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The Ultimate Guide to Writing a Nonprofit Business Plan

A business plan can be an invaluable tool for your nonprofit. Even a short business plan pushes you to do research, crystalize your purpose, and polish your messaging. This blog shares what it is and why you need it, ten steps to help you write one, and the dos and don’ts of creating a nonprofit business plan.

Nonprofit business plans are dead — or are they?

For many nonprofit organizations, business plans represent outdated and cumbersome documents that get created “just for the sake of it” or because donors demand it.

But these plans are vital to organizing your nonprofit and making your dreams a reality! Furthermore, without a nonprofit business plan, you’ll have a harder time obtaining loans and grants , attracting corporate donors, meeting qualified board members, and keeping your nonprofit on track.

Even excellent ideas can be totally useless if you cannot formulate, execute, and implement a strategic plan to make your idea work. In this article, we share exactly what your plan needs and provide a nonprofit business plan template to help you create one of your own.

What is a Nonprofit Business Plan?

A nonprofit business plan describes your nonprofit as it currently is and sets up a roadmap for the next three to five years. It also lays out your goals and plans for meeting your goals. Your nonprofit business plan is a living document that should be updated frequently to reflect your evolving goals and circumstances.

A business plan is the foundation of your organization — the who, what, when, where, and how you’re going to make a positive impact.

The best nonprofit business plans aren’t unnecessarily long. They include only as much information as necessary. They may be as short as seven pages long, one for each of the essential sections you will read about below and see in our template, or up to 30 pages long if your organization grows.

Why do we need a Nonprofit Business Plan?

Regardless of whether your nonprofit is small and barely making it or if your nonprofit has been successfully running for years, you need a nonprofit business plan. Why?

When you create a nonprofit business plan, you are effectively creating a blueprint for how your nonprofit will be run, who will be responsible for what, and how you plan to achieve your goals.

Your nonprofit organization also needs a business plan if you plan to secure support of any kind, be it monetary, in-kind , or even just support from volunteers. You need a business plan to convey your nonprofit’s purpose and goals.

It sometimes also happens that the board, or the administration under which a nonprofit operates, requires a nonprofit business plan.

To sum it all up, write a nonprofit business plan to:

• Layout your goals and establish milestones.
• Better understand your beneficiaries, partners, and other stakeholders.
• Assess the feasibility of your nonprofit and document your fundraising/financing model.
• Attract investment and prove that you’re serious about your nonprofit.
• Attract a board and volunteers.
• Position your nonprofit and get clear about your message.
• Force you to research and uncover new opportunities.
• Iron out all the kinks in your plan and hold yourself accountable.

Before starting your nonprofit business plan, it is important to consider the following:

• Who is your audience?  E.g. If you are interested in fundraising, donors will be your audience. If you are interested in partnerships, potential partners will be your audience.
• What do you want their response to be? Depending on your target audience, you should focus on the key message you want them to receive to get the response that you want.

10-Step Guide on Writing a Business Plan for Nonprofits

Note: Steps 1, 2, and 3 are in preparation for writing your nonprofit business plan.

Step 1: Data Collection

Before even getting started with the writing, collect financial, operating, and other relevant data. If your nonprofit is already in operation, this should at the very least include financial statements detailing operating expense reports and a spreadsheet that indicates funding sources.

If your nonprofit is new, compile materials related to any secured funding sources and operational funding projections, including anticipated costs.

Step 2: Heart of the Matter

You are a nonprofit after all! Your nonprofit business plan should start with an articulation of the core values and your mission statement . Outline your vision, your guiding philosophy, and any other principles that provide the purpose behind the work. This will help you to refine and communicate your nonprofit message clearly.

Your nonprofit mission statement can also help establish your milestones, the problems your organization seeks to solve, who your organization serves, and its future goals.

Check out these great mission statement examples for some inspiration. For help writing your statement, download our free Mission & Vision Statements Worksheet .

Step 3: Outline

Create an outline of your nonprofit business plan. Write out everything you want your plan to include (e.g. sections such as marketing, fundraising, human resources, and budgets).

An outline helps you focus your attention. It gives you a roadmap from the start, through the middle, and to the end. Outlining actually helps us write more quickly and more effectively.

An outline will help you understand what you need to tell your audience, whether it’s in the right order, and whether the right amount of emphasis is placed on each topic.

Pro tip: Use our Nonprofit Business Plan Outline to help with this step! More on that later.

Step 4: Products, Programs, and Services

In this section, provide more information on exactly what your nonprofit organization does.

• What products, programs, or services do you provide?
• How does your nonprofit benefit the community?
• What need does your nonprofit meet and what are your plans for meeting that need?

E.g. The American Red Cross carries out its 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.

Don’t skimp out on program details, including the functions and beneficiaries. This is generally what most readers will care most about.

However, don’t overload the reader with technical jargon. Try to present some clear examples. Include photographs, brochures, and other promotional materials.

Step 5: Marketing Plan

A marketing plan is essential for a nonprofit to reach its goals. If your nonprofit is already in operation, describe in detail all current marketing activities: any outreach activities, campaigns, and other initiatives. Be specific about outcomes, activities, and costs.

If your nonprofit is new, outline projections based on specific data you gathered about your market.

This will frequently be your most detailed section because it spells out precisely how you intend to carry out your business plan.

• Describe your market. This includes your target audience, competitors, beneficiaries, donors, and potential partners.
• Include any market analyses and tests you’ve done.
• Outline your plan for reaching your beneficiaries.
• Outline your marketing activities, highlighting specific outcomes.

Step 6: Operational Plan

An operational plan describes how your nonprofit plans to deliver activities. In the operational plan, it is important to explain how you plan to maintain your operations and how you will evaluate the impact of your programs.

The operational plan should give an overview of the day-to-day operations of your organization such as the people and organizations you work with (e.g. partners and suppliers), any legal requirements that your organization needs to meet (e.g. if you distribute food, you’ll need appropriate licenses and certifications), any insurance you have or will need, etc.

In the operational plan, also include a section on the people or your team. Describe the people who are crucial to your organization and any staff changes you plan as part of your business plan.

Pro tip: If you have an organizational chart, you can include it in the appendix to help illustrate how your organization operates. Learn more about the six types of nonprofit organizational charts and see them in action in this free e-book . 

Step 7: Impact Plan

For a nonprofit, an impact plan is as important as a financial plan. A nonprofit seeks to create social change and a social return on investment, not just a financial return on investment.

Your impact plan should be precise about how your nonprofit will achieve this step. It should include details on what change you’re seeking to make, how you’re going to make it, and how you’re going to measure it.

This section turns your purpose and motivation into concrete accomplishments your nonprofit wants to make and sets specific goals and objectives.

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.

Answer these in the impact plan section of your business plan:

• What goals are most meaningful to the people you serve or the cause you’re fighting for?
• How can you best achieve those goals through a series of specific objectives?

E.g. “Finding jobs for an additional 200 unemployed people in the coming year.”

Step 8: Financial Plan

This is one of the most important parts of your nonprofit business plan. Creating a financial plan will allow you to make sure that your nonprofit has its basic financial needs covered.

Every nonprofit needs a certain level of funding to stay operational, so it’s essential to make sure your organization will meet at least that threshold.

To craft your financial plan:

• Outline your nonprofit’s current and projected financial status.
• Include an income statement, balance sheet , cash flow statement, and financial projections.
• List any grants you’ve received, significant contributions, and in-kind support.
• Include your fundraising plan .
• Identify gaps in your funding, and how you will manage them.
• Plan for what will be done with a potential surplus.
• Include startup costs, if necessary.

If your nonprofit is already operational, use established accounting records to complete this section of the business plan.

Knowing the financial details of your organization is incredibly important in a world where the public demands transparency about where their donations are going.

Pro tip : Leverage startup accelerators dedicated to nonprofits that can help you with funding, sponsorship, networking, and much more.

Step 9: Executive Summary

Normally written last but placed first in your business plan, your nonprofit executive summary provides an introduction to your entire business plan. The first page should describe your non-profit’s mission and purpose, summarize your market analysis that proves an identifiable need, and explain how your non-profit will meet that need.

The Executive Summary is where you sell your nonprofit and its ideas. Here you need to describe your organization clearly and concisely.

Make sure to customize your executive summary depending on your audience (i.e. your executive summary page will look different if your main goal is to win a grant or hire a board member).

Step 10: Appendix

Include extra documents in the section that are pertinent to your nonprofit: organizational chart , current fiscal year budget, a list of the board of directors, your IRS status letter, balance sheets, and so forth.

The appendix contains helpful additional information that might not be suitable for the format of your business plan (i.e. it might unnecessarily make it less readable or more lengthy).

Do’s and Dont’s of Nonprofit Business Plans – Tips

• Write clearly, using simple and easy-to-understand language.
• Get to the point, support it with facts, and then move on.
• Include relevant graphs and program descriptions.
• Include an executive summary.
• Provide sufficient financial information.
• Customize your business plan to different audiences.
• Stay authentic and show enthusiasm.
• Make the business plan too long.
• Use too much technical jargon.
• Overload the plan with text.
• Rush the process of writing, but don’t drag it either.
• Gush about the cause without providing a clear understanding of how you will help the cause through your activities.
• Keep your formatting consistent.
• Use standard 1-inch margins.
• Use a reasonable font size for the body.
• For print, use a serif font like Times New Roman or Courier. For digital, use sans serifs like Verdana or Arial.
• Start a new page before each section.
• Don’t allow your plan to print and leave a single line on an otherwise blank page.
• Have several people read over the plan before it is printed to make sure it’s free of errors.

Nonprofit Business Plan Template

To help you get started we’ve created a nonprofit business plan outline. This business plan outline will work as a framework regardless of your nonprofit’s area of focus. With it, you’ll have a better idea of how to lay out your nonprofit business plan and what to include. We have also provided several questions and examples to help you create a detailed nonprofit business plan.

Download Your Free Outline

At Donorbox, we strive to make your nonprofit experience as productive as possible, whether through our donation software  or through our advice and guides on the  Nonprofit Blog . Find more free, downloadable resources in our Library .

Many nonprofits start with passion and enthusiasm but without a proper business plan. It’s a common misconception that just because an organization is labeled a “nonprofit,” it does not need to operate in any way like a business.

However, a nonprofit is a type of business, and many of the same rules that apply to a for-profit company also apply to a nonprofit organization.

As outlined above, your nonprofit business plan is a combination of your marketing plan , strategic plan, operational plan, impact plan, and financial plan. Remember, you don’t have to work from scratch. Be sure to use the nonprofit business plan outline we’ve provided to help create one of your own. 

It’s important to note that your nonprofit should not be set in stone—it can and should change and evolve. It’s a living organism. While your vision, values, and mission will likely remain the same, your nonprofit business plan may need to be revised from time to time. Keep your audience in mind and adjust your plan as needed.

Finally, don’t let your plan gather dust on a shelf! Print it out, put up posters on your office walls, and read from it during your team meetings. Use all the research, data, and ideas you’ve gathered and put them into action!

If you want more help with nonprofit management tips and fundraising resources, visit our Nonprofit Blog . We also have dedicated articles for starting a nonprofit in different states in the U.S., including Texas , Minnesota , Oregon , Arizona , Illinois , and more.

Learn about our all-in-one online fundraising tool, Donorbox, and its simple-to-use features on the website here .

Raviraj heads the sales and marketing team at Donorbox. His growth-hacking abilities have helped Donorbox boost fundraising efforts for thousands of nonprofit organizations.

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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

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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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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The best nonprofit business plan template

If you’re looking to start a new charity but don’t know where to start, a nonprofit business plan template can help. There are more than 1.5 million nonprofit organizations registered in the US. While it’s awesome that there are so many charitable orgs, unfortunately, many of them struggle to keep their doors open.

Like any other business, a nonprofit needs to prepare for the unexpected. Even without a global pandemic, strategic planning is crucial for a nonprofit to succeed.

In this article, we’ll look at why a business plan is important for nonprofit organizations and what details to include in your business plan. To get you started, our versatile nonprofit business plan template is ready for you to download to turn your nonprofit dreams into a reality.

Get the template

What is a nonprofit business plan template?

A nonprofit business plan template is not that different from a regular, profit-oriented business plan template. It can even focus on financial gain — as long as it specifies how to use that excess for the greater good.

A nonprofit business plan template includes fields that cover the foundational elements of a business plan, including:

• The overarching purpose of your nonprofit
• Its long and short-term goals
• An outline of how you’ll achieve these goals

The template also controls the general layout of the business plan, like recommended headings, sub-headings, and questions. But what’s the point? Let’s dive into the benefits a business plan template offers nonprofits.

Download Excel template

Why use a nonprofit business plan template?

To get your nonprofit business plans in motion, templates can:

Provide direction

If you’ve decided to start a nonprofit, you’re likely driven by passion and purpose. Although nonprofits are generally mission-driven, they’re still businesses. And that means you need to have a working business model. A template will give your ideas direction and encourage you to put your strategic thinking cap on.

Help you secure funding

One of the biggest reasons for writing a nonprofit business plan is to attract investment. After all, without enough funding , it’s nearly impossible to get your business off the ground. There’s simply no business without capital investment, and that’s even more true for nonprofits that rarely sell products.

Stakeholders and potential investors will need to assess the feasibility of your nonprofit business. You can encourage them to invest by presenting them with a well-written, well-thought-out business plan with all the necessary details — and a template lays the right foundation.

Facilitate clear messaging

One of the essential characteristics of any business plan — nonprofits included — is transparency around what you want to achieve and how you are going to achieve it. A nebulous statement with grandiose aspirations but no practical plan won’t inspire confidence.

Instead, you should create a clear and concise purpose statement that sums up your goals and planned action steps. A good template will help you maintain a strong purpose statement and use clear messaging throughout.

Of course, there are different types of nonprofit plan templates you can use, depending on the kind of business plan you want to draw up.

What are some examples of a nonprofit business plan template?

From summary nonprofit plans to all encompassing strategies, check out a few sample business plan templates for different nonprofit use cases.

Summary nonprofit business plan template

New nonprofit ventures in the early stages of development can use this business plan template. It’s created to put out feelers to see if investors are interested in your idea. For example, you may want to start an animal shelter in your community, but aren’t sure if it’s a viable option due to a lack of funds. You’d use a summary business plan template to gauge interest in your nonprofit.

Full nonprofit business plan template

In this scenario, you have already laid the foundations for your nonprofit. You’re now at a point where you need financing to get your nonprofit off the ground.

This template is much longer than a summary and includes all the sections of a nonprofit business plan including the:

Executive summary

• Nonprofit description
• Needs analysis
• Product/service
• Marketing strategy
• Management team & board
• Human resource needs

It also typically includes a variety of documents that back up your market research and financial situation.

Operational nonprofit business plan template

This type of business plan template is extremely detail-oriented and outlines your nonprofit’s daily operations. It acts as an in-depth guide for who does what, how they should do it, and when they should do it.

An operational nonprofit business plan is written for your internal team rather than external parties like investors or board members.

Convinced to give a business plan template a go? Lucky for you, our team has created the perfect option for nonprofits.

monday.com’s nonprofit business plan template

At monday.com, we understand that starting a nonprofit business can feel overwhelming — scrambling to line up investors, arranging fundraising events, filing federal forms, and more. Because we want you and your nonprofit to succeed, we’ve created a customizable template to get you started. It’s right inside our Work OS , a digital platform that helps you effectively manage every aspect of your work — from budgets and high-level plans to individual to-do lists.

Here’s what you can do on our template:

Access all your documents from one central location

Besides a business plan, starting a nonprofit requires a lot of other documentation. Supporting documents include a cash flow statement or a general financial statement, resumes of founders, and letters of support.

monday.com’s Work OS lets you store all these essential documents in one centralized location. That means you don’t need to open several tabs or run multiple programs to view your information. On monday.com, you can quickly and easily access documents and share them with potential investors and donors. Security features also help you control access to any board or document, only letting invited people or employees view or edit them. By keeping everything in one place, you save time on tracking down rogue files or statements and can focus on what really matters, such as running your nonprofit.

Turn your business plan into action

With monday.com’s nonprofit business plan template, you can seamlessly transform your plan into actionable tasks. After all, it’s going to take more than some sound strategic planning to bring your nonprofit to life.

Based on your business plan, you have the power to create interactive vision boards, calendars, timelines, cards, charts, and more. Because delegation is key, assign tasks to any of your team members from your main board. You can even set up notification automations so that everyone stays up to date with their responsibilities. Plus, to make sure the team stays on track, you can use the Progress Tracking Column that shows you the percent to completion of tasks based on the different status columns of your board.

Keep your finger on the pulse

From budgets to customer satisfaction, you need to maintain a high-level overview of your nonprofit’s key metrics.

monday.com keeps you well-informed on the status of your nonprofit’s progress, all on one platform. With customizable dashboards — for example, a real-time overview of donations received and projects completed — and visually appealing views, you can make confident decisions on how to take your nonprofit business forward.

Now that you have the template, let’s cover each section and how to fill it out correctly.

Essential sections of a nonprofit business plan template

So what exactly goes into a nonprofit business plan? Let’s take a look at the different sections you’ll find in most templates.

This is a concise summary of your business at the beginning of your plan. It should be both inspired and to the point. The executive summary is typically two pages long and dedicates about two sentences to each section of the plan.

Organization overview

This section gives some background on your company and summarizes the goal of your business. At the same time, it should touch on other important factors like your action plan for attracting potential external stakeholders. You can think of an organization overview as a mission statement and company description rolled into one.

Products, programs, and services

Any business exists to provide products, programs, and services — perhaps with a focus on the latter two for nonprofits. Your business plan should outline what you are bringing to your community. This will influence your target market , potential investors, and marketing strategies.

Marketing plan

An effective marketing strategy is the cornerstone of any successful business. Your marketing plan will identify your target audience and how you plan to reach them. It deals with pricing structures while also assessing customer engagement levels.

Operational plan

The operational plan describes the steps a company will take over a certain period. It focuses on the day-to-day aspects of the business, like what tasks need to be done and who is responsible for what. The operational section of a business plan works closely with strategic planning.

Competitive analysis

Even nonprofits face competition from other nonprofits with similar business profiles. A market analysis looks at the strengths and weaknesses of competing businesses and where you fit in. This section should include a strategy to overtake competitors in the market. There are many formats and templates you can use here, for example, a SWOT analysis .

Financial plan

Your financial plan should be a holistic image of your company’s financial status and financial goals. As well as your fundraising plan , make sure to include details like cash flow, investments, insurance, debt, and savings.

Before we wrap up, we’ll address some commonly asked questions about nonprofit business plan templates.

FAQs about nonprofit business plan templates

How do you write a business plan for a nonprofit.

The best way to write a nonprofit business plan is with a template so that you don’t leave anything out. Our template has all the sections ready for you to fill in, combined with features of a cutting-edge Work OS.

For some extra tips, take a look at our advice on how to write a business plan . We’ve detailed the various elements involved in business planning processes and how these should be structured.

How many pages should a nonprofit business plan be?

Business plans don’t have to be excessively long. Remember that concise communication is optimal. As a rule of thumb — and this will vary depending on the complexity and size of your business plan — a nonprofit business plan is typically between seven and thirty pages long.

What is a nonprofit business plan called?

A nonprofit business plan is called just that — a ‘nonprofit business plan.’ You may think that its nonprofit element makes it very different from a profit-oriented plan. But it is essentially the same type of document.

What is the best business structure for a nonprofit?

The consensus is that a corporation is the most appropriate and effective structure for a nonprofit business.

How do you start a nonprofit with no money?

Creating a business plan and approaching potential investors, aka donators, is the best way to start a nonprofit business if you don’t have the funds yourself.

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How to Write a Nonprofit Business Plan

Angelique O'Rourke

13 min. read

Updated May 10, 2024

Believe it or not, creating a business plan for a nonprofit organization is not that different from planning for a traditional business. 

Nonprofits sometimes shy away from using the words “business planning,” preferring to use terms like “strategic plan” or “operating plan.” But, the fact is that preparing a plan for a for-profit business and a nonprofit organization are actually pretty similar processes. Both types of organizations need to create forecasts for revenue and plan how they’re going to spend the money they bring in. They also need to manage their cash and ensure that they can stay solvent to accomplish their goals.

In this guide, I’ll explain how to create a plan for your organization that will impress your board of directors, facilitate fundraising, and ensures that you deliver on your mission.

• Why does a nonprofit need a business plan?

Good business planning is about setting goals, getting everyone on the same page, tracking performance metrics, and improving over time. Even when your goal isn’t to increase profits, you still need to be able to run a fiscally healthy organization.

Business planning creates an opportunity to examine the heart of your mission , the financing you’ll need to bring that mission to fruition, and your plan to sustain your operations into the future.

Nonprofits are also responsible for meeting regularly with a board of directors and reporting on your organization’s finances is a critical part of that meeting. As part of your regular financial review with the board, you can compare your actual results to your financial forecast in your business plan. Are you meeting fundraising goals and keeping spending on track? Is the financial position of the organization where you wanted it to be?

In addition to internal use, a solid business plan can help you court major donors who will be interested in having a deeper understanding of how your organization works and your fiscal health and accountability. And you’ll definitely need a formal business plan if you intend to seek outside funding for capital expenses—it’s required by lenders.

Creating a business plan for your organization is a great way to get your management team or board to connect over your vision, goals, and trajectory. Even just going through the planning process with your colleagues will help you take a step back and get some high-level perspective .

• A nonprofit business plan outline

Keep in mind that developing a business plan is an ongoing process. It isn’t about just writing a physical document that is static, but a continually evolving strategy and action plan as your organization progresses over time. It’s essential that you run regular plan review meetings to track your progress against your plan. For most nonprofits, this will coincide with regular reports and meetings with the board of directors.

A nonprofit business plan will include many of the same sections of a standard business plan outline . If you’d like to start simple, you can download our free business plan template as a Word document, and adjust it according to the nonprofit plan outline below.

Executive summary

The executive summary of a nonprofit business plan is typically the first section of the plan to be read, but the last to be written. That’s because this section is a general overview of everything else in the business plan – the overall snapshot of what your vision is for the organization.

Write it as though you might share with a prospective donor, or someone unfamiliar with your organization: avoid internal jargon or acronyms, and write it so that someone who has never heard of you would understand what you’re doing.

Your executive summary should provide a very brief overview of your organization’s mission. It should describe who you serve, how you provide the services that you offer, and how you fundraise. 

If you are putting together a plan to share with potential donors, you should include an overview of what you are asking for and how you intend to use the funds raised.

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Opportunity

Start this section of your nonprofit plan by describing the problem that you are solving for your clients or your community at large. Then say how your organization solves the problem.

A great way to present your opportunity is with a positioning statement . Here’s a formula you can use to define your positioning:

For [target market description] who [target market need], [this product] [how it meets the need]. Unlike [key competition], it [most important distinguishing feature].

And here’s an example of a positioning statement using the formula:

For children, ages five to 12 (target market) who are struggling with reading (their need), Tutors Changing Lives (your organization or program name) helps them get up to grade-level reading through a once a week class (your solution).

Unlike the school district’s general after-school homework lab (your state-funded competition), our program specifically helps children learn to read within six months (how you’re different).

Your organization is special or you wouldn’t spend so much time devoted to it. Layout some of the nuts and bolts about what makes it great in this opening section of your business plan. Your nonprofit probably changes lives, changes your community, or maybe even changes the world. Explain how it does this.

This is where you really go into detail about the programs you’re offering. You’ll want to describe how many people you serve and how you serve them.

Target audience

In a for-profit business plan, this section would be used to define your target market . For nonprofit organizations, it’s basically the same thing but framed as who you’re serving with your organization. Who benefits from your services?

Not all organizations have clients that they serve directly, so you might exclude this section if that’s the case. For example, an environmental preservation organization might have a goal of acquiring land to preserve natural habitats. The organization isn’t directly serving individual groups of people and is instead trying to benefit the environment as a whole. 

Similar organizations

Everyone has competition —nonprofits, too. You’re competing with other nonprofits for donor attention and support, and you’re competing with other organizations serving your target population. Even if your program is the only one in your area providing a specific service, you still have competition.

Think about what your prospective clients were doing about their problem (the one your organization is solving) before you came on this scene. If you’re running an after-school tutoring organization, you might be competing with after school sports programs for clients. Even though your organizations have fundamentally different missions.

For many nonprofit organizations, competing for funding is an important issue. You’ll want to use this section of your plan to explain who donors would choose your organization instead of similar organizations for their donations.

Future services and programs

If you’re running a regional nonprofit, do you want to be national in five years? If you’re currently serving children ages two to four, do you want to expand to ages five to 12? Use this section to talk about your long-term goals. 

Just like a traditional business, you’ll benefit by laying out a long-term plan. Not only does it help guide your nonprofit, but it also provides a roadmap for the board as well as potential investors. 

Promotion and outreach strategies

In a for-profit business plan, this section would be about marketing and sales strategies. For nonprofits, you’re going to talk about how you’re going to reach your target client population.

You’ll probably do some combination of:

• Advertising: print and direct mail, television, radio, and so on.
• Public relations: press releases, activities to promote brand awareness, and so on.
• Digital marketing: website, email, blog, social media, and so on.

Similar to the “target audience” section above, you may remove this section if you don’t promote your organization to clients and others who use your services.

Costs and fees

Instead of including a pricing section, a nonprofit business plan should include a costs or fees section.

Talk about how your program is funded, and whether the costs your clients pay are the same for everyone, or based on income level, or something else. If your clients pay less for your service than it costs to run the program, how will you make up the difference?

If you don’t charge for your services and programs, you can state that here or remove this section.

Fundraising sources

Fundraising is critical for most nonprofit organizations. This portion of your business plan will detail who your key fundraising sources are. 

Similar to understanding who your target audience for your services is, you’ll also want to know who your target market is for fundraising. Who are your supporters? What kind of person donates to your organization? Creating a “donor persona” could be a useful exercise to help you reflect on this subject and streamline your fundraising approach. 

You’ll also want to define different tiers of prospective donors and how you plan on connecting with them. You’re probably going to include information about your annual giving program (usually lower-tier donors) and your major gifts program (folks who give larger amounts).

If you’re a private school, for example, you might think of your main target market as alumni who graduated during a certain year, at a certain income level. If you’re building a bequest program to build your endowment, your target market might be a specific population with interest in your cause who is at retirement age.

Do some research. The key here is not to report your target donors as everyone in a 3,000-mile radius with a wallet. The more specific you can be about your prospective donors —their demographics, income level, and interests, the more targeted (and less costly) your outreach can be.

Fundraising activities

How will you reach your donors with your message? Use this section of your business plan to explain how you will market your organization to potential donors and generate revenue.

You might use a combination of direct mail, advertising, and fundraising events. Detail the key activities and programs that you’ll use to reach your donors and raise money.

Strategic alliances and partnerships

Use this section to talk about how you’ll work with other organizations. Maybe you need to use a room in the local public library to run your program for the first year. Maybe your organization provides mental health counselors in local schools, so you partner with your school district.

In some instances, you might also be relying on public health programs like Medicaid to fund your program costs. Mention all those strategic partnerships here, especially if your program would have trouble existing without the partnership.

Milestones and metrics

Without milestones and metrics for your nonprofit, it will be more difficult to execute on your mission. Milestones and metrics are guideposts along the way that are indicators that your program is working and that your organization is healthy.

They might include elements of your fundraising goals—like monthly or quarterly donation goals, or it might be more about your participation metrics. Since most nonprofits working with foundations for grants do complex reporting on some of these, don’t feel like you have to re-write every single goal and metric for your organization here. Think about your bigger goals, and if you need to, include more information in your business plan’s appendix.

If you’re revisiting your plan on a monthly basis, and we recommend that you do, the items here might speak directly to the questions you know your board will ask in your monthly trustee meeting. The point is to avoid surprises by having eyes on your organization’s performance. Having these goals, and being able to change course if you’re not meeting them, will help your organization avoid falling into a budget deficit.

Key assumptions and risks

Your nonprofit exists to serve a particular population or cause. Before you designed your key programs or services, you probably did some research to validate that there’s a need for what you’re offering.

But you probably are also taking some calculated risks. In this section, talk about the unknowns for your organization. If you name them, you can address them.

For example, if you think there’s a need for a children’s literacy program, maybe you surveyed teachers or parents in your area to verify the need. But because you haven’t launched the program yet, one of your unknowns might be whether the kids will actually show up.

Management team and company

Who is going to be involved and what are their duties? What do these individuals bring to the table?

Include both the management team of the day-to-day aspects of your nonprofit as well as board members and mention those who may overlap between the two roles. Highlight their qualifications: titles, degrees, relevant past accomplishments, and designated responsibilities should be included in this section. It adds a personal touch to mention team members who are especially qualified because they’re close to the cause or have special first-hand experience with or knowledge of the population you’re serving.

There are probably some amazing, dedicated people with stellar qualifications on your team—this is the place to feature them (and don’t forget to include yourself!).

Financial plan

The financial plan is essential to any organization that’s seeking funding, but also incredibly useful internally to keep track of what you’ve done so far financially and where you’d like to see the organization go in the future.

The financial section of your business plan should include a long-term budget and cash flow statement with a three to five-year forecast. This will allow you to see that the organization has its basic financial needs covered. Any nonprofit has its standard level of funding required to stay operational, so it’s essential to make sure your organization will consistently maintain at least that much in the coffers.

From that point, it’s all about future planning: If you exceed your fundraising goals, what will be done with the surplus? What will you do if you don’t meet your fundraising goals? Are you accounting for appropriate amounts going to payroll and administrative costs over time? Thinking through a forecast of your financial plan over the next several years will help ensure that your organization is sustainable.

Money management skills are just as important in a nonprofit as they are in a for-profit business. Knowing the financial details of your organization is incredibly important in a world where the public is ranking the credibility of charities based on what percentage of donations makes it to the programs and services. As a nonprofit, people are interested in the details of how money is being dispersed within organizations, with this information often being posted online on sites like Charity Navigator, so the public can make informed decisions about donating.

Potential contributors will do their research—so make sure you do too. No matter who your donors are, they will want to know they can trust your organization with their money. A robust financial plan is a solid foundation for reference that your nonprofit is on the right track.

• Business planning is ongoing

It’s important to remember that a business plan doesn’t have to be set in stone. It acts as a roadmap, something that you can come back to as a guide, then revise and edit to suit your purpose at a given time.

I recommend that you review your financial plan once a month to see if your organization is on track, and then revise your plan as necessary .

Angelique is a skilled writer, editor, and social media specialist, as well as an actor and model with a demonstrated history of theater, film, commercial and print work.

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Charity Business Plan Template

What is a Charity Business Plan?

A charity business plan outlines the goals, projects, and initiatives of a non-profit organization or social enterprise. It serves as a roadmap for the organization's activities, and helps to ensure that the organization is working towards achieving its objectives in an effective and efficient manner. The charity business plan template provides a structure for outlining the organization's mission and goals, as well as the strategies, projects, and KPIs that can be used to achieve them.

What's included in this Charity Business Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Charity Business Plan template for?

The charity business plan template is designed for non-profit organizations and social enterprises that want to develop a business plan that outlines their mission, goals, and strategies. The template provides an organized and systematic way to create a business plan that takes into consideration the organization's resources, goals, and objectives. It is designed to help organizations create an effective and efficient business plan that can be used to track their progress and ensure that they are on the right path towards achieving their mission.

1. Define clear examples of your focus areas

Focus areas are the broad topics that the organization is focusing on. Examples of focus areas may include increasing outreach, improving efficiency, or increasing impact. Each focus area should have several objectives and projects that are related to that focus area.

2. Think about the objectives that could fall under that focus area

Objectives are the goals that the organization wants to achieve within a particular focus area. These objectives should be specific, measurable, and achievable. Examples of objectives may include reaching new donors, engaging existing donors, or automating data entry.

3. Set measurable targets (KPIs) to tackle the objective

KPIs, or key performance indicators, are measurable targets that are used to track progress towards an organization's objectives. Examples of KPIs may include increasing website visits, increasing email response rate, or decreasing time to process donations.

4. Implement related projects to achieve the KPIs

Projects are the actions that are taken to achieve the organization's objectives and KPIs. Examples of projects may include creating a digital marketing campaign, implementing email strategies, or automating data entry.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade Strategy Execution Platform provides a comprehensive suite of tools and resources to help organizations develop and implement a successful business plan. It offers features such as goal setting, project tracking, real-time reporting, and automated notifications, which can help organizations see faster results from their strategy.

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

Download our non-profit business plan pdf here. This is a free nonprofit business plan example to help you get started on your own nonprofit plan.

How to Finish Your Nonprofit Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your nonprofit business plan?

With Growthink’s Ultimate Nonprofit Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Nonprofit Business Planning Articles

• Non-Profit Business Plan
• How to Write a Nonprofit Business Plan
• 10 Tips to Make Your Nonprofit’s Business Plan Stand Out
• How to Write a Mission Statement for Your Nonprofit Organization
• Strategic Planning for a Nonprofit Organization
• How to Write a Marketing Plan for Your Nonprofit Business
• 4 Top Funding Sources for a Nonprofit Organization
• What is a Nonprofit Organization?
• 20 Nonprofit Organization Ideas For Your Community

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Start » strategy, how to write a nonprofit business plan.

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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• Sample Business Plans
• Nonprofit & Community

How to Write a Nonprofit Business Plan

As noble and inspiring as they are, nonprofit businesses often don’t start out with much funding or acclaim.

The only thing they have in ample is passion regarding the vision. So how do they turn it into a business? Crafting a nonprofit business plan . There’s no better way to turn that vision into reality.

It provides the nonprofit’s idea a strong backing with how the business will work and where the money will be used.

So are ready with your passion and vision? Combine it with a business plan that we will guide you in writing through this detailed guide along with examples.

What is a nonprofit business plan?

A nonprofit business plan is a strategic document that outlines the mission, goals, and operational strategies of a nonprofit organization. It includes detailed sections on programs and services, market analysis, organizational structure, financial plans, and impact measurement.

This plan serves as a roadmap for the nonprofit’s activities, helping to align resources toward achieving its mission. Additionally, it also showcases the organization’s viability and strategic planning to potential donors and partners.

Why do you need a nonprofit business plan?

Creating nonprofit business plans is necessary to convey the purpose of your business. But that’s just one reason. Here are other reasons why you need a non-profit business plan:

• Serves as a strategic roadmap, outlining how to reach the goals.
• Proves to be essential for attracting potential donors or investors by proving the viability of your business idea.
• Helps in creating realistic financial projections and budgets.
• Supports in defining the roles and responsibilities of everyone in the organization.
• Helps you identify risks and prepare strategies around them.
• Supports you in monitoring progress and measuring success.

You see! There’s no way we can ignore the importance of a nonprofit business plan. Let’s move forward with the guide.

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How to Write a Nonprofit Business Plan?

There are nine steps to writing a nonprofit business plan. Each section will provide you with the necessary guidance to craft a robust and effective plan.

Let’s get started and get into the nonprofit business plan outline:

1. Create an executive summary

The executive summary provides a synopsis of the whole business plan. Business people prefer to write this section last, after gaining knowledge of every other section.

Here’s what to include in the executive summary :

• A brief introduction to your nonprofit, including the name and mission
• The primary objective and vision of your nonprofit
• Summarize the key programs and services you offer
• Briefly mention the impact of your nonprofit on society
• Define who you serve and your key stakeholders
• Introduce the key members of your business
• A brief of your current financial situation and future projections
• Very subtly you should even mention the ask for your nonprofit or what you want from your readers (the CTA slide)

This summary should be no longer than two pages maximum, clear, compelling, concise, and engaging for readers.

2. Provide organizational description

The organizational description section provides an in-depth look at what your nonprofit aims to achieve. It includes the nonprofit’s mission, vision, core values, and strategic goals.

So begin this section with the name of your nonprofit, and then identify the structure of your organization. But since it’s a nonprofit, exempted from tax, you still need to choose from the below structures for registration purposes:

Unincorporated association

This is the simplest structural form. It’s basically an s-corporation of nonprofit organizations. Unincorporated associations are easy to set up but provide limited liability protection.

Trust is managed by trustees who hold assets for the benefit of beneficiaries. It’s often used for charitable purposes.

Nonprofit corporation

This is a more formal structure that provides liability protection for directors. It can earn tax-exempt status so it has become the most common structure for nonprofits.

Cooperative

This is the structure of an organization owned and operated by its board members, who share the profits and decision-making responsibilities.

Though less common for nonprofits, an LLC can be used for nonprofit activities. It offers flexibility and liability protection but doesn’t automatically qualify for tax-exempt status.

Now, after deciding on the structure, move forward with the mission and vision statement (like you would in any business plan).

Mission and vision statement

Remember, your mission and vision statement will give the picture of what your nonprofit does and why it does that. So, don’t forget to keep it engaging and in storytelling form.

For example, Our Genetic Legacy (OGL) is an NGO dedicated to preserving and promoting the history and contributions of Blacks, Indigenous, and People of Color (BIPOC) in American history. So, their statement is clear and engaging:

3. Conduct market analysis

The market analysis section requires a lot more market research, but the first thing you need to do is clearly define your organization’s goals.

For example, STREAM Academy helps students apply classroom learning to real-world situations. Clearly defining this goal allows them to identify their target market effectively.

Without a defined goal, it’s difficult to understand and identify who actually needs your programs or services.

Once, you define your goals, it is time to differentiate them into various segments. You can do that by differentiating them through these behaviors:

• Demographic: age, gender, income, education level
• Geographic: location, region, urban vs. rural
• Psychographic: values, interests, lifestyles or
• Behavioral: donation habits, event attendance, volunteer participation

Now that you’ve segmented your audience, it’s time to get information about the market through:

Gathering data from government sources

Go to the official government websites and collect relevant statistics or data. Now, use the data to your nonprofit’s focus. For example, if your nonprofit supports homeless youth, find the number of homeless youth in your region.

Conducting competitive analysis

Identify similar nonprofits in your area. Study their services, target audience, and strategies. Include your findings to understand your position in the market and identify unique opportunities.

Performing SWOT analysis

Conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis keeping both internal and external factors in mind, to better understand your nonprofit business.

Researching industry trends

Stay informed about the latest trends in your industry by subscribing to newsletters, participating in forums, and attending events.

By following these steps, your nonprofit can better understand its environment, identify opportunities, and plan for future growth.

4. Mention programs, products, and services

Half of the revenue of nonprofit organizations comes from either selling products or rendering services. So, the next step is to mention your programs, products, and services here to clarify everything about how you earn money, where your money goes, and what you provide.

For example:

Recycling Breeze is earning revenue from selling various recycling products like reusable bags, water bottles, dishes, etc. They also accept donations. Besides, they support educational workshops for the underprivileged youth and finance beach-cleaning activities.

In short, this section should include:

• Detailed descriptions of each program and product.
• How each revenue source supports specific initiatives.
• The impact of your programs and services on your community.

Ensure you outline future plans for each program to show long-term commitment and viability.

5. Create marketing and outreach strategies

Creating effective marketing and outreach plans is essential for raising awareness, attracting donors, and achieving your nonprofit’s mission.

Before creating the marketing plan, understand your unique selling propositions (USPs). Just determine what sets your programs, products, and services apart from others.

Now, don’t forget to highlight these pointers in your marketing messages to gain more attention and differentiate your nonprofit.

Once you know the USPs and have crafted the marketing message, it’s time for you to select the channels where you should pose. You can use a website, various social media platforms, newsletters, local newspapers, host workshops or events, and a lot more.

Plan regular updates across all channels to actively engage with your audience. Partner with local businesses, schools, and other nonprofits to spread awareness.

Lastly, track key performance indicators like website traffic, social media engagement, funds raised, etc to know the effectiveness. You can also collect feedback from your audience to refine your strategies.

6. Make an operational plan

The operations plan section of your nonprofit business plan includes your daily operations regarding who will work on what. It includes information on:

Hiring plan & staffing

The nonprofit sector is considered the third-largest employer in the United States. Thereupon, the competition is high and ensuring that the right person is in the right role is crucial for your nonprofit’s success.

Develop a comprehensive staffing plan that includes effective recruitment, thorough training, and strong retention strategies.

Ignoring retention can lead to high staff turnover, significantly impacting your organization’s performance. Make a strong team by giving training and various perks.

Organizational structure

Describe the organizational hierarchy, including the board of directors, executive team, and staff. Mention the role of each team member of the organization.

This could refer to suppliers who provide your products, donors who offer financial contributions, and individuals or groups who organize fundraising events.

Processes and procedures

Describe the standard operating procedures (SOPs) for key activities and functions of your organization. Also, mention how you will ensure the quality and consistency of your product and services.

List which tools and technology your nonprofit will use. You can include any software like donor management, fundraising platforms, etc. Remember to include everything else including computers, vehicles, and machinery.

If your nonprofit sells products online or needs any shipping method, mention here the way you will ship the products or reach your customers.

In short, this section mentions everything that affects the daily operations of your non-profit business to give a clear idea of how your organization works and who works on what activities.

7. Write your impact plan

The impact plan should clearly define the changes your nonprofit will bring to society.

Outline specific goals, like your organization wants to reduce plastic waste by 10% in three years. Or increase recycling program participation by 10% in one year.

Include KPIs like the number of workshops, participants, and the volume of waste recycled. Describe data collection methods such as government data, surveys, program records, etc.

Then, detail how you will analyze this data and use feedback to continuously improve and adjust your programs.

Highlight the importance of adapting strategies based on data and feedback to ensure ongoing effectiveness and responsiveness to community needs. This approach ensures your nonprofit’s efforts make a positive difference in society.

8. Outline the financial plan

A financial plan is the base of how you will collect and utilize the funds. It generally includes:

Revenue forecasts

Identify all potential income sources, such as donations, grants, fundraising events, and product sales. Then provide a detailed revenue forecast for the next 3-5 years, using real data or practical assumptions.

Expense budget

List all operational expenses, including salaries, and rent. Also, detail the costs associated with your programs and services. Include significant purchases or investments needed for your nonprofit to function smoothly.

• Financial statements

Provide all the necessary financial statements in this section such as:

• Cash flow statement: Detail your expected monthly cash flow, showing where funds are coming from and where it’s going.
• Income statement: Calculate total revenue and subtract total expenses to get the income.
• Balance sheet: List current and long-term assets and liabilities, such as cash, equipment, and investments to understand the business’s financial position.

9. Include an appendix section

The appendix of a nonprofit business plan includes additional information that supports the main content. Here is what you can include in nonprofit appendix section:

• Supporting documents like resumes of the key staff, legal documents, financial statements, etc.
• Detailed market analysis, demographics, and other market research.
• Important policies and procedures that govern your nonprofit’s operations.
• Include detailed job descriptions for key positions.
• Include copies or links to any significant media coverage.
• Provide a list of your board members with their bios.
• Attach partner agreements (if any).

By including these elements in your appendix, you provide comprehensive evidence and context, strengthening the credibility of nonprofit business plans.

Download the free nonprofit business plan template

Ready to write your nonprofit business plan, but not sure where to start? Here you go, download our free nonprofit business plan template PDF and start writing your plan. It’s easy. All you need to do is download and edit it to meet your nonprofit needs.

Prepare your nonprofit for the future using Upmetrics

In conclusion, writing a nonprofit business plan involves thorough research, clear goal-setting, and a detailed strategy for achieving your mission.

To smoothen your process, you can try Upmetrics ! Like various other nonprofits have tried and trusted the tool for its excellent business plan writing features.

See what one of the nonprofit owners has to say about her experience with Upmetrics “Signing up for Upmetrics was game-changing for our business. It helped us increase our revenue and secure funds over $142,000—Shellie Baxter – Founder and CEO of Our Genetic Legacy.”

So, wait no more and get your nonprofit off the ground in no time!

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Frequently Asked Questions

How long should a nonprofit business plan be.

The average length of a nonprofit business plan is around 15 to 30 pages depending on the complexity of the business idea and scope of the organization.

Can a nonprofit business plan help with fundraising?

Yes, a nonprofit business plan can help in fundraising. It clearly outlines financial needs, program impacts, and strategies, showcasing the idea and depth of the nonprofit business.

What tools and resources can help me create a nonprofit business plan?

There are various business planning tools and resources that can guide you to create a nonprofit business plan like:

• Upmetrics – Offers customizable templates, step-by-step guidance, collaborative features, AI assistance, and a lot more.
• SCORE – Offers business plan templates and workshops.
• GrantSpace by Candid – Offers resources and sample documents.

How detailed should the financial section of a nonprofit business plan be?

The financial section of a nonprofit business plan should be very detailed to ensure transparency. It should include:

• Financial forecasts
• Funding sources
• Contingency plans

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Nonprofit Business Plan Examples That Inspire Success

For anyone passionate about making a positive impact, laying the groundwork with a solid nonprofit business plan is essential. This document serves as a roadmap, guiding organizations through their mission and operational strategies while ensuring they remain accountable to their goals. Whether you’re starting a new nonprofit or revitalizing an existing one, understanding how to construct an effective plan is crucial for success. Within this article, we will present a range of nonprofit business plan examples, drawing insights from actual organizations that have successfully navigated the path to fulfilling their missions. These examples will not only inspire you but also provide practical frameworks that can be adapted to suit your specific needs.

A well-structured nonprofit business plan is more than just a formal requirement; it is a vital tool for attracting funding, engaging volunteers, and demonstrating the viability of your initiatives to stakeholders. Each section of your business plan has a distinct purpose, speaking to different facets of your organization’s identity and objectives. In the following sections, we will delve into the critical components of a nonprofit business plan, offering examples that highlight best practices and common pitfalls. By the end of this article, you will have a clearer understanding of how to craft your own plan inspired by real-world experiences. Let’s get started on this journey to unlock the potential of your nonprofit through carefully tailored planning.

Nonprofit Business Plan Examples: Real-World Insights

Creating a nonprofit business plan is a key step for any organization looking to make a difference. A well-structured business plan can guide your nonprofit’s mission and operations while attracting potential donors and supporters. Here, we will explore examples that illustrate how to create an effective nonprofit business plan using real-world insights.

Understanding the Basics of a Nonprofit Business Plan

A nonprofit business plan typically includes sections such as the executive summary, organizational description, market analysis, marketing strategy, operational plan, and financial projections. These elements paint a complete picture of your organization and its goals.

1. Executive Summary

The executive summary is a critical first impression. It briefly outlines your nonprofit’s mission, the problem you’re addressing, and your goals. Consider this element similar to an elevator pitch. A strong executive summary will engage readers right from the start and compel them to read more.

Example: The “Healthy Kids Initiative” aims to reduce childhood obesity in urban areas through community engagement and educational programs. The summary highlights their goal to reach at least 500 children in the first year.

2. Organizational Description

This section provides a detailed look at your organization. It includes the mission statement, vision, values, and the legal structure of the nonprofit. Such information helps readers understand your foundation and motives.

Example: The “Animal Welfare Society” describes its core belief in compassionate and ethical treatment of animals. Their mission focuses on rescuing abandoned pets and promoting responsible pet ownership.

3. Market Analysis

Understanding the environment in which your nonprofit operates is key. In the market analysis section, include details about your target audience, potential beneficiaries, and competitors. This helps identify opportunities and challenges.

Example: A nonprofit providing educational resources for low-income families may analyze the number of families in need, related services already available, and gaps in the current offerings. They may find that local libraries do not cater to adult education, presenting a strategic opportunity for partnership.

4. Marketing Strategy

Your marketing strategy should explain how you will promote your programs and reach potential donors. It should include online and offline tactics, such as social media campaigns , community outreach, and partnerships.

Example: The “Eco-Conservation Group” plans to use social media platforms like Instagram and Facebook to showcase their projects. They also intend to host local events to draw community interest and support. Collaborating with local businesses can further enhance their visibility.

5. Operational Plan

The operational plan outlines the day-to-day workings of your nonprofit. It describes the programs and services you offer, key partnerships, staffing, and any facilities you may manage. A clear operational plan ensures that your nonprofit can function smoothly.

Example: A nonprofit focused on mental health service may detail their planned workshops, support groups, and outreach programs. They outline staffing needs and staff training processes to ensure the highest quality of service.

6. Financial Projections

The last element, but not least, is the financial projections. Here, you’ll include a budget, expected revenue, and fundraising strategies. Present your financial plan clearly, using charts or graphs if needed.

Example: The “Community Arts Initiative” creates a comprehensive budget showing projected income from grants, donations, and fundraising events. This plan anticipates expenses needed for workshops, events, and operational costs, demonstrating fiscal responsibility.

7. Sample Nonprofit Business Plan Layout

Creating a visual guide is beneficial:

Executive Summary

• Organizational Description

Market Analysis

Marketing strategy.

• Operational Plan

Financial Projections

Filling in each section of this outline with concise content tailored to your nonprofit’s mission can help in drafting an organized and effective business plan.

Real-world examples of nonprofit business plans can provide invaluable insights. They emphasize the importance of clarity, structure, and passion behind your cause. Crafting a solid business plan not only helps you stay focused on your mission, but it also rallies support from the community and potential donors. Each nonprofit is unique, so tailor these examples to fit your vision and goals, ensuring that your nonprofit thrives into the future.

Key Components of an Effective Nonprofit Business Plan

Creating an effective nonprofit business plan is essential for guiding your organization toward success. A well-structured plan not only helps you stay focused but also plays a crucial role in attracting potential donors, volunteers, and partners. Here are the key components to consider when building your business plan.

The executive summary serves as the overview of your plan. It summarizes the mission, vision, and core values of your nonprofit. Include essential information such as:

• Your nonprofit’s name and legal structure.
• A brief description of services or programs offered.
• Your target audience and the community needs you aim to address.
• Your goals for the upcoming years.

Although it appears first, write this section last to encapsulate the entire plan accurately.

Mission Statement

Your mission statement should clearly define the purpose of your nonprofit. It needs to communicate effectively what you do, how you do it, and for whom. A strong mission statement acts as a guiding star for all your strategic decisions and organizational efforts. Ensure it’s concise and compelling, so it resonates with your audience.

Situational Analysis

A situational analysis, or SWOT analysis, will help you understand your organization’s strengths, weaknesses, opportunities, and threats. This section provides insight into your internal and external environments, allowing you to identify what sets you apart from other nonprofits. Focus on the following aspects:

• Strengths: What advantages does your nonprofit hold?
• Weaknesses: What challenges does your nonprofit face?
• Opportunities: Where can your nonprofit grow or improve?
• Threats: What external factors could harm your nonprofit?

Goals and Objectives

This section outlines your short-term and long-term goals. Make sure your goals are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. For example, rather than saying, “We want to help more people,” specify, “We will provide service to 500 community members within the next year.” Clearly defined goals serve as benchmarks for your nonprofit’s success.

Programs and Services

List and describe the specific programs or services your nonprofit will offer. Use the following sub-points for each program:

• Name of the Program: What is it called?
• Goals of the Program: What are you hoping to achieve?
• Target Audience: Who will benefit from it?
• Resources Needed: What do you need to implement this program?

By clearly articulating your offerings, you demonstrate the value of your nonprofit to stakeholders.

Marketing is crucial for attracting support. Discuss how you’ll promote your nonprofit’s programs to reach your target audience. Consider different avenues, such as:

• Social media platforms
• Email marketing
• Community events
• Partnerships with local businesses and organizations

Craft a clear marketing message that aligns with your mission and resonates with your audience.

Financial planning is vital for sustainability. Provide a detailed budget that includes projected income sources and expenses. Highlight potential revenue streams, such as:

• Fundraising events
• Membership fees

Include cash flow projections for at least three years to show how you plan to maintain financial health.

Evaluation and Impact Assessment

Include a section on how you’ll measure your success. Discuss methods for evaluating your programs’ effectiveness. Set metrics that align with your goals to monitor progress. Understanding your impact ensures accountability and helps attract future funding.

By addressing these vital components in your nonprofit business plan, you create a roadmap for success, guiding your organization’s actions as you strive to make a difference in your community.

Common Mistakes in Nonprofit Business Plans and How to Avoid Them

Creating a solid business plan is essential for any nonprofit organization. However, many organizations make common mistakes that can undermine their plans and ultimately their mission. Understanding these pitfalls can help nonprofits craft more effective strategies. Here are some frequent missteps and how to steer clear of them.

Overlooking the Mission Statement

A clear and compelling mission statement serves as the foundation of a nonprofit’s business plan. Nonprofits often write vague or overly complicated statements that fail to resonate. A strong mission statement should be concise, clear, and directly state what the organization does, whom it serves, and its goals. To avoid this mistake, take time to refine and test the mission statement by sharing it with stakeholders for feedback.

Failing to Research the Market

Another common mistake is not conducting thorough market research. Understanding the target audience, potential donors, and competitors is key to a successful plan. Nonprofits should assess the needs of the community they serve and identify existing services. Here’s how to ensure comprehensive market research:

• Conduct surveys or interviews with community members.
• Examine data on similar organizations in the area.
• Identify gaps in services that your nonprofit could fill.

With this information, your organization can tailor its programs effectively.

Ignoring Financial Projections

Financial projections play a vital role in any business plan. Many nonprofits underestimate the importance of accurate budgeting and forecasting. Insufficient financial planning can lead to cash flow issues. To avoid this, include:

• A detailed budget that outlines expected income and expenses.
• Current and projected financial statements for at least three years.
• Strategies for fundraising and revenue generation.

These elements will help maintain transparency and build donor confidence.

Neglecting a Marketing Strategy

Many nonprofits fail to develop a marketing strategy in their business plans. A well-thought-out marketing plan is crucial for raising awareness and reaching potential supporters. Organizations should consider:

• What platforms will be used for outreach (social media, newsletters, events)?
• How to engage the community and potential donors.
• The key message that communicates the organization’s value.

Having a strong marketing approach ensures that your nonprofit’s voice is heard.

Setting Unrealistic Goals

Setting goals that are too ambitious can lead to disappointment and burnout. Nonprofits often aim for dramatic impacts without considering the resources available to them. To set achievable goals, consider the SMART criteria:

Breaking down large objectives into smaller, manageable tasks makes it easier to track progress and achieve milestones.

Underestimating Staff and Volunteer Needs

Many nonprofit business plans fail to address human resources effectively. This oversight can hinder growth and sustainability. Clearly define roles and responsibilities for staff and volunteers to avoid confusion. Seek to:

• Outline the necessary skills for each position.
• Develop a training program for volunteers.
• Include a plan for recruitment and retention.

Fostering a strong, committed team is essential for the success of any nonprofit endeavor.

Failing to Measure Impact

Many organizations neglect to include strategies for measuring their impact. Demonstrating effectiveness is vital for securing funding and community support. Establish clear metrics for evaluating success, such as:

• Client testimonials or case studies.
• Before-and-after scenarios for service beneficiaries.
• Quantitative measures like the number of people served or programs launched.

This focus on impact fosters accountability and helps improve overall effectiveness.

By being aware of these common mistakes and implementing strategies to avoid them, nonprofits can create business plans that not only attract funding but also drive lasting change in their communities.

Tailoring Your Nonprofit Business Plan for Grant Applications

Creating a nonprofit business plan tailored specifically for grant applications is a crucial step in securing funding and support for your organization. Such a plan provides potential funders with a clear understanding of your mission, vision, and operational strategies. Here’s how you can craft a nonprofit business plan that aligns well with grant applications.

Understanding Your Mission and Vision

Your nonprofit’s mission and vision should be the foundation of your business plan. Clearly articulate what your organization aims to achieve. This not only defines your purpose but also communicates your intentions to potential grantors. Here’s what to include:

• Mission Statement: This should be a concise statement that captures the essence of what you do.
• Vision Statement: Describe what success looks like in the future for the community you serve.

Before writing your business plan, conduct a thorough market analysis. Understand the landscape in which you operate and identify your target audience and competitors. A strong market analysis can include:

• Target Demographic: Who benefits from your services? Define their characteristics and needs.
• Competitive Landscape: Analyze other organizations addressing similar needs. What sets your nonprofit apart?

Once you have a clear understanding of your market, outline your goals and objectives. These should be SMART:

• Specific: Clearly define what you aim to achieve.
• Measurable: Make sure you can track your progress.
• Achievable: Set realistic goals.
• Relevant: Ensure your goals align with your mission.
• Time-bound: Assign deadlines to create urgency.

Programs and Activities

Detail the programs and activities that you plan to implement to achieve your goals. Funders appreciate a clear plan of action. Include:

• Program Descriptions: Provide an overview of each program.
• Implementation Timeline: Outline when each program will launch and its duration.
• Expected Outcomes: What impact do you expect each program to have?

Organizational Structure

Describe your nonprofit’s organizational structure. Funders want to see a professional and capable team in place. Your plan should include:

• Board of Directors: Introduce board members and their expertise.
• Staff Roles: Outline key staff members and their responsibilities.
• Volunteers: Discuss how volunteers will play a role in your nonprofit’s success.

Financial stability is vital for securing grants. Include detailed financial projections in your business plan:

• Budget: Create a comprehensive budget that outlines anticipated revenues and expenses.
• Funding Sources: Identify current and potential funding sources, including grants, donations, and partnerships.
• Financial Statements: Any existing financial records can strengthen your proposal.

Impact Measurement

Funders want to know how you measure success. Discuss your impact measurement strategies, including:

• Data Collection Methods: Explain how you will gather and analyze data.
• Evaluation Framework: Describe the framework you will use to assess the success of your programs.

Tailoring for Specific Grants

Adapt your nonprofit business plan to fit the specific grant you’re applying for. Understand the grantor’s priorities and guidelines:

• Alignment with Mission: Emphasize how your goals align with the grantor’s mission.
• Highlight Relevant Programs: Focus on the programs that best fit the grant’s objectives.
• Responsive to Guidelines: Stick closely to the application requirements, adjusting as needed.

These elements into your nonprofit business plan will not only improve your chances of securing grants but will also help clarify your organization’s goals and strategies. A well-thought-out plan serves as a roadmap for your nonprofit and demonstrates your commitment to achieving meaningful change in your community.

The Role of Market Research in Nonprofit Business Planning

Market research is a foundational step in crafting an effective nonprofit business plan. It helps organizations understand their communities, identify needs, and develop strategies that resonate with potential supporters. A well-conducted market analysis enables nonprofits to allocate resources efficiently and maximize their impact.

One significant aspect of market research is understanding the target audience. Nonprofits must clearly define who they serve. This includes demographics like age, gender, income level, and location. Knowing these details helps organizations tailor their programs and outreach efforts. For instance, if a nonprofit focuses on youth services, understanding the interests and needs of local young people can guide the development of relevant programs.

Moreover, competitive analysis plays a crucial role in market research. Nonprofits should identify other organizations in their area that pursue similar missions. By analyzing these competitors, a nonprofit can identify gaps in services and find unique value propositions. This is essential for distinguishing themselves in a crowded space. For example, if several nonprofits offer food assistance, one organization might focus on nutritional education, giving it a unique angle.

Another key element of market research is gathering community input. This can be achieved through various methods, such as surveys, interviews, or focus groups. Engaging with community members provides insights into their perceptions and expectations. It also builds trust and fosters a sense of ownership among stakeholders. Some valuable questions to consider include:

• What challenges do community members face?
• How can a nonprofit address these challenges?
• What existing services are perceived as effective or ineffective?

Understanding these factors can help nonprofits avoid common pitfalls. Instead of guessing what a community needs, organizations can base their decisions on direct feedback. This approach not only strengthens programs but also boosts donor confidence. When supporters see that a nonprofit genuinely values community input, they are more likely to contribute.

Additionally, market research can uncover trends that affect a nonprofit’s mission. By staying informed about shifts in the economic landscape, societal values, or policy changes, organizations can adapt their strategies. For instance, if research indicates a growing concern about mental health, a nonprofit focused on youth may decide to incorporate mental wellness programs into its offerings. This flexibility ensures that the organization remains relevant and responsive to changing community needs.

Nonprofits can also use data to develop measurable goals and objectives. Clear metrics are essential for evaluating success. For example, if a nonprofit aims to increase awareness about a specific issue, identifying key performance indicators (KPIs) becomes vital. These may include the number of outreach events held, social media engagement, or volunteers recruited. With solid data backing their strategies, nonprofits are better equipped to demonstrate impact to donors and stakeholders.

Financial planning is another area where market research is useful. Understanding market dynamics can help nonprofits make informed budgetary decisions. For instance, if survey results show a heightened interest in environmental issues, a nonprofit could justify allocating more funds to that cause. Additionally, market research can reveal potential funding sources, ensuring sustainability.

To summarize the importance of market research in nonprofit business planning:

• Identifies target audiences and their needs.
• Analyzes competitors to find unique value propositions.
• Gathers community feedback to build trust and improve programs.
• Uncovers trends that inform strategic adjustments.
• Facilitates the development of measurable goals.
• Informs financial planning and funding opportunities.

In a landscape where nonprofits are continually striving to make a difference, comprehensive market research is not just beneficial; it is essential. By prioritizing this aspect in their business planning, nonprofits can ensure they are meeting community needs effectively and efficiently, paving the way for a greater impact.

Financial Projections: Crafting a Sustainable Budget for Your Nonprofit

Creating a strong financial foundation is crucial for the success of a nonprofit organization. Financial projections play a vital role in this process, helping nonprofits forecast their income and expenses over a specific time frame. By crafting a sustainable budget, nonprofits not only ensure their day-to-day operations run smoothly but also enhance their ability to secure funding and attract donors.

The Importance of Financial Projections

Financial projections provide a roadmap for your nonprofit. They help you plan for future revenue and expenses, guiding decision-making processes. Understanding your financial situation allows you to:

• Identify funding needs and secure grants.
• Monitor cash flow and avoid shortfalls.
• Make informed decisions related to programs and staffing.
• Communicate your financial health to stakeholders and potential donors.

Components of a Sustainable Budget

When developing financial projections, include the following key components:

1. Revenue Streams

Identify all potential sources of income. Common revenue streams for nonprofits include:

• Grants from government and foundations
• Individual donations and fundraising events
• Sponsorships and partnerships
• Program service revenue

Understanding these streams helps you predict how much money your nonprofit can expect to generate during the budgeting period.

2. Expense Categories

Break down your expenses into manageable categories. Typical expense categories include:

• Program expenses: Costs directly related to the services your nonprofit offers.
• Administrative costs: Overhead expenses that keep the organization running, such as salaries, office supplies, and utilities.
• Fundraising expenses: Costs associated with raising money, including marketing and events.

By categorizing expenses, you’ll be better equipped to control costs and forecast when more funding will be needed.

3. Cash Flow Projections

Track the timing of income and expenses to create a cash flow projection. This helps you anticipate when you may need extra funds to cover operational costs. A good cash flow projection includes:

• Timing of incoming donations and grant payments
• Monthly or quarterly expense patterns
• Reserve funds for unexpected expenses

Understanding cash flow ensures your nonprofit remains financially stable and can meet its obligations.

Tips for Crafting Financial Projections

To create effective financial projections, follow these best practices:

1. Use Historical Data

Analyze past financial performance to inform your projections. Historical revenue and expense trends can provide insight into what you can realistically expect in the future.

2. Be Conservative in Estimates

Aim to be cautious with your projections, especially regarding revenue. It’s better to overestimate expenses and underestimate income to prevent budgeting shortfalls.

3. Revise Regularly

Your budget should be a living document that you revisit and adjust. Regularly update it to reflect changes in funding, program delivery, or operational costs.

4. Consult Stakeholders

Engage your board of directors, staff, and key volunteers in the budgeting process. Their perspectives can uncover important insights and foster transparency.

Presenting Financial Projections

Once you’ve crafted your budget, effectively present your financial projections to stakeholders. Use succinct reports, charts, and visual aids to communicate the data clearly. Key elements to include are:

• Clear explanations of revenue sources and expense categories
• Visual representations of financial goals and performance
• Justifications for funding requests and the impact of various programs

Ultimately, effective financial projections are essential for a nonprofit’s sustainability. By developing a comprehensive and realistic budget, nonprofits can navigate challenges and focus on achieving their mission. A well-structured financial plan not only enhances operational efficiency but also builds trust and confidence with donors and stakeholders alike.

Measuring Success: Evaluating the Impact of Your Nonprofit Business Plan

Implementing a nonprofit business plan is just the beginning of a rewarding journey in the nonprofit sector. Yet, understanding how to measure success is equally crucial. Nonprofits must evaluate their impact effectively to ensure they fulfill their mission and serve their communities well. Let’s explore some key methods and metrics to evaluate the success of a nonprofit business plan.

Setting Clear Goals

Before assessing success, it’s vital to set clear, measurable goals within the business plan. You can use the SMART criteria:

• Specific: Define what you want to achieve.
• Measurable: Identify how you will measure progress.
• Achievable: Ensure that the goals are realistic within your capabilities.
• Relevant: Align the goals with your mission.
• Time-bound: Set deadlines for achieving these goals.

By starting with SMART goals, you create a solid foundation for evaluating success later on.

Qualitative vs. Quantitative Measurements

Nonprofit organizations can measure success through both qualitative and quantitative metrics. Both metrics provide valuable insights into different aspects of the organization’s performance.

Quantitative Measurements

These are numerical indicators that help you gauge performance easily. Consider these examples:

• Number of people served by your programs.
• Funds raised through donations and grants.
• Volunteer hours logged by community members.
• Changes in community statistics, such as reduced homelessness or improved literacy rates.

By tracking these metrics, organizations can assess their overall effectiveness and make data-driven decisions.

Qualitative Measurements

These focus on the quality of your services and organizational impact, often more subjective but equally important. Examples of qualitative measurements include:

• Feedback from program participants.
• Testimonials from community members and stakeholders.
• Case studies of individuals or families who have benefited from services.
• Evaluation reports from external reviewers.

Gathering qualitative data helps provide a fuller picture of a nonprofit’s impact beyond numbers.

Regularly Reviewing and Revising Your Plan

Metrics should not just be set and forgotten. Conduct regular evaluations of your nonprofit business plan. This process often involves:

• Monthly or quarterly reviews of progress toward your goals.
• Annual evaluations to reflect on major accomplishments and setbacks.
• Soliciting feedback from staff, volunteers, and beneficiaries.

Engaging with stakeholders during reviews can reveal areas needing improvement and inspire fresh ideas and solutions.

Utilizing Technology for Evaluation

Technology offers powerful tools for measuring success. Consider using software tailored for nonprofits, like:

• Customer Relationship Management (CRM) systems to track donors and interactions.
• Project management tools to monitor program implementation.
• Survey platforms to gather feedback from community members.

These tools simplify data collection and analysis, allowing you to focus on what truly matters: your mission.

Communicating Your Impact

Once you have gathered and analyzed your data, it’s vital to communicate your findings. Stakeholders—donors, board members, and the community—will want to know about your success. Consider these communication strategies:

• Use infographics to visually represent your progress.
• Share stories of individual beneficiaries through social media.
• Create an annual report summarizing your achievements and future goals.

By clearly articulating your impact, you help strengthen relationships with supporters, which is crucial for ongoing funding and engagement.

Evaluating the impact of a nonprofit business plan is an ongoing process that combines setting clear goals, leveraging both qualitative and quantitative measurements, utilizing technology, and maintaining open lines of communication with stakeholders. By focusing on these aspects, nonprofits can ensure they are not only meeting their mission but also continuously adapting to the changing needs of their community.

Creating a solid nonprofit business plan is essential to the success and sustainability of any organization dedicated to serving the community. By reviewing various nonprofit business plan examples, we can glean valuable real-world insights that can guide both new and established nonprofits in crafting their unique strategies. These examples highlight the importance of storytelling and authenticity in communicating a nonprofit’s mission, vision, and values.

An effective nonprofit business plan must include key components such as a clear mission statement, defined goals, market analysis, and an organizational structure. These elements not only serve as a roadmap for the organization but also attract potential donors and volunteers. When drafting these plans, staying clear of common mistakes—like vague language or failing to outline specific strategies—is crucial for ensuring clarity and purpose.

Tailoring your nonprofit business plan for grant applications adds another layer of complexity. Funders want to see well-researched plans that align with their interests. Including detailed market research not only demonstrates your understanding of the community needs but also builds credibility. It helps you craft objectives that resonate with your target audience while addressing genuine gaps in services.

Financial projections are at the heart of your business plan. A sustainable budget will help secure funding and allow your nonprofit to thrive in the long run. Investors want to see realistic revenue expectations, budget breakdowns, and potential risks.

Success isn’t just about the financials; it’s about measuring the impact of your nonprofit. Setting clear evaluation criteria helps you assess progress and adjust strategies accordingly. This cycle of planning, executing, and evaluating fosters growth and leads to increased trust from your stakeholders.

As you embark on crafting or refining your nonprofit business plan, remember that it’s not just a document—it’s a vital tool that can drive meaningful change in your community when approached thoughtfully and strategically. By learning from real examples, avoiding pitfalls, and aligning your plan with both community needs and funding opportunities, you’ll position your nonprofit for long-term success.

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Charity Business Plan

Various people lead different lives. That said, individuals consequently end up setting varying career goals . Some of them, such as people like you, find their calling in helping others. Most people who like supporting a cause start a charity. If you are here because you are planning to start one, or probably because you are finding ways to keep your nonprofit organization up and running, continue reading this article and learn how to devise a charity business plan.

10+ Charity Business Plan Examples

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What Is a Charity Business Plan?

A charity business plan is a document that provides a detailed description of the nonprofit organization. It also includes an outline of the business marketing strategy and techniques to secure volunteers and sponsors of the charity’s cause. In addition, it involves conducting a nonprofit analysis and other essential elements considering the influential factors in setting an organization. 

How to Generate a Charity Business Plan?

A charity is different from a profit organization in how it handles its income and expenses. As a figurehead, you need to think as a businessman would. That said, you need to strategize and plan on how to secure business opportunities and how to handle various circumstances. Help more people by making your charity a success. 

1. Conduct a Nonprofit SWOT Analysis

To know how your charity is operating and how you can better it, you must conduct a nonprofit SWOT analysis . This method will help you understand the standing of your nonprofit organization. Also, it will lead you to discover the strength of your organization and the weak areas that you need to improve. In addition, it will also uncover opportunities and help you detect the possible threats that will put your nonprofit business at risk.

2. Set Your Organizational Goals

The next step is to strengthen your organization’s cause by setting your goals. Goal-setting is a crucial step for all business ventures, may it be a profit or nonprofit. It is because your organizational goals will set the direction for all the upcoming plans and strategies. In addition, it will also strengthen your cause and help you come up with strategic methods to achieve your aim. 

3. Devise a Nonprofit Marketing Plan

Now that you have your target, the next step in generating your charity business plan is to devise a nonprofit marketing plan . One way to secure and retain your foundation is to find people who would love to support your cause. To do that, you need to develop nonprofit marketing strategies . This action will boost the people’s awareness and persuade them to sponsor and volunteer for your organization. 

4. Detail Your Nonprofit Budget

Another essential element to consider is your nonprofit budget . To gain more knowledge regarding your budget, you should conduct a financial analysis. To do this, you need to take note of your charity’s expenses and income. Take out essential paperwork that you might need in calculating for your budget plan . Remember to label each item on your budget sheet in detail to avoid confusion.

What are the best ways to raise funds for your charity?

There are numerous ways of fundraising for a charity. One of the best methods is to conduct fun and unique fundraising events. You can do all sorts of things for your event, such as bake sales, charity auctions, crowdfunding marathons, and boosting your online presence to ask for online donations. All of these are effective methods you can incorporate into your nonprofit fundraising plan .

What is a charity proposal?

A charity proposal is a document that will communicate your organization’s mission and vision, as well as your cause, to the potential prospects. This proposal letter will present your strategies and plans to secure sponsors and financial donations from charity volunteers. Writing this form is one method to raise funds for your charity. There are available business proposal templates online to make the process of composing this document easier.

What are some examples of impressive charity goals?

One example of a charity goal would be to increase staffing. Just like other businesses, nonprofit organizations need employees that will render their services. The more quality employees you have, the more people you can help. Another one is to gain more sponsors and volunteers. Most of the budget of charities comes from the donations of people who support a similar cause.

When doing business, a professional must not only look in one direction. Instead, you must do a complete three-sixty and look at all the possibilities for your organization. This statement applies to all business ventures, including nonprofits such as a charity. One way to do that is to evaluate the ins and outs of your business while devising a business plan. Generate a charity business plan as early as now to attain your goals.

Text prompt

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Create a study plan for final exams in high school

Develop a project timeline for a middle school science fair.

How to write a business plan for a small charity

Table of Contents

Description of charity

Explaining the audience, swot analysis, opportunities, financial projection, manage your finances for achieving objectives with countingup.

Typical businesses use a plan to secure funding by sharing it as a proposal to investors or forming part of an application to the bank for a loan. For a charity, though, there might be other uses to putting together a business plan . These may include the ability to set out a direction for your organisation or look for sizable donations, which may require you to share a plan.

This guide will make sure that you can get on with reaching your social objectives by showing you how to write a business plan for a charity. It includes:

For a social enterprise (charity), the business’ objectives are different from usual companies. Typical companies may aim to create wealth for the owner, for example. But, according to the UK Government , to be legally considered a charity, your organisation must have a charitable purpose. So the first thing to include in your business plan should be these aims.

If you can make it clear what the objectives of your business are, it provides a greater incentive for people to donate. It might also be helpful to explain why it’s the purpose you chose. With an objective, you should also describe how the organisation plans to help it. For example, if your charity aims to help blind people, they may look to fund guide dogs to be provided for them.

The other key element of your description of your charity should be how you plan to fund it. You may sell products, provide services or ask for donations. There may be other charities helping a similar cause, so you should also describe what makes you unique that will make people want to donate.

Charities rely on funding to fulfil their objectives. Without it, you may struggle to help those you would like to. As a result, running the organisation requires some business thinking. For example, identifying a target audience most likely to donate or pay for products/services shows that you are more likely to reach your goals.

To find your audience, you may have to carry out market research . Speak directly to those affected by the issue you aim to solve and those interested in helping your charity. You can gather information through surveys and interviews to find out as much as possible about your market. Another way to do this is by looking at similar charities’ focus and who they target.

It may be helpful for you to put together a customer profile (sometimes called customer avatar) to use your findings from your market research productively. By having a hypothetical person to think about, you can find insights for where you should be marketing to them and why they would donate. 

A customer profile could include:

Putting these details together helps you describe how you plan to market your charity.

For more information on how to market your small business, see: How to Market Your Small Business Effectively: 9 Top Tips

It is essential to understand where the current position of your charity is to help you plan for the future. To think about all aspects of your business, you can do a SWOT analysis . This technique focuses on your strengths, weaknesses, opportunities and threats.

Your organisation’s strengths should provide the reasons that your charity is likely to achieve its goals. For example, you could mention the quotes and information of those who would benefit you in your marketing.

There are likely some weaknesses your charity may have. Identifying them lets you talk about how you will get over them. For example, if you lack experience in financial management, mention that you plan to use an app like Countingup to make it easier.

If you show that there are opportunities your organisation can take advantage of, it might give more confidence to someone willing to donate. For example, if a sports event is coming up later this year that relates to your cause, maybe you could partner with them.

Like any business, there may be potential threats to your charity. But by mentioning them, you can also say how you plan to avoid them. For example, if you sell donated things and you run out, mention your plans to make other things to sell.

Even though the primary purpose of the business is not to make a profit for the owners, it’s still essential that the charity covers its costs and makes enough to fund its social activities. So, it could be helpful to provide your business plan with some calculations to reassure those looking to donate towards your organisation that it will go towards a successful venture.

A sales forecast estimates the sales you expect. Multiply your planned prices for products, services or typical donation amounts by the number of customers you expect. Put this to a timescale of a month, quarter or year. You can refer to your projections in later stages and compare your performance.

This section may also be helpful for you to detail what the business would be hoping to use donations for specifically. For example, you may pay a marketing agency for a social media campaign if someone provides significant assistance. If you have a smaller donation, though, that may reach your particular objective.

It is important for your financial projection to be accurate and for you to monitor whether your business is sticking to your expectations. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, you can see exactly where your costs are going in your charity. To make sure that you can fulfil the objectives of your organisation, cash flow insights let you receive reports about your finances. You can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Start your three-month free trial today.  Find out more here .

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Free Example UK CIC or Charity Business Plan Template

Uk cic and charity business plan template - 3 steps.

I've used the term charity business plan and as an example. Your business plan is what you aim to achieve in the coming year.  However, this planning template and checklist will work just as well for fundraising, project and other plans, and will work just as well for your CIC or other not for profit organisation.

The only right way to create a charity business plan is whatever way works for your charity and you can use this simple 3 step process as a template to create your CIC or charity business plan.  That could be anything from a one page business plan in Word, for a very small CIC, to a substantial, detailed business plan for a large UK charity.

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Step 1 - charity business plan goals & objectives.

Your objectives (or goals) are what you must achieve to deliver your charity business plan.  These can either be long term (strategic plan)) or nearer term, such as annual business, fundraising and project plans.

Charity Business Plan Objectives - Strategic Plan

Often strategic and business, or other annual plans can be seen as quite separate, but these are not.  Next year's business plan, is Year 1 of your strategy.  Looking at your strategic plan objectives, what must you achieve in the coming year to deliver these?

Charity Business Plan Objectives - Operations

You also need to ensure that your charity continues to be well run and delivers the high quality support you want it to.  Look at your operations, such as delivering services for your beneficiaries, fundraising, finance, people and other activities.  What are the key activities and what must you achieve in these areas areas?

STEP 2 - CHARITY BUSINESS PLAN KPIs (TARGETS)

Trying to measure everything would take a huge amount of time and most won't really matter.  Your Key Performance Indicators (KPIs) are the key targets you use to measure and monitor your progress to achieving your business plan objectives.

Measuring Charity KPIs

There are really only 3 things you might want to measure - quality, quantity, time and cost.  And, these are interlinked.  The public sector is particularly prone to what are called perverse outcomes.  Focussing on a single KPI measure, to the exclusion of the others that nobody thought about, but which turn out to be really important.

• Buying higher quality fresh food and/or preparing food from scratch, rather than buying in pre-prepared.
• Preparing more meals and/or extending opening times.
• Using pre-prepared ingredients and buying more equipment/expanding kitchen capacity.

You don't need to measure all of them for everything, if the other factors aren't important, or won't change.  I've provided some examples of planning KPIs below.

How To Set Charity Business Plan KPIs

In order to ensure you deliver your charity business plan objectives, you need to be able to measure these and monitor progress.

The first step is to set KPIs for each objective using SMART – that is your KPIs are S imple, M easurable, A chievable, T imely and R elevant.

You then need to decide who will be responsible for delivering and reporting these, any milestones in terms of when activities will be delivered and how and when these will be reported.

Once you've set your business plan KPIs, ask yourself if these are the key issues you need to monitor and manage to deliver your business plan objective. Are there any KPIs you don't need and is there anything missing that you do?  And does each KPI meet the SMART criteria above?

STEP 3 - IMPLEMENTING YOU CHARITY BUSINESS PLAN

The Charity Excellence Data Store tracks sector resilience and a key theme is a lack of realism in charity planning.  Ambition is a hallmark of the sector, but 'Aspirational' is the flip side of planning to fail, if that involves committing people and resources to business plans that aren't achievable.  Here are my ideas to help you ensure that your business plan will succeed.

Charity Business Plan Reality Checklist

For your charity business plan to work, you need to be able to confidently answer 'yes' to each of the questions below.  That's about making an objective assessment of each.

• Our charity business plan includes everything that's important to us that we want to achieve
• Our business plan objectives and targets are realistic and achievable
• We will have enough people, with the necessary skills and experience to deliver our plan
• The key risks have been identified and quantified
• We have taken adequate steps to manage these, to ensure no risk remains unacceptably high
• There is adequate funding in our budget to resource all of our business plan objectives
• Our fundraising targets are realistic and we are confident that these should be achieved
• For example, not launching a project until funding is secured, or having plans to scale back activity
• Our business plan has been communicated to everyone who needs to know about it and it is simple, clear and will be understood by them
• The information reported focusses on the key issues and will enable us to take action in good time, if we need to

Congratulations, you have created a simple, clear and effective business plan.  If you are unsure about any of the above, revisit your plan and make any changes you need to.

Communicating Your Charity Business Plan And Making It A Success

The World is full of detailed and beautifully crafted business plans sitting on shelves gathering dust.  In any, except the smallest of charities, it is your staff and volunteers who will deliver your business plan, so they need to know what you want them to do and feel motivated to do so.  If you e mail a big complicated business plan to everyone, it may not be read and, if it is, may not mean much to its readers.

You need to communicate your plan in a simple, clear way that engages them. It also needs to be reflected in any other plans or procedures. For example, your budget and risk plans, any project plans and, for larger charities, appraisal objectives and departmental work plans.

For reporting, sometimes reports are too 'fluffy' or nor easily understandable, or far too long and complicated.  Often these can be simply rubber stamped by boards.  Ensure that your reports meet your needs, focus on the key issues, are clear and understandable for trustees, and acted upon.  Here's the  Charity Excellence guide  to making reports more effective and less work.

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Charity excellence framework cio.

• Student Loans and Code Section 127 Educational Assistance Programs: A Reminder from the IRS, FAQs, and a Sample Plan Document
• They can be used to help reimburse the costs of or pay for employees’ student loans through December 31, 2025;
• They must be established in writing and cannot discriminate in favor of highly compensated employees;
• In most cases, benefits under such programs are excluded from federal income tax withholding, Social Security tax, Medicare tax, and federal unemployment (FUTA) tax; and
• Tax-free educational benefits are limited to $5,250 per employee per year.

Earlier this summer, the IRS also issued Fact Sheet 2024-22 with FAQs regarding educational assistance programs. Of note, the FAQs include a sample plan document that employers can modify to establish an educational assistance program, and they provide protection from penalties based on reasonable, good faith reliance on the FAQs. This post focuses on the student loan aspects of the FAQs and provides actionable steps for employers who offer, or intend to offer, an educational assistance program.

For many years, employers have offered educational assistance programs to assist employees with the cost of tuition, fees, books, equipment, and supplies on a tax-free basis. In 2020, the Coronavirus Aid, Relief, and Economic Security Act amended Code Section 127 to add certain student loan payments to the types of eligible educational assistance available.

The FAQs restate the IRS’s prior guidance on educational assistance programs and, for the first time, provide guidance regarding the treatment of student loans. With respect to student loans, the FAQs state that:

• the loans must be incurred by the employee for the education of the employee only, not a spouse or a child of the employee;
• when the loan was incurred does not matter;
• only loans for education at an “eligible educational institution” qualify, and “eligible educational institutions” include:
• any college, university, vocational school, or other postsecondary educational institution as defined in Code Sections 221(d)(2) and 25A(f)(2); [1]
• an institution conducting an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training; [2]
• only student loan debt incurred for tuition, fees, books, equipment, and supplies qualifies;
• loan payments paid or reimbursed by the employer must be made during the period beginning March 28, 2020 and ending December 31, 2025 (unless extended by future legislation) and may be paid directly to a third party such as an educational provider or a loan servicer, or directly to the employee;
• if an employee seeks reimbursement for student loan payments, the payments must be paid by the employee while an employee and in the same calendar year for which reimbursement is made by the employer;
• the total amount that the employee can exclude from gross income for payments of principal or interest on student loans and other educational assistance under Code Section 127 is $5,250 per calendar year; and
• “unused” amounts of the $5,250 annual limit cannot be carried forward to subsequent years.

For example, an employer may reimburse an employee in 2025 for the payments made in 2025 on student debt incurred by the employee in 2015 prior to employment if the other requirements described above are satisfied, but an employer cannot reimburse the employee after 2025 for any student loan payments.

Reliance on FAQs

The IRS expressly states in Fact Sheet 2024-22 that:

• taxpayers who rely in good faith on the FAQs will satisfy the reasonable cause standard for penalty relief, and
• if an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer’s case, the law will control the taxpayer’s tax liability, not the FAQs.

What should employers do?

Employers who offer, or intend to offer, an educational assistance program should:

• maintain a written plan and provide reasonable notice of the availability of the program to employees;
• if providing student loan assistance as part of the program, ensure the terms of the plan reflect that; and
• review the IRS sample plan , which includes: (1) optional provisions that allow the employer to choose whether or not to include student loans as an educational assistance benefit under the plan; and (2) mandatory provisions describing non-discrimination and substantiation requirements.

As a design matter, employers may also want to consider limiting eligibility for the program to employees who are not highly compensated as defined by Code Section 414(q). [3] This will dramatically simplify administration of the program because the program would automatically pass required non-discrimination testing. [4]

Overall, the reminder, the FAQs, and the sample plan document are valuable tools for employers that have established, or are looking to establish, educational assistance programs.

Anything else about student loans?

For plan years beginning after December 31, 2024, SECURE 2.0 allows employers to make matching contributions to certain retirement plans based on qualified student loan payments by employees. Our August post describes in detail the IRS guidance on this change in the law.

[1] The Department of Education determines whether an organization is an eligible education institution. A loan, however, does not have to be issued or guaranteed under a Federal postsecondary education loan program to be a qualified education loan.

[2] Code Section 221(d)(2)(B).

[3] Generally, an employee who: (1) during the current plan year or the preceding plan year was at any time a more than 5% owner of the employer; or (2) received compensation from the employer for the preceding plan year in excess of $150,000 (for 2024) is a highly compensated employee for the current plan year.

[4] Note, there is an additional limit relating to more than 5% owners of the employer: not more than 5% of the amounts paid or incurred by the employer for educational assistance during the year may be provided for such individuals (or their spouses or dependents), considered together as a group.

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