building a nonprofit business plan

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Business Planning for Nonprofits

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?

Narrative of a business plan

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.

Basic format of a business plan

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:

• Table of contents
• Executive summary - Name the problem the nonprofit is trying to solve: its mission, and how it accomplishes its mission.
• People: overview of the nonprofit’s board, staffing, and volunteer structure and who makes what happen
• Market opportunities/competitive analysis
• Programs and services: overview of implementation
• Contingencies: what could change?
• Financial health: what is the current status, and what are the sources of revenue to operate programs and advance the mission over time?
• Assumptions and proposed changes: What needs to be in place for this nonprofit to continue on sound financial footing?

More About Business Planning

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. 

Additional Resources

• Components of transforming nonprofit business models  (Propel Nonprofits)
• The matrix map: a powerful tool for nonprofit sustainability  (Nonprofit Quarterly)
• The Nonprofit Business Plan: A Leader's Guide to Creating a Successful Business Model  (David La Piana, Heather Gowdy, Lester Olmstead-Rose, and Brent Copen, Turner Publishing)
• Nonprofit Earned Income: Critical Business Model Considerations for Nonprofits (Nonprofit Financial Commons)
• Nonprofit Sustainability: Making Strategic Decisions for Financial Viability  (Jan Masaoka, Steve Zimmerman, and Jeanne Bell)

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.

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A nonprofit business plan ensures your organization’s fundraising and activities align with your core mission.

Every nonprofit needs a mission statement that demonstrates how the organization will support a social cause and provide a public benefit. A nonprofit business plan fleshes out this mission statement in greater detail. These plans include many of the same elements as a for-profit business plan, with a focus on fundraising, creating a board of directors, raising awareness, and staying compliant with IRS regulations. A nonprofit business plan can be instrumental in getting your organization off the ground successfully.

Start with your mission statement

The mission statement is foundational for your nonprofit organization. The IRS will review your mission statement in determining whether to grant you tax-exempt status. This statement also helps you recruit volunteers and staff, fundraise, and plan activities for the year.

[Read more: Writing a Mission Statement: A Step-by-Step Guide ]

Therefore, you should start your business plan with a clear mission statement in the executive summary. The executive summary can also cover, at a high level, the goals, vision, and unique strengths of your nonprofit organization. Keep this section brief, since you will be going into greater detail in later sections.

Identify a board of directors

Many business plans include a section identifying the people behind the operation: your key leaders, volunteers, and full-time employees. For nonprofits, it’s also important to identify your board of directors. The board of directors is ultimately responsible for hiring and managing the CEO of your nonprofit.

“Board members are the fiduciaries who steer the organization towards a sustainable future by adopting sound, ethical, and legal governance and financial management policies, as well as by making sure the nonprofit has adequate resources to advance its mission,” wrote the Council of Nonprofits.

As such, identify members of your board in your business plan to give potential donors confidence in the management of your nonprofit.

Be as realistic as possible about the impact you can make with the funding you hope to gain.

Describe your organization’s activities

In this section, provide more information about what your nonprofit does on a day-to-day basis. What products, training, education, or other services do you provide? What does your organization do to benefit the constituents identified in your mission statement? Here’s an example from the American Red Cross, courtesy of DonorBox :

“The American Red Cross carries out their mission to prevent and relieve suffering with five key services: disaster relief, supporting America’s military families, lifesaving blood, health and safety services, and international service.”

This section should be detailed and get into the operational weeds of how your business delivers on its mission statement. Explain the strategies your team will take to service clients, including outreach and marketing, inventory and equipment needs, a hiring plan, and other key elements.

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 support. If you are planning to host a fundraising event, put together a budget for that event and demonstrate the anticipated impact that event will have on your budget.

Create an impact plan

An impact plan ties everything together. It demonstrates how your fundraising and day-to-day activities will further your mission. For potential donors, it can make a very convincing case for why they should invest in your nonprofit.

“This section turns your purpose and motivation into concrete accomplishments your nonprofit wants to make and sets specific goals and objectives,” wrote DonorBox . “These define the real bottom line of your nonprofit, so they’re the key to unlocking support. Funders want to know for whom, in what way, and exactly how you’ll measure your impact.”

Be as realistic as possible about the impact you can make with the funding you hope to gain. Revisit your business plan as your organization grows to make sure the goals you’ve set both align with your mission and continue to be within reach.

[Read more: 8 Signs It's Time to Update Your Business Plan ]

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Raise More & Grow Your Nonprofit.

The complete guide to writing a nonprofit business plan.

August 14, 2019

Leadership & Management

July 7, 2022

TABLE OF CONTENTS

Statistics from the National Center for Charitable Statistics (NCCS) show that there are over 1.5 million nonprofit organizations currently operating in the U.S. alone. Many of these organizations are hard at work helping people in need and addressing the great issues of our time. However, doing good work doesn’t necessarily translate into long-term success and financial stability. Other information has shown that around 12% of non-profits don’t make it past the 5-year mark, and this number expands to 17% at the 10-year mark.

12% of non-profits don’t make it past the 5-year mark and 17% at the 10-year mark

There are a variety of challenges behind these sobering statistics. In many cases, a nonprofit can be sunk before it starts due to a lack of a strong nonprofit business plan. Below is a complete guide to understanding why a nonprofit needs a business plan in place, and how to construct one, piece by piece.

The purpose of a nonprofit business plan

A business plan for a nonprofit is similar to that of a for-profit business plan, in that you want it to serve as a clear, complete roadmap for your organization. When your plan is complete, questions such as "what goals are we trying to accomplish?" or "what is the true purpose of our organization?" should be clear and simple to answer.

Your nonprofit business plan should provide answers to the following questions:

1. What activities do you plan to pursue in order to meet the organization’s high level goals?

2. What's your plan on getting revenue to fund these activities?

3. What are your operating costs and specifically how do these break down?

Note that there’s a difference between a business plan and a strategic plan, though there may be some overlap. A strategic plan is more conceptual, with different ideas you have in place to try and meet the organization’s greater vision (such as fighting homelessness or raising climate change awareness). A business plan serves as an action plan because it provides, in as much detail as possible, the specifics on how you’re going to execute your strategy.

More Reading

• What is the Difference Between a Business Plan and a Strategic Plan?
• Business Planning for Nonprofits

Creating a nonprofit business plan

With this in mind, it’s important to discuss the individual sections of a nonprofit business plan. Having a proper plan in a recognizable format is essential for a variety of reasons. On your business’s end, it makes sure that as many issues or questions you may encounter are addressed up front. For outside entities, such as potential volunteers or donors, it shows that their time and energy will be managed well and put to good use. So, how do you go from conceptual to concrete?

Step 1: Write a mission statement

‍ Having a mission statement is essential for any company, but even more so for nonprofits. Your markers of success are not just how the organization performs financially, but the impact it makes for your cause.

One of the easiest ways to do this is by creating a mission statement. A strong mission statement clarifies why your organization exists and determines the direction of activities.

At the head of their ethics page , NPR has a mission statement that clearly and concisely explains why they exist. From this you learn:

• The key point of their mission: creating a more informed public that understands new ideas and cultures
• Their mechanism of executing that vision: providing and reporting news/info that meets top journalistic standards
• Other essential details: their partnership with their membership statement

You should aim for the same level of clarity and brevity in your own mission statement.

The goal of a mission statement isn’t just about being able to showcase things externally, but also giving your internal team something to realign them if they get off track.

For example, if you're considering a new program or services, you can always check the idea against the mission statement. Does it align with your higher level goal and what your organization is ultimately trying to achieve? A mission statement is a compass to guide your team and keep the organization aligned and focused.

Step 2: Collect the data

‍ You can’t prepare for the future without some data from the past and present. This can range from financial data if you’re already in operation to secured funding if you’re getting ready to start.

Data related to operations and finances (such as revenue, expenses, taxes, etc.) is crucial for budgeting and organizational decisions.

You'll also want to collect data about your target donor. Who are they in terms of their income, demographics, location, etc. and what is the best way to reach them? Every business needs to market, and answering these demographic questions are crucial to targeting the right audience in a marketing campaign. You'll also need data about marketing costs collected from your fundraising, marketing, and CRM software and tools. This data can be extremely important for demonstrating the effectiveness of a given fundraising campaign or the organization as a whole.  

Then there is data that nonprofits collect from third-party sources as to how to effectively address their cause, such as shared data from other nonprofits and data from governments.

By properly collecting and interpreting the above data, you can build your nonprofit to not only make an impact, but also ensure the organization is financially sustainable.

Step 3: Create an outline

Before you begin writing your plan, it’s important to have an outline of the  sections of your plan. Just like an academic essay, it’s easier to make sure all the points are addressed by taking inventory of high level topics first. If you create an outline and find you don’t have all the materials you need to fill it, you may need to go back to the data collection stage.

Writing an outline gives you something simple to read that can easily be circulated to your team for input. Maybe some of your partners will want to emphasize an area that you missed or an area that needs more substance.

Having an outline makes it easier for you to create an organized, well-flowing piece. Each section needs to be clear on its own, but you also don’t want to be overly repetitive. 

As a side-note, one area where a lot of business novices  stall in terms of getting their plans off the ground is not knowing what format to choose or start with. The good news is there are a lot of resources available online for you to draw templates for from your plan, or just inspire one of your own.

Using a business plan template

You may want to use a template as a starting point for your business plan. The major benefit here is that a lot of the outlining work that we mentioned is already done for you. However, you may not want to follow the template word for word. A nonprofit business plan may require additional sections or parts that aren’t included in a conventional business plan template.

The best way to go about this is to try and focus less on copying the template, and more about copying the spirit of the template. For example, if you see a template that you like, you can keep the outline, but you may want to change the color scheme and font to better reflect your brand. And of course, all your text should be unique.

When it comes to adding a new section to a business plan template, for the most part, you can use your judgment. We will get into specific sections in a bit, but generally, you just want to pair your new section with the existing section that makes the most sense. For example, if your non-profit has retail sales as a part of a financial plan, you can include that along with the products, services and programs section.

• Free Nonprofit Sample Business Plans - Bplans
• Non-Profit Business Plan Template - Growthink
• Sample Nonprofit Business Plans - Bridgespan
• Nonprofit Business Plan Template - Slidebean
• 23+ Non Profit Business Plan Templates - Template.net

Nonprofit business plan sections

The exact content is going to vary based on the size, purpose, and nature of your nonprofit. However, there are certain sections that every business plan will need to have for investors, donors, and lenders to take you seriously. Generally, your outline will be built around the following main sections:

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.

After reading your executive summary a person should ideally have a general idea of what the entire plan covers. Sometimes, a person may be interested in learning about your non-profit, but doesn’t have time to read a 20+ page document. In this case, the executive summary could be the difference between whether or not you land a major donor. 

As a start, you want to cover the basic need your nonprofit services, why that need exists, and the way you plan to address that need. The goal here is to tell the story as clearly and and concisely as possible. If the person is sold and wants more details, they can read through the rest of your business plan. 

2. Products/Services/Programs

This is the space where you can clarify exactly what your non-profit does. Think of it as explaining the way your nonprofit addresses that base need you laid out earlier. This can vary a lot based on what type of non-profit you’re running. 

This page gives us some insight into the mechanisms Bucks County Historical Society uses to further their mission, which is “to educate and engage its many audiences in appreciating the past and to help people find stories and meanings relevant to their lives—both today and in the future.”

They accomplish this goal through putting together both permanent exhibits as well as regular events at their primary museum. However, in a non-profit business plan, you need to go further. 

It’s important here not only to clearly explain who benefits from your services, but also the specific details how those services are provided. For example, saying you “help inner-city school children” isn’t specific enough. Are you providing education or material support? Your non-profit business plan readers need as much detail as possible using simple and clear language. 

3. Marketing

For a non-profit to succeed, it needs to have a steady stream of both donors and volunteers. Marketing plays a key role here as it does in a conventional business. This section should outline who your target audience is, and what you’ve already done/plan on doing to reach this audience. How you explain this is going to vary based on what stage your non-profit is in. We’ll split this section to make it more clear.

Nonprofits not in operation

‍ Obviously, it’s difficult to market an idea effectively if you’re not in operation, but you still need to have a marketing plan in place. People who want to support your non-profit need to understand your marketing plan to attract donors. You need to profile all the data you have about your target market and outline how you plan to reach this audience.

Nonprofits already in operation

‍ Marketing plans differ greatly for nonprofits already in operation. If your nonprofit is off the ground, you want to include data about your target market as well, along with other key details.  Describe all your current marketing efforts, from events to general outreach, to conventional types of marketing like advertisements and email plans. Specific details are important. By the end of this, the reader should know:

• What type of marketing methods your organization prefers
• Why you’ve chosen these methods
• The track record of success using these methods
• What the costs and ROI of a marketing campaign

4. Operations

This is designed to serve as the “how” of your Products/Services/Programs section.

For example, if your goal is to provide school supplies for inner-city schoolchildren, you’ll need to explain how you will procure the supplies and distribute them to kids in need. Again, detail is essential. A reader should be able to understand not only how your non-profit operates on a daily basis, but also how it executes any task in the rest of the plan.

If your marketing plan says that you hold community events monthly to drum up interest. Who is in charge of the event? How are they run? How much do they cost?  What personnel or volunteers are needed for each event?  Where are the venues?

This is also a good place to cover additional certifications or insurance that your non-profit needs in order to execute these operations, and your current progress towards obtaining them. 

Your operations section should also have a space dedicated to your team. The reason for this is, just like any other business plan, is that the strength of an organization lies in the people running it.

For example, let’s look at this profile from The Nature Conservancy . The main points of the biography are to showcase Chief Development Officer Jim Asp’s work history as it is relevant to his job. You’ll want to do something similar in your business plan’s team section.

Equally important is making sure that you cover any staff changes that you plan to implement in the near future in your business plan. The reason for this is that investors/partners may not want to sign on assuming that one leadership team is in place, only for it to change when the business reaches a certain stage. 

The sections we’ve been talking about would also be in a traditional for profit business plan. We start to deviate a bit at this point. The impact section is designed to outline the social change you plan to make with your organization, and how your choices factor into those goals.

Remember the thoughts that go into that mission statement we mentioned before? This is your chance to show how you plan to address that mission with your actions, and how you plan to track your progress.

Let’s revisit the idea of helping inner-city school children by providing school supplies. What exactly is the metric you’re going to use to determine your success? For-profit businesses can have their finances as their primary KPI, but it’s not that easy for non-profits. Let’s say that your mission is to provide 1,000 schoolchildren in an underserved school district supplies for their classes. Your impact plan could cover two metrics:

• How many supplies are distributed
• Secondary impact (improved grades, classwork completed, etc).

The primary goal of this section is to transform that vision into concrete, measurable goals and objectives. A great acronym to help you create these are S.M.A.R.T. goals which stands for: specific, measurable, attainable, relevant, and timely. ‍

Vitamin Angels does a good job of showing how their action supports the mission. Their goal of providing vitamins to mothers and children in developing countries has a concrete impact when we look at the numbers of how many children they service as well as how many countries they deliver to. As a non-profit business plan, it’s a good idea to include statistics like these to show exactly how close you are to your planned goals. 

6. Finances

Every non-profit needs funding to operate, and this all-important section details exactly how you plan to cover these financial needs. Your business plan can be strong in every other section, but if your financial planning is flimsy, it’s going to prove difficult to gather believers to your cause.

It's important to paint a complete, positive picture of your fundraising plans and ambitions. Generally, this entails the following parts:

• Current financial status, such as current assets, cash on hand, liabilities
• Projections based off of your existing financial data and forms
• Key financial documents, such as a balance sheet, income statements, and cash flow sheet
• Any grants or major contributions received
• Your plan for fundraising (this may overlap with your marketing section which is okay)
• Potential issues and hurdles to your funding plan
• Your plans to address those issues
• How you'll utilize surplus donations
• Startup costs (if your non-profit is not established yet)

In general, if you see something else that isn’t accounted for here, it’s better to be safe than sorry, and put the relevant information in. It’s better to have too much information than too little when it comes to finances, especially since there is usually a clear preference for transparent business culture.

• ‍ How to Make a Five-Year Budget Plan for a Nonprofit ‍
• Financial Transparency - National Council of Nonprofits

7. Appendix

Generally, this serves as a space to attach additional documents and elements that you may find useful for your business plan. This can include things like supplementary charts or a list of your board of directors. 

This is also a good place to put text or technical information that you think may be relevant to your business plan, but might be long-winded or difficult to read. A lot of the flow and structure concerns you have for a plan don’t really apply with an appendix.

In summary, while a non-profit may have very different goals than your average business, the ways that they reach those goals do have a lot of similarities with for-profit businesses. The best way to ensure your success is to have a clear, concrete vision and path to different milestones along the way. A solid, in-depth business plan also gives you something to refer back to when you are struggling and not sure where to turn.

Alongside your business plan, you also want to use tools and resources that promote efficiency at all levels. For example, every non-profit needs a consistent stream of donations to survive, so consider using a program like GiveForms that creates simple, accessible forms for your donors to easily make donations. Accounting and budgeting for these in your plans can pay dividends later on.

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How to Write a Business Plan For a Nonprofit Organization + Template

Creating a business plan is essential for any business, but it can be especially helpful for nonprofits. A nonprofit business plan allows you to set goals and track progress over time. It can also help you secure funding from investors or grant-making organizations.

A well-crafted business plan not only outlines your vision for the organization but also provides a step-by-step process of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article will provide an overview of the key elements that every nonprofit founder should include in their business plan.

Download the Ultimate Nonprofit Business Plan Template

What is a Nonprofit Business Plan?

A nonprofit business plan is a formal written document that describes your organization’s purpose, structure, and operations. It is used to communicate your vision to potential investors or donors and convince them to support your cause.

The business plan should include information about your target market, financial projections, and marketing strategy. It should also outline the organization’s mission statement and goals.

Why Write a Nonprofit Business Plan?

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
• Convince potential supporters to invest in your cause

Entrepreneurs can also use this as a roadmap when starting your new nonprofit organization, especially if you are inexperienced in starting a nonprofit.

Writing an Effective Nonprofit Business Plan

The key is to tailor your business plan to the specific needs of your nonprofit. Here’s a quick overview of what to include:

Executive Summary

Organization overview, products, programs, and services, industry analysis, customer analysis, marketing plan, operations plan, management team.

• Financial Plan

The executive summary of a nonprofit business plan is a one-to-two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your nonprofit organization
• Provide a short summary of the key points of each section of your business plan.
• Organize your thoughts in a logical sequence that is easy for the reader to follow.
• Include information about your organization’s management team, industry analysis, competitive analysis, and financial forecast.

This section should include a brief history of your nonprofit organization. Include a short description of how and why you started it and provide a timeline of milestones the organization has achieved.

If you are just starting your nonprofit, you may not have a long history. Instead, you can include information about your professional experience in the industry and how and why you conceived your new nonprofit idea. If you have worked for a similar organization before or have been involved in a nonprofit before starting your own, mention this.

You will also include information about your chosen n onprofit business model and how it is different from other nonprofits in your target market.

This section is all about what your nonprofit organization offers. Include information about your programs, services, and any products you may sell.

Describe the products or services you offer and how they benefit your target market. Examples might include:

• A food bank that provides healthy meals to low-income families
• A job training program that helps unemployed adults find jobs
• An after-school program that helps kids stay out of gangs
• An adult literacy program that helps adults learn to read and write

Include information about your pricing strategy and any discounts or promotions you offer. Examples might include membership benefits, free shipping, or volume discounts.

If you offer more than one product or service, describe each one in detail. Include information about who uses each product or service and how it helps them achieve their goals.

If you offer any programs, describe them in detail. Include information about how often they are offered and the eligibility requirements for participants. For example, if you offer a job training program, you might include information about how often the program is offered, how long it lasts, and what kinds of jobs participants can expect to find after completing the program.

The industry or market analysis is an important component of a nonprofit business plan. Conduct thorough market research to determine industry trends, identify your potential customers, and the potential size of this market. 

Questions to answer include:

• What part of the nonprofit industry are you targeting?
• Who are your competitors?
• How big is the market?
• What trends are happening in the industry right now?

You should also include information about your research methodology and sources of information, including company reports and expert opinions.

As an example, if you are starting a food bank, your industry analysis might include information about the number of people in your community who are considered “food insecure” (they don’t have regular access to enough nutritious food). You would also include information about other food banks in your area, how they are funded, and the services they offer.

For each of your competitors, you should include a brief description of their organization, their target market, and their competitive advantage. To do this, you should complete a SWOT analysis.

A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a helpful tool to assess your nonprofit’s current position and identify areas where you can improve.

Some questions to consider when conducting a SWOT analysis include:

• Strengths : What does your nonprofit do well?
• Weaknesses : What areas could your nonprofit improve?
• Opportunities : What trends or changes in the industry could you take advantage of?
• Threats : What trends or changes in the industry could hurt your nonprofit’s chances of success?

After you have identified your nonprofit’s strengths, weaknesses, opportunities, and threats, you can develop strategies to improve your organization.

For example, if you are starting a food bank, your SWOT analysis might reveal that there is a need for more food banks in your community. You could use this information to develop a marketing strategy to reach potential donors who might be interested in supporting your organization.

If you are starting a job training program, your SWOT analysis might reveal that there is a need for more programs like yours in the community. You could use this information to develop a business plan and marketing strategy to reach potential participants who might be interested in enrolling in your program.

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, if you are starting a job training program for unemployed adults, your target audience might be low-income adults between the ages of 18 and 35. Your customer analysis would include information about their needs (e.g., transportation, childcare, job readiness skills) and wants (e.g., good pay, flexible hours, benefits).

If you have more than one target audience, you will need to provide a separate customer analysis for each one.

You can include information about how your customers make the decision to buy your product or use your service. For example, if you are starting an after-school program, you might include information about how parents research and compare programs before making a decision.

You should also include information about your marketing strategy and how you plan to reach your target market. For example, if you are starting a food bank, you might include information about how you will promote the food bank to the community and how you will get the word out about your services.

Develop a strategy for targeting those customers who are most likely to use your program, as well as those that might be influenced to buy your products or nonprofit services with the right marketing.

This part of the business plan is where you determine how you are going to reach your target market. This section of your nonprofit business plan should include information about your marketing goals, strategies, and tactics.

• What are your marketing goals? Include information about what you hope to achieve with your marketing efforts, as well as when and how you will achieve it.
• What marketing strategies will you use? Include information about public relations, advertising, social media, and other marketing tactics you will use to reach your target market.
• What tactics will you use? Include information about specific actions you will take to execute your marketing strategy. For example, if you are using social media to reach your target market, include information about which platforms you will use and how often you will post.

Your marketing strategy should be clearly laid out, including the following 4 Ps.

• Product/Service : Make sure your product, service, and/or program offering is clearly defined and differentiated from your competitors, including the benefits of using your service.
• Price : How do you determine the price for your product, services, and/or programs? You should also include a pricing strategy that takes into account what your target market will be willing to pay and how much the competition within your market charges.
• Place : Where will your target market find you? What channels of distribution will you use to reach them?
• Promotion : How will you reach your target market? You can use social media or write a blog, create an email marketing campaign, post flyers, pay for advertising, launch a direct mail campaign, etc.

For example, if you are starting a job training program for unemployed adults, your marketing strategy might include partnering with local job centers and adult education programs to reach potential participants. You might also promote the program through local media outlets and community organizations.

Your marketing plan should also include a sales strategy, which includes information about how you will generate leads and convert them into customers.

You should also include information about your paid advertising budget, including an estimate of expenses and sales projections.

This part of your nonprofit business plan should include the following information:

• How will you deliver your products, services and/or programs to your target market? For example, if you are starting a food bank, you will need to develop a system for collecting and storing food donations, as well as distributing them to the community.
• How will your nonprofit be structured? For example, will you have paid staff or volunteers? How many employees will you need? What skills and experience will they need to have?
• What kind of facilities and equipment will you need to operate your nonprofit? For example, if you are starting a job training program, you will need space to hold classes, as well as computers and other office equipment.
• What are the day-to-day operations of your nonprofit? For example, if you are starting a food bank, you will need to develop a system for accepting and sorting food donations, as well as distributing them to the community.
• Who will be responsible for each task? For example, if you are starting a job training program, you will need to identify who will be responsible for recruiting participants, teaching classes, and placing graduates in jobs.
• What are your policies and procedures? You will want to establish policies related to everything from employee conduct to how you will handle donations.
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is the section of the business plan where you elaborate on the day-to-day execution of your nonprofit. This is where you really get into the nitty-gritty of how your organization will function on a day-to-day basis.

This section of your nonprofit business plan should include information about the individuals who will be running your organization.

• Who is on your team? Include biographies of your executive director, board of directors, and key staff members.
• What are their qualifications? Include information about their education, work experience, and skills.
• What are their roles and responsibilities? Include information about what each team member will be responsible for, as well as their decision-making authority.
• What is their experience in the nonprofit sector? Include information about their work with other nonprofits, as well as their volunteer experiences.

This section of your plan is important because it shows that you have a team of qualified individuals who are committed to the success of your nonprofit.

Nonprofit Financial Plan

This section of your nonprofit business plan should include the following information:

• Your budget. Include information about your income and expenses, as well as your fundraising goals.
• Your sources of funding. Include information about your grants, donations, and other sources of income.
• Use of funds. Include information about how you will use your income to support your programs and operations.

This section of your business plan is important because it shows that you have a clear understanding of your organization’s finances. It also shows that you have a plan for raising and managing your funds.

Now, include a complete and detailed financial plan. This is where you will need to break down your expenses and revenue projections for the first 5 years of operation. This includes the following financial statements:

Income Statement

Your income statement should include:

• Revenue : how will you generate revenue?
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, what is the net income or loss? 

Sample Income Statement for a Startup Nonprofit Organization

Balance sheet.

Include a balance sheet that shows what you have in terms of assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Nonprofit Organization

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Income : All of the revenue coming in from clients.
• Expenses : All of your monthly bills and expenses. Include operating, marketing and capital expenditures.
• Net Cash Flow : The difference between income and expenses for each month after they are totaled and deducted from each other. This number is the net cash flow for each month.

Using your total income and expenses, you can project an annual cash flow statement. Below is a sample of a projected cash flow statement for a startup nonprofit.

Sample Cash Flow Statement for a Startup Nonprofit Organization

Fundraising plan.

This section of your nonprofit business plan should include information about your fundraising goals, strategies, and tactics.

• What are your fundraising goals? Include information about how much money you hope to raise, as well as when and how you will raise it.
• What fundraising strategies will you use? Include information about special events, direct mail campaigns, online giving, and grant writing.
• What fundraising tactics will you use? Include information about volunteer recruitment, donor cultivation, and stewardship.

Now include specific fundraising goals, strategies, and tactics. These could be annual or multi-year goals. Below are some examples:

Goal : To raise $50,000 in the next 12 months.

Strategy : Direct mail campaign

• Create a mailing list of potential donors
• Develop a direct mail piece
• Mail the direct mail piece to potential donors

Goal : To raise $100,000 in the next 24 months.

Strategy : Special event

• Identify potential special event sponsors
• Recruit volunteers to help with the event
• Plan and execute the special event

Goal : To raise $250,000 in the next 36 months.

Strategy : Grant writing

• Research potential grant opportunities
• Write and submit grant proposals
• Follow up on submitted grants

This section of your business plan is important because it shows that you have a clear understanding of your fundraising goals and how you will achieve them.

You will also want to include an appendix section which may include:

• Your complete financial projections
• A complete list of your nonprofit’s policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• A list of your hard assets and equipment with purchase dates, prices paid and any other relevant information
• A list of your soft assets with purchase dates, prices paid and any other relevant information
• Biographies and/or resumes of the key members of your organization
• Your nonprofit’s bylaws
• Your nonprofit’s articles of incorporation
• Your nonprofit’s most recent IRS Form 990
• Any other relevant information that may be helpful in understanding your organization

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your nonprofit organization. It not only outlines your vision but also provides a step-by-step process of how you are going to accomplish it. Sometimes it may be difficult to get started, but once you get the hang of it, writing a business plan becomes easier and will give you a sense of direction and clarity about your nonprofit organization.  

Finish Your Nonprofit Business Plan in 1 Day!

Other helpful articles.

How to Write a Grant Proposal for Your Nonprofit Organization + Template & Examples

How To Create the Articles of Incorporation for Your Nonprofit Organization + Template

How to Develop a Nonprofit Communications Plan + Template

How to Write a Stand-Out Purpose Statement + Examples

How to Write a Nonprofit Business Plan in 12 Steps (+ Free Template!)

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:

• Why a business plan is so important
• The components of a business plan
• How to write a business plan for a nonprofit specifically

We also have a few great examples, as well as a free nonprofit business plan template.

Let’s get planning!

What Is a Nonprofit Business Plan?

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.

Why Your Nonprofit Needs a Business Plan

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:

Secure funding and grants

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.

Solidify your mission

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!

Set goals and milestones 

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.

Attract a board and volunteers

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.

Research and find opportunities

Writing a business plan requires some research!

Along the way, you’ll likely dig into information like:

• Who your ideal donor might be
• Where to find potential partners
• What your competitors are up to
• Which mentorships or grants are available for your organization
• What is the best business model for a nonprofit like yours

With this information in place, not only will you have a better nonprofit business model created—you’ll also have a more stable organization!

Free Nonprofit Business Plan Template

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.

Basic Format and Parts of a Business Plan

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:

• Be consistent formatted
• Have standard margins
• Use a good sized font
• Keep the document to-the-point
• Include a page break after each section
• Be proofread

Curious about what each section of the document should look like?

Here are the essential parts of a business plan:

• Executive Summary: This is your nonprofit’s story—it’ll include your goals, as well as your mission, vision and values.
• Products, programs and services: This is where you show exactly what it is you’re doing. Highlight the programs and services you offer, and how they will benefit your community.
• Operations: This section describes your team, partnerships and all activities and requirements your day-to-day operations will include.
• Marketing : Your marketing plan will cover your market, market analyses and specific plans for how you will carry out your business plan with the public.
• Finances: This section covers an overview of your financial operations. It will include documents like your financial projections, fundraising plan , grants and more
• Appendix: Any additional useful information will be attached here.

We’ll get into these sections in more detail below!

How to Write a Nonprofit Business Plan in 12 Steps

Feeling ready to put your plan into action? Here’s how to write a business plan for a nonprofit in 12 simple steps!

1. Research the market

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!

• How your competitors’ business plans are structured
• What your beneficiaries are asking for
• Potential partners you’d like to reach
• Your target donors
• What information granting bodies and loan providers require

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!

2. Write to your audience

Your business plan will be available for a whole bunch of people, including:

• Granting bodies
• Loan providers
• Prospective and current board members

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!

3. Write your mission statement

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:

• Watts of Love is a global solar lighting nonprofit bringing people the power to raise themselves out of the darkness of poverty.
• CoachArt creates a transformative arts and athletics community for families impacted by childhood chronic illness.
• The Trevor Project fights to end suicide among lesbian, gay, bisexual, transgender, queer, and questioning young people.

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!

4. Describe your nonprofit 

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:

• Your ideal vision for your community 
• The guiding philosophy and values of your organization
• The purpose you were established to achieve

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.

5. Outline management and 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:

• Team members (staff, board of directors , etc.)
• The specific type of nonprofit you’re running

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.

6. Describe programs, products and services

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:

• The specifics of the work you do
• How that work helps your beneficiaries
• The resources that support the work (partnerships, facilities, volunteers, etc!)
• If you have a membership base or a subscription business model

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.

7. Create an Executive Summary

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:

• Your mission, vision and values
• Your goals (and their timelines!)
• Your organization’s history
• Your primary programs, products and services
• Your financing plan
• How you intend on using your funding

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.

8. Write a marketing plan

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:

• Beneficiary information
• Information on your target audience/donor base
• Information on your competitors
• Names of potential partners

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.

9. Create a logistics and operations plan

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:

• The titles and responsibilities of your core team
• The partners and suppliers you work with
• Insurance you will need
• Necessary licenses or certifications you’ll maintain
• The cost of services and programs

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!

10. Write an Impact Plan

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:

• Clarifies your goals in detail
• Highlights specific objectives and their timelines
• Breaks down how you will achieve them
• Shows how you will measure your success

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…

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.

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:

• Expected membership contributions
• Significant donations
• In-kind support
• Fundraising plan

Then, do the same with your expenses:

• Startup costs
• Typical bills
• Web hosting
• Membership management software
• Subscription
• Costs of programs

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:

• Income statement
• Cash flow statement
• Balance sheet

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!

12. Include an Appendix

Your appendix is for any extra pieces of useful information for your readers.

This could be documents such as:

• Academic papers about your beneficiaries
• Publications on your nonprofit’s previous success
• Board member bios
• Organizational flow chart
• Your IRS status letter

Make sure your additions contribute to your nonprofit’s story!

Examples of Business Plans for Nonprofits

Here are two great examples of nonprofit business plans. Notice how they’re different depending on the size of the organization!

Nonprofit Recording Co-op Business Plan

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!

What we like:

• Details on running a basic membership model
• Emphasis on what it means to specifically be a sustainable cooperative
• A list of early milestones, such as hitting their 100th member
• Clarification that all recordings will be legal

Nonprofit Youth Services Business Plan

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.

What we like

• The mission is broken down by values
• A detailed look at what each program provides
• A thorough sales plan
• Key assumptions are included for the financial plan

How to Create a Nonprofit Business Plan With Confidence

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!

With our 60-day free trial , you’ll have all the time you need to fall in love with what we have to offer.

Related Organizational Management Articles

Nonprofit Succession Planning: A Step-by-Step Guide

Strategic Planning for Nonprofits

Setting Goals for Your Nonprofit

The Membership Growth Report:

Benchmarks & insights for growing revenue and constituents.

How to write a nonprofit business plan

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.

Ready to start your business?

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

Nonprofit business plan elements

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:

• Executive summary
• Mission and goals
• Community impact
• Products, services, and programs
• Organizational structure and staffing
• Market and competitive analysis
• Fundraising and development
• Financial plan

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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Free Nonprofit Business Plan Templates

By Joe Weller | September 18, 2020

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In this article, we’ve rounded up the most useful list of nonprofit business plan templates, all free to download in Word, PDF, and Excel formats.

Included on this page, you’ll find a one-page nonprofit business plan template , a fill-in-the-blank nonprofit business plan template , a startup nonprofit business planning timeline template , and more. Plus, we provide helpful tips for creating your nonprofit business plan .

Nonprofit Business Plan Template

Use this customizable nonprofit business plan template to organize your nonprofit organization’s mission and goals and convey them to stakeholders. This template includes space for information about your nonprofit’s background, objectives, management team, program offerings, market analysis, promotional activities, funding sources, fundraising methods, and much more. 

Download Nonprofit Business Plan Template

One-Page Business Plan for Nonprofit Template

This one-page nonprofit business plan template has a simple and scannable design to outline the key details of your organization’s strategy. This template includes space to detail your mission, vision, and purpose statements, as well as the problems you aim to solve in your community, the people who benefit from your program offerings, your key marketing activities, your financial goals, and more.

Download One-Page Business Plan for Nonprofit Template

Excel | Word | PDF

For additional resources, including an example of a one-page business plan , visit “ One-Page Business Plan Templates with a Quick How-To Guide .”

Fill-In-the-Blank Nonprofit Business Plan Template

Use this fill-in-the-blank template as the basis for building a thorough business plan for a nonprofit organization. This template includes space to describe your organization’s background, purpose, and main objectives, as well as key personnel, program and service offerings, market analysis, promotional activities, fundraising methods, and more. 

Download Fill-In-the-Blank Nonprofit Business Plan Template

For additional resources that cater to a wide variety of organizations, visit “ Free Fill-In-the-Blank Business Plan Templates .”

Startup Nonprofit Business Planning Template with Timeline

Use this business planning template to organize and schedule key activities for your business. Fill in the cells according to the due dates, and color-code the cells by phase, owner, or category to provide a visual timeline of progress.

Download Startup Nonprofit Business Planning Template with Timeline

Excel | Smartsheet

Nonprofit Business Plan Template for Youth Program

Use this template as a foundation for building a powerful and attractive nonprofit business plan for youth programs and services. This template has all the core components of a nonprofit business plan. It includes room to detail the organization’s background, management team key personnel, current and future youth program offerings, promotional activities, operations plan, financial statements, and much more.

Download Nonprofit Business Plan Template for Youth Program

Word | PDF  | Google Doc

Sample Nonprofit Business Plan Outline Template

You can customize this sample nonprofit business plan outline to fit the specific needs of your organization. To ensure that you don’t miss any essential details, use this outline to help you prepare and organize the elements of your plan before filling in each section.

Download Sample Nonprofit Business Plan Outline Template

Nonprofit Startup Business Planning Checklist Template

Use this customizable business planning checklist as the basis for outlining the necessary steps to get your nonprofit organization up and running. You can customize this checklist to fit your individual needs. It includes essential steps, such as conducting a SWOT analysis , fulfilling the research requirements specific to your state, conducting a risk assessment , defining roles and responsibilities, creating a portal for board members, and other tasks to keep your plan on track.

Download Nonprofit Startup Business Planning Checklist Template

Tips to Create Your Nonprofit Business Plan

Your nonprofit business plan should provide your donors, volunteers, and other key stakeholders with a clear picture of your overarching mission and objectives. Below, we share our top tips for ensuring that your plan is attractive and thorough.

• Develop a Strategy First: You must aim before you fire if you want to be effective. In other words, develop a strategic plan for your nonprofit in order to provide your team with direction and a roadmap before you build your business plan.
• Save Time with a Template: No need to start from scratch when you can use a customizable nonprofit business plan template to get started. (Download one of the options above.)
• Start with What You Have: With the exception of completing the executive summary, which you must do last, you aren’t obligated to fill in each section of the plan in order. Use the information you have on hand to begin filling in the various parts of your business plan, then conduct additional research to fill in the gaps.
• Ensure Your Information Is Credible: Back up all the details in your plan with reputable sources that stakeholders can easily reference.
• Be Realistic: Use realistic assumptions and numbers in your financial statements and forecasts. Avoid the use of overly lofty or low-lying projections, so stakeholders feel more confident about your plan. 
• Strive for Scannability: Keep each section clear and concise. Use bullet points where appropriate, and avoid large walls of text. 
• Use Visuals: Add tables, charts, and other graphics to draw the eye and support key points in the plan.
• Be Consistent: Keep the voice and formatting (e.g., font style and size) consistent throughout the plan to maintain a sense of continuity.
• Stay True to Your Brand: Make sure that the tone, colors, and overall style of the business plan are a true reflection of your organization’s brand.
• Proofread Before Distribution: Prior to distributing the plan to stakeholders, have a colleague proofread the rough version to check for errors and ensure that the plan is polished.
• Don’t Set It and Forget It: You should treat your nonprofit business plan as a living document that you need to review and update on a regular basis — as objectives change and your organization grows.
• Use an Effective Collaboration Tool: Use an online tool to accomplish the following: collaborate with key personnel on all components of the business plan; enable version control for all documents; and keep resources in one accessible place.

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How to Create a Nonprofit Business Plan

Could your organization use a nonprofit business plan ? The answer is yes . Although the nonprofit sector doesn’t always work like the for-profit world and you might not think of your nonprofit as a business, having a business plan can boost your growth and support. 

The most important thing to remember is that your nonprofit needs to be unique so it stands out from other nonprofits. Secondly, you want to convey the value that those who engage with your organization or donate money will receive. This can be making them feel charitable but also more productive and engaged. Think about the value/emotion you are hoping to evoke and convey it through your business plan.

The following sections should be included in your nonprofit business plan:

Executive Summary

Organization overview.

• Products, Programs, and Services

Industry Analysis

Customer analysis, marketing plan, operations plan, management team, financial plan.

Let’s break each of these down.

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 student volunteers provide assistance at less than half the cost as our competitors”).  Succinctly communicate why people should care about your organization so they will choose to support you. Include other pertinent information about your organization such as the bios of key staff members and the amount of funding you are looking to raise.

The purpose of the executive summary is to convey key information about your organization so readers can decide whether they are interested and willing to read the rest of your plan. Keep the executive summary to one to two pages in length. Create it after completing the other sections so you can simply summarize them. But make sure you do so in an exciting and compelling manner, so readers want to read and learn more about your organization.

This section should include a description of your organization’s overall structure, beginning with who founded it and how it is currently governed. Other important information to provide includes your the nonprofit is located, how many paid/unpaid staff members there are, what facilities are available for use by customers or employees, and what kind of support services are provided (e.g., IT, HR). Lastly, explain any accomplishments your organization has achieved to-date, as the best indicator of future success is past performance.

Products/Services/Programs

In this section, write about your nonprofit’s services or programs in detail. Document the programs you offer and how they function. Provide details, sketches, etc. to clearly communicate the offerings and value your organization provides. If applicable, consider including audience testimonials that express satisfaction with your nonprofit’s offerings.

For industry analysis, address some questions and provide information that supports your answers. Consider this: how big is the industry? For example, if you provide education to high school students, discuss the market size for public and private high school education.

Also answer the following questions:

• What trends are facing the industry (positive or negative)?
• What are some of the industry challenges facing organizations?
• How can your organization help people overcome those problems?

This section should begin with a definition of who the organization considers to be its primary target market (e.g., high school students, working moms, etc.). Based on this group’s needs and wants, prioritize which benefits/offerings from your services or programs are most important to them. This section should also include facts about your supporters’ key needs and pains or other information that might be helpful for your nonprofit’s fundraising efforts.

The marketing plan should discuss how the individuals you serve are likely to find out about your organization’s services and programs along with what promotional activities will be used to reach new audiences .  Outline why each activity is beneficial for growing your nonprofit and which demographic it best targets. For strategies that have already been used, provide specific figures on results achieved.

Below are sample promotional activities that many nonprofit organizations use:

Public relations

Developing relationships with the media and utilizing earned media coverage helps with free public exposure. This in turn gets the word out about an organization’s mission. For example, you can create press releases related to new staff additions or upcoming events and share them with your media contacts. 

Social media marketing  

Social media sites allow organizations to stay connected with supporters and advocates at any time of day. There are different social media platforms that work for different organizations. For example, Twitter is a great way to have quick conversations with people about an issue. Facebook is a good place for sharing more in-depth content and articles on a particular subject area. LinkedIn is a platform where you can build your network of contacts and share information about your organization or topic area.

Blogs and Other Content  

Producing great content for blogs or other channels can be an extremely effective way to bring people back to your site or area of social media where they are more likely to donate. A blog can allow you to have conversations with supporters and advocates, answer questions, give more information about your organization or cause, and talk about the issues in your community. In addition, the use of photos, videos, infographics, etc., is a great way to get information across in a compelling manner.

E-newsletters  

Sending out an e-newsletter is a great way to engage your supporters. You can include links back to your website, send updates about your organization, share compelling videos or photos from recent events, etc. Just make sure your audience has opted in to hear from you and be sure you don’t spam their inboxes with constant updates every day. 

Event marketing  

Organizing special events around a particular subject area is a good way to inform the public about an issue or about your organization. Some examples of events are panel discussions about a subject, fundraising dinners, etc. Webinars have grown in popularity with nonprofits in recent years as well. With so many options for virtual, hybrid or in-person gatherings, you’ll be sure to find a way to boost your nonprofit’s audience and growth.

Newspaper/Magazine ads  

Just because digital marketing has grown doesn’t mean that traditional media isn’t viable. Unfortunately, this can be one component of advertising that nonprofits often neglect due to lack of funds. Adding an ad to the back of a newspaper with some basic information about what you do, how people can get involved, and what you are looking for in terms of volunteers, donors, etc., is still a great way to spread the word.

PPC advertising  

Don’t forget about pay-per-click advertising on search engines like Google. This makes it possible to drive traffic to your website based on specific keywords your target audience searches or pages they visit online. You can write compelling ads that allow you to get the word out about what your organization does. 

This section should describe in detail how your nonprofit runs or plans to run its business day-to-day. Outline internal systems that will be used to track and monitor each product, service, or program offered by the organization (e.g., accounting software). Describe what kind of training employees may need to perform their duties effectively. Also include information about whether future hiring plans are scheduled. If so, mention whether all positions will need to be filled immediately or if some can be temporarily contracted out until permanent staff is hired. Finally, create a chart showing the milestones your organization hopes to achieve annually over the next five years.

Provide a list of important management team members within your organization. Make sure to include each person’s title, how long they have been working there, and what responsibilities are part of their role. For each person, include any previous experience they have as well as personal traits that would help them succeed in it. If there are no existing employees with enough business expertise to serve certain roles, list the qualifications the ideal candidate would possess instead.

In this section of your business plan, provide a detailed breakdown of how much funding you are seeking broken down by category (e.g., marketing, staffing, etc.).  Provide information about how much revenue is expected from donors and customers compared to funds needed to cover operating costs such as salaries, advertising, and rent. If the organization already has an existing revenue stream, explain how new funding will be used to fund new operations.

The appendix is a good place for any additional information that you would like readers of your nonprofit business plan to have. This includes additional industry research and information on your products, services, or programs. It might also include testimonials from satisfied customers or profiles of board members. Or, it might include architectural designs of a new facility you hope to build.

In summary, a nonprofit business plan is a document that outlines your nonprofit organization’s goals and objectives. A well-written, comprehensive plan can help you attract funding from potential donors or investors. It will also provide clarity to stakeholders by giving them an understanding of your vision for the organization’s future growth.

*This spotlighted blog post is courtesy of Growthink

Dave Lavinsky

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15 Tips To Create An Effective 2023 Nonprofit Business Plan

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Creating a nonprofit business plan is an important step for any organization whether you’re about to launch or are well established in your community. 

A nonprofit business plan is slightly different to the commercial sector. It’s a strategic plan that outlines the key elements of your organization, including:

• Financial projections
• Strategies for achieving those goals
• Volunteer recruiting
• Record keeping
• Leadership team building
• Board recruiting
• Government funding and donor support
• Long-term term direction of your organization

Why bother if you’re already established? 

Regularly outlining the goals and objectives of the organization, as well as the strategies and action plan for achieving them is good practice. It’s like taking your nonprofit into the mechanic to get a check up. 

In this article I will go over the fundamental steps to creating an effective nonprofit business plan.

Step 1: Outline the goals and objectives of your organization

• Define the purpose of your organization in one ‘power paragraph!’ Try outlining this core mission in twenty-five words. Clear understanding of this serves as the foundation for all the other elements of your plan. It’s a hard task, but is a great exercise to try.
• Be as specific as possible. This will help you stay focused on your goals and avoid getting sidetracked by other priorities.
• Your mission statement should provide a clear and concise description of your organization’s purpose and its unique value proposition. Try to articulate your organization’s long-term goals and aspirations in high definition.
• These statements will serve as the guiding principles for your business plan and will help to ensure that all of your activities align with your organization’s overall purpose and direction.

Step 2: Conduct Research

Market research is an important step in the planning process . It constructs an understanding of the needs your target audience have and the competition you will face. This information will be crucial in determining the feasibility of your organization’s goals and objectives.

How you undertake this depends greatly on what stage your nonprofit is in. If you’re just starting, then market research could be:

• Research the competition. What other organizations are serving the same audience and how are they doing it? How can your organization differentiate itself from the competition?
• Detailed analysis of the needs your mission seeks to help. This will help you better understand where you can help and how you effectively assist the community.
• Identifying your target audience. Who are the people you are trying to serve? What are their needs and challenges?
• If your organization is already established then feedback from donors and those your mission reaches will inform this stage. Gathering data is of vital importance and in this effort you may also wish to use data management tools available through your donor database. 

Analysis of your environment.

• This will involve researching your own current situation, including strengths, weaknesses, opportunities, and threats. 
• This SWOT analysis will help you identify the key challenges and opportunities facing your organization, and will serve as the foundation for your business plan.
• When you identify the risks you will face, those who read the plan will feel like you’re including a degree of realism. A business plan which only speaks of clear pathways to success will be less effective than those which speak of challenges which your hard work, team, and supporters seek to overcome through the duration of the plan.

New ideas: innovative strategies that can be used to achieve your organizational goals.

Identify the key areas where your organization can make the greatest impact and brainstorm ideas to address those areas. This may include identifying new sources of funding, developing new programs and services, or expanding your organization’s reach and impact.

1. Detail a budget outline.

In order to create a detailed budget and financial plan, you’ll need to take the following steps:

• Identify your income sources including potential grants, donations, and other funding sources.
• Determine your expenses including any costs associated with your project or organization.
• How much money do you expect to make and spend over a specific period of time? This will help you understand your financial position and determine if you have enough money to cover your expenses.
• Develop a fundraising plan to help you generate additional income. This could include a regimented plan to apply for grants, organize fundraising events, or reach out to potential donors. 
• Diversify your fundraising plan by including a variety of income sources. This will help ensure that your organization is not reliant on a single source of funding and can weather any potential setbacks or changes in funding availability.

Sidenote: Monitor your budget and financial plan regularly to ensure that you are staying on track and making progress towards your goals. Make any necessary adjustments to your written plans to keep your finances on track.

2. Identify potential partners and collaborators.

3. develop a strong and experienced board of directors..

There are several potential partners and collaborators for a nonprofit organization. Some possible partners could include other nonprofit organizations that serve similar or complementary missions, businesses that align with the nonprofit’s goals and values, government agencies that support the nonprofit’s work, and foundations or philanthropic organizations that provide funding for similar causes. 

4. Build a board of directors.

• It’s important to have a strong and experienced group of individuals who can provide guidance and support for the organization. 
• This could include leaders from various sectors such as business, education, healthcare, and social services, as well as individuals with expertise in areas such as finance, fundraising, and legal affairs. 
• It’s also important to have diverse perspectives and backgrounds represented on the board to ensure that the nonprofit’s work is reflective of the community it serves.

5. Create a compelling and effective marketing and outreach plan.

• To create a compelling and effective marketing and outreach plan for a nonprofit organization you should start by defining your target audience and identifying the key messages that will resonate with them. 
• Next, you should determine the most effective channels for reaching your audience, such as social media, email, or events, and develop a clear call-to-action that encourages them to take a specific action. 
• You should also create engaging and visually appealing content that showcases the impact of your organization and its work, and track the results of your outreach efforts to continually improve and refine your plan.
• Get social. Research how social media and effective storytelling is used the world over to create engagement and drive donations. 

6. Get SMART! — Create a plan for evaluating the effectiveness of your programs and activities.

• To evaluate the effectiveness of our nonprofit programs and activities, we will first establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for each program. 
• We will then communicate in the business plan how you will collect data on the progress of these programs. Using methods such as surveys, interviews, and focus groups to gather feedback from participants and stakeholders. 
• Indicate you will also track key performance indicators (KPIs) such as program attendance and success rates. This data will be analyzed to assess the extent to which our programs are achieving their goals, and any necessary adjustments will be made to improve their effectiveness. Regular evaluations will be conducted to ensure that our programs continue to meet their objectives and have a positive impact on our target population. Once more data management software will greatly assist in this process. 

7. Identify potential challenges for your nonprofit and develop strategies for addressing them.

There are many potential challenges that a nonprofit organization may face. These can include difficulties in:

• Fundraising
• Lack of public awareness
• Support for the organization’s cause
• Competition for donations or volunteers from other similar organizations

In order to address these challenges, a nonprofit can implement a variety of strategies. These can include developing a strong marketing and outreach campaign to increase public awareness, forming partnerships with other organizations to increase visibility and access to resources, and implementing effective fundraising strategies to secure the necessary financial support. Additionally, a nonprofit can focus on building and maintaining strong relationships with donors and volunteers in order to retain their support and engagement over time and the aim is to have each one of these addressed throughout the nonprofit business plan.

8. Develop a plan to build a strong and professional leadership team.

• Recruit diverse and talented individuals who share your organization’s values and goals.
• Provide ongoing training opportunities and support to help your team members develop their leadership skills overtime.
• Encourage open communication, collaboration, and teamwork among your team members.
• Identify the key leadership roles and responsibilities within your organization and then communicate it to your team.
• Hold regular meetings and check-ins to stay informed about your team’s progress and challenges.
• Foster a positive and inclusive work culture that values innovation and creativity.
• Recognize and reward the contributions of your team members, and provide opportunities for growth and development.

9. Create a plan for engaging and retaining volunteers.

• Conduct volunteer recruitment drives with online stories, on the ground leaflets and word of mouth, and clear application to apply on your website. 
• Make sure volunteers feel valued and appreciated for their time and efforts by planning to thank them regularly and providing them with opportunities for personal and professional growth.
• Provide volunteers with clear expectations and guidelines for their roles and responsibilities. This will help them feel more confident and comfortable in their roles.
• Engage volunteers in the decision-making process and invite them to provide feedback and suggestions for improving the organization.
• Foster a positive and inclusive work environment that is conducive to collaboration and teamwork. This will help volunteers feel more connected to the organization and their fellow volunteers.

10. Develop a plan for managing and utilizing technology effectively.

This will include building a website. If you’re technologically inclined then there’s plenty of website building sites like WordPress and Squarespace each with their own price plans. You can also hire web designers on Fiverr for every budget. 

11. Invest in data management software.

Making sense of your information in the digital age is the difference between success and failure in a lot of professional fields and the nonprofit sector is no different.

Here is a potential plan for effectively managing and utilizing data management software like Bloomerang. Data management is a pretty fundamental element of modern nonprofit management.

• Create a timeline for implementing and using your database. Including training for staff members who will be using the technology.
• Develop clear policies and procedures for using your donor database. Including guidelines for data entry, security, and access.
• Regularly review and assess the effectiveness of your database in achieving the organization’s goals, and make adjustments as needed.
• Stay up to date with new features and capabilities in the platform, and consider incorporating them into the organization’s use of the technology.
• Overall, the key to effectively managing and utilizing technology is to have a clear plan and to regularly review and assess its effectiveness in achieving the organization’s goals.

12. Create a plan for handling financial management and reporting.

To manage the finances for a nonprofit business plan, it’s important to establish a clear budget and regularly track expenses to ensure that the organization is operating within its means. It’s also crucial to maintain accurate financial records and create regular financial reports to provide transparency and accountability to donors and stakeholders. To create a plan for financial management and reporting, the following steps can be taken:

• Establish a budget which outlines the organization’s projected income and expenses.
• Track expenses regularly to ensure that the organization stays within its budget.
• Maintain accurate financial records, including receipts and invoices.
• Create regular financial reports, such as monthly or quarterly statements, to provide transparency and accountability.
• Meet with the organization’s board of directors regularly to review and discuss the financial reports and make any necessary adjustments to the budget.

13. Develop a plan for dealing with legal and compliance issues.

To ensure that your nonprofit organization meets all legal compliances and regulations, you should:

• Research the specific laws and regulations that apply to your organization and its activities.
• Include requirements related to tax exemptions, charitable solicitation, fundraising, governance, and financial reporting.
• Consult with an attorney who is experienced in nonprofit law to help you understand and comply with these requirements. 
• Schedule to regularly review and update your policies and procedures to ensure that your organization remains in compliance with all applicable laws and regulations.

14. Identify potential sources of income, such as grants and corporate partnerships and outline how you will do this.

• Research potential grant opportunities from government agencies and private foundations that align with the nonprofit’s mission and goals. This can be done by searching online databases, such as Grants.gov and Foundation Center, and attending grant-related workshops and conferences.
• Reach out to corporations in the community and inquiring about potential partnership opportunities. This can include sponsorships for events, in-kind donations, and cause-related marketing campaigns.
• Develop a list of potential funding sources and carefully review their requirements and application processes. This will help the nonprofit determine which opportunities are the best fit and ensure that all necessary materials are prepared for a successful application.
• Create a calendar of deadlines for grant applications and corporate partnership inquiries, and set aside dedicated time to work on these opportunities. This will help the nonprofit stay organized and ensure that all opportunities are pursued in a timely manner.
• Follow up with potential funding sources after submitting applications or proposals. This can include thanking them for their consideration and providing any additional information they may require. It can also include reaching out to discuss potential opportunities for collaboration or additional funding in the future.
• Monitor the success of the nonprofit’s efforts to secure funding from grants and corporate partnerships, and adjust the plan as needed based on the results. This can include identifying any challenges and implementing strategies to overcome them, as well as celebrating successes and leveraging them to secure additional funding in the future.

15. Develop a plan for continuously improving and adapting to meet the changing needs of your target population over the course of your nonprofit business plan.

To continuously improve and adapt to the changing needs of our nonprofit’s target population, we can implement the following steps:

• Conduct regular needs assessments to identify gaps and areas for improvement in our services. This can involve surveying our target population and gathering feedback from staff and other stakeholders.
• Develop a plan to address identified gaps and prioritize actions based on the needs and priorities of our target population. This can involve implementing new programs and services, as well as making adjustments to existing ones.
• Monitor and evaluate the effectiveness of our programs and services on an ongoing basis, using both qualitative and quantitative data. This can involve collecting feedback from our target population and staff, as well as tracking key performance indicators.
• Engage with our target population and other stakeholders to stay informed about their needs and priorities, and incorporate their feedback into our planning and decision-making processes.
• Collaborate with other organizations and stakeholders to share best practices and resources and identify opportunities for joint initiatives and partnerships.
• Regularly assess and address the needs of the target population, monitoring and evaluating the impact of your programs
• Staying engaged and informed to ensure that your nonprofit is meeting the changing needs of the target population and continuously improving services.

In conclusion 

A nonprofit business plan can seem daunting but each part will keep your nonprofit in good shape for 2023.

Clearly defining your mission, fundraising strategies, and funding, while attracting and retaining talented employees, will make a lasting positive impact in this field. Good luck!

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Nonprofit Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Nonprofit Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

You’ve come to the right place to write a nonprofit business plan.

We have helped over 10,000 entrepreneurs and business owners create nonprofit business plans and many have used them to start or grow their nonprofit organizations.

Below are links to the essential sections of our sample nonprofit business plan template to help you with the business planning process for your organization:

• Executive Summary – The Executive Summary of your nonprofit business plan explains your overall strategic plan to achieve success as a nonprofit. It will include your organization’s mission statement, goals, and objectives. This section will also include information on your target market, competition, and marketing strategy.
• Company Overview – Also called the Organization Overview, you will include the mission statement and history of your nonprofit including any significant milestones achieved to date.
• Industry Analysis – Sometimes referred to as the Market Analysis, this section will provide an overview of the nonprofit industry, trends, and the competitive landscape.
• Customer Analysis – The Customer Analysis section details the demographics and psychographics of your target audience and how you plan to reach them.
• Competitive Analysis – In your Competitive Analysis, you will identify and describe the competition, both direct and indirect, including other nonprofits with the same mission. You will also include your strategic plan for competing in the market.
• Marketing Plan – This section of your nonprofit business plan will detail your products, programs and services, your overall marketing strategies and tactics, and how you will measure success. It should include information on your target market, positioning, branding, communications, and lead generation.
• Operations Plan – In the Operations Plan, you will outline your day-to-day operations as well as your long-term business goals and how you will measure success.
• Management Team – In the Management Team section of your business plan, you should include the organizational structure of your nonprofit business as well as bios of your executive team and board members.
• Financial Plan – The Financial Plan is one of the most important sections of your nonprofit business plan. You will establish your financial goals and include financial statements such as the income statement, balance sheet and cash flow statement to show how your nonprofit will be sustainable.

Next Section: Executive Summary >

Nonprofit Business Plan FAQs

What is a non profit business plan.

A nonprofit business plan is a road map to start and/or grow your nonprofit organization. Among other things, it outlines your charitable concept, identifies your target customers, presents your marketing plan and details your financial projections. Your non profit business plan should be a living document that is updated frequently as your nonprofit grows.

You can  easily complete your nonprofit business plan using our Nonprofit Business Plan Template here .

What Are the Main Types of Nonprofit Organizations?

There are many types of nonprofits, but each has a charitable mission to help an underserved segment of society. For example, there are nonprofits that serve the underserved youth, abused or abandoned animals, homeless, veterans and impoverished. There are also many nonprofits that support social awareness and global issues such as the environment, education and equality.

What Are the Main Sources of Revenue and Expenses for a Nonprofit Business?

The primary source of revenue for nonprofit organizations are monetary donations from sponsors, government grants and funding, and tax incentives through 501c3 designations.

The key expenses for a nonprofit business are staffing, supplies, rent, utilities, program costs and working capital to ensure the sustainability of the non profit. Proper strategic planning will help your nonprofit thrive financially.

This differs from a for profit business plan because you do not have to show profitability.  Nonprofits focus away from profit and instead center on accountability.

How Do You Secure Funding For Your Nonprofit Organization?

Most nonprofit organizations are likely to receive funding from banks, grants, and donors. As the majority of the funding will come from government grants and funds, grant proposals will need to be compiled and proposed to the necessary funding organization.

A solid business plan is key to showing investors you are well-prepared to start your own business.  A nonprofit business plan template is key to proper business planning and getting started quickly.

Where can I download a Nonprofit Business Plan PDF?

You can download our free nonprofit business plan template PDF  here . This is a sample nonprofit business plan outline that you can use in PDF format.

How to Start a Nonprofit Business

10 min. read

Updated May 11, 2024

Starting a nonprofit is one of the most rewarding ways to spend your time. 

However, establishing a charitable organization that lasts and truly makes a difference requires thorough planning and solid dedication.

In this guide to starting a nonprofit; we’ll outline the steps to get you up and running. 

Check out our startup hub for more in-depth guidance on starting a business.

• 1. Conduct a needs analysis

First, do some legwork. There are more than 1.5 million nonprofits in the U.S. alone, so you should verify that some other organization isn’t already serving your identified needs. 

Confirming that there’s demand for your organization’s mission is called a needs analysis.

You’re looking to answer the following questions:

• Is any other nonprofit organization already serving your target audience?
• How many people need the service you plan to provide?
• Who is your target demographic—who needs what you’re offering? What do they need or want?
• Is a 501(c)3 the best way to meet the need?

For this market research , you need to identify your target population (the people you think need what you’re offering) and potential donors.

Until you’ve spoken with (or surveyed) those audiences, you haven’t validated that there’s truly a need for what you’re offering. 

You may find that the need in your target population is different or exists within a different demographic. The point here isn’t to simply prove your assumptions—it’s okay if you need to adjust your idea .

Lastly, become familiar with the IRS nonprofit compliance guide . This information is worth reviewing early on so you know what’s required of a 501(c)3.

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2. Decide on a name 

Deciding on your charitable startup’s name is an essential step. You’ll need it finalized before incorporating your nonprofit or filing official paperwork.

Do research to ensure no other nonprofit organizations or for-profit businesses are using the name you’d like to use. At the very least, it will be a hassle if you’re constantly competing with another organization for brand visibility—or answering messages from confused donors or clients.

Check out our branding guide for further guidance on choosing a winning business name.

• 3. Write your mission statement

While for-profit entities aim to generate profits for shareholders—nonprofits emerge to address specific societal, environmental, or community challenges. This fundamental difference increases the importance of your mission statement. 

A well-crafted mission statement articulates the core reason for the organization’s existence. Your mission is a guiding beacon, ensuring that every action and initiative aligns with the organization’s overarching goals. 

Donors, volunteers, beneficiaries, and the broader community often engage with a nonprofit based on its mission. Your mission can help generate support, foster trust, and ensure transparency. 

Since your mission impacts so many individuals, it’s worth taking a collaborative approach when developing it. Involve diverse stakeholders who will be part of your organization—from volunteers to your first donors. 

When finalizing your mission, remember to keep your message concise. Focus on your unique impact and how you differ from similar nonprofits. Once you have a first draft, seek feedback to ensure it resonates with your staff, donors, and those you support. 

Dig deeper: What is a social enterprise and how to create one

• 4. Build your board of trustees

Every U.S. state requires a nonprofit to form a board of directors, who assume governing responsibilities and liability for the organization. For most states, a single person is considered the minimum requirement for a board, but in some states, as many as three people are necessary.

The National Council of Nonprofits has a great guide on reasonable responsibilities and expectations you might have of your board members. They also make solid recommendations on creating an orientation for new board members to set the stage for their role with your organization.

Annie Rogaski, founder of the Silicon Valley nonprofit The Club , offers this tip: 

“Form a strong board that works well together but brings different perspectives and creates an environment that encourages discussion of those different viewpoints to arrive at the best decision.”

• 5. Write your nonprofit business plan

Nonprofits need a good business plan just as much as for-profit companies—maybe even more. 

Lorrie Lynn King, founder of international women’s health nonprofit 50 Cents Period, says, “Nonprofit administration and programming require business acumen, financial planning, strategic planning, and people management skills—sometimes all at once.”

Writing your plan helps you think through every aspect of your organization. Plus, every bank will expect to see a business plan if you seek a business loan for larger capital expenses, like building or remodeling.

But it’s not just about getting a bank loan. Business planning helps you know where your organization is going and how you’ll get there. 

“It is crucial to have three-year plans for both the program and administrative sides of your organization, with measurable outcomes,” King says. “Know where you want to go, then create the map for getting there and make adjustments along the way.”

Tip: Check out our guide for writing a nonprofit business plan , and download a free business plan template to get started. 

Nonprofit business plan outline

Here are the sections you’ll want to focus on when writing your business plan . If you’re unsure about specific sections—check out completed nonprofit business plan examples for inspiration.

Executive summary

Treat this section as a brief overview of your vision for the organization. Make sure your executive summary includes your mission statement and how your nonprofit will execute it. 

Products and services

Are you making a life-changing product at little to no cost for a population in need? Are you providing an essential service to your community? Your products and services are what you’re delivering to meet a demand.

Market analysis

Doing a market analysis will help you better understand the population you intend to serve and your donor base. 

Management team

Who will be on your management or leadership team and board of directors? What are their duties, and what do they bring to the table?

Financial plan

Your nonprofit’s financial plan is essential. Just because you’re not focusing on generating a profit doesn’t mean it isn’t critical to put together a plan for how you’ll sustain your organization, deal with cash flow , and grow in the future.  

Dig deeper: Why your nonprofit needs a better budget

6. Register for 501(c)3 status and file articles of incorporation

In the United States, nonprofits have to meet regulations and requirements at both the state and federal levels. 

While there are 29 different categories of 501(c) organizations, the most commonly created is a 501(c)(3) organization— defined by the IRS as a “charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to children or animals.”

Most nonprofit organizations in the U.S. will fall under this classification, making them exempt from federal income taxes. (It is important to note that employees of these organizations are still required to pay income taxes.)

Tip: Approval can take up to a year, so get a jump on filing for tax exemption early .

In addition to filing for tax exemption, you will need to register or reserve the intended name of your organization and file articles of incorporation as a nonprofit . 

The specifics of this process will vary from state to state. Every state has a State Charitable Official from the National Association that you can contact for more detailed information about what you must prepare.

It’s always a good idea to retain the services of a lawyer familiar with the nonprofit creation process, too. Knowledgeable advisors will be invaluable as you prepare your filings at both the state and federal levels.

Dig deeper: 5 reasons to incorporate your nonprofit

7. Create a fundraising plan and get to know your donor base

Your organization will require a minimum amount of money to maintain regular operations. Then, there are special projects, unforeseen expenses, and growth to account for. 

King advises: “Start a funding and a savings reserve for your organization the minute donations start rolling in. Create a system of paper trails and transparency.”

Beyond setting an initial plan for bringing in funds, you’ll want to set up and monitor your financials. You can start with an Excel spreadsheet, but consider long-term accounting solutions like QuickBooks or Xero . 

Plus, if you connect it to a business dashboard solution like LivePlan , assembling financial reports for your board meetings becomes much less time-consuming.

Connect with your donors

Nonprofits rely mainly on donations for this money, and having a committed donor base will be essential. 

To start building a support network, revisit your research from earlier. Who have you identified as prospective donors? Talk to them, if you can, and understand what drives them. 

Use this direct feedback to craft your branding and marketing efforts . Your goal is to choose communication channels that your prospective donors frequent and package your mission in a way that will resonate with them. 

You may also want to look into grants . Keep in mind that grant applications take time to write. They usually come with reporting requirements, and there’s no guarantee that you’ll get the same grant next year.

Tip: Many donors will want assurance that you have been granted your 501(c)3 status so they can write off their donation on their taxes.

Dig deeper: How to find the right nonprofit partners

• 8. Hire your first staff or find volunteers

Your board of trustees are really your first volunteers. From there, you need to identify skill gaps within your organization that a volunteer or employee can fill.

Start by briefly describing the role you need to fill and how much time per week you think it might take. Then, get the word out. Depending on the volunteer work you’re offering, you might use a service like Volunteermatch.org to list your opportunity. Or you might put it on Craigslist or advertise in a high school or college newspaper.

A word of caution: It’s perfectly reasonable to ask a potential volunteer to do an initial project if your need is somewhat involved or requires a specific skill set. 

Volunteers can be beneficial, and many nonprofits are primarily volunteer-driven. But now or at some point in the future (when your finances allow), it might be appropriate to consider bringing on full or part-time paid staff. 

Before hiring, revisit your financial plan (specifically your personnel forecast ) and determine when to hire a new employee. 

Check out our hiring guide for more on successfully interviewing, choosing, and managing a new employee.

Dig deeper: How to successfully run nonprofit meetings

• Keep your eyes on your mission

As your charitable organization takes shape—make time to review both your mission statement and your business plan. 

Keep your mission at the forefront of every conversation around services, finances, and hiring. “Does your next move support our mission?” is a great question to ask frequently. Review your business plan , especially the financials, regularly.

Set milestones so you know you’re on track and can recalibrate if you ever find that you’re not meeting your goals. Use that plan to set you in the right direction and ensure your nonprofit is sustainable well into the future.

• Nonprofit tools and resources

Business plan template

Make writing a business plan easy and improve your chances of success with this fill-in-the-blank template.

Download Template

Build a roadmap for success with LivePlan

Quickly consider every aspect of your business, build your business plan, and create accurate financial reports that help you start and grow.

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• 2. Decide on a name 
• 6. Register for 501(c)3 status
• 7. Create a fundraising plan

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How do I write a business plan for a nonprofit organization?

Like for-profit business ventures, nonprofits can create a business plan to describe how they will turn their mission into reality.

The business planning process involves the following steps:

• Researching the market, using a resource such as GuideStar , to see who else might be doing what the nonprofit plans to offer
• Investigating the resources the nonprofit will need to provide the service
• Devising marketing and communication strategies
• Assessing risk
• Determining ways to evaluate success - IssueLab Results  is a place for foundations and nonprofits to share funded evaluations and to access the lessons of their peers and colleagues.

You can also use a business plan for a specific project or venture for a nonprofit.

To help diversify their revenue sources, for example, many nonprofits explore ways to earn income by developing their own business ventures. A classic example is Girl Scout cookies. Each year Girl Scout troops sell cookies, and the money they earn goes toward Girl Scout programs. Providing goods or services for a fee can be an important way for a nonprofit to bring in revenue to supplement its fundraising activities.

Selected resources below can help you learn more about creating an overall business plan for a nonprofit organization or specifically for an earned income venture.

Still have questions about starting a nonprofit, finding grants or other fundraising and management queries? Chat with or email Candid's experts to get answers. Ask Us Now!

If you're thinking about starting a nonprofit, take Candid's course, Is Starting a Nonprofit Right for You?  Take the course in person or watch the video.

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Explore resources curated by our staff for this topic:, staff-recommended websites, how to write a nonprofit business plan.

This article provides a brief overview of the steps involved in creating a nonprofit business plan.

Nonprofit Business Plan Development: From Vision, Mission and Values to Implementation

This guide provides an overview of the steps in the planning process, (including SWOT analysis), vision and mission statement development, and goal setting.

Nonprofit Incorporating

This full-text article by Donald A. Griesman goes into detail on the process of starting a nonprofit organization. Beginning on page 10, he describes the elements of a business plan for a new nonprofit.

Nonprofit vs. Traditional Business Plans

Entrepreneur.com offers some information on the differences between a nonprofit and traditional business plan.

Social Enterprise Business Plan

This outline was developed for nonprofit organizations wishing to embark on earned income ventures with a business model.

Business Planning (for nonprofits or for-profits)

This site provides an overview of business planning, with a special section focusing on nonprofits. Includes sample nonprofit business plans.

Free Nonprofit Sample Business Plans

Foundation Center does not endorse the business planning software sold on this site, but the sample nonprofit business plans provided are helpful and quite comprehensive.

Sample Nonprofit Business Plans

Along with a link to its full-text article titled “Business Planning for Nonprofits: What It Is and Why It Matters,” the Bridgespan Group gives links to 3 sample nonprofit business plans.

Business Planning for Nonprofits

Provides a listing of suggested resources on business and strategic planning for nonprofit organizations.

Business Planning Tools for Non-Profit Organizations

Offers advice on strategic plans, business plans & feasibility studies, as well as information on financial options, assessing funding sources. Extensive information on planning volunteer programs as well.

Write Your Business Plan

Though not geared specifically to nonprofits, these resources from the SBA cover in detail the elements that should be included in any kind of business plan.

Staff-recommended books

The Nonprofit Business Plan

Find: Amazon | Free eBook

Business Plans Handbook: Non-Profit

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3 Sample Nonprofit Business Plans For Inspiration

Download our Ultimate Nonprofit Business Plan Template here

Below are sample plans to help guide you in writing a nonprofit business plan.

• Example #1 – Kids Are Our First Priority (KAOFP) – a Nonprofit Youth Organization based in Chicago, IL
• Example #2 – Church of the Sacred Heart – a Nonprofit Church based in St. Louis, MO
• Example #3 – Finally Home – a Nonprofit Homeless Shelter in Los Angeles, CA

Sample Nonprofit Business Plan #1 – Kids Are Our First Priority (KAOFP) – a Nonprofit Youth Organization based in Chicago, IL

Executive summary.

Kids Are Our First Priority (KAOFP) is a 501(c)3 nonprofit youth organization that seeks to provide opportunities for students who might otherwise not have access to the arts and humanities. We believe all students should have the opportunity to discover and develop their interests and talents, regardless of socioeconomic status or geographic location. We offer completely free after-school programming in music production, digital photography, creative writing, and leadership development to 12-18-year-olds at risk of dropping out of high school.

Our organization has been active for over five years and has run highly successful programs at two schools in the city of Chicago. We have been awarded an active grant from a local foundation for this coming year, but we will need to cover all costs on our own after that point. Nonprofit administrators have seen a lot of turnovers, leaving the organization without a sustainable plan for reaching its goals.

Organization Overview

The Kids Are Our First Priority (KAOFP) is a 501(c)3 nonprofit youth organization with a mission to provide opportunities for development and self-expression to students who might otherwise not have access. Audiences include at-risk, low-income students from elementary through high school in the Chicago area.

Our programs are built around creative learning with two goals: firstly, creating a space for learning and growth; secondly, encouraging students to share their work with the world.

KAOFP runs three different programs in partnership with closely related nonprofit organizations, providing after-school programming for elementary, middle, and high school-aged children. Programs take place twice a week at different schools around Chicago. While each program is unique in its goals and activities, all programs focus on creative development in the arts and humanities.

Products, Programs, and Services

The three programs offered by KAOFP are Leadership Development (LD), Creative Writing (CW), and Music Production (MP). Students learn in small groups led by skilled instructors. All activities are designed to encourage student engagement, creativity, expression, and community building. Instructors encourage students to share their work with the world through presentations on- and off-site.

Leadership Development (LD)

The Leadership Development program is designed to provide leadership opportunities for high school students who might not otherwise have access to these experiences. Students learn about facilitation, collaboration, communication, and organizational skills as they plan and run projects of their own design. The program’s goal is to provide a structured environment that encourages students to become more confident and comfortable being leaders in their schools, communities, and future careers.

Creative Writing (CW)

Students learn how to use writing creatively as a tool for expression, discovery, and communication. In small groups led by skilled instructors, students write poetry, short stories, and essays of their own design. They also learn about the publishing industry, read each others’ work, and share their writing with the community.

Music Production (MP)

Students learn how to use digital media as a tool for expression, discovery, and communication. In weekly sessions led by skilled instructors, students explore music production through computer software and recording equipment. Students produce their own music and write about their experiences in weekly journals. Industry professionals in the community often volunteer to lead special workshops and seminars.

Industry Analysis

The youth arts and humanities field is extremely competitive. There are many different types of nonprofit organizations doing similar work, but few credible providers with long-term commitments to their communities. KAOFP’s greatest strengths and competitive advantages are our stable and qualified staff, a strong foundation of funding and community support, and a diverse set of programs.

Our biggest competitors include national non-profits with large budgets for advertising and marketing as well as commercial programs that offer music lessons and creative writing courses which may be more cost-effective than our programs. We feel that by focusing on specific areas of creative expression, KAOFP can better serve its communities and differentiate itself from other nonprofit organizations effectively.

Customer Analysis

KAOFP serves elementary, middle, and high school-aged students with programs that include both after-school and summer programming.

Our focus is on low-income neighborhoods with a high population of at-risk youth. In these areas, KAOFP fills a void in the education system by providing opportunities for creative expression and leadership development to students who would not otherwise have access to these resources.

The demographics of our current students are as follows:

• 91% African-American/Black
• 6% Hispanic/Latino
• 5% Multiracial
• 3.9% Low Income
• 4.9% Not Identified

Our main target is low-income African American and Latino youth in Chicago Public Schools. We would like to expand our outreach to include other communities in need of creative enrichment opportunities.

Marketing Plan

KAOFP’s marketing program is designed to support student, parent, and staff recruitment by promoting the organization’s goals and programs. Our main target audience consists of parents seeking after-school enrichment opportunities for their children that emphasize creativity and the arts.

To reach this audience, we advertise in public schools as well as on social networking sites such as Facebook and Twitter. We intend to begin marketing online through a company-sponsored blog, which will feature regular updates about KAOFP events and activities. We also intend to use word of mouth as a form of marketing.

Strategic partnerships with local schools and community centers will provide us with additional exposure as well as additional resources to secure funding.  

Operations Plan

KAOFP’s day-to-day operation is structured around its programs on Tuesdays from 4 pm to 8 pm.

Administrative offices are located in the same space as each program, allowing instructors to closely monitor their students and provide support as needed. The administrative offices serve the essential function of fundraising, communications, record-keeping, and volunteer coordination. KAOFP’s Board of Directors meets bi-monthly to provide further leadership, guidance, and oversight to our board members and volunteers.

Customer service is conducted by phone and email during our regular business hours of Monday – Friday 9 am to 12 pm.  We are not open on weekends or holidays.

Management Team

KAOFP’s organizational structure includes a Board of Directors, an Executive Director, and Program Directors. The Board of Directors provides guidance and oversight to the organization, while the Executive Director manages day-to-day operations. The Program Directors oversee each of KAOFP’s programs.

KAOFP has a small but dedicated staff that is committed to our students and our mission. Our team has a wide range of experience in the arts, education, and nonprofit sector.

Executive Director

The Executive Director is responsible for the overall management of KAOFP. This includes supervising staff, developing and implementing programs, overseeing finances, and representing the organization to the public.

Our Executive Director, Susie Brown, has been with KAOFP since its inception in 2010. She has a B.A. in Fine Arts from the University of Illinois at Urbana-Champaign and an M.F.A. in Creative Writing from Columbia College Chicago. Susie is responsible for the overall management of KAOFP, including supervising staff, developing and implementing programs, overseeing finances, and representing the organization to the public.

Program Directors

Each of KAOFP’s programs is overseen by a Program Director. The Program Directors are responsible for developing and implementing the program curricula, recruiting and training program instructors, and evaluating student progress.

Art Program Director

The Art Program Director, Rachel Smith, has a B.A. in Fine Arts from the University of Illinois at Urbana-Champaign. She is responsible for developing and implementing the program curricula, recruiting and training program instructors, and evaluating student progress.

Music Program Director

The Music Program Director, John Jones, has a B.A. in Music Education from the University of Illinois at Urbana-Champaign. He is responsible for developing and implementing the program curricula, recruiting and training program instructors, and evaluating student progress.

Theatre Program Director

The Theatre Program Director, Jane Doe, has a B.A. in Theatre Arts from the University of Illinois at Urbana-Champaign. She is responsible for developing and implementing the program curricula, recruiting and training program instructors, and evaluating student progress.

Board of Directors

KAOFP’s Board of Directors provides guidance and oversight to the organization. The Board consists of community leaders, educators, artists, and parents. Board members serve three-year terms and can be renewed for one additional term.

Financial Plan

KAOFP’s annual operating budget is approximately $60,000 per year, with an additional one-time cost of about $10,000 for the purchase of equipment and materials. The agency makes very efficient use of its resources by maintaining low overhead costs. Our biggest expense is instructor salaries, which are approximately 75% of total expenses.

Pro Forma Income Statement

Pro forma balance sheet, pro forma cash flow statement, nonprofit business plan example #2 – church of the sacred heart – a nonprofit church based in st. louis, mo.

The Church of Sacred Heart is a nonprofit organization located in St. Louis, Missouri that provides educational opportunities for low-income families. We provide the best quality of education for young children with tuition rates significantly lower than public schools. It has been voted Best Catholic Elementary School by the St Louis Post Dispatch for four years running, and it has maintained consistently high ratings of 4.5 out of 5 stars on Google Reviews since its opening in 1914.

The Church of Sacred Heart strives to build strong relationships with our community by making an impact locally but not forgetting that we operate on global principles. As such, our school commits 10% of its profits to charitable organizations throughout the world every year, while also conducting fundraisers throughout the year to keep tuition rates affordable.

We are currently transitioning from a safe, high-quality learning environment to an even more attractive facility with state-of-the-art technology and modern materials that will appeal to young students and their families. New facilities, such as additional classrooms and teachers’ lounges would allow us not only to accommodate new students but also attract current families by having more places within the school where they can spend time between classes.

By taking full advantage of available opportunities to invest in our teachers, students, and facilities, we will be able to achieve steady revenue growth at 4% per year until 20XX.

The Church of Sacred Heart provides a safe learning environment with an emphasis on strong academics and a nurturing environment that meets the needs of its young students and their families. Investing in new facilities will allow us to provide even better care for our children as we continue to grow as a school.

Mission Statement: “We will strive diligently to create a safe, respectful environment where students are encouraged and inspired to learn through faith.”

Vision Statement: “Sacred Heart believes education gives every child the opportunity to achieve their full potential.”

The Church of the Sacred Heart was built in 1914 and is located in the Old North St. Louis neighborhood, an area with a high concentration of poverty, crime, unemployment, and abandoned buildings.

The church houses the only Catholic school for low-income families in the north city; together they formed Sacred Heart’s educational center (SCE). SCE has strived to provide academic excellence to children from low-income families by providing a small, nurturing environment as well as high academic standards.

The facility is in need of renovations and new equipment to continue its mission.

The Church of the Sacred Heart is a small nonprofit organization that provides a variety of educational and community services.

The services provided by Sacred Heart represent a $5 billion industry, with nonprofit organizations accounting for $258.8 billion of that total.

The health care and social assistance sector is the largest among nonprofits, representing 32 percent of revenues, followed by educational services (18 percent), and human and other social service providers (16 percent).

The key customers for the Church of the Sacred Heart are families in need of affordable education. The number of students in the school has increased from 500 when it opened in 1914 to 1,100 at its peak during 20XX-20XX but has since declined due to various reasons.

The children at Sacred Heart are from low-income families and 91 percent qualify for free or reduced lunches. Most parents work or have a family member who works full-time, while others don’t work due to child care restraints. The number of children enrolled in Sacred Heart is stable at 1,075 students because there is a lack of affordable alternatives to Catholic education in the area.

SCE offers K-5th grade students a unique learning experience in small groups with individualized instruction.

Sacred Heart has an established brand and is well known for its high standards of academic excellence, which include a 100 percent graduation rate.

Sacred Heart attracts prospective students through promotional materials such as weekly bulletins, mailers to homes that are located in the area served, and local churches.

Parents and guardians of children enrolled in Sacred Heart are mainly referrals from current families, word-of-mouth, and parishioners who learn about the school by attending Mass at Sacred Heart.

The Church of Sacred Heart does not currently advertise; however, it is one of the few Catholic schools that serve low-income families in St. Louis, MO, and therefore uses word of mouth to attract new students to its school.

The Church of Sacred Heart has an established brand awareness within the target audience despite not having direct marketing plans or materials.

The operations section for the Church of the Sacred Heart consists of expanding its after-school program as well as revamping its facility to meet the growing demand for affordable educational services.

Sacred Heart is located in an area where more than one-third of children live below the poverty line, which helps Sacred Heart stand out among other schools that are more upscale. Expansion into after-school programs will allow it to capture a larger market share by providing additional services to its target audience.

In order to expand, Sacred Heart will have to hire additional personnel as well as invest in new equipment and supplies for both the school and the after-school program.

The Church of Sacred Heart’s financial plan includes a fundraising plan that would help renovate the building as well as acquire new equipment and supplies for the school.

According to the National Center for Education Statistics, Catholic elementary schools across all grade levels spend an average of $6,910 per pupil on operating expenses. A fundraising initiative would help Sacred Heart acquire additional revenue while expanding its services to low-income families in St Louis, MO.

Financial Overview

The Church of the Sacred Heart expects to generate revenues of about $1.2 million in fiscal year 20XX, representing a growth rate of 2 percent from its 20XX revenue level. For 20XX, the church expects revenues to decrease by 4 percent due to a decline in enrollment and the lack of new students. The Church of Sacred Heart has experienced steady revenue growth since its opening in 1914.

• Revenue stream 1: Tuition – 22%
• Revenue stream 2: Investment income – 1%

Despite being located in a poverty-stricken area, the Church of Sacred Heart has a stable revenue growth at 4 percent per year. Therefore, Sacred Heart should be able to attain its 20XX revenue goal of $1.2 million by investing in new facilities and increasing tuition fees for students enrolled in its after-school program.

Income Statement f or the fiscal year ending December 31, 20XX

Revenue: $1.2 million

Total Expenses: $910,000

Net Income Before Taxes: $302,000

Statement of Financial Position as of December 31, 20XX 

Cash and Cash Equivalents: $25,000

Receivables: $335,000

Property and Equipment: $1.2 million

Intangible Assets: $0

Total Assets: $1.5 million

Balance Statement

The board of directors has approved the 20XX fiscal year budget for Sacred Heart Catholic Church, which is estimated at $1.3 million in revenues and $920,000 in expenditures.

Cash Flow Statement f or the Fiscal Year Ending December 31, 20XX

Operating Activities: Income Before Taxes -$302,000

Investing Activities: New equipment and supplies -$100,000

Financing Activities: Fundraising campaign $200,000

Net Change in Cash: $25,000

According to the 20XX fiscal year financial statements for Sacred Heart Catholic Church, it expects its investments to decrease by 4 percent and expects to generate $1.3 million in revenues. Its total assets are valued at $1.5 million, which consists of equipment and property worth approximately 1.2 million dollars.

The Church of Sacred Heart’s financial statements demonstrate its long-term potential for strong revenue growth due to its steady market share held with low-income families in St. Louis, MO.

Nonprofit Business Plan Example #3 – Finally Home – a Nonprofit Homeless Shelter in Los Angeles, CA

Finally Home is a nonprofit organization that aims to provide low-income single-parent families with affordable housing. The management team has a strong background in the social service industry and deep ties in the communities they plan to serve. In addition, Finally Home’s CEO has a background in real estate development, which will help the organization as they begin developing its operations.

Finally Home’s mission is to reinvent affordable housing for low-income single-parent families and make it more sustainable and accessible. They will accomplish this by buying homes from families and renting them out at an affordable price. Finally Home expects its model of affordable housing to become more sustainable and accessible than any other model currently available on the market today. Finally Home’s competitive advantage over similar organizations is that it will purchase land and buildings from which to build affordable housing. This gives them a greater amount of ownership over their communities and the properties in which the homes are located, as well as freedom when financing these projects.

Finally Home plans on accomplishing this by buying real estate in areas with high concentrations of low-income families who are ready to become homeowners. These homes will be used as affordable housing units until they are purchased by Finally Home’s target demographic, at which point the organizations will begin renting them out at a base rate of 30% of the family’s monthly household income.

Finally Home plans on financing its operations through both private donations and contributions from foundations, corporations, and government organizations.

Finally Home’s management team has strong backgrounds in the social service industry, with deep ties to families that will be prepared to take advantage of Finally Home’s affordable housing opportunities. The CEO of Finally Home also brings extensive real estate development experience to the organization, an asset that will be especially helpful as Finally Home begins its operations.

Finally Home is a nonprofit organization, incorporated in the State of California, whose mission is to help homeless families by providing them with housing and support services. The centerpiece of our program, which will be replicated nationwide if successful, is an apartment complex that offers supportive living for single parents and their children.

The apartments are fully furnished, and all utilities are paid.

All the single parents have jobs, but they don’t earn enough to pay market-rate rent while still paying for other necessities such as food and transportation.

The organization was founded in 20XX by Henry Cisneros, a former U.S. Secretary of Housing and Urban Development who served under President Bill Clinton. Cisneros is the chairman of Finally Home’s board of directors, which includes leaders with experience in banking, nonprofit management, and housing professions.

The core values are family unity, compassion for the poor, and respect for our clients. They are the values that guide our employees and volunteers at Finally Home from start to finish.

According to the United States Conference of Mayors’ Task Force on Hunger and Homelessness 20XX Report, “Hunger & Homelessness Survey: A Status Report on Hunger & Homelessness in America’s Cities,” almost half (48%) of all homeless people are members of families with children. Of this number, over one quarter (26%) are under the age of 18.

In 20XX, there were 9.5 million poor adults living in poverty in a family with children and no spouse present. The majority of these families (63%) have only one earner, while 44% have zero earners because the person is not old enough or does not work for other reasons.

The total number of people in poverty in 20XX was 46.5 million, the largest number since Census began publishing these statistics 52 years ago.

Finally Home’s goal is to help single parents escape this cycle of poverty through providing affordable housing and case management services to support them long term.

Unique Market Position

Finally Home creates unique value for its potential customers by creating housing where it does not yet exist.

By helping single parents escape poverty and become self-sufficient, Finally Home will drive demand among low-income families nationwide who are experiencing homelessness. The high level of need among this demographic is significant nationwide. However, there are no other organizations with the same market position as Finally Home.

Finally Home’s target customers are low-income families who are experiencing homelessness in the Los Angeles area. The organization will actively seek out these families through national networks of other social service providers to whom they refer their clients regularly.

Finally Home expects to have a waiting list of families that are interested in the program before they even open their doors.

This customer analysis is based on the assumption that these particular demographic groups are already active users of other social service programs, so referrals will be natural and easy for Finally Home.

Industry Capacity

This information is based on the assumption that these particular demographic groups are already active users of other social service programs, so referrals will be natural and easy for Finally Home.

There is a growing demand for low-income single-parent housing nationwide, yet there is no one organization currently providing these services on a national level like Finally Home.

Thus, Finally Home has a competitive advantage and market niche here because it will be the only nonprofit organization of its kind in the country.

Finally Home’s marketing strategies will focus on attracting potential customers through national networks of other social service providers. They will advertise to their referral sources using materials developed by the organization.  Finally Home will also advertise its services online, targeting low-income families using Google AdWords.

Finally Home will be reinventing affordable housing to make it more accessible and sustainable for low-income single parents. In this new model, Finally Home will own the land and buildings on which its housing units are built, as well as the properties in which they are located.

When a family is ready to move into an affordable housing unit, Finally Home will buy the home they currently live in. This way, families can take advantage of homeownership services like property tax assistance and financial literacy courses that help them manage their newfound wealth.

Finally Home has already partnered with local real estate agents to identify properties for purchase. The organization expects this to result in homes that are at least 30% cheaper than market value.

Finally Home will finance its operational plan through the use of private contributions and donations from public and private foundations, as well as corporate sponsorships.

Finally Home’s management team consists of:

• Veronica Jones, CEO, and Founder
• Mark MacDonald, COO
• Scott Bader, CFO

Management Summary

The management team has a strong history of social service advocacy and deep ties in the communities they plan to serve. In addition, the organization’s CEO has a background in real estate development that will be helpful as Finally Home begins operations.

• Year 1: Operation startup costs to launch first five houses ($621,865)
• Year 2: Deliver on market offer and complete first capital raise ($4,753,000)
• Year 3: Deliver on market offer and complete $5 million capital raise ($7,950,000)
• Year 4+: Continue to grow market share with a national network of social services providers ($15,350,000).

This nonprofit business plan will serve as an effective road map for Finally Home in its efforts to create a new model for affordable housing.

Nonprofit Business Plan Example PDF

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One Way to Help Employees Build Emergency Savings

• Timothy Flacke
• Peter Tufano

Most workers in the U.S. can’t afford unexpected expenses. A partnership between an asset firm and a non-profit created a system for building a cushion.

Intentional cooperation between two organizations — BlackRock, a major asset management firm, and national non-profit, Commonwealth — created the conditions for the nation’s largest payroll processor, multiple U.S. employers, retirement record keepers, and others to work together to help address systemic U.S. household financial insecurity through a workplace-based savings plans. This was not the typical retirement-savings programs, but rather an emergency-savings programs, designed to reduce the financial fragility that often affects those living on low to moderate or volatile incomes with little ability to cope with a financial emergency.

Tackling systemic issues such as inequality, public health crises, and climate challenges might sound like an aspiration of governments and social enterprises — but businesses have untapped potential to also make a huge difference. In a recent Edelman survey, over 70% of people in 14 countries said that business could have a positive impact on issues like health outcomes, inequality, and climate change if it devoted resources to addressing them, and up to 30% were confident that business could have a “game changing” impact.

• TF Timothy Flacke is the Co-Founder and Executive Director of Commonwealth .
• PT Peter Tufano is a Baker Foundation Professor at Harvard Business School , senior advisor to Harvard’s Salata Institue for Climate and Sustainability, and a former dean of Said Business School at the University of Oxford. He is Co-Founder and Chair of of the non-profit Commonwealth .

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Detroit social justice hub love building names new executive director.

Sherri Welch is a senior reporter for Crain’s Detroit Business covering nonprofits, philanthropy, higher education and arts and culture. Before joining Crain’s in 2003, she covered automotive suppliers and tire makers for Crain’s Rubber & Plastics News.

The Love Building, a multi-tenant hub for social justice organizations in Detroit, has named Kwaku Osei as executive director.

He succeeds Jeanette Lee, founding executive director and former executive director of Allied Media Projects, which purchased and stewarded the building’s $4 million development and is one of several organizations occupying the building.

Osei “brings a wealth of relationships and experiences within the community development sector of Detroit to this role,” Lee said in a news release. “He holds the fair combination of both visionary and collaborative leadership, with an ability to listen deeply. I am thrilled to be transitioning this next phase of growth of the Love Building to him and am confident that he will facilitate a most beautiful iteration.”

The Love Building — a physical site and an operating nonprofit — opened as a social justice hub and community space in September at Grand River Avenue and 15th Street in Detroit's Core City neighborhood. It is jointly occupied by Allied Media Projects, Detroit Community Technology Project, Detroit Disability Power, Detroit Justice Center and Detroit Narrative Agency.

Osei, 34, is the co-founder and was most recently CEO of Farmacy Food, a preventative health care startup focused on making health and wellness accessible and affordable. He is also founder and chairman of Cooperative Capital, a participatory financing initiative that enables residents to pool their money to be used for community-owned development.

Osei has a bachelor of science degree in marketing from Virginia Commonwealth University.

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A millennial couple invested in a $143,000 vacation home in Bali. It's become the crux of their early-retirement strategy.

• Rory and Casey Jones built a villa in Bali for 2.287 billion Indonesian rupiah, or about $143,000.
• They wanted to invest in a tangible asset that would earn income and double as a retirement home.
• Prior to this, they'd never traveled to Indonesia before.

For Rory Jones and his wife, Casey, building a house in Bali seemed like a good idea — even though they'd never been to Indonesia.

The couple, from Tasmania, Australia, dreamed of retiring early , so they spent a lot of time investing in the stock market.

"We got a little bit, I guess, down on the fact that we were putting this money away, but we had nothing to show for it apart from numbers on a bit of paper," Jones, 37, told Business Insider.

They wanted a tangible asset, and after some research, they settled on the idea of building investment property overseas.

"We decided it gave us the ability to earn a good income, but also, a place that we could potentially retire to, in a country that was less expensive than Australia," Jones, a photographer and videographer, said.

The couple had considered Thailand , the Philippines , and even Portugal, but they ultimately chose Bali because their research showed that it had the highest return on investment and that it was relatively easy for foreigners to build a home there.

According to ILA Global Consulting , it's possible for short-term rentals in Bali to yield a 15% annual return on investment, while other markets offer 5% to 10%.

Although the couple had never been to the island before, they'd spent a lot of time in Southeast Asia.

"So we knew that we liked the climate. We knew that we would probably like the culture and the food too," Jones said.

First time in Bali

In 2022, the couple hopped on a plane to Bali for the first time .

They were there for about three weeks, exploring the island and speaking to different legal professionals and builders for more insights on how they could get started with their project.

"We spent a good chunk of time in different areas to make sure that we liked the area and that we had a good understanding of what that area gave to the tourists," Jones said.

He said that since traffic in Bali could be difficult to navigate, it was important that the area they chose had good infrastructure and was easy to get to.

"Other than that, we were looking for a place that we could see ourselves retiring to as well," Jones said.

Related stories

While looking for a peaceful but up-and-coming neighborhood that travelers would be drawn to, they eventually found a piece of land in the Bingin area near Uluwatu, a region on the southwestern tip of Bali.

"The best success that we had was actually just posting in the local Facebook groups to say that we were looking for land, and then people would reach out to us and let us know what they had available," Jones said. "With the land that we ended up getting, it was a local guy that showed us the land. He didn't own the land, but he knew the owners."

Since foreigners aren't allowed to own land in Bali, the piece of land they have is on a 30-year lease, with the option to renew for another 30 years. They paid 720 million Indonesian rupiah, or about $44,700, for it.

A modern tropical villa

The two-story villa, which sits on a 3,300-square-foot plot, has two bedrooms and two bathrooms. The entire build, including furniture and permits, cost 2.287 billion Indonesian rupiah, or about $143,000.

Jones said he chose to build a house from scratch because it was cheaper than buying one.

According to the property website Propertia Bali , a new two-bedroom villa near Bingin can cost from 3.525 to 5.575 billion Indonesian rupiah, depending on the size, the complexity of the build, and the lease left on the land.

"If there was anything wrong with the building that was already existing, we wouldn't be able to tell," he added. "But by building ourselves, we could dictate the standards that went into that building."

Safety standards aside, it also meant they could design the building the way they wanted it. Jones described it as a mix between modern industrial and boho, with a touch of Balinese influence.

The building looks modern on the outside, thanks to the black steel window frames, a mezzanine-style design, and vaulted ceilings. In contrast, the interiors are cozy, with lots of wood accents and furniture.

"We knew that the building itself was quite modern, so we wanted to bring a lot of the tropics and a lot of Bali into it with the interior design," Jones said.

Everything in the villa was crafted locally, he added.

The only major issue the couple encountered during the build was a particularly bad rainy season that delayed their project by a few weeks.

"Towards the end of the build, they were running quite late with everything, and it's fine that they were running late, but they didn't tell us that they were running late," Jones said. "There were some communication issues rather than issues with construction, which caused a bit of friction toward the end."

Retiring in Bali

The villa can be rented on Airbnb for a minimum of two nights. At press time, it has a 4.58-star rating based on 26 reviews.

"Initially, we planned to spend a couple of months a year in Bali, but with the way that things have gone, with how popular it is, I think it would make more financial sense to leave it rented out on Airbnb all the time," Jones said.

That said, Jones hopes to be able to retire in that villa in Bali in the next five to six years.

"We're working hard at saving and investing as much money as we can to hopefully get to a point where we can retire in my early forties," he said. "But plans can also change, so it would be great to retire to Bali, but I mean, maybe we'll stay in Australia. Who knows? It's still a long way away."

That said, the couple has plans to build more investment properties in Bali in the future.

Jones has a piece of advice for those who are thinking of building a house in Bali: manage expectations.

"Go into it knowing that the standards you may expect from your home country might not be the same in Bali. Expect things to run behind time and expect things to be done in a different way than what you might be used to," he said.

That way, he said, things would be less stressful.

Have you recently built or renovated your dream home in Asia? If you've got a story to share, get in touch with me at  [email protected] .

Watch: Inside the floating tin mines that host one of the most dangerous jobs

• Main content

Asian American & Pacific Islander Heritage Month

Nonprofit in pasadena teaches the art of japanese drumming to people of all age, backgrounds.

PASADENA, Calif. (KABC) -- In honor of Asian American Pacific Islander Heritage Month, we visit Makoto Taiko, a nonprofit in Pasadena that teaches the art of Japanese drumming to people of all ages and cultural backgrounds.

It's truly a powerful and invigorating art form that catches your attention as soon as you hear the first drumbeat.

"You feel it in your soul. It resonates all throughout your whole body," said Patrick James Cruz, assistant artistic director. "When a specific moment happens, you get goosebumps."

Cruz says their style of drumming is Kumi-daiko, which is ensemble Taiko. And the Taiko itself just means "fat drum."

"I've been a drummer, like a drum set player, all my life and then growing up with also an athletic background, it's kind of like a marriage of the two," said Cruz.

"It was kind of interesting, and it was a way to reconnect with my ancestry," said Hunger Loyd, artistic director. "It's mentally and physically challenging. You could spend all your years just trying to get the perfect hit, just to make a sound, but to control the sound is a lifelong practice I would say."

Students who are just learning about Makoto Taiko enjoy the process.

"I just learned a lot about it when I was in Kinder... I was just like why not I join. Because then like I can learn more about my culture in a way," said Chelsea Simmons.

"I think it's important because it's just the diversity of like having a lot of different type of people like being able to express themselves," said Coco Tachibe.

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Plan to build hundreds of low-income housing units on former Ritz-Carlton site in downtown San Diego reaches critical milestone

City of San Diego and affordable housing developer Chelsea Investment Corp. have reached an agreement to begin negotiating specific terms for redeveloping a downtown San Diego site at Seventh and Market that had previously been intended for a $700 million mixed-use project by Cisterra.

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An ambitious plan by a local affordable housing developer to build more than 400 low-income units in downtown San Diego has reached a key milestone that will allow the city to start negotiating terms for redeveloping a site once intended for a five-star Ritz-Carlton hotel.

The city’s Economic Development Department will ask members of a City Council committee on Wednesday to authorize entering into exclusive negotiations with Carlsbad-based Chelsea Investment Corporation to redevelop the publicly owned block at Seventh Avenue and Market Street. If approved by the full City Council at a subsequent hearing, Chelsea would have 180 days to firm up its development and financing plans and undertake more detailed inspections of the East Village site to ensure that its affordable housing project is in fact doable.

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This latest milestone comes nine months after the city agreed to begin initial talks with Chelsea about redeveloping the downtown parcel, currently being used as a surface parking lot. Chelsea was among four developers who responded to a formal solicitation by the city following years of delays by San Diego-based Cisterra to transform the site into a Ritz-Carlton hotel, Ritz-branded condos, a gourmet grocer, offices and housing.

“ We’re really excited,” said Chelsea Chief Development Officer Jim Andersen. “We’ve been working very cooperatively with the city to put together the language associated with this exclusive negotiating agreement that allows us to continue the process and gives us access to the site to do due diligence on the site so we can move the development to the next step that will result ultimately in a negotiated (development) agreement with the city of San Diego.

“We’ll be able to refine the project based on what we find and work through all the elements of development.”

Chelsea has extensive experience building housing for lower-income households, having developed more than 100 affordable communities costing more than $2 billion. Its proposal for redeveloping the Seventh and Market parcel was guided by the state Surplus Land Act, which is designed to encourage the construction of housing affordable to lower-income households. At the very least, Chelsea and others who bid on the site were required to set aside 25 percent of their proposed units as affordable.

Chelsea, however, went beyond that, proposing to make all 402 units affordable to lower-income households earning from 30 percent to 80 percent of area median income in San Diego County, which is $119,500 for a family of four.

“Chelsea’s vision is to transform the Seventh and Market site into a vibrant and high-quality inter-generational affordable housing community ... by providing the most units of high-quality affordable housing in an efficient time frame,” the developer wrote in its project proposal, which the city’s Economic Development Department released this week.

Toward that end, a mix of studios and one-, two-, and three-bedroom units have been proposed. Chelsea is proposing to divvy up the overall project into three components that would be independently financed and constructed to cater to the needs of low-income families, seniors and the workforce population.

The developer is working with San Diego architect Doug Austin of AVRP Studios, which has proposed spreading the housing units among three eight-story buildings that would include underground parking and community rooms with computer labs.

The agreement to be considered next week by the council’s Economic Development and Intergovernmental Relations Committee means that San Diego “won’t negotiate with any other entities, and that will give Chelsea the opportunity to look at the project’s feasibility and the terms that would dictate a Disposition and Development Agreement,” explained Christina Bibler, Economic Development director.

Such terms would include the precise number of affordable housing units, income levels of those renting units in the project, and timelines for securing financing and completing the development, Bibler said. She’s hopeful that a final development agreement could reach the council by December.

“We understand that the project could change depending on what’s uncovered,” Bibler said. “We continue to support affordable housing on this site, and it’s now down to the nuances of the timing. Chelsea has been doing some of the due diligence on their side so that way, the next six months should be really productive in terms of site due diligence and financing. The city is fully committed to executing a high-quality development on this site and we’re excited to work with Chelsea on the next steps to achieve that vision.”

Once the exclusive negotiating period begins, Chelsea will be obligated to pay the city a good faith deposit of $50,000 and a negotiation payment of $25,000, plus provide periodic status reports on financial feasibility and construction cost estimates. It will also need to provide the city with its development and financing plan. In its proposal to the city, Chelsea said it plans to tap several financing sources, including low-income tax credits and tax-exempt bonds.

“All sources of financing for affordable housing are fiercely competitive, and many projects are vying for precious dollars,” Anderson said. “So it is challenging but we’ve managed to thrive in many periods of time throughout California’s ups and downs, so we’re confident that this is a project that will find a great home in downtown San Diego. At the end of the day we’ll find the sources to consummate the project, and we know our state and local leaders are very committed to making this happen.”

Also still to be worked out is a purchase price for the 50,000-square-foot site. Under the city’s previous agreement with Cisterra, the developer was to eventually pay $20 million to acquire the parcel. A new appraisal will now be needed, and that process should start once the exclusive negotiation agreement is approved, Bibler said.

The focus on developing the Seventh and Market site with affordable housing moved into high gear more than a year ago, when the city decided to terminate its original deal with Cisterra “because of the developer’s inability to carry out the project or otherwise perform its material obligations.”

The $700 million project had faced multiple obstacles, including litigation, the intrusion of a pandemic and challenges getting financing.

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Learn How to Craft a Successful Business Plan (Even with No Experience)

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Take the First Step in Learning How to Write a Business Plan, Even with No Experience

Antonio Del Cueto, CPA

May 8, 2024

Imagine your business as a spaceship blasting off into uncharted territory. It may sound exciting, but without a precise flight plan, that thrilling journey could end in a fiery crash. Similarly, most businesses don't fail because of bad ideas. They fail because they lack a clear roadmap.

This article will guide you through the process of crafting a business plan that's more than just numbers on a page. Learn the secret formulas that propel businesses from mere concepts to thriving realities.

Reimagining Traditional Business Plan Components

Executive summary with interactive elements.

Transform the executive summary into a dynamic experience using multimedia elements such as videos and interactive timelines. These components help demonstrate the business’s mission and goals, making it more attractive to would-be investors and potential customers.

Flexible Organizational Structures

Suggest designing an adaptable organizational framework that evolves according to strategic business needs and operational demands. This is especially beneficial for entrepreneurs who might need to navigate changes without a background in HR or traditional management.

Navigating Financial Management Without a Background

Simplified accounting tools.

For many new entrepreneurs, managing finances can feel overwhelming. Leveraging simplified digital accounting tools can significantly reduce this stress by automating most of the routine bookkeeping tasks. These tools are particularly beneficial for those without a financial background, making it easier to focus on other aspects of entrepreneurship.

• Automation : Choose tools that automate entries for sales, purchases, and payroll transactions, ensuring accuracy and saving time.
• User-Friendly Dashboard : Opt for software with an intuitive interface that simplifies financial tracking and report generation. This feature is essential for entrepreneurs who need to quickly access financial data without navigating complex menus.
• Integration Capabilities : It’s important to invest in software that integrates with other business tools (e.g., inventory management systems, e-commerce platforms) to streamline all financial processes.
• Scalability : As your business grows, you’ll need accounting software that can adapt to more complex financial demands without requiring a complete overhaul.

Further reading: Mastering Accounting for Tech Companies: The Ultimate Guide to Industry Accounting in the Technology Sector

Understanding business taxes.

A basic understanding of business taxes is essential for any entrepreneur, including those running a nonprofit or other types of organizations. Here are key elements your business plan should focus on:

• Fundamental Tax Responsibilities : Clearly outline what taxes the business is liable for, such as income, payroll, and sales taxes. This information should be specific to your business's location and structure.
• Maximizing Deductions : Include information on how to identify and claim relevant deductions to minimize tax liability. For example, if your business has significant equipment expenses or if you’re renting office space, you should know how these affect your taxes.
• Seeking Professional Advice : While basic tax guides are helpful, consulting with a tax advisor or strategist can provide tailored advice that ensures compliance and optimizes tax benefits. This step is integral for complex situations or where the tax implications could significantly impact business finances.

Further reading: Maximizing Your Small Business Tax Benefits: 2023 Tax Year Strategies & New Reporting Changes

Budgeting made easy.

Budgeting effectively is a core skill every business owner should develop to ensure financial stability and facilitate growth. Here’s how to incorporate straightforward budgeting strategies into your business operations:

• Expense Tracking : Start by categorizing expenses to track where every dollar is going. Categories might include rent, salaries, marketing, and web design. This clarity helps in making informed spending decisions.
• Financial Forecasting : Use historical data to predict future spending needs and income . This is especially important for planning major investments or when scaling operations.
• Regular Financial Reviews : Conducting regular reviews of your budget will help you stay on track and make necessary adjustments in response to financial performance or changing market conditions.
• Budgeting Tools : Recommend specific budgeting tools that are designed for small business needs. These tools should provide visual representations of financial data, making it easier to digest and act upon.

Each of these sections should be detailed in the business plan to demonstrate a thorough understanding and proactive management of financial aspects. This approach not only helps in securing funding (e.g., from banks or venture capital) but also in managing day-to-day financial operations efficiently.

Building Strategic Partnerships and Collaborative Networks

Cross-industry alliances.

Engaging in cross-industry alliances is a strategic move that can drive substantial business growth and innovation. These partnerships leverage complementary strengths and resources, offering a multitude of benefits:

• Innovation through Diverse Expertise : Combining knowledge and resources from different sectors can catalyze innovative solutions that neither partner could develop alone. For instance, a tech startup could collaborate with an established manufacturing firm to optimize production processes using advanced technology, resulting in a competitive edge in the market.
• Access to New Markets : Each industry has its unique customer base. By forming alliances, businesses can bridge their offerings to new audiences. A successful example could involve a collaboration between a software development company and a telecommunications firm to introduce a new tech product to a broader audience, utilizing the telecom firm's extensive customer network.
• Resource Sharing : Strategic partnerships allow for the sharing of critical assets such as technology, marketing channels, and expertise, leading to cost savings and enhanced product offerings. This might involve sharing R&D facilities or co-branding efforts for joint marketing campaigns.
• Enhanced Credibility and Brand Perception : Partnering with reputable firms in other sectors can significantly boost a company's credibility and strengthen its brand image, attracting more customers and potential investors.

Documenting cross-industry alliances in a business plan must specify the objectives, expected outcomes, and the nature of the collaboration. Include specific information on how these alliances align with the business’ strategy and how they contribute to achieving the company’s goals.

Customer Involvement in Product Development

Integrate customer feedback into the product development process for aligning products with market needs and enhancing customer satisfaction. This strategy not only improves product-market fit but also fosters customer loyalty:

• Direct Feedback for Better Products : Involving customers early in the development process ensures that the final product meets actual user needs and solves relevant problems. This can be achieved through methods like crowdsourcing ideas, beta testing new products, and incorporating user-generated content and suggestions into product design.
• Build Customer Loyalty : Customers who participate in the product development lifecycle are more likely to develop a deeper connection with the brand, increasing their likelihood of becoming repeat buyers and brand advocates.
• Agile Feedback Loops : Utilizing customer feedback during product testing phases allows for quick iterations and adjustments, greatly enhancing the product’s relevance and appeal upon launch.
• Unlocking New Ideas : Customers often see different uses for a product or identify missing features that can lead to significant innovations, helping a company stay ahead of competitors.

The business plan must include a dedicated section outlining how customer feedback will be integrated into product development processes. This section should also include pricing strategies informed by customer input to ensure market competitiveness.

For businesses seeking funding or partnership, a well-crafted business plan is essential. Including sections like Cross-Industry Alliances and Customer Involvement showcases a comprehensive approach to strategic planning and market engagement.

For simplicity and clarity, especially when presenting to potential investors, consider summarizing key strategies in a one-page overview within the larger business plan. This not only highlights the strategic vision but also ensures that readers can quickly grasp the core elements of your plan.

Key Takeaways

• Clarity is Key : Craft a clear, concise business plan to create financial projections and ensure a solid foundation.
• Know Your Audience : Tailor your plan to engage stakeholders, addressing related topics like brand awareness.
• Research Matters : Thorough market research strengthens your plan, supporting its solidity.
• Financial Focus : Develop realistic projections for revenue and expenses to fortify your business plan.
• Stay Adaptable : Flexibility is key to evolve strategies, including those for brand awareness, to maintain relevance.

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