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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.

How to Write a Nonprofit Business Plan

Female entrepreneur speaking with an employee of a nonprofit at their computer. Chatting about planning for nonprofit donors.

Angelique O'Rourke

13 min. read

Updated October 27, 2023

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.

What’s your biggest business challenge right now?

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 .

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Content Author: Angelique O'Rourke

Artistic + intellectual pursuits. Social justice. Actress. Model. Musician. Eugene // Portland.

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Free Nonprofit Business Plan Templates

By Joe Weller | September 18, 2020

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

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

Nonprofit Business Plan Template

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

One Page Business Plan for Nonprofit Organizations 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

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

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

Nonprofit Business Plan Template for Youth Program Template

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

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

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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The best nonprofit business plan template

nonprofit financial business plans

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.

nonprofit financial business plans

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.

nonprofit financial business plans

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 + Full Example

how to write a nonprofit business plan

A nonprofit business plan is an essential tool for any organization looking to grow and achieve its goals. By taking the time to develop a comprehensive plan, your nonprofit can ensure that it is on the right track for success.

What is a Nonprofit Business Plan?

A non-profit business plan is a document that outlines the goals, strategies, and financial projections of a nonprofit organization. It can be used to attract funding from donors or investors and to track the progress of the nonprofit over time.

Download our Ultimate Nonprofit Business Plan Template here

Why Do You Need a Business Plan For Your Nonprofit?

A nonprofit business plan is important for several reasons.

  • It can help you clarify your organization’s goals and strategies.
  • It can help you assess the feasibility of your proposed projects and programs.
  • It can be used to attract funding from donors or investors.
  • It can help you track the progress of your nonprofit over time.

Preparing To Write Your Nonprofit Business Plan

Every nonprofit group needs to have a business plan in place before its existence. The purpose of the business plan is to provide direction and ensure that the nonprofit’s resources are used in an effective manner.

The first step in writing a nonprofit business plan is to conduct a feasibility study. This study will help to determine whether or not the nonprofit is viable and whether or not it has the potential to be successful. The feasibility study should include an assessment of the current market, an examination of the competition, and a review of the financial resources that are available to the nonprofit.

The nonprofit must be able to answer the following four questions:

  • What will you do?
  • How will you do it?
  • Who will be responsible for carrying out your activities?
  • What resources (money, people, equipment) do you need in order to carry out your plans?

Once the feasibility study has been conducted, the next step is to develop a mission statement for the nonprofit. This statement should explain what the nonprofit is trying to achieve and why it exists. The mission statement should be clear and concise, and it should be easy for nonprofit staff, board members, and donors to understand.

The nonprofit’s mission statement should be clear and concise. It should answer the following questions:

  • What is your nonprofit organization’s purpose?
  • What are your goals?
  • Who do you serve?
  • What makes you unique?

Next, determine your target audience. Who do you plan to serve with your nonprofit services? You need to know their characteristics (location, age range, gender, income level, etc.). This information will help you determine how best to reach them and what services to offer.

Once you know your target audience it is important to determine what services you will offer them. List each service in detail including what it is, how it will benefit your target audience, and what resources are needed to provide it.

Now that you know these key pieces of information, it’s time to develop a nonprofit business plan that will help the nonprofit grow over time. The business plan should include information on the nonprofit’s products, services, target audience, nonprofit marketing strategies, nonprofit operations plans utilizing its human resources and financial resources.

In addition to the four questions listed above, your nonprofit’s business plan should also answer the following:

  • What is your nonprofit’s organizational structure?
  • How will you raise money?
  • What are your marketing plans?
  • What are your policies and procedures?

Your nonprofit’s business plan is a living document that should be updated regularly as your organization grows and changes. It is important to revisit it often and make sure that all of your plans and activities remain in line with your mission statement.

How to Write Your Nonprofit Business Plan

There is no one formula for writing a nonprofit business plan. However, there are a few key elements that every business plan should include. Here are the essential components:

  • Executive Summary – This is a summary of your entire business plan, and should include a brief description of your nonprofit organization, its mission and goals, the problem you are trying to solve, your proposed solutions, and an overview of your financial projections.
  • Organization Overview – This section should include a description of your nonprofit organization, its history, governing structure, and key programs and services.
  • Products, Programs, and Services – This section should describe the products, programs, and services your nonprofit offers in detail.
  • Market Analysis – This section should include an analysis of the nonprofit market, including information on the size of the market, the competition, and the needs and wants of your target audience.
  • Customer Analysis – This section should include an analysis of your nonprofit’s target audience, including information on their demographics, needs, and wants.
  • Marketing Strategy – This section should include a detailed marketing plan, including information on how you will reach your target audience and what methods you will use to promote your products, programs, and services.
  • Operations Plan – This section should include a detailed description of your organization’s day-to-day operations, including information on staffing, facilities, equipment, and supplies.
  • Management Team – This section should include the biographies of your nonprofit’s governing board members, executive director, and any other key staff.
  • Financial Plan – This section should include a detailed financial forecast, including information on your nonprofit’s income and expenses, as well as projections for the next three to five years.
  • Appendix – This section can include additional information such as copies of your nonprofit’s bylaws or articles of incorporation, letters of support from key stakeholders, or market research surveys.

Learn more about each of these essential components using our non-profit business plan template.

Sample Nonprofit Business Plan

Nonprofit business plan example – let children prosper, executive summary.

Let Children Prosper is a nonprofit organization that provides educational resources to low-income families in the New Orleans, LA community. The organization was founded in response to the high school dropout rate in the city, which is disproportionately high among low-income students. Let Children Prosper’s goal is to help these students stay in school and graduate with the skills they need to succeed in life.

Organization Overview

Let Children Prosper was founded in 2014 by Jamal Brown and Latonya Williams. The organization is a 501(c)(3) nonprofit and operates out of New Orleans, LA. Let Children Prosper’s mission is to provide educational resources to low-income families in order to help their children succeed in school and beyond.

Nonprofit Mission Statement

Our nonprofit’s mission is to provide educational resources to low-income families so their children can stay in school and graduate with the skills they need to succeed. Let Children Prosper believes that education is the key to breaking the cycle of poverty and helping low-income individuals and their families achieve economic security.

Vision Statement

Our nonprofit aims to expand our presence throughout New Orleans, LA by securing nonprofit funding from both public and private sources. We also hope to reach schools throughout Louisiana and other states.

Products, Programs, and Services

Our nonprofit’s vision is to provide educational resources to low-income families with children who are at risk of dropping out of school due to a lack of resources.

Our nonprofit works to equip these students with the skills necessary for achieving economic security, which makes them more likely to graduate high school and attend college or vocational school.

We aim for our nonprofit’s services to be accessible throughout New Orleans, LA as well as schools across Louisiana and other states so that we can reach as many families in need as possible.

We hope that by offering free programs such as financial literacy classes and workforce development services, Let Children Prosper will help break the cycle of poverty by equipping low-income individuals with the skills needed for achieving economic stability. Listed below are some of our nonprofit’s core programs.

  • Financial Literacy Classes: These classes provide essential information about financial planning and budgeting so that families can make sound financial decisions for their children’s education and future.
  • Workforce Development Services: These services help prepare individuals for careers by teaching them essential skills such as resume writing, interviewing techniques, and job search strategies.

Market Analysis

Our nonprofit’s target audience is low-income families with children who are at risk of failing school due to a lack of educational resources.

According to the National Center for Children in Poverty, “Although poverty rates declined during the 1990s, they remain high; 21 percent of American children under age 18 (16 million) were poor in 2010, compared to 18 percent (15 million) before the recession” (NCCP).

Let Children Prosper offers several core programs that provide resources such as financial literacy classes and workforce development services which our target audience needs to help them through difficult times and equip them with skills necessary for achieving economic security.

A study conducted by Tulane University reports that students living in New Orleans, LA are three times more likely to drop out of school than other students in Louisiana and the rates of high school dropouts among students living in poverty are approximately seven times as high as those living above poverty (Tulane University).

Given these alarming statistics, it is evident that our nonprofit is much needed in the area.

Customer Analysis

Our nonprofit’s customers are low-income families who have children who are at risk of dropping out of school.

These families may not have access to essential resources that their children need in order to stay in school and graduate.

Let Children Prosper offers financial literacy classes and workforce development services that can help these students achieve economic security and break the cycle of poverty.

The table below shows data from a study conducted by Tulane University which illustrates that there is a significant need for our nonprofit’s services.

Source: Tulane University

The table above shows that there is a significant need for our nonprofit’s services among low-income families who are of different races and ethnicities.

For example, the percentage of African American children living in poverty is 71%, which is significantly higher than the percentage of Caucasian children living in poverty (10%).

This data illustrates that our nonprofit reaches a wide variety of people who are in need and provides them with essential resources that they may not have access to otherwise.  

Marketing Strategy

Our nonprofit marketing strategy will include the use of print, radio, and television advertisements as well as social media platforms such as Facebook and Twitter.

We will also distribute flyers and brochures in local schools, community centers, and churches.

Lastly, we will host information sessions and workshops to provide more detail about our nonprofit’s programs.

The table below shows data from a study conducted by Nielsen which illustrates that African American families are more likely to watch television than Hispanic and Caucasian families.

nielsen ethnicity tv habits

Source: Nielsen

This data indicates that Let Children Prosper should focus on running television advertisements since this is the most effective way to reach our target audience.

We should also consider running radio advertisements, as African American and Hispanic families are more likely to listen to the radio than Caucasian families.

Lastly, we should focus on using social media platforms such as Facebook and Twitter to reach our target audience.  

Operations Plan

Let Children Prosper is a nonprofit organization that offers workforce development services and financial literacy classes to low-income families who have children at risk of dropping out of school.

The organization’s day-to-day operations will include providing these services to the target audience.

Let Children Prosper will be staffed by a team of experienced professionals who are passionate about helping low-income families break the cycle of poverty.

Let Children Prosper will operate out of a facility that is located in a low-income area. This facility will be equipped with the necessary resources to provide our services.

Let Children Prosper will need to purchase supplies in order to provide workforce development services and financial literacy classes.

Goals & Initiatives

Our nonprofit has three primary goals which we will focus our efforts on achieving in the 20XX fiscal year:

  • Goal 1: To provide quality educational programming and services to students in need.
  • Goal 2: To increase the academic success of students in our programs.
  • Goal 3: To secure funding to support our programs and services.

To achieve our goals, we will undertake the following initiatives:

  • Initiative 1: Expand our tutoring and case management programs to serve more students.
  • Initiative 2: Conduct research on best practices in nonprofit education and implement these practices in our programming.
  • Initiative 3: Hold fundraising events and seek corporate sponsorships to generate revenue for our nonprofit.
  • Initiative 4: Increase the visibility of our nonprofit through marketing and communications efforts.

Management Team

Let Children Prosper will be operated by a staff of five people who will be responsible for managing the nonprofit’s programs and services.

Let Children Prosper’s organizational structure can be seen below:

example nonprofit organization chart

The nonprofit’s Director and Program Manager will work closely with the nonprofit’s Board of Directors to monitor our nonprofit’s progress and evaluate the effectiveness of our programs.

Our nonprofit will also hire tutors and case managers who will provide individualized attention to students in need which are vital for their academic success.

Sue Smith is the nonprofit’s Director and Program Manager. She has over 10 years of experience working with nonprofit organizations, and she has a degree in Sociology from Tulane University.

George Brown is the nonprofit’s Program Manager. He has over 5 years of experience working with nonprofit organizations, and he has a degree in Business Administration from Southern Methodist University.

Caitlin Moore is the nonprofit’s Development Director. She has over 7 years of experience working in nonprofit development, and she has a degree in Psychology from Tulane University.

Jessica Doe is the nonprofit’s Fundraising Coordinator. She has over 5 years of experience working in nonprofit fundraising, and she has a degree in Communication Studies from the University of Texas at Austin.

Lisa Davis is the nonprofit’s Marketing & Communications Specialist. She has over 10 years of experience working in nonprofit marketing and communications, and she has a degree in Journalism from the University of Texas at Austin.

Board of Directors:

Kelly Johnson is the nonprofit’s Board Chairperson. She is a community leader and business owner who has over 20 years of experience working in the nonprofit sector.

John Doe is the nonprofit’s Board Vice-Chairperson. He is a community leader and business owner who has over 20 years of experience working in the nonprofit sector.

Mary Smith is the nonprofit’s Board Treasurer. She is a community volunteer who has over 10 years of experience working in the nonprofit sector.

Sam Smith is the nonprofit’s Board Secretary. He is a community volunteer who has over 10 years of experience working in the nonprofit sector.

Let Children Prosper’s nonprofit board of directors has a combined 20 years of experience working in nonprofit leadership and management.

Over the course of Let Children Prosper’s first year of operations, we expect that the nonprofit will need to hire tutors and case managers as well as new volunteers to help with fundraising efforts; however, these positions will not be included in our nonprofit’s budget for 20XX.

Financial Plan

Our nonprofit is a 501(c)(3) nonprofit organization and relies on donations from individuals, businesses, and other organizations to fund our programs and services.

In order to continue providing our essential programs and services, we need to secure funding from both public and private sources.

Some of the ways in which we hope to secure this funding include applying for grants, holding fundraising events, and seeking corporate sponsorships.

Income Statement

Our nonprofit’s income statement is shown below:

As a result of our net income of $83,568 in Year 2, we will be able to continue providing our essential programs and services to the community.  

Balance Sheet

Our nonprofit’s balance sheet is shown below:

The nonprofit’s net assets will increase by $35,000 as a result of our income statement.  

Cash Flow Statement

Our nonprofit’s cash flow statement is shown below:

The nonprofit’s expected cash balance of $90,188 will be used to continue providing our essential programs and services to the community.

For 20XX, we expect that most of our funds will come from private donations; however, we require some donations for our operating expenses. As a result, the nonprofit plans to apply for grants this year.

Additionally, the nonprofit is always looking for opportunities to expand its fundraising efforts with events or corporate sponsorships. The nonprofit has also begun looking into ways we can use social media to develop a stronger online presence and increase brand awareness.

Let Children Prosper is committed to transparency and accountability. We will be publishing our nonprofit’s annual report on our website which will include a financial overview as well as program and service highlights.

Fundraising Strategy

The nonprofit plans to seek out individual donors as well as larger contributions from businesses and other organizations.

Our nonprofit relies on donations from individuals, businesses, and other organizations.

In order to continue providing our essential programs and services, we need to secure funding from both public and private sources. Some of the ways in which we hope to secure this funding include applying for grants, holding fundraising events, and seeking corporate sponsorships.

In order to generate more donations, we will be undertaking the following fundraising initiatives:

  • Annual Appeal Letter: This letter will be sent to past donors in order to request contributions for our nonprofit’s education programs.
  • Social Media Campaign: We will create a social media campaign on various platforms such as Facebook, Twitter, and Instagram to promote our nonprofit’s work and request donations from the public.
  • Online Fundraising Page: We will create an online fundraising page where individuals can donate to our nonprofit.

As a nonprofit organization, we aim to engage in donor outreach and online fundraising through websites such as Facebook and PayPal. We also plan to create a nonprofit blog where individuals can stay informed about our mission and learn how they can become involved with Let Children Prosper.

We are also exploring the option of hosting an annual fundraiser that will feature live entertainment, food, drinks, and opportunities to interact with nonprofit representatives.

Our nonprofit’s Board Treasurer is also a member of the Grants Coordinating Committee for the nonprofit’s parent organization which has resources that may be useful in securing grant funds for Let Children Prosper. Additionally, the nonprofit will begin looking into using social media such as Facebook or Instagram to increase brand awareness and improve brand recognition among our target audience.

The nonprofit has also applied for membership in the National Association of Nonprofit Organizations & Executives which will provide access to additional resources and training related to nonprofit management and fundraising.

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.  

Writing a Nonprofit Business Plan Conclusion

Developing this type of business plan can be challenging for many nonprofit groups because they may lack familiarity with basic business principles such as market research and financial projections. There are several steps that can be taken to make the process go more smoothly:

  • Get your team involved – A strong team effort will not only ensure that everyone has a voice when it comes to planning but also increase buy-in and motivation.
  • Utilize resources – There are many helpful resources available for nonprofit organizations, including books, online tutorials, and non-profit business plan template . Get our FREE nonprofit business plan pdf or nonprofit business plan Word .
  • Seek expert help – If you’re feeling overwhelmed or unsure where to start, it may be helpful to consult with an experienced business consultant or nonprofit organization.

How to Finish Your Nonprofit Business Plan in 1 Day!

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

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

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

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

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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

5 steps to creating a financial plan for your nonprofit

illustrated button and cursor with the words business basics

It’s commonly known that nonprofit organizations have different approaches to accounting compared to for-profit ones. Companies work to make a profit while nonprofits instead reinvest their money to fund a mission. However, it’s important to note that the two also have some similarities.

Both types of organizations should maintain a balanced budget and both require operational expenses to keep the doors open. Both need to pay their employees fairly and competitively to prevent turnover. And, both require accountants and automation solutions to operate as efficiently as possible.

It’s clear to see that in order to succeed, both nonprofits and for-profits need an effective financial plan.

Especially in a time of economic turbulence, a financial plan can make all the difference for organizations to weather the storm and come out on top.

However, this plan  will  look different depending on the type of organization and the operations of the organization itself. For instance, nonprofits in particular cannot forget these five essential steps:

  • Budget according to past data and goals.
  • Consider your overhead expenses.
  • Rely on and create an organized system.
  • Make well-informed decisions.
  • Maintain transparency with supporters.

Whether you’re new to financial planning or you’re a seasoned planner, it can help immensely to have a professional guiding your way during the process. Outsourcing your nonprofit accounting services will ensure you have a team of experts by your side who are willing to go the extra mile for your organization.

During a time of economic turmoil, what could be better than that? Let’s get a closer look at these five essential steps.

1. Budget according to past data and goals.

You’re probably familiar with the importance of a budget for your nonprofit’s financial success. One mistake that many people make as they craft their budgets is being too “optimistic” in their estimates for expenses and revenue. Too many organizations overestimate their potential for fundraising while underestimating the cost of nonprofit expenses.

In order to prevent this from happening to your organization, be sure you’re grounding your budget by basing your estimates on past data.  For instance, consider the following examples:

  • Let’s say you're planning the budget for this year’s annual gala. If last year’s event cost you $10,000, it’s not probable for it to cost $7,000 this year unless you’re planning drastic cuts. Look at the previous years’ events to get an idea of how much this year’s will cost.
  • Let’s say you’re planning your programming budget for the entire year. So long as your organization remains the same size, your programming will probably cost about the same as it has in the past. Therefore, take into account the growth or shrink of the programs along with your historic expense data when crafting your budget.

As you’re creating your budget and anticipating your fundraising revenue, don’t forget that your fundraising goals should always directly connect to your philanthropic goals. Remember that raising money to make ends meet isn’t your end-game, but also don’t bite off more than you can chew.  Instead, come up with objectives for your philanthropy and programming, then see if you’ll be able to realistically achieve them based on your fundraising history .

re:Charity’s guide on nonprofit fundraising strategies can help you dive deeper into the fundraising aspect of your organization’s revenue generation objectives.

2. Consider your overhead expenses.

Overhead is frequently discussed and disagreed upon as a topic in the nonprofit sector. Put simply, your overhead expenses are the operational costs that it takes for your nonprofit to function and keep the doors open.

Many individuals, particularly those who don’t work in the nonprofit sector, believe that it’s not right for organizations to spend much of their funding on overhead expenses. They want the money donated to make a direct impact on the mission. However, in order to continuously create a larger impact on the mission, nonprofits must support themselves and grow, which requires an investment in overhead expenses.

Changing the viewpoint on nonprofit overhead is the first step to creating an organization capable of growth, especially in your financial plan .

Consider overhead expenses such as:

  • Employee compensation : According to this article , fair and competitive total employee compensation is one of the leading factors that prevent turnover and improve staff retention. If you don’t pay a competitive rate, turnover occurs, and your organization spends more on the hiring process to replace those individuals.
  • Office expenses : A productive office environment ensures your organization has a suitable place to go to work every day and get their tasks done efficiently. However, the rent and utility expenses are a consistent fixed cost for your organization. Make sure to invest in a workspace that you can use now and in preparation for growth in the future.

While overhead expenses are necessary, be sure not to needlessly overspend on it when creating your financial plan. However, you should also realize the worth of overhead expenses, and not cut the things that will result in a better long-term financial outcome.

Striking this balance can be tough. If your organization is having trouble with it, you may consider asking a professional about the appropriate approach.

3. Rely on and create an organized system.

Effective organization techniques are key for creating a successful nonprofit financial plan.  Make sure you’ve organized your financial data so that you’re able to stick to the financial plan and budget you create .

To keep your financial data organized, ensure it’s saved in a specific location and easily accessible for your organization’s decision-makers. For example:

  • Use software that will automate financial tasks like bill pay.
  • Employ financial software with an intuitive interface like QuickBooks to keep your general ledger updated and your reports saved.
  • Monitor your invoices and keep them saved in a place where you can revisit them later.

Generally, your bookkeeper will be the one to collect relevant financial information for your nonprofit. According to Jitasa’s nonprofit bookkeeper article , this is the person who will be inputting data, recording one side of transactions, processing payroll, and allocating costs.

Ensure you have the resources, technology, and processes in place to keep this information organized and ready to act upon. Hiring or outsourcing a professional bookkeeper could help your organization get these processes together and maintain the organization in the long-run.

4. Make informed decisions.

Chances are, your nonprofit is scrambling to create a financial plan that will help you get through these difficult economic times. Or, maybe you’re less worried about the economic turmoil, but want to plan for a major campaign or project in the future.

In these cases, it might be time to consult a professional accountant within your industry to help make informed decisions. For example, an accountant could advise you on:

  • Programs you can take advantage of in order to get through these difficult times.
  • Places in your budget where you can make cuts to best account for a troubling economy.
  • Whether or not you have the financial capability to complete a large project for the organization.
  • If it would benefit your nonprofit to conduct an audit of your financials.

Bookkeepers will help you keep your information organized while accountants will help you make important decisions based on that information. Both roles are vital for a successful financial plan for your nonprofit.

5. Maintain transparency with supporters.

Your supporters value transparency. If they give their hard-earned money to your nonprofit, they want to know that you’re using it in the best and most responsible way possible. Therefore, make sure you’re financially transparent with your financial plan.

When you’re explaining to supporters what your nonprofit spends it funding on, be sure to put everything in terms of impact . For example, you might say that launching X campaign would fund the new Y program.

Have a plan to explain your financials to your supporters. On top of regularly updating your donors, many organizations choose to conduct and send out an annual report every year. This provides information on the impact that your nonprofit has made as well as the financial success (or failures) you’ve had.

Your nonprofit’s financial plan should be specific and measurable. Additionally, it should focus on what your organization can accomplish based on past efforts. Be sure your nonprofit is financially ready for the coming year with an effective and well-thought-out plan.

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  • Strategic planning |

Nonprofit business plan template

Success doesn’t just happen—it’s planned. Stay focused on the work that supports your nonprofit’s mission with a business plan template.

Sign up to use this template.

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Like any business, nonprofits rely on business plans to get funding and stay on mission. But even though they often operate like a traditional for-profit organization, nonprofits need their business plans to highlight slightly different aspects of their organization. Showing cash spend becomes very important when you’re a nonprofit, so donors, board members, and government agencies recognize that you’re putting your money where your mission is. Here, we’ll show you what to include in your own custom nonprofit template, and how to use it to move your mission forward. 

[Product ui] Nonprofit business plan project in Asana, spreadsheet-style project view (List)

What is a nonprofit business plan template

A nonprofit business plan template provides a strategic overview of your nonprofit. It’s a breakdown of all higher-level information about your organization, such as the board of directors and your core mission. Use your nonprofit business plan template to give your staff, the board, potential donors, and government funding agencies an overview of your mission and strategies.

Nonprofit business plan vs. strategic plan template

Both business and strategic plan templates share certain sections, such as your core mission. However, your nonprofit business plan template should also include relevant action plans , such as your fundraising plan and marketing strategy. Normally, you share your business plan with internal and partner stakeholders as opposed to the general public. Think of your nonprofit business plan as a roadmap or higher-level operational plan—it tells you what you’re currently doing to pursue your mission, and the steps you’re taking to go even further.

Why nonprofit business plan templates are important 

Nonprofits know how to do more with less—a nonprofit business plan template will outline how. There are many benefits to creating your own, including:

Transparency. Visibility is a crucial piece of engaging with donors and board members. Nonprofit business plans showcase the work you’re doing and why others should care.

Reduce work about work . Nonprofits don’t always have the same resources as for-profit companies. As a result, freeing up time for your employees to work on their highest-impact tasks is critical—not just for your bottom line, but for your overall mission. 

One source of truth. As a nonprofit, you’re constantly fielding requests for information about your finances, mission, and structure. When compiled with project management software , you can create and share your nonprofit business plan template with anyone who asks, without any additional work on your end.

Save 50% on Asana

Partner with Asana to put more resources toward your mission. The Asana for Nonprofits program helps nonprofits do more mission-critical work. Qualified organizations can save 50% on a one-year subscription, plus get numerous free Asana resources.

How to create your non-profit business plan template

Your nonprofit business plan template should include all relevant information about how your organization operates. If you’re using a digital tool, such as project management software , be sure to attach relevant documents and projects. Your template is essentially your nonprofit business plan outline that you’ll fill in during your planning process. 

As you’re going through your nonprofit business plan template, make sure to include the following sections so you can get the most from your template.

Non-profit description

Describe the basics of your organizational structure. Include:

Executive summary

Mission and vision statement

Community benefit

Staff and management team

Board of directors

Partnerships

List any items related to what you do as an organization, including reports that demonstrate results. For example, you can include: 

Core problem we solve

Demographics we reach

Past results

Business model

Marketing plan

This is a space for your marketing strategy (the methods you'll use to reach your target audience) and the analyses you used to build that strategy. Here, you can attach: 

Target market research 

Target audience and social media messaging 

Market analysis (including a competitive analysis)

Your positioning (on hot button issues related to your mission)

Outreach plan

Financial plan

Nonprofits need to be very clear with how they spend money. Being transparent with your financial statements restores confidence for potential donors, so you can hit your fundraising goals and boost financial projections. Here’s what to include in this section:

Income statements

Cash flow statements

Grant management plan

Fundraising plan and projections

Integrated features

List View . List View is a grid-style view that makes it easy to see all of your project’s information at a glance. Like a to-do list or a spreadsheet, List View displays all of your tasks at once so you can not only see task titles and due dates, but also view any relevant custom fields like Priority, Status, or more. Unlock effortless collaboration by giving your entire team visibility into who’s doing what by when.

Goals . Goals in Asana directly connect to the work you’re doing to hit them, making it easy for team members to see what they’re working towards. More often than not, our goals live separate from the work that goes into achieving them. By connecting your team and company goals to the work that supports them, team members have real-time insight and clarity into how their work directly contributes to your team—and company—success. As a result, team members can make better decisions. If necessary, they can identify the projects that support the company’s strategy and prioritize work that delivers measurable results.

Milestones . Milestones represent important project checkpoints. By setting milestones throughout your project, you can let your team members and project stakeholders know how you’re pacing towards your goal. Use milestones as a chance to celebrate the little wins on the path towards the big project goal.

Custom fields . Custom fields are the best way to tag, sort, and filter work. Create unique custom fields for any information you need to track—from priority and status to email or phone number. Use custom fields to sort and schedule your to-dos so you know what to work on first. Plus, share custom fields across tasks and projects to ensure consistency across your organization.

Google Workplace . Attach files directly to tasks in Asana with the Google Workplace file chooser, which is built into the Asana task pane. Easily attach any My Drive file with just a few clicks.

OneDrive . Attach files directly to tasks in Asana with the Microsoft OneDrive file chooser, which is built into the Asana task pane. Easily attach files from Word, Excel, PowerPoint, and more.

Dropbox . Attach files directly to tasks in Asana with the Dropbox file chooser, which is built into the Asana task pane.

Slack . Turn ideas, work requests, and action items from Slack into trackable tasks and comments in Asana. Go from quick questions and action items to tasks with assignees and due dates. Easily capture work so requests and to-dos don’t get lost in Slack.

How do you write a nonprofit business plan template?

First, create your template including sections for your executive summary, mission statement and purpose, marketing plans, and finances. Then when you’re ready to write your nonprofit business plan, fill in the blanks and customize it to fit your organization.

Do nonprofits have business plans?

Yes, nonprofits often have business plans. Nonprofit business plans provide a structured overview of your nonprofit strategies, and can be used to share your accomplishments and goals with stakeholders . You only have to create your nonprofit business plan template once—then you can reuse it every time you need to create a new nonprofit business plan.

How do nonprofit business plans help corporations get involved in nonprofit organizations?

Nonprofit business plans show corporations your organization’s impact, including how you’re spending any potential money they donate to you. Often, corporations want to see the numbers before they decide to invest in a nonprofit, and a nonprofit business plan can help you share that information.

What should be in a nonprofit business plan template?

Include all higher-level summaries of your nonprofit, plus actionable plans like your executive summary, mission and purpose, marketing strategy, and financial plans.

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

 Four people wearing green T-shirts and high-visibility yellow vests stand at a table outside a building, packing cardboard boxes. The two people on the left, both women with long curly hair, are packing a box with cans of food. The two people on the right, both men, are speaking to each other while the shorter man on the left looks down at a long, flat box.

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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While most of SCORE’s work has focused on small businesses, over the years it has assisted some startup and emerging non-profit organizations, particularly on business issues. As a result of these experiences, SCORE strongly believes that to be effective, competitive and sustainable, non-profits must not only be caring and creative, they must run their operations as businesses. 

This guide is about a great American institution and a powerful agent for change: the non-profit charitable organization.

In our democratic society, we ask non-profit organizations to fulfill several important responsibilities, from providing public benefit and serving the underprivileged to advancing education and science and reducing the burden of government. We also expect non-profits to operate on a higher, more noble plane than other organizations, and we insist that they focus on public good rather than private gain in accomplishing their goals.

The role of this so-called “third sector” of our economy has become a vital part of our national culture. Non-profits have proven to be effective instruments for addressing social needs outside of government. To perform effectively, however, they must be free to take risks, try new approaches and invest in solutions as they see fit. This means developing the strategies and skills to build the capacities to serve their communities, to become self-sufficient and to compete for resources needed to achieve their missions.

Without financial self-sufficiency, non-profit organizations cannot choose their direction or concentrate on their mission. Instead, they remain subject to the demands of finding their funding sources and in turn meeting donor demands.

As a result, in today’s world, financial self-sufficiency is nothing less than a critical requirement for non-profit organizations and, together with strategic planning and marketing, their highest priority. To secure ongoing resources free from constraints imposed from the outside, non-profits must pursue a long-term planning process and use business tools to assist them.

We must also clearly understand what we mean by vision, values and mission, since these concepts are key to the organization’s ability to define its direction:

Strategy The art and science of planning and directing large scale operations; a careful plan or method.

Business Plan A diagram or scheme detailing the time, attention and labor of people for the purpose of income improvement.

Feasibility Study A practical, reasonable and probable process for closely examining a subject, with the aim of determining how readily it can be performed or executed.

Vision An idea or scheme marked by foresight; a mental image, a dream. A vision motivates individuals towards shared long-term goals.

Values Standards or principles regarded as desirable or worthwhile; highly thought of, esteemed. Values constitute the essence of an organization’s personality and identity.

Mission The special task or purpose for which an organization is destined to perform.

Equipped with these concepts, we can begin to understand how to develop each of the planning processes.

Have a question about Business Planning Tools for Nonprofits?  Connect with a SCORE mentor  online or in your community today!

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The Office Depot Foundation supports non-profit organizations around the world, focused on improving the lives of children, building communities and disaster relief. Office Depot, Inc. is one of the world's largest sellers of office products and an industry leader in every distribution channel, including stores, direct mail, contract delivery, the Internet and business-to-business electronic commerce.

Nonprofit Purpose and Tax-Exempt Status For many nonprofits, tax-exempt status is everything. The first step in obtaining tax exemption should be defining your nonprofit’s purpose.

Starting a non-profit can be an extremely rewarding entrepreneurial experience. A non-profit gives you the ability to give back to your community and really make a difference unlike any other industry. But starting a charity or nonprofit organization is just like starting a for-profit business. And just like starting a for-profit business, there are steps that you need to take to ensure that you are successful.  Here are some tips to consider before you start and some points on generally how to start a business.

Have a Plan and Do Your Homework

When starting a non-profit organization you

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Nonprofit Strategic Planning: Your Complete Guide

by Funding For Good | Jan 23, 2023 | Strategic Planning

Guide to nonprofit strategic planning

Every nonprofit could benefit from a strategic plan. Funders are increasingly asking to see organizations’ strategic plans. Talented staff and potential hires are increasingly eager to work with organizations that have clear and compelling visions. And, as leaders, we’re all looking to increase our organization’s impact.

A nonprofit strategic plan can provide all these benefits and more. In this article, we’ll cover the basics of strategic planning, how nonprofit strategic planning differs from the private sector, and how to make sure your organization’s planning process is successful.

  • What is a nonprofit strategic plan?
  • Does my nonprofit need a strategic plan?
  • The nonprofit strategic planning process: what to expect

What is a Nonprofit Strategic Plan?

A nonprofit strategic plan is a written roadmap for where an organization is going, how it will get there, and specific ways to determine if the organization has “arrived” at the destination. A strategic plan is the result of a process designed to create a shared vision and strategic alignment across organizational stakeholders.

This last part is especially critical for nonprofit organizations. Strategic planning isn’t solely about the written plan. It’s about building consensus across your board, staff, and other stakeholders, so that your team is focused, driven and ready to increase impact.

The process of strategic planning is designed to create shared vision and strategic alignment across organizational stakeholders.

A written plan can be put on a shelf and forgotten. But it’s nearly impossible to set aside a shared vision for the future when your board and staff are deeply invested.

What is a nonprofit strategic plan? A roadmap for where your organization is going and how it will get there.

Is your nonprofit ready for strategic planning?

How is nonprofit strategic planning different from the private sector?

Though we don’t often think of nonprofits as businesses, they actually are. Nonprofit is a tax status, not a business model .

Even if there’s no profit involved, nonprofit leaders still need to understand how to run a business . This includes balancing income and expenses, managing risk, securing appropriate insurance, bookkeeping and financial controls, ensuring adequate human resources support, managing staff, deciding where to invest and where to pull back, and more.

But nonprofits are also different from for-profit businesses in a few ways that affect the strategic planning process:

Nonprofit vision and mission

Nonprofit organizations exist to carry out a vision and mission to make a specific impact externally in the world. While organizations need to make sure they can afford costs, there is no profit motive and no shareholders to satisfy. Which is why vision and mission should drive every aspect of nonprofit strategic planning.

Read more: What Happens When Nonprofit Business Plans Stray from an Organization’s Mission?

Nonprofit staff motivation and expectations

People generally work in nonprofit organizations because they want to contribute to change. Nonprofit staffers may even trade higher salaries in the private sector. This can mean that staff bring different expectations to working in nonprofit organizations. Staff want to be engaged in decision-making. They want to consistently feel like their work is contributing to a greater good. They want to feel supported in their career growth. All of which means that nonprofit leaders will need to think very intentionally about how staff are engaged in and connected to a strategic planning process.

Read more: Engaging Staff in Strategic Planning

Nonprofit fundraising

Fundraising is one of the most essential functions in any organization. Unlike for-profit businesses, nonprofits generally raise the bulk of their income not from selling products or services, but from individual and institutional donors. This can include grants, major gifts, small dollar donations, endowed gifts, and more. In return for their contribution, donors expect to see an organization make an impact in the world. Which is why strategic planning can be especially helpful for nonprofits, as it spells out an inspiring, impact-driven, long-term vision.

Read more: 5 Ways to Boost Fundraising with a Strategic Plan

Role of the nonprofit board

The majority of nonprofit boards are non-paying positions. Yet nonprofit boards are responsible for over an incredible amount of oversight. This means that, like staff, board members will be attracted by vision and mission. Unlike for-profit boards, which are thinking about shareholders, a nonprofit board is primarily focused on ensuring an organization is able to fulfill its vision and mission. Nonprofit board members should thus be deeply involved in strategic planning.

Read more: What is Nonprofit Governance and Why Does it Matter?

Does My Nonprofit Need a Strategic Plan?

Studies consistently show that organizations with a written plan double their likelihood of success. Yet according to research, only half of nonprofits have a strategic plan . Among those organizations that do have strategic plans, too few actually put them to use.

Investing in a strategic planning process is one of the most important things you can do to boost your organization’s impact and chance of success.

Whether your nonprofit is new or established, growing or struggling, a strategic plan can position your organization to thrive.

Are you ready to build a sustainable, impactful organization?

Why is strategic planning important for nonprofits?

Running a nonprofit organization is not easy. Many nonprofits operate on lean budgets. Leaders wear multiple hats. Staff are often overwhelmed, filling multiple roles in order to meet program deliverables (and secure that next grant). Board members are volunteers, often with their own careers to manage.

Adding strategic planning to the mix can feel overwhelming. Which is why many nonprofit leaders wonder: Is strategic planning worth doing?

Strategic planning does require both financial resources and time from staff and board leadership. But research and first-hand experience working with dozens of nonprofits shows that there are incredible benefits to nonprofit strategic planning.

  • Save time by getting aligned: The strategic planning process brings together board and staff leadership to co-create a vision for your organization’s future. This includes strategic direction, programmatic and financial priorities, and measures for success. Because the process itself is based on consensus building, it creates valuable buy-in—which will ultimately save time and reduce friction.
  • Save money with smarter spending: Your strategic plan will make clear where you need to invest to achieve your 3-5-year goals. This saves you from spending precious resources in non-core areas. And because your plan includes measures of success, you’ll be better able to assess when spending is paying off, and when it isn’t, enabling you to quickly course correct.
  • Get your team invested: Did you know that 95% of employees don’t understand their company’s strategy ? At the same time, one of the top things workers find demotivating is “ a lack of meaning in their work .” A strategic planning process that engages employees and creates buy-in can transform how staff members feel about their day-to-day work. A strategic plan that employees feel invested in can re-energize your team, break down silos, and increase productivity.
  • Boost your impact: A strong strategic plan leaves no doubt about what your organization is trying to accomplish. Combining ambitious goals with actionable strategies, your plan will be designed to increase your success. For nonprofits, this means increasing both impact and sustainability. By providing clear benchmarks, your plan will also help you better evaluate your progress toward goals—catching challenges before they become costly missteps.
  • Raise more money: Donors want to invest in organizations with a strong vision, a commitment to sustainability, and a focus on creating and measuring impact. Which is exactly what a strategic plan provides. In addition to directly sharing your strategic plan with major contributors, your fundraising staff can repurpose it into language for grant proposals and supporter emails. Quarterly strategic plan progress reports for the board can be quickly transformed into compelling impact reports for donors. A strategic plan is one of the most valuable gifts you can give your development team.
  • Kickstart strategic decision-making: A strategic plan is more than simply a document. It’s a tool that should guide nonprofit board and staff leaders in making strategic decisions. Whether it’s which programs to expand or which to cut, a strategic plan spells out a set of shared values and priorities. So instead of debating major decisions from scratch each time, your team can align more quickly by asking: Which choice will best advance our organization’s stated goals and values?

While it’s easy to think of a nonprofit strategic plan in terms of how much it will cost, strategic planning isn’t simply a line item in a budget. It’s an investment in your organization’s future.

The real question nonprofit leaders should be asking is: Can my organization afford to keep operating WITHOUT a strategic plan?

How is strategic planning different from other planning?

Nonprofit leaders often feel like they’re swimming in plans. At any given moment, we’re either creating, editing or approving annual plans, department plans, and project plans. We hone our mission statements. We work with development or marketing staff to refine proposals and brochures. And that doesn’t even include the individual development plans we craft with our direct reports.

But despite all this planning, leaders and staff can still end up feeling rudderless. That’s a sure sign that you’re spending time on the wrong plans or creating your plans in the wrong order.

Start with a strategic plan

A nonprofit strategic plan is a roadmap for where you’re going—and the types of plans you need to create to get there. Your strategic plan does four important things that other plans are simply not designed to do:

  • Provide a 3-5-year vision for your nonprofit, including goals, objectives and benchmarks to evaluate success.
  • Articulate an overarching strategy for the organization as a whole. Each program, project and department within your organization needs to be contributing to the organization’s overall goals.
  • Align stakeholders on a shared vision for success. This includes your board of directors and staff leadership from every single department.
  • Guide decision-making at all levels of the organization.

Once you have a strategic plan in place, then annual plans, project plans, proposals and more will all flow from that overarching vision.

Annual plan vs strategic plan

Ideally, your annual plans will flow from your strategic plan. A strategic plan covers a 3-5-year period, with a focus on a clear vision and roadmap to get there. In contrast, annual planning is about the nuts and bolts of how you’ll be implementing your strategic plan in a given year, including who is responsible for specific deliverables.

Your annual plans will also go into more depth about the ongoing activities that keep the organization operating, but aren’t necessarily detailed in your strategic plan. Consider bringing the same curious and creative approach you used in the strategic planning process to assess these ongoing functions. Is there a way to handle basics like budgeting and bill payment more effectively and efficiently?

Read more: What is an Annual Plan vs a Strategic Plan?

Project plan vs strategic plan

Where a strategic plan covers vision and strategy for an organization overall, a project plan focuses on goals, objectives, activities, and outcomes for an individual project. The scope of project plans varies significantly. A single project plan could cover anywhere from two weeks to two years, and involve one person or dozens. The key to a successful project plan is making sure that everyone involved in the project understands their individual roles, deliverables, and deadlines.

Once you’ve created your strategic plan, you’ll likely need many project plans as you start implementation. For example, as part of a goal to increase small dollar donations, you’ll need a project plan for your year-end appeal, as well as ongoing donor communications. If you’re organizing events, you’ll certainly need project plans for those. And if you’re executing on organizational changes that will affect staff, such as shifting to a four-day workweek, a project plan will be critical.

Read more: What is a Project Plan vs a Strategic Plan?

Prospectus vs strategic plan

A prospectus is a printed booklet or brochure that serves as a promotional piece. In the nonprofit sector we tend to think of this as a marketing piece. We might call them “one-pagers,” “collateral,” or the “leave behinds” for a donor meeting.

Regardless of the name, a prospectus is the abridged, polished, and outward-facing version of your strategic plan. It’s the kind of language you use on the “about us” or “what we do” pages of your websites.

Ideally, once you have a new strategic plan, you’ll start updating all of these various materials to reflect your organization’s updated vision, direction, and impact goals. Just keep in mind that, where your strategic plan might delve explicitly into internal organizational changes , a prospectus or similar materials will focus on external impact .

The Nonprofit Strategic Planning Process

What are the steps in nonprofit strategic planning.

Many nonprofits choose to work with a consultant for their strategic planning. This enables board and staff leadership to focus on strategy, rather than running a planning process. It’s also especially helpful to have a skilled consultant who can advise on how to best engage staff members. As a neutral third party, consultants can garner unexpected insights from staff and other stakeholders through surveys, one-on-one interviews, and focus groups.

When working with a consultant, your strategic planning process should include at least three steps:

  • Step One: Preparation. This is the getting started phase. Your consultant will create a work plan and timeline, set roles and expectations, gather and analyze stakeholder input, conduct an organizational assessment to identify internal and external challenges and opportunities, and ensure that the organization’s vision and mission are clear.
  • Step Two: Strategic planning sessions or retreat. This is where the real consensus-building work happens. Your strategic planning consultant will facilitate one or more intensive strategy sessions with your board and staff leadership, and any other stakeholders you’ve agreed to include. Make sure your team is focused and ready to actively participate.
  • Step Three: Strategic plan creation. The final stage is where your vision comes together on the page. You’ll work closely with your consultant as they prepare and finalize your written strategic plan. You’ll also want to be proactive about building internal awareness, alignment, and buy-in across your organization. Your consultant can help you develop and implement a thoughtful roll out strategy .

What is unique about the nonprofit strategic planning process?

While nonprofit and for-profit strategic planning may follow a similar process, nonprofits will want to carefully consider a few additional areas:

  • Stakeholder engagement: Nonprofit board and staff at every level are part of your organization not because of money, but because of mission. That often brings much higher expectations of participation in decision-making processes. Nonprofit leaders launching strategic planning processes should work closely with their consultants to make sure staff are engaged at the appropriate level to create authentic buy-in.
  • Sustainability: Where businesses will be thinking more about increasing revenue and decreasing costs, nonprofit financial planning should focus on sustainability. When it comes to attracting the best staff and raising consistent money, a strong and sustainable nonprofit is like a magnet. This is very different from the private sector where short-term wins that boost shareholder profits are rewarded.
  • Fundraising strategy: Fundraising is pretty unique to the nonprofit sector, and it will generally be an important element of your strategic plan. The closest for-profit parallel might be entrepreneurs pitching investors or applying for loans. But unlike business entrepreneurs, nonprofit fundraising never ends. Grants are for one year terms. Some aren’t renewable. Donors have to be asked to give every single year, sometimes multiple times before you land that gift. Fundraising is high-stakes, deadline-driven, and unrelenting. Every single employee’s salary depends on your fundraising team to do their job. So creating a strong and diversified fundraising plan is a must-do.

Is strategic planning long, expensive, and difficult?

No! An effective nonprofit strategic planning process doesn’t have to be painful and drawn out. Though many of us in the sector have experienced the dreaded “never-ending planning process.” You can prevent that scenario from playing out in your organization by selecting the right consultant. Focus on finding consultants who understand your sector, are familiar with organizations of your size or growth stage, and are skilled facilitators.

Because a strategic plan is only as strong as the consensus-building process that creates it.

How do I find a nonprofit strategic planning consultant?

Many strategic planning consultants work with both for-profit and nonprofit organizations. We recommend being sure that your consultant has at least some experience working with organizations like yours.

Read more: Complete Guide to Strategic Planning Consultants

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Get your nonprofit set up for success with a nonprofit business plan

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

The first step in starting a nonprofit is figuring out how to bring your vision into reality. If there’s any tool that can really help you hit the ground running, it’s a nonprofit business plan!

With a plan in place, you not only have a clear direction for growth, but you can also access valuable funding opportunities. 

Here, we’ll explore:

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

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

Let’s get planning!

What Is a Nonprofit Business Plan?

A nonprofit business plan is the roadmap to your organization’s future. It lays out where your nonprofit currently stands in terms of organizational structure, finances and programs. Most importantly, it highlights your goals and how you aim to achieve them!

These goals should be reachable within the next 3-5 years—and flexible! Your nonprofit business plan is a living document, and should be regularly updated as priorities shift. The point of your plan is to remind you and your supporters what your organization is all about.

This document can be as short as one page if you’re just starting out, or much longer as your organization grows. As long as you have all the core elements of a business plan (which we’ll get into below!), you’re golden.

Why Your Nonprofit Needs a Business Plan

While some people might argue that a nonprofit business plan isn’t strictly necessary, it’s well worth your time to make!

Here are 5 benefits of writing a business plan:

Secure funding and grants

Did you know that businesses with a plan are far more likely to get funding than those that don’t have a plan? It’s true!

When donors, investors, foundations, granting bodies and volunteers see you have a clear plan, they’re more likely to trust you with their time and money. Plus, as you achieve the goals laid out in your plan, that trust will only grow.

Solidify your mission

In order to sell your mission, you have to know what it is. That might sound simple, but when you have big dreams and ideas, it’s easy to get lost in all of the possibilities!

Writing your business plan pushes you to express your mission in the most straightforward way possible. As the years go on and new opportunities and ideas arise, your business plan will guide you back to your original mission.

From there, you can figure out if you’ve lost the plot—or if it’s time to change the mission itself!

Set goals and milestones 

The first step in achieving your goals is knowing exactly what they are. By highlighting your goals for the next 3-5 years—and naming their key milestones!—you can consistently check if you’re on track.

Nonprofit work is tough, and there will be points along the way where you wonder if you’re actually making a difference. With a nonprofit business plan in place, you can actually see how much you’ve achieved over the years.

Attract a board and volunteers

Getting volunteers and filling nonprofit board positions is essential to building out your organization’s team. Like we said before, a business plan builds trust and shows that your organization is legitimate. In fact, some boards of directors actually require a business plan in order for an organization to run!

An unfortunate truth is that many volunteers get taken advantage of . With a business plan in place, you can show that you’re coming from a place of professionalism.

Research and find opportunities

Writing a business plan requires some research!

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

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

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

Free Nonprofit Business Plan Template

If you’re feeling uncertain about building a business plan from scratch, we’ve got you covered!

Here is a quick and simple free nonprofit business plan template.

Basic Format and Parts of a Business Plan

Now that you know what a business plan can do for your organization, let’s talk about what it actually contains!

Here are some key elements of a business plan:

First of all, you want to make sure your business plan follows best practices for formatting. After all, it’ll be available to your team, donors, board of directors, funding bodies and more!

Your nonprofit business plan should:

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

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

Here are the essential parts of a business plan:

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

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

How to Write a Nonprofit Business Plan in 12 Steps

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

1. Research the market

Take a look at what’s going on in your corner of the nonprofit sector. After all, you’re not the first organization to write a business plan!

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

All of this information will show you what parts of your business plan should be given extra care. Sending out donor surveys, contacting financial institutions and connecting with your beneficiaries are a few tips to get your research going.

If you’re just getting started out, this can help guide you in naming your nonprofit something relevant, eye-catching and unique!

2. Write to your audience

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

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

Each of these audiences will be coming from different backgrounds, and looking at your business plan for different reasons. If you keep your nonprofit business plan accessible (minimal acronyms and industry jargon), you’ll be more likely to reach everyone.

If you’d like, it’s always possible to create a one page business plan AND a more detailed one. Then, you can provide the one that feels most useful to each audience!

3. Write your mission statement

Your mission statement defines how your organization aims to make a difference in the world. In one sentence, lay out why your nonprofit exists.

Here are a few examples of nonprofit mission statements:

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

In a single sentence, each of these nonprofits defines exactly what it is their organization is doing, and who their work reaches. Offering this information at a glance is how you immediately hook your readers!

4. Describe your nonprofit 

Now that your mission is laid out, show a little bit more about who you are and how you aim to carry out your mission. Expanding your mission statement to include your vision and values is a great way to kick this off!

Use this section to highlight:

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

Don’t worry too much about the specifics here—we’ll get into those below! This description is simply meant to demonstrate the heart of your organization.

5. Outline management and organization

When you put together your business plan, you’ll want to describe the structure of your organization in the Operations section.

This will include information like:

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

If you’re already established, make a section for how you got started! This includes your origin story, your growth and the impressive nonprofit talent you’ve brought on over the years.

6. Describe programs, products and services

This information will have its own section in your nonprofit business plan—and for good reason!

It gives readers vital information about how you operate, including:

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

Above all, highlight what needs your nonprofit meets and how it plans to continue meeting those needs. Really get into the details here! Emphasize the work of each and every program, and if you’re already established, note the real impact you’ve made. 

Try including pictures and graphic design elements so people can feel your impact even if they’re simply skimming.

7. Create an Executive Summary

Your Executive Summary will sit right at the top of your business plan—in many ways, it’s the shining star of the document! This section serves as a concise and compelling telling of your nonprofit’s story. If it can capture your readers’ attention, they’re more likely to read through the rest of the plan.

Your Executive Summary should include:

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

This section will summarize the basics of everything else in your plan. While it comes first part of your plan, we suggest writing it last! That way, you’ll already have the information on hand.

You can also edit your Executive Summary depending on your audience. For example, if you’re sending your nonprofit business plan to a loan provider, you can really focus on where the money will be going. If you’re trying to recruit a new board member, you might want to highlight goals and impact, instead.

8. Write a marketing plan

Having a nonprofit marketing plan is essential to making sure your mission reaches people—and that’s especially true for your business plan.

If your nonprofit is already up and running, detail the work you’re currently doing, as well as the specific results you’ve seen so far. If you’re new, you’ll mostly be working with projections—so make sure your data is sound!

No matter what, your Marketing Plan section should market research such as:

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

Data is your friend here! Make note of market analyses and tests you’ve run. Be sure to also document any outreach and campaigns you’ve previously done, as well as your outcomes.

Finally, be sure to list all past and future marketing strategies you’re planning for. This can include promotion, advertising, online marketing plans and more.

9. Create a logistics and operations plan

The Operations section of your business plan will take the organizational information you’ve gathered so far and expand the details! Highlight what the day-to-day will look like for your nonprofit, and how your funds and resources will make it possible.

Be sure to make note of:

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

This is the what and how of your business plan. Lean into those details, and show exactly how you’ll accomplish those goals you’ve been talking about!

10. Write an Impact Plan

Your Impact Plan is a deep dive into your organization’s goals. It grounds your dreams in reality, which brings both idealists and more practically-minded folks into your corner!

Where your Executive Summary lays out your ambitions on a broader level, this plan:

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

Your Impact Plan will have quite a few goals in it, so be sure to emphasize which ones are the most impactful on your cause. After all, social impact is just as important as financial impact!

Speaking of…

11. Outline the Financial Plan

One of the main reasons people want to know how to write a nonprofit business plan is because of how essential it is to receiving funding. Loan providers, donors and granting bodies will want to see your numbers—and that’s where your Financial Plan comes in.

This plan should clearly lay out where your money is coming from and where it will go. If you’re just getting started, check out what similar nonprofits are doing in order to get realistic numbers. Even if you’re starting a nonprofit on a tight budget , every bit of financial information counts!

First, map out your projected (or actual) nonprofit revenue streams , such as:

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

Then, do the same with your expenses:

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

If your nonprofit is already up and running, include your past accounting information. Otherwise, keep working with those grounded projections!

To make sure you have all of your information set, include documents like:

  • Income statement
  • Cash flow statement
  • Balance sheet

This information comes together to show that your nonprofit can stay above water financially. Highlighting that you can comfortably cover your operational costs is essential. Plus, building this plan might help your team find funding gaps or opportunities!

12. Include an Appendix

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

This could be documents such as:

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

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

Examples of Business Plans for Nonprofits

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

Nonprofit Recording Co-op Business Plan

This sample nonprofit business plan shows what a basic plan could look like for a hobbyists’ co-op. If your nonprofit is on the smaller, more local side, this is a great reference!

What we like:

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

Nonprofit Youth Services Business Plan

This sample nonprofit business plan is for a much larger organization. Instead of focusing on the details of a membership model, it gets deeper into programs and services provided.

What we like

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

How to Create a Nonprofit Business Plan With Confidence

We hope this sheds some light on how creating a nonprofit business plan can help your organization moving forward! Remember: you know what you want for your organization. A business plan is simply a tool for making those dreams a reality.

Is a membership program part of your business plan? Check out WildApricot ’s award-winning membership management software!

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

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Finances in a Nonprofit Business Plan

How to write a nonprofit business plan: lesson 8.

Okay. It’s time. Don’t panic. We’re going to talk about accounting. I know, most people hate thinking about it and it can be confusing. But it’s one of the first things you need to take care of to make sure your nonprofit stays financially viable. Otherwise, it won’t matter how much passion and drive you have, you won’t be able to serve the cause. So I’m going to do my best to make things as painless as possible in this section. I’ll tell you what goes here, but I’ll also add a bit of the “how to.”

What Is The Financials Section Of The Nonprofit Business Plan?

Essentially, the financials section of the nonprofit business plan is used to paint a picture of where the nonprofit will be (financially) in the future. You will list your assumptions about what will affect the nonprofit’s finances, create a set of pro forma financial reports (based on financial assumptions or projections), and paint a picture for your reader that shows the nonprofit can be financially viable. Once you are operating, you can use your nonprofit accounting software to build these reports to show your actual financials.

Assumptions

What are they? Whether you know it or not, you’re making assumptions about something. Do you expect to get $5,000 from a donor to help you get started? Do you expect 100 people to show up at your first event? How much money will that help you to raise? Your assumptions should connect to real, measurable things. Start with making a calendar, and write down what fundraising efforts you will use. When will you host fundraising events? How will you raise other support? When will most of your money come in? How much will it be? Also, think about the outcomes you want your nonprofit to produce. How much does it cost to accomplish these things? When will you incur those costs?

I recommend to most nonprofit founders that they start by thinking about all of their projected income for the year. You will need to create a plan to raise enough money to pay for all ongoing expenses, so let’s start thinking about the things you can do to make that happen. Any donation received or earned income (income derived by selling a product or service) will be used to pay for the nonprofit’s expenses. Take a look at your calendar. Use the fundraising numbers you assumed on the calendar. Make a spreadsheet that looks like this:

Finances Section - projected-income

Operating Expenses (Fixed Costs)

Now that you have an idea about how much income you will raise or earn, start thinking about the operating expenses you will incur over the next year. These are also referred to as fixed costs, overhead, etc. They include: utilities, salaries, advertising, insurance, interest (if you use a bank loan for anything), and rent (for an office if needed). Technically, to be GAAP compliant, you should include depreciation expense as well. Depreciation is a “paper” expense that your nonprofit incurs where you don’t actually pay anyone. It’s supposed to be used as a savings amount that you will eventually use to replace any equipment or other large assets when their usable lives are over.

Some banks require an audit if you get a loan from them, so you’ll need to have that accounted for in those circumstances. Most of the nonprofits I work with are pretty small, and aren’t trying to get a huge bank loan, so accounting for depreciation isn’t really all that necessary for them. Just think of all of the ongoing expenses you pay others in order to keep things moving.

Not just your electricity bill. It also includes phone, internet, gas, etc.

Anything you pay employees (hourly wages included) in addition to other employee expenses like healthcare.

Advertising

Look at the calendar and estimate the cost for each of the events you will put together. Also, take a look at any traditional advertising you may need to purchase. Include all of those things in this section.

Not having it is like flying without a parachute. Get some.

If you took a loan, you’ll need to make payments on that loan. You’ll want to make sure you include the whole payment when you’re calculating your ongoing expenses.

If you pay any, include that here.

Once you have figured all of these out, you can put them on your spreadsheet. This spreadsheet is called the pro forma statement of activities. This example is a simplified version, but it’ll definitely get the job done.

Finances Section - statement-of-activities-pro-forma

Statement Of Activities

Essentially, the statement of activities gives you an idea of when you are bringing in more money than you are spending, and when the opposite is true. Overall, you want to bring in more money than you spend to be financially viable. The statement of activities will be one of the main reports you will use to manage your nonprofit . Include at least a monthly breakdown for the first year you will be in operation. Include years two and three as well, but you can simply give a yearly breakdown for these if you like.

Once you have created your pro forma statement of activities, you’re really on your way to proving you will be financially viable. In fact, the statement of activities is the physical representation of your business model. If you bring in more money than you spend, your nonprofit’s business model is working.

Statement Of Financial Position

The statement of financial position is also called the balance sheet in the business world. It is typically used to measure the financial position of an entity at a specific point in time. It’s a snapshot of the nonprofit from a financial perspective. The basic equation used to create this report is:

Net Assets = Assets – Liabilities

  • Assets = things the nonprofit owns or is owed by someone else
  • Liabilities = things the nonprofit owes
  • Net Assets = the net worth of the organization or the value left over for future operations when subtracting liabilities from assets

Net assets can be unrestricted, temporarily restricted, or permanently restricted. In other words, sometimes you can spend or use them, and sometimes you can only spend the proceeds that they generate.

  • Unrestricted If a donor does not specify a restriction on his or her contribution, the amount received by the nonprofit is recorded as an asset and as unrestricted contribution revenues.
  • Temporarily restricted If a donor gives a gift for a specific purpose, that gift is temporarily restricted. It can only be used for the specified purpose and nothing else.
  • Permanently restricted If a donor gives money for an endowment, that money cannot be spent on operations, and must be held in perpetuity. That gift is considered permanently restricted.

Here is an example of a statement of financial position that details net assets by usability.

Finances Section - statement-of-financial-position

To build the pro forma statement of financial position, you’ll need to consider all of the activities that lead up to the date of the statement. For example, if you want to create a pro forma statement of financial position for the last day of the first year of operation, you’ll need to look at the statement of activities from that year, include any change in net assets, any asset purchases or sales, and any liabilities acquired or paid off.

Statement Of Functional Expenses

The statement of functional expenses organizes the different expenses according to their function (program service expenses, management and general, and fundraising activities) and by the nature or type of expense (salaries, rent, etc.). You’ll typically want to include a pro forma statement of functional expenses in the financials section as well. Here is an example of a statement of functional expenses:

Finances Section - statement-of-functional-expenses

Statement Of Cash Flows

The statement of cash flows of a nonprofit organization is similar to that of a for-profit business. This report details the organization’s changes in cash and cash equivalents for a given period of time. It’s extremely important to have an idea of your organization’s cash position at any given time, because it is possible to be very successful, yet still not have enough cash to pay bills.

For example, let’s say you have a huge fundraising event to secure donations for your organization. If a large bill comes due before those donations arrive, even though the future looks bright, you need cash now. Or perhaps your organization has more expenses during summer than the rest of the year. If your normal inflow of cash is not enough to cover those expenses, you’ll need to save some from earlier in the year to pay for those expenses. Knowing when you will need cash is important for managing a nonprofit.

The statement of cash flows is broken up into 3 sections:

  • Net cash from operating activities The cash earned or raised minus the cash spent on operations during the given period of time (everything not accounted for in the investing or financing sections of the statement)
  • Net cash from investing activities The cash amount spent on long-term assets like vehicles, equipment, or buildings minus the cash amount received from selling long-term assets
  • Net cash from financing activities The cash amount received when borrowing money minus the amount of cash used to pay back loans during the period

Here is an example:

Finances Section - statement-of-cash-flows-pro-forma

Once you have built all of your pro forma financial statements, you should have a very clear picture of where your nonprofit will be financially in the future. By including these things in your nonprofit business plan, you will help donors, lenders, and any other constituents to be confident that you know what you are doing and where you are going. You’ll also give yourself a roadmap of financial expectations for the nonprofit that you can benchmark against.

Additional Resources

If you need some more help creating nonprofit financial reports, check our Academy course Intro to Nonprofit Accounting . You can also check out the Accounting Coach for an overview of nonprofit financial statements. Ready to start tracking your financials? Check out Aplos for your fund accounting software .

We’ve now basically covered all of the main pieces of the nonprofit business plan. If you’ve made it this far, you should have a clear grasp of your nonprofit. Check out our next lesson on creating the executive summary section of the nonprofit business plan where you’ll learn to sum up the entire plan in a meaningful and useable way.

nonprofit financial business plans

Eric Nasalroad

Eric Nasalroad is the Chief Operating Officer at Aplos and has a passion for helping people start and grow nonprofits. Specializing in entrepreneurship, he has written a textbook on the topic and also serves as a professor at the prestigious Lyles Center for Innovation and Entrepreneurship at Fresno State. In addition to starting a variety of businesses of his own, he has helped hundreds of individuals launch their own nonprofits and businesses.

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How Fast Should Your Company Really Grow?

  • Gary P. Pisano

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Growth—in revenues and profits—is the yardstick by which the competitive fitness and health of organizations is measured. Consistent profitable growth is thus a near universal goal for leaders—and an elusive one.

To achieve that goal, companies need a growth strategy that encompasses three related sets of decisions: how fast to grow, where to seek new sources of demand, and how to develop the financial, human, and organizational capabilities needed to grow. This article offers a framework for examining the critical interdependencies of those decisions in the context of a company’s overall business strategy, its capabilities and culture, and external market dynamics.

Why leaders should take a strategic perspective

Idea in Brief

The problem.

Sustained profitable growth is a nearly universal corporate goal, but it is an elusive one. Empirical research suggests that when inflation is taken into account, most companies barely grow at all.

While external factors play a role, most companies’ growth problems are self-inflicted: Too many firms approach growth in a highly reactive, opportunistic manner.

The Solution

To grow profitably over the long term, companies need a strategy that addresses three key decisions: how fast to grow (rate of growth); where to seek new sources of demand (direction of growth); and how to amass the resources needed to grow (method of growth).

Perhaps no issue attracts more senior leadership attention than growth does. And for good reason. Growth—in revenues and profits—is the yardstick by which we tend to measure the competitive fitness and health of companies and determine the quality and compensation of its management. Analysts, investors, and boards pepper CEOs about growth prospects to get insight into stock prices. Employees are attracted to faster-growing companies because they offer better opportunities for advancement, higher pay, and greater job security. Suppliers prefer faster-growing customers because working with them improves their own growth prospects. Given the choice, most companies and their stakeholders would choose faster growth over slower growth.

Five elements can move you beyond episodic success.

  • Gary P. Pisano is the Harry E. Figgie Jr. Professor of Business Administration at Harvard Business School and the author of Creative Construction: The DNA of Sustained Innovation (PublicAffairs, 2019).

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Nonprofit Finance: 12 Golden Rules

Download & share.

Healthy nonprofit organizations employ financial management practices that build stability and flexibility, both today and in the future.  In this resource we set out the 12 golden rules for nonprofit finance, including budgeting, diverse funding sources, and interdependence.

Nonprofit organizations impact communities and individuals by delivering services, providing advocacy, and building community. Behind the scenes, powerful missions, innovative programs, and passionate staff and volunteers are supported by financial activities and decisions. Healthy nonprofit organizations employ financial management practices that build stability and flexibility both today and in the future.

1. Budgeting

Budgets matter because they provide the financial information to support all planning. Effective budgets are realistic, using sound assumptions and clear accountability to achieve those assumptions.

2. Program Costs

Financial decisions rely on good information. It is essential that organizations understand the real costs of their programs in order to make decisions about fundraising needs, contract terms, and program expansion or modification.

3. Diverse Funding Sources

While it sounds good, diversifying funding sources isn’t easy, and isn’t necessarily a smart move. Different types of income require different systems, structures, relationships, and communications.

4. Functional/Infrastructure Expenses (aka, Core Mission Support)

Nonprofits are required to account for functional expenses – program services and general/administration & fundraising (often referred to as “overhead”). While lower overhead expenses may sound better to donors, this emphasis is destabilizing and unsustainable. Make the case by reframing from “overhead” to “infrastructure” or “Core Mission Support.”

5. Cash Flow

Day to day, cash in the bank to pay the bills often matters more than any financial statement or long-term plan. Cash flow can be monitored and managed with a few basic management tools.

6. Financial Information

To be an effective leader, encourage everyone to develop financial literacy. This includes learning the terminology, understanding and using financial reports, and asking lots of questions. Good information is provided by trained and respected staff and professionals.

7. Financial Responsibility

Responsibility for making financial decisions and carrying out financial activities is shared throughout an organization. Responsibility needs to be supported with good information, frequent communication, and appropriate authority.

8. Operating Reserves

Every nonprofit needs to have some cash in reserve in order to respond to an unexpected downturn or opportunity. Is there a golden number that every organization should maintain, and how can a nonprofit build reserves?

9. Accountability and Transparency

Between the IRS, Attorney General, foundations, and donors, everyone is demanding information and answers about how nonprofits receive and use financial resources. This trend is accelerating and many nonprofits choose to make accountability an important organizational value.

10. Financial Integrity

As public charities, nonprofits can expect to be held to a high standard of integrity and honesty in all financial activities. While policies, job descriptions, and internal controls help to maintain this integrity, they are built on the foundation of mission, values, and leadership.

11. Responding to Financial Problems

Sometimes things go wrong – contracts are lost, fundraising plans flounder, and expenses skyrocket. Responding to financial problems requires strong leadership, good communication, creative planning, and decisive action.

12. Interdependence

Financial management connects to every aspect of a nonprofit – governance, planning, programs, evaluation, on and on. Keeping everything connected is what financial leadership is all about.

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Propel Nonprofits strengthens the community by investing capital and expertise in nonprofits. The organization works with nonprofits in all fields of service by offering loans, training, and financial management advice and resources to help organizations address unexpected events, finance new opportunities, and realize strategic goals. Propel Nonprofits is also a leader in the nonprofit sector, with research and reports on issues and topics that impact that sustainability and effectiveness of nonprofit organizations.

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nonprofit financial business plans

By Sam Nussey TOKYO (Reuters) -Sony’s operating profit jumped 10% in the third quarter, beating estimates, buoyed by the strength of its financial, movies and music businesses.

The group, which said last year it was examining a partial spin-off of its financial business, said it plans to list Sony Financial Group in October 2025.

Profit over October to December for the Japanese company was 463.3 billion yen ($3.08 billion), blowing past an average estimate of 428 billion yen from 11 analysts polled by LSEG.

Sony, the inventor of the Walkman, has transformed into an entertainment and tech behemoth spanning movies, music, games, chips and financial services.

Sony said it sold 8.2 million PlayStation 5 units in the third quarter, which spans the key year-end shopping season.

That compared with sales of 7.1 million units in the same period a year earlier.

“Marvel’s Spider-Man 2” launched on Oct. 20, while the company rolled out a slim version of the console from November.

Nintendo last week hiked its full year Switch forecast to 15.5 million units, from 15 million units previously, as the Kyoto-based company extends the lifecycle of the aging console.

Xbox maker Microsoft is due to share updates on its games business on Thursday.

Last month Sony scrapped plans for a $10 billion merger of its Indian business with Zee Entertainment which would have created a TV juggernaut.

($1 = 150.5400 yen)

(Reporting by Sam Nussey; Editing by Himani Sarkar)

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  4. FREE 13+ Sample Nonprofit Business Plan in Google Docs

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  5. FREE 13+ Sample Nonprofit Business Plan in Google Docs

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  6. FREE 13+ Sample Nonprofit Business Plan in Google Docs

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  10. Professional Nonprofit Business Plan Template

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  23. Finances in a Nonprofit Business Plan

    Essentially, the financials section of the nonprofit business plan is used to paint a picture of where the nonprofit will be (financially) in the future. You will list your assumptions about what will affect the nonprofit's finances, create a set of pro forma financial reports (based on financial assumptions or projections), and paint a ...

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    Healthy nonprofit organizations employ financial management practices that build stability and flexibility both today and in the future. 1. Budgeting. Budgets matter because they provide the financial information to support all planning. Effective budgets are realistic, using sound assumptions and clear accountability to achieve those assumptions.

  28. Sony slashes PS5 sales target, plans 2025 IPO for financial unit

    Sony, which in 2023 said it was examining a partial spin-off of its financial business, said it plans to list Sony Financial Group in October 2025 and retain a stake of just under 20%.

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