How To Write A Nonprofit Business Plan – For many non-profit organizations, business plans represent outdated and difficult documents that are created “for the sake of it” or because donors want it.
However, a business plan can still be a valuable tool for your nonprofit. Even a short nonprofit business plan pushes you to do research, make your goals more compelling, and improve your messaging.
How To Write A Nonprofit Business Plan
Additionally, without a nonprofit business plan, you will have difficulty obtaining loans and grants, attracting corporate donors, meeting qualified board members, and maintaining your nonprofit.
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Even the best ideas can be completely useless if you can’t create, implement and implement a strategic plan to make your ideas work.
A nonprofit business plan describes your nonprofit as it is now and sets a roadmap for the next three to five years. It also lays out your goals and plans to achieve your goals. Your nonprofit business plan is a living document that should be updated frequently to reflect your evolving goals and circumstances.
A business plan is the foundation of your organization – who, what, when, where, and how you will make a positive impact.
The best nonprofit business plans don’t take long. They include as much information as necessary. They can be as short as seven pages, one for each of the key areas you’ll read about below and see in our template, or as long as 30 pages if your organization is growing.
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Regardless of whether your nonprofit is small and barely making a profit or if your nonprofit has been operating successfully for years, you need a nonprofit business plan. Why?
Regardless of your size or financial status, when you create a nonprofit business plan, you are effectively creating a blueprint for how your nonprofit will be run, who will be responsible for what, and how you plan to achieve your goals.
Your nonprofit will also need a business plan if you plan to secure any form of support, be it monetary, in-kind, or even volunteer assistance. You need a business plan to convey your nonprofit’s goals and objectives.
Sometimes it also happens that the board, or administration under which the non-profit operates, requires a non-profit business plan.
Nonprofit Description — How To Write A Nonprofit Business Plan
Before starting to write collect financial information, operations, and other related information. If your nonprofit is already operating, at a minimum this should include a financial statement detailing operating expenses and a schedule indicating sources of funding.
If your nonprofit is new, gather documents related to securing funding sources and operating funding projections, including anticipated expenses.
After all, you are a non-profit organization! Your nonprofit business plan should begin by identifying your core values and mission statement. Explain your vision, your leadership philosophy, and other principles that provide the purpose behind the work. This will help you improve and communicate your nonprofit message clearly.
“UNICEF affirms that the survival, protection and development of children is a global development imperative that is critical to human progress.”
Strategic Plan Template
Your nonprofit’s mission statement can also help establish your priorities, the problems your organization seeks to solve, who your organization serves and its future goals.
Create an outline of your nonprofit business plan. Write down everything you want your plan to include (such as marketing, fundraising, human resources and budget sections).
An outline helps you focus your attention. It gives you a road map from the beginning, through the middle, and the end. Practical explanations help us write faster and more efficiently.
An outline will help you understand what you need to tell your audience, whether in the right order, and whether to emphasize the right amount on each topic.
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For example, the American Red Cross carries out its mission of prevention and relief through 5 core services: Disaster Relief, Aid to America’s Military Families, Lifesaving Blood, Health and Safety Services, and International Services.
Do not forget about the details of the project, including duties and beneficiaries. This is generally what most readers will be most interested in.
However, don’t overwhelm the reader with technical jargon. Try to present some concrete examples. Include photos, brochures, and other promotional materials.
A marketing plan is essential for a non-profit organization to achieve its goals. If your nonprofit is already active, describe in detail all current marketing activities: outreach activities, campaigns and other initiatives. Be specific about results, activities, and costs.
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This is often your most detailed section because it spells out exactly how you intend to execute your business plan.
An action plan describes how your nonprofit plans to deliver activities. In the operational plan, it is important to explain how you plan to maintain your operations and how you will evaluate the impact of your program.
The operational plan should provide an overview of the day-to-day operations of your organization such as the people and organizations you work with (e.g. partners and suppliers), the legal requirements your organization needs to meet (e.g. if you distribute food, you will need the appropriate licenses and certifications), Insurance that you have or will need and others.
In the action plan, also contribute to the person / team. Describe the people who are important to your organization and the employees you plan to change as part of your business plan.
The Ultimate Guide To Writing A Nonprofit Business Plan (in 10 Steps)
For non-profit organizations, an impact plan is as important as a financial plan. Non-profit organizations seek to create social change and a social return on investment, not just a financial return on investment.
Your impact plan should be clear about how your non-profit will reach “Step 2: The Heart of the Problem”. It should detail the changes you are looking to make, how you will do it, and how you will measure it.
This section transforms your objectives and motivations into what your nonprofit truly wants to accomplish and sets specific goals and objectives.
These define your nonprofit’s true bottom line, so they’re the key to unlocking support. Fundraisers want to know who, how, and exactly how you will measure your impact.
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This is the most important part of your nonprofit business plan. Creating a financial plan will help you make sure your nonprofit has its basic financial needs covered.
Every nonprofit needs some level of funding to continue operating, so it’s important to make sure your organization meets at least that threshold.
If your nonprofit is already in operation, use the accounting records created to complete this part of the business plan.
Knowing your organization’s financial details is incredibly important in a world where the public wants transparency about where their donations are going.
Sample Executive Summary For Business Plan
Pro Tip: Use startup accelerators dedicated to nonprofits that can help you with funding, sponsorships, networking and more.
Usually written last but placed first in your business plan, your nonprofit executive summary provides an introduction to your entire business plan. The home page should describe your nonprofit’s mission and objectives, summarize your market analysis that indicates an identifiable need, and explain how your nonprofit will meet that need.
The executive summary is where you sell your nonprofit and its ideas. Here you need to describe your organization clearly and concisely.
Be sure to tailor your executive summary based on your audience (i.e. your executive summary page will look different if your primary goal is to win a grant or hire a board member).
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Include additional documents in sections related to your nonprofit: organizational flow chart, current fiscal year budget, list of board members, your IRS status letter, balance sheet, etc.
The appendix contains additional useful information that may not fit the format of your business plan (eg it may make it less readable or longer).
To help you get started, we’ve created a nonprofit business plan template. It will work as a framework regardless of your nonprofit space. Click here to access the document.
There, we strive to make your nonprofit experience as efficient as possible, whether through our donation software or through our tips and advice on the nonprofit blog.
Great Nonprofit Mission Statement Examples (2022)
Many non-profit organizations start out of passion and enthusiasm, but without a proper business plan. It is a common misconception that just because an organization is labeled as “non-profit,” it does not necessarily operate in any way like a business.
However, nonprofits are a type of business, and many of the same rules that apply to for-profit corporations apply to nonprofits as well.
As mentioned above, your nonprofit business plan is a combination of your marketing plan, strategic plan, operational plan, impact plan and financial plan.
It is important to note that your nonprofit should not be set in stone – it can and should change and evolve. It is a living thing. While your vision, values, and mission will remain the same, your nonprofit business plan may need to be updated from time to time. Keep your audience in mind and adjust your plan as needed.
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Finally, don’t let your plan gather dust on the shelf! Print it out, put a poster on your office wall, read from it during your team meeting. Use all the research, information, and ideas you’ve gathered and put them into action!
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