. At a minimum, your nonprofit business plan should include the following:
During this phase, you may need some help. A company like Boardroom Advisors has helped many nonprofits and for-profits with their business plans. They can help you get in touch with a finance director who can contribute to your business plan.
Now it’s time to start filling in the outline you created in the previous step. Begin with a description of the programs and services your non-profit offers. Include information on how these programs and services help you achieve your mission.
If you’re having trouble articulating the value of your programs and services, ask yourself the following questions:
Answering these questions will help you paint a picture of the value your nonprofit brings to the table.
A nonprofit business is still a business. That's why you need a marketing plan.
The first step in creating your marketing plan is identifying your target audience. What people or organisations do you want to reach with your marketing efforts?
Once you know your target audience, you can start thinking about the best way to reach them. Some ideas include:
Remember that you don’t have to do all these things. In fact, it’s often better to focus your efforts on one or two channels that will reach your target audience most effectively.
Your operational plan outlines the day-to-day operations of your non-profit. It should feature the following information:
This section of your business plan should be fairly straightforward. Simply describe how your nonprofit runs on a day-to-day basis. And don’t forget to include information on your staff.
The impact section of your non-profit business plan should describe the difference you hope to make in the world. That is your chance to get specific about your goals and objectives.
For example, how many people do you hope to reach if your goal is to reduce poverty in your community? And what difference do you hope to make in their lives?
Social or environmental change can be slow, so it’s important to set realistic goals. But it’s also important to dream big. After all, that’s what nonprofits are all about.
No business plan is complete without a financial summary. The section should include information on your:
Here's another area where Boardroom Advisors can help. They can connect you with a financial advisor who can help you write your financial summary. Talking to a professional could give you a better understanding of your nonprofit's financial health.
Not to mention help you prevent any legal issues down the road.
Usually written last but placed first in your business plan, the executive summary should introduce your entire business plan. On the first page, you should include:
The executive summary is where you're selling your business and its ideas. Make sure to customise it for each person who reads it.
The appendix is where you can include any additional information that might be helpful to your reader. This might include:
The appendix is a great place to include any information that doesn't fit neatly into another section of your business plan.
When it comes to writing a non-profit business plan, the process can seem daunting. But it doesn't have to be. By breaking the process down into ten simple steps, you can be sure that you're covering all your bases.
And if you need any inspiration, you can download free business plan templates from HubSpot and Shopify .You ca either follow them closely or use them to guide your writing process.
Founder and Chief Executive of BoardroomAdvisors.co, John is a serial entrepreneur, having founded 7 different businesses over 40 years and has been ranked #30 in CityAM’s list of UK Entrepreneurs.
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10-Step Guide on Writing a Business Plan for Nonprofits. Note: Steps 1, 2, and 3 are in preparation for writing your nonprofit business plan. Step 1: Data Collection. Before even getting started with the writing, collect financial, operating, and other relevant data. If your nonprofit is already in operation, this should at the very least ...
Step 6: Create a financial plan. Develop a detailed budget and financial projections for your nonprofit. Identify potential revenue streams, such as grants, donations, fundraising events, membership fees, and earned income. Estimate expenses for staffing, programs, operations, and overhead costs. .
1. Executive summary. Many people write this last, even though it comes first in a business plan. This is because the executive summary is designed to be a general summary of the business plan as a whole. Naturally, it may be easier to write this after the rest of the business plan has been completed.
Step 6: Fill in Your Nonprofit Business Plan Outline. Finally, you've made it to the last step in putting together your nonprofit business plan. By this point, you've answered just about every detail that goes into your plan—we just did it in a not-so-boring, roundabout way. Let's fill in the details.
Write a fundraising plan. This part is the most important element of your business plan. In addition to providing required financial statements (e.g., the income statement, balance sheet, and cash flow statement), identify potential sources of funding for your nonprofit. These may include individual donors, corporate donors, grants, or in-kind ...
Avoid using jargon, acronyms, or any unfamiliar terms. Write for a general audience, and you'll be more likely to keep the reader engaged. 2. Outline your plan. Make a nonprofit business plan outline. Once you know what information will be put into the plan, you'll understand what data you need to source to write it.
A nonprofit business plan is required if you want to secure funding from grant-making organizations or investors. A well-crafted business plan will help you: Define your organization's purpose and goals. Articulate your vision for the future. Develop a step-by-step plan to achieve your goals. Secure funding from investors or donors.
The first step in writing a nonprofit business plan is to conduct a feasibility study. This study will help to determine whether or not the nonprofit is viable and whether or not it has the potential to be successful. The feasibility study should include an assessment of the current market, an examination of the competition, and a review of the ...
A step-by-step guide to writing a nonprofit business plan. Creating a nonprofit business plan can seem daunting, but it can be rewarding if you take the right approach. Follow this step-by-step guide to help you navigate the process: Start with research. Understand the needs of your target community.
Here's an example from Bplans' non-profit law business plan, written for a fictional law firm called Advocates for Legal Equal Access: "Al will use his marketing skills learned in his MBA studies to market Advocates as an organization that offers public interest support for the greater Portland community.
The business planning process takes into account the nonprofit's mission and vision, the role of the board, and external environmental factors, such as the climate for fundraising. Ideally, the business planning process also critically examines basic assumptions about the nonprofit's operating environment. What if the sources of income that ...
Here's the components you need to write a successful business plan for your nonprofit: 1. Executive Summary. An executive summary allows the organization to make a lasting first impression to the audience. This part contains the outline of the objectives, problem statement, and overall mission of the nonprofit.
Executive summary. The executive summary of a nonprofit business plan is typically the first section of the plan to be read, but the last to be written. That's because this section is a general overview of everything else in the business plan - the overall snapshot of what your vision is for the organization. Write it as though you might ...
Here's a detailed look at each component: 1. Executive Summary: - Mission Statement: Articulates the organization's purpose and what it seeks to achieve. - Vision: Describes the desired future position of the organization. - Overview of Services: Briefly details the programs or services offered.
Step 3: Write Your Outline. An outline will help you organize your writing and focus on vital information. You should draft an outline for your business plan that includes your mission statement, budget, marketing, fundraising and financial model, volunteers, programs, board, goals, etc. Step 4: Explain Your Offerings.
If your nonprofit is already established, let your reader know what your marketing plan has been in the past, what has worked, and how you plan to expand it. 5. Operational Plan. This section should describe both day-to-day operations and long-term plans for operating your programs.
11. Outline the Financial Plan. One of the main reasons people want to know how to write a nonprofit business plan is because of how essential it is to receiving funding. Loan providers, donors and granting bodies will want to see your numbers—and that's where your Financial Plan comes in.
Step 2: Outline your plan. Make a nonprofit business plan outline that covers the main sections of your plan. These include: Executive summary: A brief overview of your nonprofit's mission, vision, goals, strategies, and financial summary. Learn more on business plan executive summary. Organization Overview: A description of your nonprofit ...
Step 5. This leads us to the establishment of your marketing plan where you highlight how to promote your cause effectively and engage your audience. Creating a robust marketing plan for a nonprofit business requires creativity, an understanding of your audience, and a strategic approach to resource allocation.
This way, you will not be caught by surprise half-way through drafting your nonprofit business plan because you realized you are missing a crucial piece of data. 4. Include Charts, Graphs, and Other Data. Charts, graphs, and other visual depictions of data are a great way to make your nonprofit business plan stand out.
Executive Summary. Start your nonprofit business plan by clearly stating your organization's mission and describing how it plans on reaching its goals. Include a concise description of what makes your organization stand out among competitors (e.g., "We are the only non-profit animal welfare organization in XYZ county" or "Our college ...
That has to be part of the plan." Typical nonprofit business plans feature many of the following elements: Executive summary. Mission and goals. Community impact. Products, services, and programs. Organizational structure and staffing. Audiences. Market and competitive analysis.
Simply describe how your nonprofit runs on a day-to-day basis. And don't forget to include information on your staff. 7. Impact. The impact section of your non-profit business plan should describe the difference you hope to make in the world. That is your chance to get specific about your goals and objectives.