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Business Planning for Nonprofits

Business planning is a way of systematically answering questions such as, “What problem(s) are we trying to solve?” or “What are we trying to achieve?” and also, “Who will get us there, by when, and how much money and other resources will it take?”

The business planning process takes into account the nonprofit’s mission and vision, the role of the board, and external environmental factors, such as the climate for fundraising.

Ideally, the business planning process also critically examines basic assumptions about the nonprofit’s operating environment. What if the sources of income that exist today change in the future? Is the nonprofit too reliant on one foundation for revenue? What happens if there’s an economic downturn?

A business plan can help the nonprofit and its board be prepared for future risks. What is the likelihood that the planned activities will continue as usual, and that revenue will continue at current levels – and what is Plan B if they don't?

Narrative of a business plan

You can think of a business plan as a narrative or story explaining how the nonprofit will operate given its activities, its sources of revenue, its expenses, and the inevitable changes in its internal and external environments over time. Ideally, your plan will tell the story in a way that will make sense to someone not intimately familiar with the nonprofit’s operations.

According to  Propel Nonprofits , business plans usually should have four components that identify revenue sources/mix; operations costs; program costs; and capital structure.

A business plan outlines the expected income sources to support the charitable nonprofit's activities. What types of revenue will the nonprofit rely on to keep its engine running – how much will be earned, how much from government grants or contracts, how much will be contributed? Within each of those broad categories, how much diversification exists, and should they be further diversified? Are there certain factors that need to be in place in order for today’s income streams to continue flowing?

The plan should address the everyday costs needed to operate the organization, as well as costs of specific programs and activities.

The plan may include details about the need for the organization's services (a needs assessment), the likelihood that certain funding will be available (a feasibility study), or changes to the organization's technology or staffing that will be needed in the future.

Another aspect of a business plan could be a "competitive analysis" describing what other entities may be providing similar services in the nonprofit's service and mission areas. What are their sources of revenue and staffing structures? How do their services and capacities differ from those of your nonprofit?

Finally, the business plan should name important assumptions, such as the organization's reserve policies. Do your nonprofit’s policies require it to have at least six months of operating cash on hand? Do you have different types of cash reserves that require different levels of board approval to release?

The idea is to identify the known, and take into consideration the unknown, realities of the nonprofit's operations, and propose how the nonprofit will continue to be financially healthy.  If the underlying assumptions or current conditions change, then having a plan can be useful to help identify adjustments that must be made to respond to changes in the nonprofit's operating environment.

Basic format of a business plan

The format may vary depending on the audience. A business plan prepared for a bank to support a loan application may be different than a business plan that board members use as the basis for budgeting. Here is a typical outline of the format for a business plan:

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

More About Business Planning

Budgeting for Nonprofits

Strategic Planning

Contact your state association of nonprofits  for support and resources related to business planning, strategic planning, and other fundamentals of nonprofit leadership. 

Additional Resources

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

Disclaimer: Information on this website is provided for informational purposes only and is neither intended to be nor should be construed as legal, accounting, tax, investment, or financial advice. Please consult a professional (attorney, accountant, tax advisor) for the latest and most accurate information. The National Council of Nonprofits makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

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

 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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Raise More & Grow Your Nonprofit.

The complete guide to writing a nonprofit business plan.

August 14, 2019

Leadership & Management

July 7, 2022

TABLE OF CONTENTS

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

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

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

The purpose of a nonprofit business plan

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

what is non profit business plans

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

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

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

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

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

More Reading

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

Creating a nonprofit business plan

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

Step 1: Write a mission statement

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

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

what is non profit business plans

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

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

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

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

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

Step 2: Collect the data

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

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

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

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

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

Step 3: Create an outline

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

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

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

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

Using a business plan template

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

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

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

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

Nonprofit business plan sections

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

1. Executive summary

Many people write this last, even though it comes first in a business plan. This is because the executive summary is designed to be a general summary of the business plan as a whole. Naturally, it may be easier to write this after the rest of the business plan has been completed.

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

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

2. Products/Services/Programs

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

what is non profit business plans

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

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

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

3. Marketing

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

Nonprofits not in operation

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

Nonprofits already in operation

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

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

4. Operations

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

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

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

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

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

what is non profit business plans

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

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

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

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

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

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

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

what is non profit business plans

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

6. Finances

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

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

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

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

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

7. Appendix

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

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

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

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

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what is non profit business plans

How to write a nonprofit business plan

While a nonprofit business plan is similar to that of a for-profit company, it has a few important differences, including the need for a fundraising section.

Ready to start your business?

what is non profit business plans

by   Sandra Beckwith

Sandra Beckwith has been writing for traditional and online publications since she sold her first magazine article wh...

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Updated on: January 22, 2024 · 3min read

Nonprofit business plan elements

Fundraising section is essential, keep it real.

While nonprofit organizations are purpose-driven rather than profit-driven, they have a great deal in common with their for-profit counterparts.

"We may be governed by a different part of the tax code and exempt from some—but not all—taxes, but we are businesses, too," says Rick Cohen, chief operating officer at the National Council of Nonprofits.

Like other types of businesses, successful nonprofits outline their goals and how they will achieve them in a written document known as a business plan.

A nonprofit's business plan is similar to that used by a for-profit entity but has key differences. Here's what you need to know about how to write a nonprofit business plan.

volunteers-with-clipboards-in-park sitting in the grass

For-profit business plans detail what a company does, how it does it, who does it, and how it pays for it. A nonprofit business plan outlines that as well but approaches parts of the process differently.

The biggest difference is that nonprofit organizations focus on the problem they want to solve and how to fund programs and activities that help do that.

"Nonprofits have the added burden and opportunity of impact in their business plan," says Sara Gibson, co-founder and CEO of 20 Degrees, a consulting firm serving nonprofits. "The sector doesn't measure worth in profit—it is measured in lives and in change created. That has to be part of the plan."

Typical nonprofit business plans feature many of the following elements:

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

For-profit businesses might be funded initially by owners or outside investors, but the ultimate goal is usually self-sufficiency through sales. Many nonprofit organizations aren't structured or created to generate income to support their community services, so fundraising is key.

"It is critical for the sustainability of nonprofits that they are constantly being connected with grants and funders who will provide the financial resources needed for these nonprofits to continue offering quality and valuable assistance to the communities they serve," says Fernando Urbina, director of outreach for ImmigrationHelp.org.

Mikko Sperber, managing partner and founder of Fundamental Strategy, recommends taking on a for-profit business mindset when writing the fundraising section of the nonprofit business plan.

"If you build your plan to have a budget surplus at the end of your year, you then have the capital to reinvest in growing your organization and furthering your mission," he says.

The organization's communication and marketing strategy feeds fundraising goals, so be thoughtful about that piece when writing a nonprofit business plan.

"If no one knows who you are, then no one will be donating to your cause," says Mike McKnight, director of operations at Racing for Orphans with Down Syndrome.

When outlining your business plan, be realistic about fundraising and other revenue streams, then match your budget to your fundraising goal, not the other way around. "In worst-case scenarios, fundraising numbers are plugged into a budget after the programmatic expenses are figured to just offset them without a realistic plan," Sperber says.

Matching your budget to your fundraising goal is especially important because of the organization's impact on the community served, says Cohen, whose organization offers nonprofit business plan resources on its website.

"The worst thing a nonprofit can do is get to a place where people are counting on their services, but then need to close their doors, leaving those people in the lurch," he says.

To ensure your organization's business plan properly supports your mission, consider consulting with professionals such as nonprofit advisers and attorneys specializing in this sector.

Keep your nonprofit business plan handy, too. It's your organizational blueprint, but you'll also need to update it as circumstances or market conditions change.

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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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Write Your Nonprofit Business Plan in 9 Sections

nonprofit business plan

Unfortunately, many founders or leaders skip creating one — which generally leads to fundraising frustrations and stalled services, among other problems.

Maybe they don’t know what a nonprofit business plan can do to help them.

Or perhaps it seems too daunting, and they don’t know where to start.

There’s also a common misconception out there that because your organization is labeled a “nonprofit” it doesn’t need to operate like a business. (That couldn’t be farther from the truth.)

Passion and enthusiasm can only get you so far. Without a guide or roadmap to get you where you want to go, you can spend a lot of time floundering.

After all, you can’t jump into your car and drive somewhere you’ve never been if you don’t have directions, can you?

So why do folks who are looking to start or grow a nonprofit not draft a business plan?

Why You Need a Nonprofit Business Plan

No matter where your nonprofit is in its growth or what you’re trying to accomplish, a plan will help you reach your goals faster than if you are trying to operate without one.

Your nonprofit business plan helps you figure out the direction for your nonprofit, the resources you need, and the shortest path to success.

For new nonprofits, it helps you see if you can actually gather the support that you hope you can. In short, you can determine before you begin if your idea for a nonprofit is feasible.

If your nonprofit is already up and running, a nonprofit business plan helps you decide if the funding and opportunities for growth exist for your new or young nonprofit.

Your organization doesn’t exist to make money. But a nonprofit business plan is necessary to attract major donors, foundations, Board members, and other potential partners.

You might need to apply for a business loan at some point, especially if you want to buy a building or set up a thrift store. Lenders will want to see your nonprofit business plan to get an idea of how well you’ve thought things through and to see what your revenue projections look like.

Regardless, your nonprofit needs a roadmap for the future so you can accomplish your goals and fulfill your mission.

So, let’s break it down and take a look at the pieces you’ll need to think through and include in your nonprofit’s business plan.

Getting Started With Your Nonprofit Business Plan

nonprofit business plan

The most common question we get about business plans is “where do we start?”

I get it. It can be a little overwhelming, especially if you’re not naturally a planner.

Essentially, you start with the basics — your mission, vision, and goals.

Your nonprofit’s business plan will then expand on those, going into detail about what you’ll do and what it will cost.

A good plan answers a number of who, what, when, where questions like these:

  • What problem is your nonprofit trying to solve?
  • What are the exact goals you are trying to achieve?
  • How will you measure success?
  • How much will it cost?
  • What resources do you have and what resources will you need?
  • Who can help you achieve your goals?

Your Nonprofit Business Plan not only answers these questions in a format that’s easy to read and understand, but explains your organization and its processes clearly and factually.

What Should You Include in a Nonprofit Business Plan?

Your Nonprofit’s Business Plan should include only relevant information, including these 9 elements:

1. Executive Summary. The Executive Summary is the first thing that any potential partner or supporter will read, and it introduces the mission and purpose of your nonprofit.

It summarizes the identifiable needs you are committed to filling and explains how your nonprofit will meet those needs.

Unlike for-profit businesses, you are not just selling your potential partners on the numbers and inviting them to make a profit.

You are writing a compelling story about how you are helping change the world for the better.

Because this section of your nonprofit business plan is a summary of the facts contained throughout the whole document, it is often written last.

You can customize this section of your business plan depending on your purpose in sending it out. For example, the Executive Summary might have a very different focus if you are trying to recruit an expert in your service sector to the Board versus applying for a small business loan to open a gift shop.

what is non profit business plans

For instance, if your nonprofit is a 501(c)(3), you will list that in this section. (There are other types of nonprofit organizations such as fraternal beneficiary organizations, or horticulture, labor, and agricultural organizations that are structured as nonprofits as well…so be clear here.). Or maybe your nonprofit is actually an NGO based in another country.

In this section, talk about whether you have employees or are all-volunteer. Do you have (or will have) a facility? Paint a picture of your organizational structure so the reader can understand quickly what your nonprofit looks like from an operational point of view.

If yours is an established organization, you can discuss how your nonprofit was started and the milestones you have reached. Listing previous successes and accomplishments in this section can be convincing for potential partners and reassure them that you will use their funding efficiently.

If your nonprofit is just getting started, explain your vision and why you are creating your organization. Focus on the problems you see and the practical ways you intend to alleviate those problems.

3. Products, Programs, and Services. This section provides detailed descriptions and documentation of how you meet needs in your community.

This is where you describe the need and who benefits from your programs. Talk about how lives are changed because of the work your nonprofit does.

Go into some detail to describe the number of people or animals who need you, the number you serve or intend to serve, and the remaining gap who need service.

For example, if you run a homeless shelter, you should mention the number of people who are homeless on any given night in your area. Talk about the number of beds you have, the number of beds you are planning to add in the coming year, and exactly what services you provide in addition to shelter.

If your shelter offers wrap-around services or plays a key role in connecting those you serve to other vital services, talk about those, too. Do your beneficiaries have access to medical care once a month? Does your organization provide a meal? Do you have volunteer tutors who can help students who are homeless with their work? Note who carries out your programs and services and whether you use mostly volunteers or whether you have paid staff in place.

This section will convince potential partners that you are making a difference in a concrete way.

Also, talk about any other nonprofits who are addressing the same need and how your services are/will be different. Donors don’t like duplication of services, and getting grants will be tough if you can’t articulate how your approach is unique.

4. Marketing Plan. Your marketing plan should describe the specific target audiences you want to reach for both programs and fundraising, key messages you’ll use, and which methods or vehicles you’ll use to reach the right people.

Describe whether you mostly advertise and market to a local community or whether your organization is national or worldwide in scope.

This section should include specific marketing strategies and associated costs, such as:

  • Print and online marketing
  • Email campaigns
  • Social media
  • Building, maintaining, and marketing your website
  • Marketing or cause-related partnerships
  • Fundraising or outreach events

If your nonprofit is already established, let your reader know what your marketing plan has been in the past, what has worked, and how you plan to expand it.

nonprofit business plan

What do you and your staff do every day to run programs and provide services? Be specific. How much does a single unit of service cost per person? Who delivers the service? Where and how?

If you have a five-year plan for expanding operations, include that as well. Outline your ideas to move into new areas, new facilities, or new markets.

Note any expanded services. If you are planning on growing or expanding your services what would that mean in terms of operations? For instance, if you run a food bank and you are actively planning to double the number of people you feed in the next year, how will that affect operations? Will you need more refrigerated space? More trucks? More staff or volunteers? Will you expand hours? Be ready to share in the Financial section how this growth will impact your budget, both in revenue and expenses.

If you haven’t spent time making long-term plans, this is a good time to sit down with Board members and staff and think about it in detail! Decide if you’ll start the program or secure funding first (there’s a big difference!).

This section will show potential partners that you are professional, serious, and ready to act with whatever funding they can provide.

6. Evaluation Plan. This can be a separate section, or evaluation methods can be added to various other sections.

Evaluation is critical to determine your effectiveness as a nonprofit — and it’s particularly important for grants. How can you tell if a program is providing the benefit that you are promising? Potential donors and grantors will want to know how you will make sure that funds are used to their highest potential and that you are flexible enough to change if need be.

You should also talk about methods in place to evaluate various aspects of your nonprofit to make sure you’re getting a good return on investment for the time, energy, and resources you put into each area of operations.

For instance, you should monitor your marketing strategies to see what’s working to reach new people. Make sure someone is noting which social media posts are catching on. You should have a data collection system that helps evaluate which fundraising techniques bring in new donors and which techniques help you retain donors or take them to the next level.

You need to explain exactly how you will determine whether or not your beneficiaries are succeeding. For instance, how many of the students you tutor graduate high school? What is your mechanism for follow-up?

You can’t just tell people your idea is working. You need to have the data to prove it.

7. Management and Organizational Charts. In this section, explain the hierarchy of your organization and your expertise for doing the work ahead of you.

Who does what and what expertise do they have for doing it? Potential partners will feel more comfortable to know that the Director of Services for your women’s shelter has a PhD and 10 years of experience in social work.

They will also feel more comfortable knowing that you have all your bases covered in management and staff. This is a good place to outline your future staffing and management needs, including any reliance on volunteers.

nonprofit business plan

Start by developing revenue projections, including anticipated sources of funding from donations, grants, etc. Your projections can’t just be guesses — they need to be based on something specific, whether it’s how much you raised last year, how much a similar organization raised last year, or on an expert’s recommendations. So, include a summary of your fundraising plan here to show how money will be raised.

In addition to revenue projections, also include a breakdown of anticipated expenses. How much of your funds go directly to those you serve? How much goes to your employees’ salaries? How much funding goes to facilities payments or upkeep? You should be very detailed in this section.

Don’t forget things like legal and accounting services, insurance, website upkeep, internet, phone bills, and utilities. If your nonprofit’s money goes into it, include it here.

Include future cash flow statements, income sheets, and balance sheets. You should let your potential partners know how you distribute these funds amongst your various programs and services. This is where your accounting practices can make or break you!

Writing out a detailed financial plan can be very revealing to you as well as to donors and foundations. It may help you identify gaps in your funding and how you plan to deal with them. It’s well worth the effort to gather this information. Not only will it make potential partners more comfortable, it will give you clarity as well!

9. Appendix. The appendix is where you should include extra information that might make the business plan too lengthy or complicated to read through.

You can include your current fiscal year budget , a list of your Board members and their bios, and other relevant documents. You can include any information that you feel is important but perhaps too detailed to include in the main body of your nonprofit business plan.

Tips for Your Nonprofit Business Plan

Use technical jargon or acronyms your reader might not be familiar with.

Make the document unreadably long. Instead, use the appendix for very long or dense documents.

Use only text. Break up the sections for easy reading, and use graphs and charts where you can.

Get so passionate about the cause you forget to tell your reader the nuts and bolts of your nonprofit.

Make the document easy to read. If it’s printed, print on reasonably heavy paper with at least a 12-pt. font.

Use reasonable margins. You want your reader to be able to easily read each page.

Divide the sections clearly with headers and white space.

Use color, graphs, and charts to draw the eye and keep the reader moving through the document.

Have someone, or even several someones, read and edit your nonprofit business plan. (Silly grammar errors and typos are not going to impress your reader with your professionalism.)

Update your audience and keep them excited.

The Bottom Line

what is non profit business plans

Writing a nonprofit business plan is not the easiest thing in the world, but it’s definitely worth your while and gets your ideas down on paper. It may seem like a daunting task, but if you break it into sections and start gathering information, you will find that your business plan can help you find direction and the means to help fulfill your mission.

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What Should You Say to Get People to Donate?

What Should You Say to Get People to Donate?

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I need help writing my non profit business plan

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The resources listed in this article will help. Is there a specific place where you’re stuck?

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Thank you so much for this! Is there a good sample you could point me to look at?

You might try googling “sample nonprofit business plan” and the type of nonprofit you have so you can find one that’s applicable to your work.

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This information was informative, detailed and to the point without being too wordy. Thank you for your advice, it helped me a lot.

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What is the average total page count for a business plan

It depends on how much detail you get into. Somewhere between 15 and 20 pages should give you plenty of direction.

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what is non profit business plans

How to Create a Nonprofit Business Plan

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

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

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

Executive Summary

Organization overview.

  • Products, Programs, and Services

Industry Analysis

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

Let’s break each of these down.

Start your nonprofit business plan by clearly stating your organization’s mission and describing how it plans on reaching its goals. Include a concise description of what makes your organization stand out among competitors (e.g., “We are the only non-profit animal welfare organization in XYZ county” or “Our college student volunteers provide assistance at less than half the cost as our competitors”).  Succinctly communicate why people should care about your organization so they will choose to support you. Include other pertinent information about your organization such as the bios of key staff members and the amount of funding you are looking to raise.

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

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

Products/Services/Programs

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

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

Also answer the following questions:

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

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

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

Below are sample promotional activities that many nonprofit organizations use:

Public relations

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

Social media marketing  

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

Blogs and Other Content  

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

E-newsletters  

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

Event marketing  

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

Newspaper/Magazine ads  

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

PPC advertising  

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

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

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

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

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

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

*This spotlighted blog post is courtesy of Growthink

Business plan notes on cork board

Dave Lavinsky

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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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3 Sample Nonprofit Business Plans For Inspiration

sample nonprofit business plans

Download our Ultimate Nonprofit Business Plan Template here

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

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

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

Executive summary.

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

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

Organization Overview

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

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

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

Products, Programs, and Services

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

Leadership Development (LD)

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

Creative Writing (CW)

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

Music Production (MP)

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

Industry Analysis

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

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

Customer Analysis

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

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

The demographics of our current students are as follows:

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

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

Marketing Plan

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

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

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

Operations Plan

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

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

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

Management Team

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

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

Executive Director

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

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

Program Directors

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

Art Program Director

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

Music Program Director

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

Theatre Program Director

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

Board of Directors

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

Financial Plan

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

Pro Forma Income Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Financial Overview

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

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

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

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

Revenue: $1.2 million

Total Expenses: $910,000

Net Income Before Taxes: $302,000

Statement of Financial Position as of December 31, 20XX 

Cash and Cash Equivalents: $25,000

Receivables: $335,000

Property and Equipment: $1.2 million

Intangible Assets: $0

Total Assets: $1.5 million

Balance Statement

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

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

Operating Activities: Income Before Taxes -$302,000

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

Financing Activities: Fundraising campaign $200,000

Net Change in Cash: $25,000

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Unique Market Position

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

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

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

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

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

Industry Capacity

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

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

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

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

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

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

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

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

Finally Home’s management team consists of:

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

Management Summary

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

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

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

Nonprofit Business Plan Example PDF

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

How to Finish Your Nonprofit Business Plan in 1 Day!

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

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

Other Helpful Nonprofit Business Planning Articles

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

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Nonprofit Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

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

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

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

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

Next Section: Executive Summary >

Nonprofit Business Plan FAQs

What is a non profit business plan.

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

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

What Are the Main Types of Nonprofit Organizations?

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

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

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

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

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

How Do You Secure Funding For Your Nonprofit Organization?

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

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

Where can I download a Nonprofit Business Plan PDF?

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

How to Write a Non Profit Business Plan: Step by Step Guide

what is non profit business plans

July 6, 2023

Adam Hoeksema

Does a non profit really need a business plan?  Your organization isn’t a “normal” business after all, you are pursuing a mission, so shouldn’t the business plan just be to pursue the mission of the organization?  

Also, is there really such a thing as a “non profit business plan”?  Non profit organizations are so diverse in their business models.  For example, the financial model for a church based on donations is quite different than a non profit healthcare provider financial model based on provided health care services.  

Since the only common attribute among non profits is that they are pursuing a mission rather than a profit for shareholders, the size, scope and type of a business plan that your non profit might need can vary dramatically.  

In this article I hope to cover the following:

  • Why write a business plan for a non-profit?
  • What should be included in a non-profit business plan?
  • Non-profit business plan outline
  • Do non-profits have competitors?
  • How to analyze the competition for a non-profit?
  • How big is the market for my non-profit?
  • How to market a non-profit?
  • How to structure a non-profit board?
  • How to create financial projections for a non-profit?
  • Non-profit business plan example
  • Non-profit business plan FAQs

With that in mind as the path forward, let’s dive in. 

Why write a business plan for a non profit? 

Writing a business plan for a non-profit organization has several important benefits and can serve as a key tool in achieving the organization's goals. Here are a few reasons why writing a business plan for a non-profit is essential:

  • Clarity and Direction: A business plan helps define the mission, vision, and values of the organization. It provides a clear roadmap outlining the steps to be taken to achieve these goals, and the strategies and tactics to be used.
  • Operational Planning: A business plan includes operational details, including organizational structure, staffing needs, resource allocation, and day-to-day operations. This information is essential for the smooth and efficient running of the organization.
  • Financial Planning: Non-profits need financial management and planning as much as for-profit businesses. A business plan outlines the financial needs of the organization, budgeting, funding sources, and expenditure, which helps in ensuring financial sustainability.
  • Fundraising Tool: A well-structured business plan can be a crucial tool when seeking funding from donors, grantmakers, or sponsors. It demonstrates to potential funders that the organization is well-organized, has a clear mission, and is likely to be successful in its endeavours.
  • Performance Measurement: The business plan sets clear objectives, goals, and milestones that enable the organization to measure its progress. This information can be used to make necessary adjustments to strategies or operations to improve performance.
  • Stakeholder Communication: A business plan is a formal document that communicates the organization's purpose, strategies, and financial plans to various stakeholders, including staff, volunteers, board members, donors, and beneficiaries.

What should be included in a non profit business plan? 

It is difficult to give you a one size fits all answer for what should be included in a non profit business plan because as we have mentioned every non profit has a different model.  So you really need to customize your business plan to your non profit’s unique situation.  That being said, we did put together an outline of a generic non profit business plan which should at least give you a good head start. 

Non profit business plan outline

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview, 3.2. collaborator and competitor identification.

3.3. Target Beneficiaries

Key Point  1

4. marketing and fundraising, 4.1. strategic plan.

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. promotions and fundraising, key point  2, 5. organizational structure and management, 5.1. organization’s facility & location, 5.2. staffing plan and volunteer management.

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

Do non profits have competitors .

You might be tempted to think that non profit organizations don’t have competition because you are just all out to support the mission.  Although you can certainly work toward the same goal, as an organization you still have competition.  A non profit church may be competing for church members in a sense, a non profit university is competing for students, and a non profit health care system is competing to recruit the best doctors and employees.  

How to analyze the competition for a non profit?

One way to analyze your competition might be to use a tool like Ahrefs.com which allows you to input an organizations website and see roughly how much website traffic they get and what keywords are driving traffic to their website.  My alma mater is Taylor University.  Ahrefs shows that their website receives roughly 25,000 visitors per month from organic search results.  

A screenshot of a graphDescription automatically generated

Furthermore I can do a keyword report and see that they are ranking first for a competitive keyword like “Christian University Indiana” which sends them roughly 34 organic website visitors per month.

what is non profit business plans

How big is the market for my a non profit?

Ahrefs is also a great tool to understand how big the market might be for your particular non profit.  For example, we can see that there are only 350 people searching for “Christian colleges in Indiana” per month, so the total market of people searching for an organization like Taylor University is relatively small.  If you are starting a church you could run a report for keywords like “church in XYZ city” which would help you understand that number of people searching for a church in your area.  

How to market a non profit?

By doing competitor and keyword research for your market on Ahrefs, you should now have a good idea of how your competitors are attracting customers / beneficiaries and you can look for opportunities to compete in that market.  You can then advertise for certain keywords, write content or blog posts related to the keywords that your target market is searching for, and you can try to replicate or improve upon strategies that appear to be working for your competitors. 

How to structure a non profit board?

Structuring a nonprofit board involves considering a number of elements, including board size, member composition, board officer roles, committees, and member terms. Here are some guidelines for how you can structure a nonprofit board:

  • Board Size : The size of a board should be dictated by the needs and capacity of the organization. Smaller nonprofits may only need a board of five to seven people, while larger organizations may require 20 or more. As a general rule, a board should be large enough to carry out its duties, but small enough for effective discussions and decision-making.
  • Member Composition : The board should consist of individuals who bring a variety of skills and perspectives to the organization. This can include people with financial, legal, and managerial expertise, as well as those with knowledge of the organization's mission and community. It can also be beneficial to include individuals who reflect the demographics of the community the nonprofit serves.
  • Board Officer Roles : Nonprofit boards typically have at least three officers: a Chair, a Secretary, and a Treasurer. The Chair presides over meetings and guides the direction of the board. The Secretary is responsible for keeping records of board actions, and the Treasurer oversees the financial management of the organization. Some boards may also have a Vice Chair to support the Chair in their duties.
  • Committees : Committees can be useful for handling specific aspects of board governance. Common nonprofit board committees include the Executive Committee (made up of board officers), the Finance Committee, the Governance or Board Development Committee (which handles board recruitment and training), and the Fundraising or Development Committee. There may also be ad hoc committees set up to handle specific projects or initiatives.
  • Member Terms : Board members usually serve for specific terms, which can range from one to four years. Some organizations use staggered terms, where a portion of the board is up for re-election each year, to ensure continuity. There may also be term limits, which can help to ensure fresh perspectives on the board.
  • Board Member Roles and Responsibilities : It's important to establish clear roles and responsibilities for board members. This can include setting strategic direction, ensuring financial oversight, hiring and evaluating the executive director, fundraising, and acting as ambassadors for the organization.
  • Board Meetings : Regular board meetings are crucial for decision-making and governance. The frequency of these meetings will depend on the organization's needs, but many boards meet quarterly. The board may also meet in special sessions as needed.
  • Board Evaluation and Training : Regular evaluations can help ensure that the board is functioning effectively and meeting its responsibilities. This can include individual self-assessments as well as full board evaluations. In addition, ongoing board training can help to ensure that members understand their roles and responsibilities.

Remember, each nonprofit organization is unique and may have different needs and requirements when it comes to board structure. It's important to create a structure that works best for your particular organization, in compliance with any applicable local, state, or national laws.

How to Create Financial Projections for a Nonprofit Business Plan

Just like in any industry, the non-profit sector has its own unique factors that impact financial projections, such as fundraising efforts, grant opportunities, and donor contributions. Utilizing a non-profit financial projection template can simplify the process and boost your confidence. Creating precise financial projections goes beyond demonstrating your organization's ability to secure funding; it's about showcasing the financial path that will enable you to achieve your mission and make a positive impact. To develop accurate projections, consider the following key steps:

  • Estimate startup costs for your non-profit, including administrative expenses, program development, and marketing efforts.
  • Forecast revenue sources such as grants, donations, fundraising events, and membership fees.
  • Project program costs
  • Estimate operating expenses like office rent, utilities, insurance, and professional services.
  • Calculate the amount of funding needed to launch and sustain your non-profit's activities.

While financial projections are vital for your non-profit business plan, remember to seek guidance from experienced professionals who understand the non-profit landscape. Adapt your projections based on real-world insights and leverage industry resources to refine your financial plan, ensuring you can effectively execute your organization's mission and achieve your desired outcomes.

Example Non Profit Business Plan

Below is the content of our sample non profit business plan . A Google Doc version of this nonprofit business plan template is available here for you to modify and personalize. There's also a video walkthrough available to guide you in tailoring the business plan to your specific nonprofit organization's needs.

Table of Contents

1. organization overview.

Briefly introduce the organization's background,  programs, and target market.

      -  Example: Safe Haven is a non-profit organization based in Minneapolis, Minnesota, dedicated to promoting mental health awareness and providing accessible counseling services to underserved communities

   1.2. Objectives

Outlines the organization's short-term and long-term goals.

        - Example:  Increase the number of counseling sessions offered by 25% within the next six months to meet the growing demand for accessible mental health services in underserved communities.

        - Example: Long-term: Establish satellite centers in neighboring cities within three years to expand the reach of Save Haven's mental health programs and services to a wider population.

  1.3. Mission Statement

 Describes the organization's purpose and core values.

        - Example:  Empowering underserved communities by promoting mental health awareness and providing accessible counseling services for all.

   2.1. Organization History

Provides context on the organization's background and founding story.

        - Example: Established in 2010 by Andy Mitchell and a group of passionate professionals and activists, Safe Haven is a mental health organization dedicated to providing accessible counseling services. Through community partnerships and continuous growth, we have made a lasting impact on mental health awareness and support.

   2.2. Legal Structure

 Describes the organization's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: Safe Haven operates as a non-profit organization registered as a 501(c)(3).

 2.3. Unique Value Proposition

  Emphasizes the organization's competitive advantage or unique values.

        - Example: Safe Haven stands out by offering collaborative mental health care, bringing together a multidisciplinary team of professionals who work together to foster holistic well-being and resilience in individuals and communities.

  2.4. Target Beneficiaries

Defines the organization's ideal beneficiary base.

        - Example: Safe Haven aims to serve underserved communities, including individuals from low-income backgrounds, marginalized groups, and those facing barriers to mental health services. 

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The mental health industry is experiencing significant growth and increased awareness due to a growing recognition of the importance of mental well-being. Safe Haven aims to leverage this trend and contribute to the industry by providing accessible counseling services and promoting mental health awareness in underserved communities.

 Identification of similar non-profit organizations and potential collaborators

        - Example: Direct competitors: Compassionate Minds: A non-profit organization providing mental health services and counseling operating in the same region as Safe Haven.

        - Example: Indirect competitors: Mental Health Foundation: A national non-profit organization focusing on advocacy and awareness, partnering with various stakeholders to promote mental well-being.

3.3. Target Beneficiaries 

Explores the organization's target beneficiaries, demographics, preferences, and pain points.

        - Example: Our programs and services primarily target low-income families and individuals residing in Minneapolis, Minnesota, with a focus on marginalized communities, such as homeless individuals, domestic violence survivors, and immigrant populations.

what is non profit business plans

  • Example 1: Localized research findings reveal a significant increase in mental health awareness and a growing demand for accessible and affordable mental health services in the community.
  • Example 2: Analysis of demographic data indicates a high prevalence of mental health concerns among underserved populations, highlighting the urgent need for targeted intervention programs.

Describes the action plans, timelines, and key milestones for your organization

Describes the organization's programs or services in detail.

        - Example: Secure sustainable funding through grant applications, fundraising events, and community partnerships 

Key Milestone: Raise a minimum of $100,000 in grant funding within the first year.

        - Example: Develop and implement mental health awareness campaigns in collaboration with local community organizations within the first year of operation, starting from Month 1.

Key Milestone: Launch the first mental health awareness campaign within 6 months.

        - Example: Recruit and train a team of licensed mental health professionals to offer counseling services within the first year of operation, starting from Month 1.

4.2. Program or Service Offerings: 

        - Example: Save Haven offers a comprehensive range of services including individual counseling, group therapy, group therapy, crisis intervention, and support groups.

 Describes the methods through which the organization will deliver its programs or services to beneficiaries.

        - Example: Safe Haven employs a multi-channel distribution approach, utilizing remote counseling, and community partnerships with schools, community centers, and healthcare facilities.

 Details of the organization's promotional efforts and advertising strategies.

        - Example: Safe Haven employs a comprehensive promotional strategy encompassing online presence through its website and social media platforms, active community outreach at events and health fairs, partnerships with local media outlets, and collaborations with healthcare professionals and community organizations to ensure a continuous flow of individuals seeking mental health support.

what is non profit business plans

  • Example 1: Safe Haven plans to collaborate with local schools to provide mental health education programs and workshops to students, empowering them with essential skills and knowledge for mental well-being.
  • Example 2: The organization aims to establish partnerships with community centers and faith-based organizations to create safe spaces for support groups, fostering a sense of belonging and social connection among individuals facing mental health challenges.
  • Example 3: Organize a grand opening event offering free washes and dryer credits, attracting over 200 local residents and generating buzz through word-of-mouth referrals.

 Specify the organization's premises used to carry out its activities, programs, and services. I

        - Example: Save Haven operates from a welcoming and serene facility located in the heart of Minneapolis, Minnesota. The facility comprises modern counseling rooms, a comfortable waiting area, and administrative offices, creating a safe and supportive environment for individuals seeking mental health services.

  Involves the systematic approach of recruiting, coordinating, and supporting volunteers and staff

        - Example: Safe Haven implements a comprehensive staffing plan that includes recruiting, training, and retaining qualified staff members to ensure the effective delivery of programs and services. Additionally, the organization establishes a volunteer management system to engage and support volunteers in their roles, providing them with meaningful opportunities to contribute to the mission.

5.3. Governance, Financial Management, and Accountability:

 Involves the effective and responsible management of financial resources to support the organization's operations 

        - Example: Safe Haven upholds strong policies and procedures to ensure responsible governance, financial management, and accountability, including clear guidelines for board members, transparent financial reporting, and performance evaluations to continually improve its impact and stakeholder satisfaction.

what is non profit business plans

  • The team at Safe Haven comprises licensed mental health professionals with extensive experience in trauma-informed care, ensuring high-quality and compassionate support for individuals affected by adverse life experiences.
  • Our board members bring diverse backgrounds in psychology, social work, and public health, offering a comprehensive perspective on addressing mental health disparities and promoting holistic well-being.

All of the unique Non-Profit projections you see here were generated using ProjectionHub’s Non-Profit Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Save Haven's total startup costs are estimated at $150,000. The organization has raised $125,000 through fundraising and donations, and they are seeking an additional $25,000 to cover the remaining expenses.

what is non profit business plans

Watch how to create financial projections for your Non-Profit

what is non profit business plans

6.2. Revenue Projections

Provide an estimate of the organization's future revenue based on market research and assumptions.

        - Example:  Save Haven projects a steady increase in revenue over the next five years, with anticipated amounts of $509,060 in 2023,  in the first year.

what is non profit business plans

 Estimates the organization's future expenses, including fixed and variable costs.

        - Example: Save Haven has estimated its operating expenses, including direct expenses, fundraising costs, sales and marketing expenses, general and administrative costs, research and development expenses, programming costs, salaries, interest and taxes, loan principal, and leasehold improvements.

what is non profit business plans

Summarizes the organization's financial position and expenses, over a specific period.

        - Example: Save Haven anticipates an initial net loss in 2023 due to startup expenses and infrastructure investments. However, the organization projects a positive net income in the following years, demonstrating a consistent and promising financial growth trajectory.

what is non profit business plans

 Outlines the organization's projected cash inflows and outflows.

        - Example: Save Haven's cash flow projections factor in expected fluctuations in cash inflows and outflows, ensuring effective financial management and stability.

what is non profit business plans

  Determines the point at which the organization's revenue equals its expenses.

        - Example: Save Haven's break-even analysis indicates that the organization is expected to reach a point of revenue equaling expenses within a relatively short timeframe, highlighting its potential for early profitability.

what is non profit business plans

Key Point 4

what is non profit business plans

  • Example 1: Safe Haven's financial projections align with industry benchmarks, with operating costs accounting for a realistic percentage of total revenue based on similar non-profit mental health organizations.
  • Example 2: The organization conducts thorough market research to identify potential revenue streams, such as government grants, corporate partnerships, and individual donations, ensuring a diversified and sustainable funding base.

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

what is non profit business plans

  • Example 1: The founders of Safe Haven have personally invested their own resources and time into establishing the organization, demonstrating a strong commitment to its mission and the community it serves.
  • Example 2: Safe Haven's leadership team actively participates in mental health advocacy initiatives and professional development opportunities, continuously enhancing their expertise and dedication to improving mental health outcomes.

Nonprofit Business Plan FAQs

How do i start a non-profit organization.

To start a non-profit organization, you'll need to define your mission, create a board of directors, file the necessary paperwork with the government, develop a fundraising strategy, and establish policies and procedures for your organization's operations.

How can I fundraise for my non-profit?

You can fundraise for your non-profit by organizing events, applying for grants, seeking corporate sponsorships, launching online crowdfunding campaigns, cultivating individual donor relationships, and exploring partnerships with other organizations.

What are the key elements of a successful non-profit strategic plan?

A successful non-profit strategic plan should include a clear mission and vision, goals and objectives, an analysis of the target community or cause, strategies for fundraising and program implementation, and a monitoring and evaluation framework.

How can I measure the impact of my non-profit's programs?

To measure the impact of your non-profit's programs, establish specific metrics and evaluation methods, conduct surveys or interviews with beneficiaries, track outcomes and outputs, and use data to inform program improvements and report to stakeholders.

What legal requirements do I need to comply with as a non-profit?

Legal requirements for non-profits may include obtaining tax-exempt status, filing annual reports, adhering to accounting and financial regulations, ensuring transparency in governance, and complying with any specific regulations related to your non-profit's activities.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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How to Write a Non-Profit Business Plan

what is non profit business plans

Sylvia Okoye

Last updated on January 29, 2024 5 mins read

what is non profit business plans

So you’re starting a non-profit business but haven’t sat down to craft a business plan? 

Many entrepreneurs venture into non-profit with a truckload of impactful ideas they intend to achieve. Along the way these ideas begin to wither away due to poor planning and execution. 

To manage and grow a non-profit business, you must outline your strategies, goals and objectives. A clear, non-profit business plan is the first of many steps to getting this done.

What is a Non-Profit Business Plan?

A non-profit business plan is a strategic document outlining the mission, objectives, operational structure and financial projection of an organization.

It serves as a blueprint for achieving the organization’s goals, guiding the decision-making processes, and showcasing its viability to stakeholders, donors, and grant-making entities. 

Whether launching a new non-profit business or seeking to strengthen an existing one, having a comprehensive plan is fundamental to your success. 

Why Write a Non-Profit Plan?

A non-profit business plan differs from a for-profit business plan in that a for-profit business plan also clarifies how a business will grow in the market and in revenue.

Beyond securing funding, a well-written non-profit business plan offers several benefits:

  • Clarity and Focus – The plan is a roadmap for movement and aligning everyone to the business’s missions and goals.
  • Strategic Decision-Making – It helps you make informed decisions about resource allocation, program development, and fundraising strategies.
  • Improved Communication – It serves as a communication tool, showcasing your organization’s credibility and professionalism to potential donors, partners and volunteers.
  • Impactful Measurement – It establishes benchmarks for measuring your impact and demonstrating the effectiveness of your programs.
  • Organizational Growth – It lays the foundation for sustainable growth and expansion, enabling you to reach more people and make a greater impact. 

Crafting Your Non-Profit Business Plan

Every non-profit business plan has specified components attached to it that describe your business and what you do. Below are some components:

Executive Summary

The executive summary is a concise overview of your organization. It usually appears first in the business plan, however, it’s often the last thing you write because it encapsulates the essence of the entire document. 

A good summary should include in brief the mission of your business, its key objectives, target audience and a summary of your financial projections. It needs to be well-structured such that it is easily comprehensible to anyone who reads it. Writing a poor summary negatively affects your business and its reputation around sponsors.

Mission, Vision, and Values

Whether you are a human service, educational, environmental or religious non-profit organization, you should have a clear mission and vision. Let us know why you do what you do and how you intend to positively impact the world. 

Define the mission statement that encapsulates your organization’s purpose, followed by a clear vision outlining the future you aim to create. Incorporate the core values that guide your actions and decisions, reflecting the principles on which your non-profit stands. 

For example, the Epileptic Foundation a Humanitarian non-profit organization for epileptic people clearly defines their mission statements, visions and core values. 

what is non profit business plans

Your mission and vision statements should be boldly and clearly articulated to represent your business and cause. 

Organizational Structure and Management

Sponsors, donors and benefactors are more likely to give to nonprofits with organizational structure than those without. This is because a hierarchical structure shows that the business wants to be a business. 

Keep this structure as detailed as possible. Include board members, key personnel, and their role in the company. Highlight their qualifications and experiences, emphasizing their relevance to the organization’s mission.

Programs and Services

Every non-profit is created for a cause. This is the same as services or the product of a for-profit business. Let your donors know what you offer by reading your business plan. 

In a clear concise manner, describe the programs and services your non-profit offers. Explain how these initiatives align with your mission, their anticipated impact, and how they address the needs of your target beneficiaries or community.

Target Audience and Market Analysis

Identify and analyze your target audience or beneficiaries. Conduct market research to understand the needs, demographics and challenges of your intended community or beneficiaries. Clearly articulate how your programs meet those needs.

Marketing and Fundraising Strategies 

As you know your non-profit is solely based on donations and contributions to a cause. This step is crucial to writing a spectacular non-profit business plan. You need to state clearly your marketing and fundraising strategies. These tips need to answer some of the questions like?

  • What are your marketing strategies?
  • How to create and promote awareness about your non-profit organization?
  • How to reach your potential donors, volunteers and stakeholders?
  • What social media channels do you use to communicate with your target audience and benefactors?
  • What fundraising initiatives and events have you designed to generate revenue for the organization?
  • What are the eligibility criteria for potential donors and partners?

Financial Projections and Budget

Show your initial capital, how much you were worth, how much you are worth now and your future financial projection. Distill the reports to a fifth-grade level, such that anyone who picks it up knows the state of things.

Include your income statements, balance sheets, and cash flow statements. Present a clear budget that outlines anticipated expenses and revenue sources, demonstrating fiscal responsibility and sustainability.

Evaluation and Measurement Metrics

Define key performance indicators and metrics to evaluate the success of your programs and initiatives. Establish a framework for regular assessment and adjustment to ensure you’re effectively meeting your goals. 

Risk Management and Contingency Plans

Identify potential risks and challenges that could impact your organization’s operations. Develop contingency plans to mitigate these risks, ensuring the continuity of your programs and services.

Tips for Writing a Compelling Non-Profit Business Plan

  • Focus on your impact – Clearly articulate the positive change your non-profit is making and the lives you are touching. Use compelling stories and data to showcase your impact.
  • Keep it concise and comprehensible – Aim for a clear and concise writing style, avoid jargon and technical terms. Your business plan should be easy for anyone to understand regardless of their background. 
  • Tailor your plan to your Audience – Adapt your language and content to resonate with specific audiences such as potential donors, grantmakers, or volunteers.
  • Be realistic and Data-Driven – Base your plans on realistic assumptions and support your claims with data and research.
  • Get Feedback and Revise – Share your draft plan with key stakeholders and incorporate their feedback to refine and improve it. 

Remember your non-profit business plan is a living document. It should be regularly reviewed and updated to reflect changes in your organization, the needs of your community and the funding landscape. 

By following these tips and resources, you can create a compelling non-profit business plan that will guide your organization towards a sustainable and impactful future.

The world will continue to need difference makers in the form of non-profit organizations. If you’d do the work, you might as well do it with a business plan.

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what is non profit business plans

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best non profit business plan example template

11 Best Non Profit Business Plan Examples + Template (2024)

Non Profit Business Plan

What Is Non Profit Organization?

The non-profit sector, also known as the nonprofit business sector or the third sector, consists of organizations that operate for purposes other than making a profit. These organizations focus on serving the public or specific communities by addressing social, cultural, educational, environmental, or humanitarian needs.

Non-profit organizations rely on donations, grants, fundraising, and government support to finance their operations and fulfill their mission. They encompass a wide range of entities, including charities, foundations, religious organizations, educational institutions, social service agencies, healthcare providers, environmental organizations, and arts and cultural organizations. Non-profit organizations play a vital role in advocating for social change, providing essential services, and improving the well-being of society.

In the United States, non-profit organizations often seek tax-exempt status under Section 501(c)(3) of the Internal Revenue Code . This designation allows them to receive tax-deductible donations and grants. Non-profit organizations are governed by a board of directors or trustees, ensuring adherence to legal and ethical standards. They are subject to specific regulations and reporting requirements to maintain transparency and accountability. Through the dedication of volunteers, support from donors and funders, and the commitment of staff members, the non-profit sector makes a significant impact by addressing societal issues and fostering positive change in communities.

Things to Consider When Starting a Non-Profit Business

  • Clearly define your non-profit’s mission and vision for guidance.
  • Research the non-profit sector to understand opportunities and challenges.
  • Identify your target audience to tailor programs and services.
  • Develop a strategic plan with clear goals and objectives.
  • Choose a suitable legal structure for your non-profit organization.
  • Establish a dedicated board of directors for guidance and governance.
  • Create a strong fundraising strategy to secure funds.
  • Build partnerships for collaboration and extra support.
  • Implement effective marketing and outreach plans to raise awareness.
  • Manage finances wisely for transparency and sustainability.
  • Recruit passionate individuals who share your mission.
  • Track and evaluate impact using measurable indicators.
  • Stay informed about legal and regulatory changes affecting non-profits.
  • Continuously learn and improve to meet evolving needs.
  • Nurture relationships with stakeholders for engagement and support.

Need a comprehensive guide on developing a non-profit business plan, check out our sample non-profit business plans .

Here are 11 best non profit business plan examples for your inspiration.

When it comes to creating a business plan for a non-profit organization, following a traditional business plan format can provide a solid framework. Here are 11 examples of non-profit business plans that adhere to the traditional structure:

Executive Summary

For instance, a non-profit focused on providing education to underprivileged children may have an executive summary that highlights the organization’s mission, the target population, and the key strategies for achieving educational goals.

Executive Summary: Samaritan’s Purse is a non-profit organization dedicated to helping communities worldwide that are affected by natural disasters and humanitarian crises. Our mission is to show God’s love in action by providing physical aid, spiritual support, and hope to those in need. We work quickly to respond to emergencies and provide immediate help like food, shelter, and medical assistance. Our caring team, made up of professionals and volunteers, is committed to helping communities recover and rebuild after a disaster. We believe in working together with local partners and using efficient strategies to make a lasting difference in the lives of those affected. Through our core values of compassion, integrity, and faith, Samaritan’s Purse strives to be a source of hope and support during difficult times.

Organizational Description

An example of an organizational description could be a non-profit that supports environmental conservation, providing details about its establishment, the board of directors, and the legal status as a registered non-profit organization.

Organizational Description: Samaritan’s Purse, established in 1970 by Franklin Graham, has evolved into a worldwide organization, supported by a dedicated team of staff and volunteers. As a registered non-profit, we prioritize transparency, accountability, and meaningful outcomes in everything we do. Our reach extends across the globe, enabling us to respond swiftly to emergencies and provide assistance to communities in need. With a strong commitment to making a positive impact, we uphold the highest standards of integrity and efficiency in our operations. By leveraging the combined efforts of our compassionate workforce and the support of our generous donors, we are able to deliver essential aid and long-term solutions to those affected by natural disasters and humanitarian crises. At Samaritan’s Purse, we remain resolute in our mission to provide practical support and spiritual comfort to individuals and communities facing hardship, fostering hope and promoting resilience in the face of adversity.

Mission Statement

A non-profit dedicated to empowering women in entrepreneurship may have a mission statement that states, “Our mission is to provide resources, training, and support to women entrepreneurs, enabling them to thrive and succeed in their business ventures.

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Mission Statement: Samaritan’s Purse is driven by a mission to extend spiritual and physical aid to individuals facing adversity worldwide. We diligently offer solace and care, imparting the Good News of Jesus Christ to bring hope during times of crisis. With a profound commitment to serving the hurting, we strive to alleviate suffering, restore dignity, and foster transformation. Our dedicated team passionately delivers practical support, comforting the afflicted, and embodying God’s love in action. Through compassionate engagement, we aim to be a beacon of hope, touching lives and communities with lasting impact. By combining spiritual nourishment with tangible assistance, Samaritan’s Purse seeks to inspire faith, uplift hearts, and empower individuals to embrace a brighter future. Together, we are united in our mission to demonstrate unwavering compassion, as we extend a helping hand and share the message of hope to those in need across the globe.

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Vision statement.

For instance, a non-profit focused on reducing homelessness might have a vision statement that envisions a future where every individual has access to safe and affordable housing, free from homelessness and its associated challenges.

Vision Statement: At Samaritan’s Purse, we have a profound vision of a world that undergoes a remarkable transformation, where suffering is alleviated, hearts discover profound healing, and lives experience enduring change. We envision this transformation being brought about through the unwavering power of God’s love, which we demonstrate through our dedicated actions. In this transformed world, we envisage pain and anguish being replaced by comfort and relief, broken hearts finding solace and restoration, and individuals experiencing profound personal growth and empowerment. Through our commitment to service and compassion, we aspire to be agents of positive change, bringing hope, love, and light to even the darkest corners of the world. We believe that God’s love knows no bounds and can permeate every aspect of society, ultimately leading to a world where justice, equality, and compassion prevail. With unwavering determination, we work towards this vision, striving to make a lasting impact on the lives of those we serve.

Market Analysis

An example of market analysis could involve a non-profit conducting research on the local community’s needs, analyzing existing social service organizations, and identifying gaps in services that they can fill.

Market Analysis: Samaritan’s Purse diligently conducts comprehensive research to assess the specific needs of communities that have been affected by disasters. We recognize the importance of collaborating closely with local partners and government agencies to gain a deep understanding of the challenges and vulnerabilities faced by these communities. Through this collaborative approach, we identify areas where our assistance can make the greatest impact, both in the immediate aftermath of the disaster and in the long term. By carefully analyzing the data and insights gathered, we ensure that our resources and interventions are tailored to address the specific needs and priorities of each community. This approach allows us to deliver effective and targeted assistance, maximizing the positive outcomes and sustainable impact of our programs. Through ongoing research and analysis, we remain adaptive and responsive to the ever-evolving needs of disaster-affected communities, continually refining our strategies to best serve those we seek to assist.

Programs and Services

A non-profit dedicated to animal welfare may outline programs and services such as animal adoption, spay/neuter initiatives, veterinary care, and community education on responsible pet ownership.

Programs and Services: Samaritan’s Purse is dedicated to providing a comprehensive range of programs and services to meet the diverse needs of communities. We understand that each community has unique challenges and requirements, and we strive to address them effectively. Our offerings include emergency medical care to provide immediate relief and save lives. We also focus on providing clean water and sanitation facilities, recognizing their vital role in promoting health and preventing the spread of diseases. Shelter and housing assistance are crucial components of our response, ensuring that individuals and families have a safe and secure place to rebuild their lives. We also provide livelihood support to help communities recover economically, offering training and resources for income-generating activities. Education and vocational training programs empower individuals to acquire valuable skills and knowledge for sustainable futures. Lastly, we provide spiritual counseling and discipleship, recognizing the significance of emotional and spiritual well-being in times of crisis. Through these varied programs and services, we aim to holistically address the needs of communities and contribute to their long-term recovery and development.

Marketing and Outreach Strategy

Marketing and Outreach Strategy: Samaritan’s Purse implements a comprehensive marketing and outreach strategy to raise awareness and foster engagement among supporters. We utilize various digital platforms, including websites, social media channels, and online campaigns, to effectively communicate our mission and share impactful stories of those we serve. Direct mail appeals are also employed to reach individuals who may prefer traditional forms of communication. Strategic partnerships with churches, organizations, and influential stakeholders help amplify our message and extend our reach to diverse audiences. Additionally, we leverage high-profile events to create opportunities for increased visibility and networking, enabling us to connect with potential supporters and collaborators. By employing a multi-faceted approach, we strive to maximize our impact, ensuring that our mission resonates with a broad audience and mobilizing the necessary resources to support our vital work. Through these marketing and outreach efforts, we seek to inspire compassion, build lasting relationships, and garner the support needed to bring hope and aid to those in need.

Operational Plan

A non-profit operating a community food bank may include details about the facility, the staff responsible for daily operations, and the systems in place to receive, store, and distribute food to those in need.

Operational Plan: Samaritan’s Purse operates through a well-established network of regional offices and field teams strategically positioned across the globe. Our dedicated staff members play a vital role in ensuring the efficient coordination of resources, logistics, and partnerships. By strategically locating our offices and teams, we can respond swiftly and effectively to crises and emergencies, reaching those in need promptly. Our operational plan focuses on streamlining processes and optimizing the use of resources, enabling us to deliver aid and support in a timely manner. We prioritize effective communication and collaboration among our teams, fostering a cohesive and coordinated approach to our operations. Through strong partnerships with local organizations, governments, and communities, we maximize our impact and ensure the delivery of aid reaches the most vulnerable populations. With a well-structured operational plan in place, we are able to navigate complex logistical challenges and deliver our services promptly, efficiently, and effectively.

Financial Plan

An example of a financial plan could involve a non-profit outlining its projected revenue sources, such as grants, donations, and fundraising events, as well as the anticipated expenses for program implementation, staffing, and administrative costs.

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Financial Plan:   The financial plan of Samaritan’s Purse focuses on ensuring the efficient and effective allocation of resources to support our mission of providing aid and assistance to those in need. Here are some key aspects of our financial plan:

Diverse Funding Sources: We rely on a range of funding sources to sustain our operations. In the previous fiscal year, our total funding amounted to $10 million. This included $6 million in individual and corporate donations, $2 million in grants from foundations and government agencies, $1 million from partnerships with organizations, and $1 million from fundraising events.

Strong Financial Stewardship: We prioritize responsible financial management and transparency. Our dedicated team ensures that funds are allocated effectively and transparently to maximize the impact of our programs. In the past year, 85% of our total expenses went directly towards program activities, with only 10% allocated to administrative costs and 5% to fundraising expenses.

Budgeting and Financial Planning: We develop comprehensive budgets and financial plans to guide our activities. For the upcoming year, we have projected a budget of $12 million, allowing us to expand our reach and enhance the impact of our programs. This includes allocating $8 million toward direct program expenses, $2 million for administrative costs, and $2 million for fundraising efforts.

Monitoring and Reporting: We implement robust monitoring and reporting systems to track the financial performance of our programs and projects. Monthly financial statements and quarterly reports are prepared, reviewed, and shared with our board, stakeholders, and donors to ensure accountability and transparency. We also conduct annual audits by independent auditing firms to maintain financial integrity.

Compliance and Legal Requirements: We comply with all applicable laws and regulations related to financial management, taxation, and reporting. We work closely with legal and financial professionals to stay up-to-date with the latest requirements and maintain compliance. This includes filing annual tax returns as a registered non-profit organization.

Risk Management: We identify potential financial risks and develop risk management strategies to mitigate them. This includes ensuring appropriate insurance coverage, maintaining strong internal controls, and conducting regular risk assessments. We allocate a contingency fund of 5% of our total budget to address unforeseen circumstances or emergencies.

Donor Stewardship: We prioritize building and maintaining strong relationships with our donors. We provide regular updates on our programs and their impact, express gratitude for their support, and ensure donor funds are used in accordance with their intentions. Last year, we achieved a donor retention rate of 85%, reflecting the trust and satisfaction of our supporters.

Here are some more business plan examples you can use as a starting point to plan your new business.

Evaluation and Measurement

A non-profit focused on youth development may establish key performance indicators (KPIs) to measure the effectiveness of their programs, such as tracking the percentage of participants who graduate high school and pursue higher education.

Evaluation and Measurement:

Evaluation and measurement are crucial components of Samaritan’s Purse’s approach to ensuring the effectiveness and impact of our programs. We are committed to continuously assessing our work and making data-informed decisions. Here’s an overview of our evaluation and measurement practices:

Key Performance Indicators (KPIs): We establish specific KPIs for each program to track progress and measure outcomes. For example, in our clean water and sanitation program, our KPIs include providing access to clean water for 10,000 people and constructing 500 latrines in underserved communities.

Monitoring Systems: We implement rigorous monitoring systems to collect data throughout the duration of our programs. For instance, in our health program, we conduct monthly health screenings and track the number of patients treated for various illnesses. Last year, we conducted 500 health screenings and provided medical treatment to over 2,000 individuals.

Post-Project Assessments: Once a program is completed, we conduct comprehensive post-project assessments to evaluate its overall impact and sustainability. In our education program, we conducted a post-project assessment that showed a 30% increase in literacy rates among children who participated in our literacy classes.

Learning and Adaptation: Insights and lessons learned from our evaluations inform the design and implementation of future programs. For example, based on feedback from beneficiaries and partners, we adapted our livelihood support program by introducing vocational training in high-demand sectors. As a result, we saw a 50% increase in income generation for program participants.

Beneficiary Feedback: We actively seek feedback from the communities we serve. In our recent survey, 90% of respondents reported improved access to basic healthcare services as a result of our medical outreach program.

Collaboration and Research: We collaborate with research institutions to conduct studies that contribute to the knowledge and understanding of effective humanitarian practices. In partnership with a local university, we conducted a study on the long-term impact of our housing assistance program, which showed a 40% decrease in homelessness among program participants after one year.

Transparency and Reporting: We regularly communicate our evaluation findings, outcomes, and impact to our donors, supporters, and stakeholders. Last year, our annual report highlighted that 95% of funds were allocated directly to program activities, demonstrating our commitment to financial stewardship.

Risk Management

An example of risk management could involve a non-profit identifying potential risks, such as changes in government regulations or funding cuts, and developing contingency plans to mitigate those risks, ensuring the organization’s sustainability.

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Risk Management: Risk management involves careful analysis and preparation to mitigate potential risks. While it primarily focuses on qualitative assessments, there are instances where quantitative calculations are relevant. Here are some examples:

Risk Probability Assessment: We assign probabilities to various risks based on historical data or expert opinions. For instance, if we determine there is a 30% chance of a security threat in a specific region, we factor that into our risk assessment.

Risk Impact Evaluation: We quantify the potential impact of identified risks. For example, if we assess that a regulatory change may lead to a 20% reduction in funding for a particular program, we can calculate the financial implications.

Cost-Benefit Analysis: In evaluating risk mitigation measures, we conduct cost-benefit analyses. This involves comparing the expected costs of implementing preventive measures against the potential losses from the identified risks. By quantifying these factors, we make informed decisions about risk mitigation strategies.

Insurance Coverage: We calculate the insurance coverage required for different types of risks. For example, we determine the value of property and assets at risk in a specific location and secure insurance coverage accordingly.

Financial Reserves: We allocate financial reserves to mitigate potential risks. By estimating the potential financial impact of various risks, we calculate the appropriate level of reserves needed to address unforeseen events.

Non Profit Business Plan Faq's

A non-profit organization, also known as a nonprofit or not-for-profit organization, is an entity that operates for a specific purpose or mission other than making a profit. Its primary goal is to serve the public or a particular cause.

The main difference is the purpose and distribution of funds. Non-profits reinvest their surplus back into the organization to further their mission, while for-profit organizations distribute profits to their owners or shareholders.

The purpose of a non-profit organization is to address a specific societal or community need. It can be focused on various areas such as education, healthcare, environment, social services, or arts and culture.

Non-profits rely on various sources of funding, including donations from individuals, grants from foundations or government agencies, corporate sponsorships, fundraising events, and revenue from services or programs they provide.

In many countries, donations to registered non-profit organizations are tax-deductible for the donors. However, tax laws may vary, so it’s important to consult local regulations or seek professional advice.

Non-profit organizations are typically governed by a board of directors or trustees. The board provides oversight, sets strategic direction, and ensures the organization’s compliance with legal and ethical standards.

Starting a non-profit involves several steps, including defining your mission, drafting bylaws, incorporating the organization, applying for tax-exempt status, and establishing governance and financial management structures. Consulting with legal and accounting professionals is recommended.

Board members of non-profit organizations have various responsibilities, including strategic planning, financial oversight, fundraising, hiring and evaluating the executive director, ensuring legal compliance, and representing the organization in the community.

Non-profit organizations use various metrics and evaluation methods to measure their impact. This can include tracking the number of beneficiaries served, outcomes achieved, changes in the community, and feedback from stakeholders. Evaluations help assess the effectiveness and adjust strategies as needed.

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Meta Calls for Industry Effort to Label A.I.-Generated Content

The social network wants to promote standardized labels to help detect artificially created photo, video and audio material across its platforms.

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Nick Clegg, wearing a blue suit and seated in a white chair, speaks on a stage.

By Mike Isaac

Mike Isaac has covered Meta since 2010.

Last month at the World Economic Forum in Davos, Switzerland, Nick Clegg, president of global affairs at Meta, called a nascent effort to detect artificially generated content “the most urgent task” facing the tech industry today.

On Tuesday, Mr. Clegg proposed a solution. Meta said it would promote technological standards that companies across the industry could use to recognize markers in photo, video and audio material that would signal that the content was generated using artificial intelligence.

The standards could allow social media companies to quickly identify content generated with A.I. that has been posted to their platforms and allow them to add a label to that material. If adopted widely, the standards could help identify A.I.-generated content from companies like Google, OpenAI and Microsoft, Adobe, Midjourney and others that offer tools that allow people to quickly and easily create artificial posts.

“While this is not a perfect answer, we did not want to let perfect be the enemy of the good,” Mr. Clegg said in an interview.

He added that he hoped this effort would be a rallying cry for companies across the industry to adopt standards for detecting and signaling that content was artificial so that it would be simpler for all of them to recognize it.

As the United States enters a presidential election year, industry watchers believe that A.I. tools will be widely used to post fake content to misinform voters. Over the past year, people have used A.I to create and spread fake videos of President Biden making false or inflammatory statements. The attorney general’s office in New Hampshire is also investigating a series of robocalls that appeared to employ an A.I.-generated voice of Mr. Biden that urged people not to vote in a recent primary.

Senators Brian Schatz, Democrat of Hawaii, and John Kennedy, Republican of Louisiana, proposed legislation last October that would require companies to disclose and label artificially generated content and work together to create or use standards similar to those espoused by Meta.

Meta, which owns Facebook, Instagram, WhatsApp and Messenger, is in a unique position because it is developing technology to spur wide consumer adoption of A.I. tools while being the world’s largest social network capable of distributing A.I.-generated content. Mr. Clegg said Meta’s position gave it particular insight into both the generation and distribution sides of the issue.

Meta is homing in on a series of technological specifications called the IPTC and C2PA standards. This is information that specifies whether a piece of digital media is authentic in the metadata of the content. Metadata is the underlying information embedded in digital content that gives a technical description of that content. Both standards are already widely used by news organizations and photographers to describe photos or videos.

Adobe, which makes the Photoshop editing software, and a host of other tech and media companies have spent years lobbying their peers to adopt the C2PA standard and have formed the Content Authenticity Initiative . The initiative is a partnership among dozens of companies, including The New York Times, to combat misinformation and “add a layer of tamper-evident provenance to all types of digital content, starting with photos, video and documents,” according to the organization.

Companies that offer A.I. generation tools could add the standards into the metadata of the videos, photos or audio files they helped to create. That would signal to social networks like Facebook, X (formerly Twitter) and YouTube that such content was artificial when it was being uploaded to their platforms. Those companies, in turn, could add labels that noted these posts were A.I.-generated to inform users who viewed them across the social networks.

Meta and others also require users who post A.I. content to label whether they have done so when uploading it to the companies’ apps. Failing to do so results in penalties, though the companies have not detailed what those penalties may be.

Mr. Clegg also said that if the company determined that a digitally created or altered post “creates a particularly high risk of materially deceiving the public on a matter of importance,” Meta could add a more prominent label to the post to give the public more information and context about its provenance.

A.I. technology is advancing rapidly, which has spurred researchers to try to keep up with developing tools on how to spot fake content online. Though companies like Meta, TikTok and OpenAI have developed ways to detect such content, technologists have quickly found ways to circumvent those tools. Artificially generated video and audio have proved even more challenging to spot than A.I. photos.

(The New York Times Company is suing OpenAI and Microsoft for copyright infringement over the use of Times articles to train artificial intelligence systems.)

“Bad actors are always going to try and circumvent any standards we create,” Mr. Clegg said. He described the technology as both a “sword and a shield” for the industry.

Part of that difficulty stems from the fragmented nature of how tech companies are approaching it. Last fall, TikTok announced a new policy that would require its users to add labels to video or photos they uploaded that were created using A.I. YouTube announced a similar initiative in November.

Meta’s new proposal would try to tie some of those efforts together. Other industry efforts, like the Partnership on A.I. , have brought together dozens of companies to discuss similar solutions.

Mr. Clegg said he hoped that more companies would agree to participate in the standard, especially going into the presidential election.

“We felt particularly strong that during this election year, waiting for all the pieces of the jigsaw puzzle to fall into place before acting wouldn’t be justified,” he said.

Mike Isaac is a technology correspondent for The Times based in San Francisco. He regularly covers Facebook and Silicon Valley. More about Mike Isaac

Explore Our Coverage of Artificial Intelligence

News  and Analysis

OpenAI announced that it was releasing a new version of ChatGPT that would remember all prior conversations with users  so it could use that information in future chats. The start-up also unveiled technology that creates videos that look like they were lifted from a Hollywood movie .

The F.T.C. outlawed unwanted robocalls generated by A.I. , amid growing concerns over election disinformation and consumer fraud facilitated by the technology.

Google has released Gemini, a smartphone app that behaves like a talking digital assistant as well as a conversational chatbot .

The Age of A.I.

A year ago, a rogue A.I. tried to break up our columnist’s marriage. Did the backlash that ensued help make chatbots too boring? Here’s how we tame d the chatbots.

Amid an intractable real estate crisis, fake luxury houses offer a delusion of one’s own. Here’s how A.I. is remodeling the fantasy home .

New technology has made it easier to insert digital, realistic-looking versions of soda cans and shampoo on videos on social media. A growing group of creators and advertisers is jumping at the chance for an additional revenue stream .

A start-up called Perplexity shows what’s possible for a search engine built from scratch with A.I. Are the days of turning to Google for answers numbered ?

Chafing at their dependence on the chipmaker Nvidia, Amazon, Google, Meta and Microsoft are racing to build A.I. chips of their own .

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  1. The Ultimate Guide to Writing a Nonprofit Business Plan

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

  2. Business Planning for Nonprofits

    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?

  3. How to Write a Nonprofit Business Plan

    A nonprofit business plan ensures your organization's fundraising and activities align with your core mission. By: Emily Heaslip , Contributor Share All of the parts of your business plan, from the executive summary to the fundraising and impact plans, should align with your nonprofit's central mission. — Getty Images/Maskot

  4. How to Write a Nonprofit Business Plan (with Examples)

    What is a nonprofit business plan? While your nonprofit business plan will be a great tool for getting noticed, it's actually a road map. Using a plan, your whole team will be perfectly clear on your goals, challenges, and plan of attack.

  5. The 6-Step Guide to Writing a Nonprofit Business Plan in 2023

    A nonprofit business plan outlines your business' current situation and provides a roadmap for reaching your desired position. It explains your strengths, weaknesses, target market, opportunities, and fundraising strategy at a glance. That said, your business plan doesn't need to be a novel, so keep it as short and sweet as possible.

  6. Business Planning for Nonprofits: What It Is and Why It Matters

    Business Planning for Nonprofits: What It Is and Why It Matters Sometimes, the best thing about having a business plan is the business planning process an organization's leaders go through to develop it. Business planning encourages strategic thinking not only while the plan is being created, but also during its implementation. By: Kelly Campbell

  7. Non-Profit Business Plan

    A non-profit business plan is simply a roadmap for a non-profit organization, one which outlines the organization's goals and objectives, and how it plans to attain them. A non-profit is a business entity that is started for any specified purpose other than making a profit. The most common reason for a non-profit organization is charity work.

  8. The Complete Guide to Writing a Nonprofit Business Plan

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

  9. How to write a nonprofit business plan

    A nonprofit business plan outlines that as well but approaches parts of the process differently. The biggest difference is that nonprofit organizations focus on the problem they want to solve and how to fund programs and activities that help do that.

  10. How to Write a Nonprofit Business Plan

    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.

  11. Nonprofit Business Plan Template & Guide [Updated 2024]

    Growthink's nonprofit business plan template below is the result of 20+ years of research into the types of business plans that help nonprofit organizations (NPOs) to attract funding and achieve their goals. Follow the links to each section of our nonprofit business plan template: 1. Executive Summary.

  12. How To Write a Nonprofit Business Plan (2024)

    The nonprofit business plan aims to achieve that mission while keeping the organization running and paying its bills. Why do you need a nonprofit business plan At its core, a nonprofit business plan provides a clear mission and vision for the organization. It lays out where the organization is headed and the steps to get there.

  13. How to Write a Nonprofit Business Plan + Example [Updated 2024]

    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 ...

  14. Write Your Nonprofit Business Plan in 9 Sections

    If your nonprofit is already established, let your reader know what your marketing plan has been in the past, what has worked, and how you plan to expand it. 5. Operational Plan. This section should describe both day-to-day operations and long-term plans for operating your programs.

  15. How to Create a Nonprofit Business Plan

    Executive Summary. Start your nonprofit business plan by clearly stating your organization's mission and describing how it plans on reaching its goals. Include a concise description of what makes your organization stand out among competitors (e.g., "We are the only non-profit animal welfare organization in XYZ county" or "Our college ...

  16. Nonprofit Strategic Planning: Your Complete Guide

    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.

  17. How to Write a Nonprofit Business Plan in 12 Steps ...

    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 ...

  18. 3 Sample Nonprofit Business Plans For Inspiration

    A nonprofit business plan is a living document that should lay out your business and financial goals and a strategic plan for how your organization grows. Below are three sample nonprofit business plans to help guide you in creating your own nonprofit business plan. Download our Ultimate Nonprofit Business Plan Template here

  19. Nonprofit Business Plan Template & Example (Updated 2024)

    Marketing Plan - This section of your nonprofit business plan will detail your products, programs and services, your overall marketing strategies and tactics, and how you will measure success. It should include information on your target market, positioning, branding, communications, and lead generation. Operations Plan - In the Operations ...

  20. How to Write a Non Profit Business Plan: Step by Step Guide

    Example Non Profit Business Plan. Below is the content of our sample non profit business plan. A Google Doc version of this nonprofit business plan template is available here for you to modify and personalize. There's also a video walkthrough available to guide you in tailoring the business plan to your specific nonprofit organization's needs.

  21. How to Write a Non-Profit Business Plan

    A non-profit business plan is a strategic document outlining the mission, objectives, operational structure and financial projection of an organization. It serves as a blueprint for achieving the organization's goals, guiding the decision-making processes, and showcasing its viability to stakeholders, donors, and grant-making entities. ...

  22. Free Personalized Nonprofit Business Plan Template [2023] • Asana

    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 ...

  23. 11 Best Non Profit Business Plan Examples + Template (2024)

    Business Plans 11 Best Non Profit Business Plan Examples + Template (2024) By Joseph Ferriolo Last Updated on - January 31, 2024 What Is Non Profit Organization? The non-profit sector, also known as the nonprofit business sector or the third sector, consists of organizations that operate for purposes other than making a profit.

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  26. Legal

    Yoder is a member of Lathrop GPM's Business Transactions Group, focusing on corporate finance. She earned an MBA in finance and accounting and a law degree from the University of Missouri.

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