Does a Nonprofit Need a Business Plan?
Yes. A nonprofit needs a business plan just as much as any for-profit enterprise. A business plan for a nonprofit organisation serves several critical purposes: it outlines the mission and vision, sets clear goals and objectives, and details the strategies for achieving them. Additionally, it plays a vital role in securing funding from donors, grants, and other sources by demonstrating the organisation’s potential for impact and sustainability.
A well-crafted business plan helps nonprofits to effectively allocate resources, manage risks, and measure progress towards their goals. It also provides a roadmap for growth and development, ensuring that the organisation remains focused and aligned with its core values and objectives.
In essence, a business plan is indispensable for a nonprofit organisation’s success, guiding its efforts to make a meaningful difference in its community.
So, without further ado, here is our nonprofit business plan template!
1. Executive Summary
The executive summary provides a concise overview of your nonprofit organisation and summarises the main aspects of your plan. Although it comes first in your business plan, you might find it easier to write this part last, ensuring it captures all the important points from the rest of your document.
Introduction
Begin with a brief introduction to your organisation. What is its name? What causes does it support? Whether you’re focusing on environmental conservation, community development, etc., make it compelling and engaging.
Example: The Helping Hands Foundation is a nonprofit organisation committed to uplifting disadvantaged communities through access to quality education, healthcare, and basic amenities.
Organisation Overview
Here, provide a high-level summary of your organisation. Discuss the core activities and why the work is crucial. Include the types of services offered and any significant initiatives.
Example: Our organisation mainly operates in rural areas, where we undertake various community development projects and run a healthcare centre and a school.
Mission and Vision Statement
Write your Nonprofit’s mission and vision statement. This should communicate your organisation’s purpose, its strategic goals, and its commitment to the cause.
Example: Our mission is to empower underprivileged communities by providing education, healthcare services, and resources that foster a sustainable livelihood. Our vision is to create an equitable world where every individual has access to basic human rights and opportunities needed for personal and communal growth.
Geographic Reach and Accessibility
Discuss where your nonprofit operates, explaining where you have the most significant presence or impact and the communities you are serving in those regions.
Example: The Helping Hands Foundation currently extends its services to the marginalised communities in two rural towns in Montana, reaching over 5,000 individuals directly.
Service Type
Explain the kind of work your nonprofit does. Whether you provide direct services, advocacy, research, etc., describe in detail.
Example: We offer direct services, including running a healthcare centre that provides basic medical services and a school that offers quality education from Kindergarten to 5th grade. We also have several livelihood programs that equip adults with skills to earn a living.
Key Goals and Objectives
Outline what you’re striving for in the short and long term. These should be SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) goals.
Example: Our main goal for the coming year is to expand our services into two more towns and to increase our direct beneficiaries by 20%. In the long term, we aim to establish a network of schools and healthcare centres across Montana.
2. Programs and Services
This section provides the reader with a detailed understanding of your organisation’s specific programs and services, their purpose, and their impact.
Program Definition and Theme
Describe the programs or services your organisation offers in detail. Explain the principles guiding these programs and the kind of expertise involved.
Example: We run three main programs: the Community Health Initiative, the Learning Support Program, and the Adult Skill-building Program. Each of these programs follows a participatory model, where community members are active participants, ensuring culturally and contextually relevant interventions.
Service Range
Enumerate the range of services you offer under each program. Highlight key elements and features of these services.
Example: The Community Health Initiative includes services like regular medical check-ups, basic treatments, immunisations, and health awareness workshops. The Learning Support Program offers a comprehensive curriculum, while the Skill-building Program offers vocational classes in various trades.
Beneficiary Analysis
Describe who benefits from your programs or services, detailing how they are chosen and why they are the focus of your efforts.
Example: Our beneficiaries predominantly include underserved individuals and families from the marginalised communities in rural Montana. The selection is made based on household income, with priority given to those below the poverty line. We focus on these groups because we believe that providing them with access to healthcare, quality education, and skill-building can lead to a significant upliftment.
3. History and Governance
This section provides a glimpse into the historical background of your nonprofit and an insight into its governance structure.
Legal Status and Structure
Specify the legal status of your nonprofit. Is it a nonprofit corporation, a public charity, a private foundation, or another type of legal entity? Why was this type chosen?
Example: The Helping Hands Foundation is a Public Charity under section 501(c)(3) of the IRS code. This structure allows us to accept donations, contributions, and gifts that are tax-deductible for donors, which is beneficial in raising funds for our cause.
Board of Directors
Introduce your board of directors briefly, highlighting their experience and roles. Point out their key contributions to the organisation.
Example: Our board comprises five dedicated members, including a physician, an educator, a social worker, a business entrepreneur, and a legal professional, each offering expertise in their respective fields to help guide and govern our organisation.
Key Milestones
Highlight significant milestones in your organisation’s history to show the progress and impact over time.
Example: Founded in 2015, the Helping Hands Foundation started as a health outreach program serving a single community. By 2017, we expanded our services to education, and in 2019 added our Adult Skill-building Program. We’re now serving multiple communities across Montana and have positively impacted over 5,000 lives directly.
4. Business Model
This section will outline how the nonprofit organisation functions and generates revenue to support its mission and programs.
Main Income Sources
Discuss your nonprofit’s main sources of income. These could include individual and corporate donations, grants, fundraising events, service fees, etc.
Example: Our main income sources include individual donations, corporate partnerships, and grants. We also generate revenue through our annual charity run – “Run for Help”.
Planned Collaborations/ Partnerships
Discuss any planned collaborations or partnerships. These could be with other nonprofit organisations, for-profit businesses, government institutions, etc.
Example: We are planning to partner with local businesses for some of our skill-building programs. These businesses will not only provide practical training but also potential job placements for our beneficiaries.
Special Projects
If there are any special projects or initiatives planned that will bring substantial funds or support to the organisation, detail them.
Example: We plan to launch a “Sponsor a Child’s Education” initiative that encourages donors to cover educational expenses for a specific child for a period of one year.
5. Market Analysis
This section provides an understanding of the broader context in which your nonprofit operates, including the current need, target beneficiaries, and competitive landscape.
Current Community Need
Describe the current community need that your nonprofit is addressing. Use data and real examples to illustrate the need.
Example: According to the latest census, the rural parts of Montana that we serve have 35% of the population living below the poverty line. Lack of access to quality healthcare, education, and job opportunities persist as significant challenges.
Beneficiary/ Constituency Analysis
Detail the demographic, geographic, socioeconomic, and other relevant characteristics of the people your organisation serves.
Example: Our primary beneficiaries are families living below the poverty line, struggling with limited access to education, healthcare, and employment opportunities. They present a diverse age group, from children requiring educational support to adults needing vocational training.
Related Organisations and Competitive Analysis
Identify other nonprofit organisations working on similar issues, examine their approach, and highlight what sets your organisation apart.
Example: While other nonprofits in the region primarily focus on either healthcare or education, The Helping Hands Foundation sets itself apart by offering a holistic approach – providing access to healthcare, quality education, and skill-building programs for sustainable livelihoods.
Positioning and Strategy
Explain how your nonprofit is positioned in response to the need, target beneficiaries, and competitive landscape. Describe your strategy to deliver your mission.
Example: Our organisation is positioned as an all-encompassing solution for the challenges faced by our target community. Our strategy involves a holistic, participatory approach that acknowledges and works around the cultural and contextual realities of the community.
6. Public Relations and Fundraising Strategy
This section deals with how you plan to generate awareness about your organisation’s purpose and work, as well as how you plan to solicit donations.
PR Strategy
Outline your strategy to garner visibility and positive coverage in the media and community.
Example: Our PR strategy includes issuing press releases about milestone achievements, hosting town hall meetings to engage community members, and inviting local influencers or media to cover our key events and initiatives.
Fundraising Plan
Describe your approach to raising funds. This may include details of fundraising events, online campaigns, donor recognition strategies, and plans to apply for grants.
Example: We plan to conduct an annual charity run event, “Run for Help”, which is our major fundraiser. We also run online crowdfunding campaigns around specific causes like “Back-to-School” and “Vaccinate a Village”. We acknowledge our generous donors through a ‘wall of fame’ on our website and an annual appreciation dinner.
Community Engagement/ Volunteer Plans
Discuss how you plan to engage community members and volunteers in your work. This can bring additional resources to your organisation through volunteer time and word-of-mouth advertising.
Example: We welcome community members to volunteer in our learning centres, health camps, and other initiatives. We also encourage volunteer involvement in event organisation, fundraising, and spreading the word about our work.
7. Operations
This is where you’ll outline how your nonprofit will function day-to-day, including details about staff recruitment, facility needs, technology, and overall operational flow.
Team Recruitment and Roles
Describe how you plan to staff your nonprofit. This includes the roles you require, criteria for each position, expected number of hires you plan to make per year, and any recruiting strategies.
Example: We plan to hire qualified professionals for roles like Program Managers, Field Coordinators, and Fundraising Coordinators. We also rely on volunteers to help us in various capacities. We actively participate in job fairs and conduct regular recruitment drives to find passionate and committed individuals for our team.
Board Composition and Roles
Discuss the current and expected composition of your board. What roles do they play in your nonprofit, and how often do they meet?
Example: Our board comprises five members, specialising in different areas like healthcare education, legalities, business, and social work. They meet quarterly to review our progress and annual plan. They are instrumental in providing strategic direction to our organisation.
Technology Needs
What kind of technology does your nonprofit require to function seamlessly? This might include software for managing donor data, a website for online presence, project management tools, etc.
Example: We use a donor management software to streamline our fundraising efforts, an accounting software to track our income and expenses, and social media platforms to reach out to our followers and prospective donors.
Facility Needs (If Applicable)
What are your facility needs? Do you need an office space, a storage room, a community centre, etc.?
Example: We currently operate from a rented office space in downtown Montana. Due to the expansion of our programs, we plan to rent additional storage space for our education and healthcare supplies.
8. Marketing and Communications Strategy
This section involves how the nonprofit plans to market its programs and services to its beneficiaries and prospective donors.
Marketing and Outreach
Describe how you plan to increase awareness of your nonprofit in the community you serve, among potential donors, and the public in general.
Example: We plan to conduct regular community awareness programs in schools and public places to educate people about our work. Also, we use digital marketing channels like social media, email newsletter, and our website to increase our visibility among potential donors.
Website and Social Media
Discuss your organisation’s online presence. This may include details about your website, blog, and social media accounts.
Example: Our website provides comprehensive information about our programs, stories of impact, and ways to get involved. We also maintain an active presence on various social media platforms, where we share updates, appeal for donations, and engage with our followers.
Community Engagement
Discuss how you plan to engage with the community beyond the direct provision of services.
Example: We regularly host town hall meetings to engage with community members and gather their feedback. We also participate in local events and festivals to further integrate ourselves into the community culture.
9. Financial Plan
This section focuses on your nonprofit’s financial aspects, detailing how funds will be raised and spent.
Startup Budget/ Current Annual Budget
Lay out the current or expected budget for your organisation, including income and expenses.
Example: Our annual budget for this year is $500,000, with the majority of the funds divided between education and healthcare programs. We allocate 10% for administrative expenses, and the remainder is used for fundraising and marketing.
Proposed Financing
Discuss your proposed financing options. These could include a detailed breakdown of expected revenues from various sources like donations, grants, government funding, special events, etc.
Example: We hope to raise 40% of our funds from individual and corporate donations, 30% from grants, 20% from special events like ‘Run for Help’, and the remainder 10% from government funding and other sources.
Key Financial Assumptions and Justifications
Clarify any assumptions in your financial plan, explaining why these assumptions have been made.
Example: We have assumed a 5% increase in donations from last year as we have seen a steady growth in our donor base. We also anticipate securing a major grant that we’ve applied for based on our past successes with similar applications.
10. Appendices
This section includes any additional documents or supportive material related to your business plan, such as:
Organisational Chart
Include a visual representation of your nonprofit’s structure, showing the roles and departments within the organisation.
Example: Our organisational chart distinguishes between our board members, management team, employees, and volunteers, providing a clear understanding of the functioning of our nonprofit.
Resumes of Key Staff/Volunteers
Attach resumes or brief bios of key team members to provide a sense of their skills, expertise, and experience.
Example: We have included the resume of our Program Manager who holds a master’s in Public Health and has over seven years of experience working in the nonprofit sector.
Detailed Budget
If your financial plan refers to a detailed budget, include a copy here.
Example: A detailed breakdown of our annual budget, including income and expenditure, reflects our judicious allocation of resources.
Related Market Research
Include any market research that validates the need for your nonprofit’s services.
Example: A Local Community Survey report, conducted by us, indicates a significant need for our healthcare and educational services among the local populace.
Wrapping Up Our Nonprofit Business Plan Template
In essence, a business plan helps you articulate and present your nonprofit organisation’s mission, operations, and financial activities with accuracy and persuasiveness. It enables you to highlight your organisation’s unique vision, services, and strategies robustly.
From charting organisational history and governance, presenting market analysis, to detailing your PR and fundraising strategy – a perfect business plan showcases your nonprofit in a compelling light. Remember, it’s crucial to tweak and adjust our guidance to fit your specific context, allowing your unique story, approach, and goals to shine through.
Follow this roadmap, and remember, a well-crafted business plan is more than just a document – it’s an opportunity to bring your organisation’s work to life, foster stakeholder understanding, build support, and ultimately, amplify your nonprofit’s impact.
