foundation business plan

The Ultimate Guide to Writing a Nonprofit Business Plan

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

Nonprofit business plans are dead — or are they?

For many nonprofit organizations, business plans represent outdated and cumbersome documents that get created “just for the sake of it” or because donors demand it.

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

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

What is a Nonprofit Business Plan?

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

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

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

Why do we need a Nonprofit Business Plan?

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

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

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

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

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

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

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

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

10-Step Guide on Writing a Business Plan for Nonprofits

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

Step 1: Data Collection

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

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

Step 2: Heart of the Matter

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

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

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

Step 3: Outline

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

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

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

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

Step 4: Products, Programs, and Services

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

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

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

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

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

Step 5: Marketing Plan

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

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

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

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

Step 6: Operational Plan

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

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

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

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

Step 7: Impact Plan

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

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

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

These define the real bottom line of your nonprofit, so they’re the key to unlocking support. Funders want to know for whom, in what way, and exactly how you’ll measure your impact.

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

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

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

Step 8: Financial Plan

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

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

To craft your financial plan:

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

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

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

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

Step 9: Executive Summary

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

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

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

Step 10: Appendix

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

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

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

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

Nonprofit Business Plan Template

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

Download Your Free Outline

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

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

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

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

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

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

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

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

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

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Free Nonprofit Business Plan Templates

By Joe Weller | September 18, 2020

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

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

Nonprofit Business Plan Template

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

Download Nonprofit Business Plan Template

One-Page Business Plan for Nonprofit Template

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

Download One-Page Business Plan for Nonprofit Template

Excel | Word | PDF

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

Fill-In-the-Blank Nonprofit Business Plan Template

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

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

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

Startup Nonprofit Business Planning Template with Timeline

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

Download Startup Nonprofit Business Planning Template with Timeline

Excel | Smartsheet

Nonprofit Business Plan Template for Youth Program

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

Download Nonprofit Business Plan Template for Youth Program

Word | PDF  | Google Doc

Sample Nonprofit Business Plan Outline Template

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

Download Sample Nonprofit Business Plan Outline Template

Nonprofit Startup Business Planning Checklist Template

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

Download Nonprofit Startup Business Planning Checklist Template

Tips to Create Your Nonprofit Business Plan

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

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

Improve Your Nonprofit Business Planning Efforts with Smartsheet

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The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

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How to Write a Nonprofit Business Plan

Angelique O'Rourke

13 min. read

Updated May 10, 2024

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

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

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

• Why does a nonprofit need a business plan?

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

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

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

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

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

• A nonprofit business plan outline

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

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

Executive summary

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

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

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

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

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Opportunity

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

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

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

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

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

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

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

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

Target audience

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

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

Similar organizations

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

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

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

Future services and programs

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

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

Promotion and outreach strategies

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

You’ll probably do some combination of:

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

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

Costs and fees

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

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

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

Fundraising sources

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

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

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

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

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

Fundraising activities

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

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

Strategic alliances and partnerships

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

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

Milestones and metrics

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

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

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

Key assumptions and risks

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

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

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

Management team and company

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

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

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

Financial plan

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

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

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

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

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

• Business planning is ongoing

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

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

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

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

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

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

The purpose of a nonprofit business plan

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

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

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

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

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

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

More Reading

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

Creating a nonprofit business plan

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

Step 1: Write a mission statement

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

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

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

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

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

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

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

Step 2: Collect the data

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

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

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

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

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

Step 3: Create an outline

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

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

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

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

Using a business plan template

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

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

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

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

Nonprofit business plan sections

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

1. Executive summary

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

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

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

2. Products/Services/Programs

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

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

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

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

3. Marketing

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

Nonprofits not in operation

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

Nonprofits already in operation

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

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

4. Operations

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

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

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

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

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

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

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

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

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

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

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

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

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

6. Finances

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

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

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

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

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

7. Appendix

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

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

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

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

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How to Write The Best Nonprofit Business Plan: Ultimate Step By Step Guide in 2024

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January 11, 2024

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Many assume that running a nonprofit is very different from running a company. And in some ways, they are right—from their philanthropic mission to the legalities of a tax-exempt status, those dedicating their time to operating a successful nonprofit organization deal with many worries that would not cross the mind of the average CEO.

But that is not to say that there aren’t any similarities between the two. One example is the necessity of a good business plan.

If you’ve never created one before, below you will find the ultimate step-by-step guide to how to write a nonprofit business plan.

Why Do You Need a Nonprofit Business Plan?

As their name implies, nonprofits are organizations that operate not for the purpose of profits, but rather in search of furthering philanthropic causes that help the world.

So why does a nonprofit need a business plan?

The truth is that a business plan does a lot more than strategizing for future profits. When done well, a business plan helps not only lay out an organization’s current standing, but it also demonstrates what it hopes to accomplish in the next three to five years, and how it will do so.

By seeing plans laid out in such a manner, one can more easily see both new possibilities and potential pitfalls. Business plans also help manage expectations so that one knows what is feasible, what is a stretch but still possible, and what is out of reach.

More than that, in the case of nonprofits, a nonprofit business plan is crucial when trying to secure support from others. Be it in the recruitment of new volunteers , in trying to sign corporate partnerships , or in applying for certain grants , when a nonprofit business plan is clear and comprehensive, it adds credibility to your organization which in turn can help you secure new sources of funding and support.

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What makes a good nonprofit business plan.

Understanding why you need a nonprofit business plan is very different from understanding what distinguishes a good one from those that are only serviceable.

If you’re familiar with regular business plans, then the good news is that there are not that many differences between that and a nonprofit business plan. There will be some changes of phrases and certain sections will be adapted to reflect the charitable nature of the organization, but at the core of its structure, the two can operate in very similar manners.

A good nonprofit business plan should be:

• Easy to understand not only to those who are familiar with the organization, but also to those who are getting to know it through it.
• Easy to read, with not a lot of technical terms.
• Visually engaging.
• Include as much information as possible while not being overly long.

Whoever reads your nonprofit business plan should, by the end of it, have a solid understanding of your goals, the structure of your organization, your vision for the future, and how you plan to accomplish these different things.

More than that, a good nonprofit business plan should provide you with a comprehensive roadmap for the next three to five years.

As is the case with any road trip, it is natural to sometimes go at a slower pace than expected or to deviate from the planned route due to unforeseeable circumstances; but by having planned the most efficient way to achieve your goals, you can use your roadmap to get back on track and adapt to the changes and challenges that come your way.

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10 Things to Include in a Nonprofit Business Plan

Now that you understand why you need a nonprofit business plan and what qualities are featured in a good one, it is time to explore some of the elements that go into crafting a successful nonprofit business plan.

1. Executive Summary

When building a good nonprofit business plan, the executive summary is the last thing you write, but the first thing—and sometimes the only thing—that anyone will read. As the name it implies, it is a summary of the entire document.

Typically, your executive summary should:

• Be no longer than two pages.
• Explain your nonprofit’s reason for existing.
• Discuss the issues you are trying to solve.
• Detail your approach to solving these issues.
• Go over your fundraising strategies.
• Give an overview of the general structure of your nonprofit.

In a strong nonprofit business plan, this part of the document should give people a good idea of what your organization does by providing a summary of all the information that will be included in the business plan.

Potential donors and investors presented with your nonprofit business plan might not have the time to read the entire document. For this reason, consider also making the executive summary a soft sell as to why they should support your cause.

Don’t solicit donations, but instead make your writing persuasive enough so that while talking about your organization, your operations, and your plans for the future, you can also secure their support.

One common mistake to make with this section is including tons of acronyms and technical terms that would be unfamiliar to those not working closely with your cause.

Remember that the executive summary is meant to be read quickly so it can efficiently familiarize outsiders who may never have heard of your nonprofit, the problem you are trying to solve, or the innovative solutions you’re employing. There will be space to include and explain those technical terms later on, but the executive summary is not the place to do this.

2. Mission Statement

If you’ve worked on a website, worked on incorporating your nonprofit, or applied to possible funding opportunities, then you have probably written some version of a mission statement.

Your nonprofit’s mission statement should be written with simple words and be easy to understand. It should be concise while also being specific. When written well, the mission statement should include the main ideas behind your nonprofit and how you plan on executing this vision.

While you should be able to summarize this with one or two sentences, this section of your nonprofit business plan will also give you the opportunity to go into details of how your organization will make a difference in the world.

Take this What We Do page for the British nonprofit Arts Derbyshire as an example. ‍

This mission statement is only three sentences long, but with it, it gives you enough information to understand what the nonprofit’s goal is and how it seeks to achieve this mission.

The first two top lines explain what the aim of the organization is and why they believe this is important. Notice how the highlights draw attention not only to the nonprofit’s name (“Arts Derbyshire”), but also its nature (“strategic arts charity”) and its mission (“enrich people’s lives through art”).

The third line details how Arts Derbyshire fulfills the goal mentioned above by working together with artists and art groups and communities by providing them with strategic direction. They do not need to go into more detail than this—an overview that is concise but specific is all you need for a successful mission statement.

For more examples and tips to help you craft your own effective mission statement, check out this post on our blog.

3. Information on Your Team

Those who read your business plan will be interested in knowing who works in your nonprofit and what function they serve . As such, it is important to lay out the structure of your organization by describing the important positions and their responsibilities.

When discussing your team, consider answering these questions:

• Who are your board members?
• Who is on your management team?
• What are their qualifications?
• Do they have past experience working with nonprofits?
• Do they have a personal reason to be invested in this cause?
• What does their daily schedule look like?
• What are some responsibilities they have outside their usual day-to-day tasks?
• How do they help with fundraising efforts?
• How do they help with recruitment strategies?

Not only will answering these questions help outsiders learn what distinguishes your team from other similar nonprofits by highlighting what each individual brings to the table, it also gives you a better overview of how your nonprofit currently operates and the different ways you might be able to expand in the near future.

4. Target Audience

In most regular business plans, companies will often talk about their target audience and why they believe their product is a good fit for this demographic.

While nonprofits may not usually think of their interactions with others in such terms, the truth is that you still have an equivalent of a target audience. This would be your benefactors and your supporters.

When writing your nonprofit business plan, explain how your nonprofit will benefit communities and why you believe certain individuals are more likely to support your nonprofit.

Remember that this section is not exclusive to organizations focused on human beings or human communities and activities. Be it if your nonprofit fights for animal rights or if it seeks to preserve the natural environment, you should still go into details as to how you are benefiting these causes and who your supporters are.

5. Marketing Plan and Branding

We tend to think of marketing and branding as sales techniques. And while that is not entirely inaccurate, to limit yourself to this definition is to possibly ignore the role they play in the success of your nonprofit.

For a nonprofit, a marketing plan is not a plan on how to sell your product or service, but rather a plan on how to reach your supporters so that they will donate to your cause. For this reason, a good nonprofit business plan will include your different outreach strategies.

Advertisements, press releases, your website, and social media platforms are ways you can reach and engage with your audience. Not only should you understand how to best promote your nonprofit through each of these channels, but you should also craft a strategy based on the strengths and weaknesses of each format. This understanding and strategies should, in turn, be discussed in detail in your nonprofit business plan.

Remember to be specific. It could be beneficial to include projections on how you believe you will grow based on your marketing plan . If you’ve done any focus groups or market tests, or if there are any potential partners you would like to work with, you can also include them in this section. If appropriate, you can also touch upon the costs of your plan.

When it comes to branding, think about the following:

• Your colors
• Your slogan

All of these will be key in your communication efforts with your supporters and potential partners. You must pick something that not only fits your cause, but that will effectively motivate others to donate to your nonprofit.

6. Financial Plan

Nonprofits, just like any organizations operating in our modern world, need money in order to stay afloat.

However, in the case of a nonprofit, the organization needs money not only to pay for its operational expenses, but also in order to contribute to its cause.

Your financial plan will cover all of this and more. In it, you should include details of:

• Your current financial standing
• All your costs and expenses
• A detailed budget that takes into consideration both short-term expenses and long-term expectations
• Your possible fundraising strategies
• A plan for how to most effectively use any potential surplus

Your financial plan should show how you are covering all of your financial needs while also giving you a long-term budget that helps you create projections as to how your nonprofit will grow in the near future.

Some other things you should consider including in your financial plan include:

• List of Assets
• List of Liabilities
• List of Revenue Streams
• List of Grants Received
• Cash Flow Statements

The financial plan section of your nonprofit business plan would also be a good spot to discuss potential corporate partnerships, and how you would plan to integrate said initiatives into your overall strategy.

When taken as a whole, your financial plan should help you see gaps in your strategy and give you an idea on how to address these issues. It should also prove to potential supporters and investors that your nonprofit knows how to responsibly manage any potential donations or grants that it might receive now or in the future.

7. Impact Plan

Most business plans include a section reserved exclusively to discussing profits. Naturally, when it comes to building a nonprofit business plan, this section is tweaked to reflect the not-for-profit nature of your organization.

Because your nonprofit is working to better the world in some way, your impact plan is perhaps just as important a section in your nonprofit business plan as your financial plan.

To put it simply, your impact plan shows how your nonprofit will bring change to the world.

In this section, you elaborate on the concepts presented on your mission statement. Rather than speaking in abstract terms, you will need to lay out concrete scenarios with figures and measurable goals so that your readers clearly see the ways in which your nonprofit is currently making a difference in the world and how it will continue to do so in the future.

For more tips on how to write a good impact plan, check out this post in our blog.

8. Operational Plan

If your impact plan lays out the ways your nonprofit is making a difference in the world, then your operational plan details how it achieves all of that. In other words, the operational plan includes information on your daily activities, your legal licenses and certificates, your insurances, and any other relevant information related to how your nonprofit operates.

Many good nonprofit business plans will also include information on how their team is uniquely capable of bringing their vision to fruition. After all, if this is a section dedicated to the hows of your nonprofit, and your staff are the ones responsible for enacting those hows, then it makes sense to discuss their qualifications and their duties.

9. Vision and Milestones

If the nonprofit business plan is meant to be a roadmap for the next three to five years of your organization’s existence, then the milestones are the guideposts with which you’ll measure your progress toward achieving that vision.

Some examples of milestones include:

• Fundraising goals
• Future campaigns goals
• Future partnerships goals
• Grant application goals

Remember to be specific —like with your impact plan, your goals should be easily measurable, concrete, and realistic.

10. Appendix

The appendix is where you’ll attach any sort of documents that are relevant to your business plan and to your nonprofit. You can also use this section to include some of the more technical terms and information that you were not able to fit into the rest of your business plan.

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4 Nonprofit Business Plan Tips to Consider

Now that you know what goes into a nonprofit business plan, here are four tips to help take yours to the next level.

1. Update Your Nonprofit Business Plan Often

While your business plan is a roadmap for the next three to five years, that does not mean it is written in stone. There are things that even the most savvy business-minded individuals cannot predict, and so, keeping your business plan flexible by adjusting it as you grow and learn is a good way to help your nonprofit adapt to the changing times.

Furthermore, by revisiting your nonprofit business plan on a regular basis—once a month is the usual recommended amount—you can better familiarize yourself with your goals, your milestones, and your strategies.

Soon, you will be better able to answer questions your board members and potential investors might have about your organization.

2. Write with an Audience in Mind

Whenever you are taking on an extensive writing project such as a business plan or a grant proposal , it is important to write with an audience in mind. While it is true that you will be using this document internally, there is a chance you will also show it to people outside of your nonprofit.

By writing with an audience in mind, you lessen your chances of overlooking important details of your strategy that may seem obvious to you but would not be so for someone else.

Think of potential donors, potential partners, or even grants you might be considering applying to. Writing to those audiences will not only prevent you from using too many technical terms, but it will also help you project confidence and persuasion into your writing without it coming across as a sales pitch.

3. Create an Outline Before You Start Writing

Never underestimate the power of a good outline.

While it may feel redundant to do so, outlining your business plan before you get to the actual writing will allow you to better structure this document so that it does not feel repetitive.

By outlining your business plan first, you can also see what sort of data you still need to collect and what sort of research you still need to conduct in order to support your strategies and aspirations. This way, you will not be caught by surprise half-way through drafting your nonprofit business plan because you realized you are missing a crucial piece of data.

4. Include Charts, Graphs, and Other Data

Charts, graphs, and other visual depictions of data are a great way to make your nonprofit business plan stand out.

By breaking up walls of texts so that it feels less overwhelming to the reader, you can create an aesthetic appeal that makes your writing more digestible while also supporting your statements with hard evidence.

If you're looking to start building your own nonprofit website, get started quickly by using our Nonprofit Website Template . The template is made in Canva, an an easy-to-use creative design tool. You can jump right in, change colors, add your logo, and adjust the copy so it fits your brand.Why start from scratch when you can use one of our templates?

Common Nonprofit Business Plan Mistakes

There are many mistakes one can make when writing a nonprofit business plan for the first time. Some of these we have alluded to already in this guide.

For example, it is important not to use too many technical terms or acronyms . Not only can that type of jargon bog down your writing, the time it takes to explain these terms and acronyms will eat away the much needed space that could be used discussing more important things.

We also mentioned before that you should not make your business plan overly long , as it could overwhelm readers with needless details. That being said, it should also not be too short, as that could mean you are missing important information.

Typically, the recommended amount is around 20 to 30 pages, but there are some that might be way below that, or way above those numbers. The right balance will depend tremendously on the specific organization, its scope, and its ambition.

Another common mistake that is easy to avoid involves formatting . While there’s no need to overthink things, pay attention so that you are not breaking the format you establish early on in the document. Not only can this be distracting and look unprofessional, it can also affect readability.

Successful Nonprofit Business Plan Examples

Finally, now that you know how to build your own nonprofit business plan, we’ve gathered some examples so that you can see these concepts in action.

World Wide Fund ‍

The World Wide Fund is a massive international nonprofit operating across the globe and solving issues relating to nature and wildlife. Here you can see an example of their business plan-like document for their initiatives in Laos.

Aspire Public Schools ‍

You don’t need to be an international organization to create a good business plan. Based in California, Aspire Public Schools is a charter management organization that aims to help students receive the best education possible so they can be ready for college. Constant Contact shows their 2004 business plan here . 

World Vision ‍

World Vision is a faith-based nonprofit that works all over the world with the aim to help children overcome the struggles of poverty by improving access to education, clean water, health services, disaster management, and more. You can see one of their current business plans here .

Wrapping Up: How to Write The Best Nonprofit Business Plan

Building a good nonprofit business plan can be intimidating. With the amount of research that must be done, the extensive writing, and with so many potential pitfalls, it can be easy to get lost in the details and lose sight of the whole picture. This step-by-step guide hopefully helped you learn some tips and tricks to make sure your nonprofit business plan is the best it can be.

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

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

The business planning process involves the following steps:

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

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

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

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

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

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

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

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

Nonprofit Incorporating

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

Nonprofit vs. Traditional Business Plans

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

Social Enterprise Business Plan

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

Business Planning (for nonprofits or for-profits)

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

Free Nonprofit Sample Business Plans

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

Sample Nonprofit Business Plans

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

Business Planning for Nonprofits

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

Business Planning Tools for Non-Profit Organizations

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

Write Your Business Plan

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

Staff-recommended books

The Nonprofit Business Plan

Find: Amazon | Free eBook

Business Plans Handbook: Non-Profit

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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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Home > Business Plan Templates > 10-Part Nonprofit Business Plan Template (With Examples)

10-Part Nonprofit Business Plan Template (With Examples)

Mar 26, 2024 | Business Plan Templates

Table of Contents

Does a Nonprofit Need a Business Plan?

Yes. A nonprofit needs a business plan just as much as any for-profit enterprise. A business plan for a nonprofit organisation serves several critical purposes: it outlines the mission and vision, sets clear goals and objectives, and details the strategies for achieving them. Additionally, it plays a vital role in securing funding from donors, grants, and other sources by demonstrating the organisation’s potential for impact and sustainability.

A well-crafted business plan helps nonprofits to effectively allocate resources, manage risks, and measure progress towards their goals. It also provides a roadmap for growth and development, ensuring that the organisation remains focused and aligned with its core values and objectives.

In essence, a business plan is indispensable for a nonprofit organisation’s success, guiding its efforts to make a meaningful difference in its community.

So, without further ado, here is our nonprofit business plan template!

1. Executive Summary

The executive summary provides a concise overview of your nonprofit organisation and summarises the main aspects of your plan. Although it comes first in your business plan, you might find it easier to write this part last, ensuring it captures all the important points from the rest of your document.

Introduction

Begin with a brief introduction to your organisation. What is its name? What causes does it support? Whether you’re focusing on environmental conservation, community development, etc., make it compelling and engaging.

Example: The Helping Hands Foundation is a nonprofit organisation committed to uplifting disadvantaged communities through access to quality education, healthcare, and basic amenities.

Organisation Overview

Here, provide a high-level summary of your organisation. Discuss the core activities and why the work is crucial. Include the types of services offered and any significant initiatives.

Example : Our organisation mainly operates in rural areas, where we undertake various community development projects and run a healthcare centre and a school.

Mission and Vision Statement

Write your Nonprofit’s mission and vision statement. This should communicate your organisation’s purpose, its strategic goals, and its commitment to the cause.

Example: Our mission is to empower underprivileged communities by providing education, healthcare services, and resources that foster a sustainable livelihood. Our vision is to create an equitable world where every individual has access to basic human rights and opportunities needed for personal and communal growth.

Geographic Reach and Accessibility

Discuss where your nonprofit operates, explaining where you have the most significant presence or impact and the communities you are serving in those regions.

Example: The Helping Hands Foundation currently extends its services to the marginalised communities in two rural towns in Montana, reaching over 5,000 individuals directly.

Service Type

Explain the kind of work your nonprofit does. Whether you provide direct services, advocacy, research, etc., describe in detail.

Example: We offer direct services, including running a healthcare centre that provides basic medical services and a school that offers quality education from Kindergarten to 5th grade. We also have several livelihood programs that equip adults with skills to earn a living.

Key Goals and Objectives

Outline what you’re striving for in the short and long term. These should be SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) goals.

Example: Our main goal for the coming year is to expand our services into two more towns and to increase our direct beneficiaries by 20%. In the long term, we aim to establish a network of schools and healthcare centres across Montana.

2. Programs and Services

This section provides the reader with a detailed understanding of your organisation’s specific programs and services, their purpose, and their impact.

Program Definition and Theme

Describe the programs or services your organisation offers in detail. Explain the principles guiding these programs and the kind of expertise involved.

Example: We run three main programs: the Community Health Initiative, the Learning Support Program, and the Adult Skill-building Program. Each of these programs follows a participatory model, where community members are active participants, ensuring culturally and contextually relevant interventions.

Service Range

Enumerate the range of services you offer under each program. Highlight key elements and features of these services.

Example: The Community Health Initiative includes services like regular medical check-ups, basic treatments, immunisations, and health awareness workshops. The Learning Support Program offers a comprehensive curriculum, while the Skill-building Program offers vocational classes in various trades.

Beneficiary Analysis

Describe who benefits from your programs or services, detailing how they are chosen and why they are the focus of your efforts.

Example: Our beneficiaries predominantly include underserved individuals and families from the marginalised communities in rural Montana. The selection is made based on household income, with priority given to those below the poverty line. We focus on these groups because we believe that providing them with access to healthcare, quality education, and skill-building can lead to a significant upliftment.

3. History and Governance

This section provides a glimpse into the historical background of your nonprofit and an insight into its governance structure.

Legal Status and Structure

Specify the legal status of your nonprofit. Is it a nonprofit corporation, a public charity, a private foundation, or another type of legal entity? Why was this type chosen?

Example: The Helping Hands Foundation is a Public Charity under section 501(c)(3) of the IRS code. This structure allows us to accept donations, contributions, and gifts that are tax-deductible for donors, which is beneficial in raising funds for our cause.

Board of Directors

Introduce your board of directors briefly, highlighting their experience and roles. Point out their key contributions to the organisation.

Example: Our board comprises five dedicated members, including a physician, an educator, a social worker, a business entrepreneur, and a legal professional, each offering expertise in their respective fields to help guide and govern our organisation.

Key Milestones

Highlight significant milestones in your organisation’s history to show the progress and impact over time.

Example : Founded in 2015, the Helping Hands Foundation started as a health outreach program serving a single community. By 2017, we expanded our services to education, and in 2019 added our Adult Skill-building Program. We’re now serving multiple communities across Montana and have positively impacted over 5,000 lives directly.

4. Business Model

This section will outline how the nonprofit organisation functions and generates revenue to support its mission and programs.

Main Income Sources

Discuss your nonprofit’s main sources of income. These could include individual and corporate donations, grants, fundraising events, service fees, etc.

Example: Our main income sources include individual donations, corporate partnerships, and grants. We also generate revenue through our annual charity run – “Run for Help”.

Planned Collaborations/ Partnerships

Discuss any planned collaborations or partnerships. These could be with other nonprofit organisations, for-profit businesses, government institutions, etc.

Example: We are planning to partner with local businesses for some of our skill-building programs. These businesses will not only provide practical training but also potential job placements for our beneficiaries.

Special Projects

If there are any special projects or initiatives planned that will bring substantial funds or support to the organisation, detail them.

Example: We plan to launch a “Sponsor a Child’s Education” initiative that encourages donors to cover educational expenses for a specific child for a period of one year.

5. Market Analysis

This section provides an understanding of the broader context in which your nonprofit operates, including the current need, target beneficiaries, and competitive landscape.

Current Community Need

Describe the current community need that your nonprofit is addressing. Use data and real examples to illustrate the need.

Example: According to the latest census, the rural parts of Montana that we serve have 35% of the population living below the poverty line. Lack of access to quality healthcare, education, and job opportunities persist as significant challenges.

Beneficiary/ Constituency Analysis

Detail the demographic, geographic, socioeconomic, and other relevant characteristics of the people your organisation serves.

Example: Our primary beneficiaries are families living below the poverty line, struggling with limited access to education, healthcare, and employment opportunities. They present a diverse age group, from children requiring educational support to adults needing vocational training.

Related Organisations and Competitive Analysis

Identify other nonprofit organisations working on similar issues, examine their approach, and highlight what sets your organisation apart.

Example: While other nonprofits in the region primarily focus on either healthcare or education, The Helping Hands Foundation sets itself apart by offering a holistic approach – providing access to healthcare, quality education, and skill-building programs for sustainable livelihoods.

Positioning and Strategy

Explain how your nonprofit is positioned in response to the need, target beneficiaries, and competitive landscape. Describe your strategy to deliver your mission.

Example: Our organisation is positioned as an all-encompassing solution for the challenges faced by our target community. Our strategy involves a holistic, participatory approach that acknowledges and works around the cultural and contextual realities of the community.

6. Public Relations and Fundraising Strategy

This section deals with how you plan to generate awareness about your organisation’s purpose and work, as well as how you plan to solicit donations.

PR Strategy

Outline your strategy to garner visibility and positive coverage in the media and community.

Example: Our PR strategy includes issuing press releases about milestone achievements, hosting town hall meetings to engage community members, and inviting local influencers or media to cover our key events and initiatives.

Fundraising Plan

Describe your approach to raising funds. This may include details of fundraising events, online campaigns, donor recognition strategies, and plans to apply for grants.

Example: We plan to conduct an annual charity run event, “Run for Help”, which is our major fundraiser. We also run online crowdfunding campaigns around specific causes like “Back-to-School” and “Vaccinate a Village”. We acknowledge our generous donors through a ‘wall of fame’ on our website and an annual appreciation dinner.

Community Engagement/ Volunteer Plans

Discuss how you plan to engage community members and volunteers in your work. This can bring additional resources to your organisation through volunteer time and word-of-mouth advertising.

Example: We welcome community members to volunteer in our learning centres, health camps, and other initiatives. We also encourage volunteer involvement in event organisation, fundraising, and spreading the word about our work.

7. Operations

This is where you’ll outline how your nonprofit will function day-to-day, including details about staff recruitment, facility needs, technology, and overall operational flow.

Team Recruitment and Roles

Describe how you plan to staff your nonprofit. This includes the roles you require, criteria for each position, expected number of hires you plan to make per year, and any recruiting strategies.

Example: We plan to hire qualified professionals for roles like Program Managers, Field Coordinators, and Fundraising Coordinators. We also rely on volunteers to help us in various capacities. We actively participate in job fairs and conduct regular recruitment drives to find passionate and committed individuals for our team.

Board Composition and Roles

Discuss the current and expected composition of your board. What roles do they play in your nonprofit, and how often do they meet?

Example: Our board comprises five members, specialising in different areas like healthcare education, legalities, business, and social work. They meet quarterly to review our progress and annual plan. They are instrumental in providing strategic direction to our organisation.

Technology Needs

What kind of technology does your nonprofit require to function seamlessly? This might include software for managing donor data, a website for online presence, project management tools, etc.

Example: We use a donor management software to streamline our fundraising efforts, an accounting software to track our income and expenses, and social media platforms to reach out to our followers and prospective donors.

Facility Needs (If Applicable)

What are your facility needs? Do you need an office space, a storage room, a community centre, etc.?

Example: We currently operate from a rented office space in downtown Montana. Due to the expansion of our programs, we plan to rent additional storage space for our education and healthcare supplies.

8. Marketing and Communications Strategy

This section involves how the nonprofit plans to market its programs and services to its beneficiaries and prospective donors.

Marketing and Outreach

Describe how you plan to increase awareness of your nonprofit in the community you serve, among potential donors, and the public in general.

Example: We plan to conduct regular community awareness programs in schools and public places to educate people about our work. Also, we use digital marketing channels like social media, email newsletter, and our website to increase our visibility among potential donors.

Website and Social Media

Discuss your organisation’s online presence. This may include details about your website, blog, and social media accounts.

Example: Our website provides comprehensive information about our programs, stories of impact, and ways to get involved. We also maintain an active presence on various social media platforms, where we share updates, appeal for donations, and engage with our followers.

Community Engagement

Discuss how you plan to engage with the community beyond the direct provision of services.

Example: We regularly host town hall meetings to engage with community members and gather their feedback. We also participate in local events and festivals to further integrate ourselves into the community culture.

9. Financial Plan

This section focuses on your nonprofit’s financial aspects, detailing how funds will be raised and spent.

Startup Budget/ Current Annual Budget

Lay out the current or expected budget for your organisation, including income and expenses.

Example: Our annual budget for this year is $500,000, with the majority of the funds divided between education and healthcare programs. We allocate 10% for administrative expenses, and the remainder is used for fundraising and marketing.

Proposed Financing

Discuss your proposed financing options. These could include a detailed breakdown of expected revenues from various sources like donations, grants, government funding, special events, etc.

Example: We hope to raise 40% of our funds from individual and corporate donations, 30% from grants, 20% from special events like ‘Run for Help’, and the remainder 10% from government funding and other sources.

Key Financial Assumptions and Justifications

Clarify any assumptions in your financial plan, explaining why these assumptions have been made.

Example: We have assumed a 5% increase in donations from last year as we have seen a steady growth in our donor base. We also anticipate securing a major grant that we’ve applied for based on our past successes with similar applications.

10. Appendices

This section includes any additional documents or supportive material related to your business plan, such as:

Organisational Chart

Include a visual representation of your nonprofit’s structure, showing the roles and departments within the organisation.

Example: Our organisational chart distinguishes between our board members, management team, employees, and volunteers, providing a clear understanding of the functioning of our nonprofit.

Resumes of Key Staff/Volunteers

Attach resumes or brief bios of key team members to provide a sense of their skills, expertise, and experience.

Example: We have included the resume of our Program Manager who holds a master’s in Public Health and has over seven years of experience working in the nonprofit sector.

Detailed Budget

If your financial plan refers to a detailed budget, include a copy here.

Example: A detailed breakdown of our annual budget, including income and expenditure, reflects our judicious allocation of resources.

Related Market Research

Include any market research that validates the need for your nonprofit’s services.

Example: A Local Community Survey report, conducted by us, indicates a significant need for our healthcare and educational services among the local populace.

Wrapping Up Our Nonprofit Business Plan Template

In essence, a business plan helps you articulate and present your nonprofit organisation’s mission, operations, and financial activities with accuracy and persuasiveness. It enables you to highlight your organisation’s unique vision, services, and strategies robustly.

From charting organisational history and governance, presenting market analysis, to detailing your PR and fundraising strategy – a perfect business plan showcases your nonprofit in a compelling light. Remember, it’s crucial to tweak and adjust our guidance to fit your specific context, allowing your unique story, approach, and goals to shine through.

Follow this roadmap, and remember, a well-crafted business plan is more than just a document – it’s an opportunity to bring your organisation’s work to life, foster stakeholder understanding, build support, and ultimately, amplify your nonprofit’s impact.

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Write Your Nonprofit Business Plan in 9 Sections

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

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.

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.

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.

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

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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About the author: sandy rees.

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I need help writing my non profit business plan

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

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.

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

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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The best nonprofit business plan template

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

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

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

Get the template

What is a nonprofit business plan template?

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

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

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

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

Download Excel template

Why use a nonprofit business plan template?

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

Provide direction

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

Help you secure funding

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

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

Facilitate clear messaging

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

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

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

What are some examples of a nonprofit business plan template?

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

Summary nonprofit business plan template

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

Full nonprofit business plan template

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

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

Executive summary

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

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

Operational nonprofit business plan template

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

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

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

monday.com’s nonprofit business plan template

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

Here’s what you can do on our template:

Access all your documents from one central location

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

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

Turn your business plan into action

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

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

Keep your finger on the pulse

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

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

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

Essential sections of a nonprofit business plan template

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

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

Organization overview

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

Products, programs, and services

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

Marketing plan

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

Operational plan

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

Competitive analysis

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

Financial plan

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

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

FAQs about nonprofit business plan templates

How do you write a business plan for a nonprofit.

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

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

How many pages should a nonprofit business plan be?

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

What is a nonprofit business plan called?

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

What is the best business structure for a nonprofit?

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

How do you start a nonprofit with no money?

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

Send this article to someone who’d like it.

How to Start a Nonprofit Foundation

Importantly, a critical step in starting a nonprofit foundation is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Nonprofit Business Plan Template here

14 Steps To Start a Nonprofit Foundation :

• Choose the Name for Your Nonprofit Foundation
• Develop Your Nonprofit Foundation Business Plan
• Choose the Legal Structure for Your Nonprofit Foundation
• Secure Startup Funding for Your Nonprofit Foundation (If Needed)
• Secure a Location for Your Business
• Register Your Nonprofit Foundation with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Nonprofit Foundation
• Buy or Lease the Right Nonprofit Foundation Equipment
• Develop Your Nonprofit Foundation Marketing Materials
• Purchase and Setup the Software Needed to Run Your Nonprofit Foundation
• Open for Business

1. Choose the Name for Your Nonprofit Foundation

The first step to starting a nonprofit foundation is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own nonprofit organization:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your nonprofit foundation.

2. Develop Your Nonprofit Foundation Business Plan

One of the most important steps in starting a nonprofit foundation is to develop your non-profit business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise funds for your business.

To enhance your planning process, incorporating insights from a  sample nonprofit business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your nonprofit foundation.
• Company Overview – this section tells the reader about the history of your nonprofit foundation and what type of nonprofit foundation you operate. For example, are you a church, an educational institution, or charitable organization?
• Industry Analysis – here you will document key information about the nonprofit industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products and/or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your nonprofit marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your nonprofit foundation? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your nonprofit foundation make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business

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3. choose the legal structure for your nonprofit foundation.

Next you need to choose a legal structure for your nonprofit foundation and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the nonprofit foundation and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a nonprofit foundation together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a nonprofit foundation include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a nonprofit foundation is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the nonprofit corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your nonprofit corporation, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Nonprofit Foundation (If Needed)

In developing your nonprofit foundation business plan, you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a nonprofit foundation to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a nonprofit foundation that they believe has high potential for growth.  

5. Secure a Location for Your Business

When starting a nonprofit foundation, one of the most important steps is finding a location for your organization. There are a few things to keep in mind when choosing a location:

• The location should be easily accessible to the community you’re serving
• The location should be affordable and have space for your staff members and volunteers
• The location should be conducive to running your programs and activities

There are many great locations to choose from, so take your time and find the right one for your foundation.  

6. Register Your Nonprofit Foundation with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.  

7. Open a Business Bank Account

It is important to establish a bank account in your nonprofit foundation’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your nonprofit foundation to help you separate personal and business expenses.You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.  

9. Get the Required Business Licenses and Permits

Licenses and permits necessary to start a nonprofit foundation vary by state. However, some of the most common licenses and permits required are:

• Charitable solicitation registration
• Business license
• Tax exemption determination letter from the IRS

To find out what licenses and permits are needed in your state, visit your state’s website.  

10. Get Business Insurance for Your Nonprofit Foundation

There are a few types of insurance that you will need to operate a nonprofit foundation. This would depend on the particular organization and activities it will engage in. A nonprofit foundation that deals with millions of dollars in contributions, for example, will need to protect itself from outside racketeering or criminal activities. You can get general liability insurance and commercial crime insurance to protect the organization against this type of risk. A small local nonprofit may not need these types of protection (or any at all) in order to operate legally.

Other business insurance policies that you should consider for your nonprofit foundation include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Directors and Officers Insurance : A nonprofit’s board of directors and officers (many of whom are volunteers) could be personally named in a lawsuit against their nonprofit alleging fraud or financial mismanagement. Directors and officers (D&O) insurance covers the cost of defending the directors and officers and pays any resulting money damages.
• Professional Liability Insurance: Sometimes called “errors and omissions” or “malpractice” insurance, this insurance protects against liabilities resulting from mismanagement of the organization, as well as workplace-related claims such as discrimination or sexual harassment. It covers not only directors and officers but also staff, volunteers, and the nonprofit organization itself.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.  

11. Buy or Lease the Right Nonprofit Foundation Equipment

There are a few key pieces of equipment that you will need in order to run your nonprofit foundation. The first is a computer and internet access, as most of your work will be done online. You’ll also need a printer and scanner so that you can print out applications, letters, and other documents, and scan in receipts and other paperwork. Finally, you’ll need a phone so that you can stay in touch with donors, volunteers, and other members of your team.  

12. Develop Your Nonprofit Foundation Marketing Materials

Marketing materials will be required to attract and retain customers to your nonprofit foundation. The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your nonprofit organization. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional nonprofit foundation website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your nonprofit foundation.

13. Purchase and Setup the Software Needed to Run Your Nonprofit Foundation

There are three essential types of software that are necessary for running a nonprofit organization. The first is financial management software, which helps keep track of donations and expenses, along with the budget. The second is donor management software, which keeps track of all donors and their contact information, as well as processing and reporting gifts. The third is communication software, which helps manage email communications and newsletters.  

14. Open for Business

You are now ready to open your nonprofit foundation. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.  

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 Ultimate Business Plan in 1 Day!

How to start a nonprofit foundation faqs, is it hard to start a nonprofit foundation.

No, it is not hard to start a nonprofit foundation. There are a few reasons why it's not hard to start a nonprofit organization . First, there are many resources available online and in print that can help you get started. Second, the process of setting up a nonprofit is relatively simple, and most states have their own specific regulations that you must follow. Finally, there are many organizations that can assist you with the process of starting a new nonprofit, including the Internal Revenue Service (IRS) and the National Association of Nonprofit Organizations (NANPO).

How can I start a nonprofit foundation with no experience?

There are a few ways to start a nonprofit foundation with no experience. One way is to find an organization that is already established and volunteer your time to help out. This will give you a chance to learn about the process and get some experience. Another way is to look for resources online or in books that can help guide you through the process. You can also ask an expert in the field for advice or volunteer to help them with their nonprofit. It's important to remember that starting a nonprofit is hard work and you should try to get as much experience early on so you'll be ready when the time comes to run it.

Here are some tips on how to start a nonprofit foundation:

• Research the laws and regulations for existing nonprofit foundations in your state or region.
• Draft bylaws and articles of incorporation for your foundation.
• Secure funding to support your foundation's operations.
• Recruit employees to help manage your foundation's day-to-day operations.
• Market your foundation to potential donors and supporters.

What type of nonprofit foundation attracts the most funding/donations?

Donors are more likely to give money to certain types of nonprofits. The best-funded type of nonprofit foundations are educational organizations. Education foundations can be funded by a single private donor or a group of donors. They have a large degree of control over their grant-making and how their money is spent. 

Another well-funded type of  nonprofit foundation is the health-related foundation. Health foundations are typically funded by many donors and they support a wide range of public health initiatives. They typically are able to make larger grants than other types of nonprofits.

How much does it cost to start a nonprofit foundation?

Starting nonprofit startups or nonprofit corporations can cost anywhere from a few hundred dollars to tens of thousands of dollars. The amount of money you'll need to spend will depend on a number of factors, including the type of foundation you want to create, the state you live in, and the amount of legal and accounting assistance you need. Keep in mind, you'll also have to spend some money preserving your organization's endowment.

What are the ongoing expenses for a nonprofit foundation?

There are a few ongoing expenses for a nonprofit foundation. One of the most important is the cost of fundraising. This includes the cost of software, fundraising marketing, and hiring a fundraiser. Another important expense is the cost of general marketing and advertising. This includes the cost of designing a logo, website, and brochures. The last main expense is the cost of maintaining the office and paying staff. This includes the cost of a security system, workstations with computers, furniture for the office, and paying the employees.

How does a nonprofit foundation make money?

Nonprofit foundations are funded by either earned income or donations. A nonprofit foundation may generate earned income through the sale of goods and services. Capital gains, interest payments, dividends, rental income, and royalties can all be considered earned income. Additionally, sales of assets including stocks, bonds, real estate, or patents can also contribute to earned income.

Is owning a nonprofit foundation profitable?

There are a few reasons why owning a nonprofit foundation can be profitable. First, foundations can receive tax breaks for donating to charitable organizations because of its tax exempt status . Additionally, foundations can also receive tax breaks for investing in certain types of assets, such as municipal bonds or mutual funds. Foundations can charge fees to the nonprofits they support, which can be a source of income for the foundation. Any excess income above what has been budgeted for can be used to expand or improve programs and services.

Why do nonprofit foundations fail?

There are a number of reasons why nonprofit foundations might fail. One reason is that the foundation might not have been able to raise enough money to sustain itself. Another reason might be that the foundation was not able to effectively distribute the money that it had raised. A third reason might be that the foundation was not able to create a clear vision or mission statement.

In some cases, nonprofit foundations fail because they have been unable to get the appropriate board of directors. A board of directors oversees a foundation's activities and guides its future. In order for the foundation to be successful, it is important that the board of directors is knowledgeable about how non-profit foundations operate. If a foundation fails, it is usually because the founding board members did not handle their responsibilities well enough to make the foundation a success.

Where Can I Download a NonProfit Business Plan PDF?

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

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How To Write a Nonprofit Business Plan (2024)

Learn how to write nonprofit business plans with detailed sections and examples. Use this nonprofit business plan template to get it done faster.

While businesses exist primarily to make a profit, nonprofits instead serve the public good for charitable, religious, educational, or other public service reasons. Starting a business as a nonprofit organization is an excellent way to impact positive change for a cause you care about. Plus, nonprofits are exempt from federal and state taxes on any income earned, unlike for-profit corporations. So there are also financial benefits.

If you’re just getting started with your nonprofit idea, one of the first things you’ll want to document is your nonprofit business plan. Below, we’ll take you through your nonprofit business plan, section by section, using this business plan template and guide as a base.

What is a nonprofit business plan?

A nonprofit needs a plan, just like any other business. But there’s a big difference: while most businesses aim to make profits for their owners or shareholders, a nonprofit’s main goal is to make a positive impact on a particular cause or in the community. 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. Some other benefits of a nonprofit business plan include:

• Helping to set priorities and allocate resources to reach the nonprofit’s goals.
• Deciding where funds will come from, be it donors, sponsors, or grant-making institutions.
• Outlining the operational details, from roles and responsibilities to day-to-day activities. 
• Identifying risks and highlighting strategies to mitigate them. 

For a nonprofit to have a lasting impact, it needs to outline strategies for long-term funding and growth. You want to make sure the organization has a clear direction, works efficiently, communicates well with stakeholders, and stays adaptable and sustainable—all of which you can find in a nonprofit business plan. 

How to write a nonprofit business plan

• Create an executive summary
• Write an organization description
• Conduct market analysis
• Outline management and organization
• Describe programs, products, and services
• Document customer segmentation
• Create a marketing plan
• Create a logistics and operations plan
• Write an impact plan
• Outline the financial plan

1. Create an executive summary

The first section of nonprofit business plans is the executive summary . The executive summary should describe your organization and the contents of your nonprofit business plan. This section should be no more than a page, briefly covering the following:

• Concept. What does your nonprofit organization do?
• Goals and vision. What does your nonprofit want to do?
• Product description and differentiation. What do you sell, and why is it different?
• Target market. Who do you sell to and raise money from? Who do you serve?
• Marketing strategy. How do you plan on reaching your audience?
• Current and projected financial state. What do you currently earn through fundraising? What do you foresee earning through fundraising?
• The ask. How much money are you asking for?
• The team. Who’s involved in the organization?
• The document. What can your audience expect from the following sections of your nonprofit business plan? Which highlights should they be excited about? 

2. Write an organization description

The second section of your nonprofit business plan is the description of your organization. While the executive summary sets the stage for the business plan document, the organization description is a summary focused on your organization and what it does and aspires to do. Use this section to identify the industry or niche your organization operates in.

Here, you’ll want to identify the structure of your organization. A nonprofit is a tax-exempt, non-business entity that invests excess funds back into the mission. For nonprofits, you’ll typically register as a 501(c)(3), but you’ll also need to choose your business structure from the following list:

• Unincorporated association. This is the S corporation for nonprofits—you don’t need to file any paperwork. Many nonprofits start out as unincorporated associations.
• Trust. The first structure for nonprofits, this mandates all the organization’s assets be given to charitable use.
• Corporation. This structure offers the most protection from liabilities but also comes with some extra paperwork and fees.
• Limited liability company (LLC) . LLCs offer both tax benefits and limited fees, but not as much protection as a corporation. All members of the LLC must be 501(c)(3) organizations. See our state specific guides for California LLC , Texas LLC and Florida LLC .

The organization description should also include the following elements:

Mission and vision statement

Your mission and vision statement serve as the foundation for why your nonprofit exists, and this “why” influences your decision making. It’s also an effective tool for connecting with your audience and reaching your organization’s full potential.

Outdoor brand Cotopaxi also has a nonprofit arm— the Cotopaxi Foundation . The brand and nonprofit each have their own mission statements, published boldly on the company’s website:

Keep your mission statement on the shorter side (one to two sentences) and use your vision statement to expand on the ideas.

Value proposition

Your value proposition tells people why they should choose to support your nonprofit over other ones. It essentially outlines your unique selling proposition , or competitive advantage for what sets you apart from the competition.

Short- and long-term goals

Your nonprofit business plan should also include measurable short- and long-term goals. Cotopaxi, for example, makes no secret of both its socially driven and business-minded goals through the Cotopaxi Foundation:

You’ll also want to highlight the people behind your organization. This information shows you have enough people to make the nonprofit a success. Nonprofits typically have a few different “teams,” including a board of directors, paid staff, and maybe even volunteers. There may also be key donors who are worth noting here, as well as key people who you plan to help through your organization.

Re:new is a community of refugee artisans and students, volunteers, staff, and board members. It raises money by selling handcrafted products made by refugees from around the world. On its website, Re:new shares information about some of the people behind the organization, including board members, artisans, and paid staff.

For your business plan, outline how those board members are chosen and what their involvement is, salaries and roles for paid staff members, and payment information for the artisans. Remember to note this information in your nonprofit business plan as well.

3. Conduct market analysis

The market analysis section of your nonprofit business plan demonstrates that you’ve done research to determine there is a need for your services and people who will potentially support your mission. Here, you’re essentially determining how big your potential market is.

There are a few key ways to get information about your market:

• Check government census data. Visit official websites such as the US Census Bureau to get the latest statistics. Filter the data to match your nonprofit’s target demographic. For example, if your nonprofit is aiming to help homeless youth, determine how many young people are homeless or at risk in your region.
• Conduct a competitive analysis . Identify similar nonprofits or organizations in your area. Study their services, target audience, and how they communicate their mission, and include your findings in the business plan.
• Research industry trends and trajectory. Subscribe to newsletters, join nonprofit forums, and attend seminars or webinars focused on your sector. Stay updated on the latest trends.
• Make educated guesses based on your experience and research. While hard data is important, there will be times where you have to rely on intuition. Ensure these guesses are always grounded in some form of research or past experience.

Organize a brainstorming session with your team to map out the strengths, weaknesses, opportunities, and threats (SWOT) . Make sure it’s comprehensive and considers both internal and external factors.

4. Outline management and organization

Every organization needs people to run it. When it comes to nonprofits, this typically involves the following groups of people:

• Board of directors. Nonprofits typically have a board of directors or leadership team. Give Merit, for example, might include its leadership team in this section.
• Staff. These people are your paid employees. Include roles, responsibilities, salaries, etc.
• Volunteers. You may or may not have specific people in mind for these volunteer roles. Some nonprofits have different tiers of volunteers—maybe lead volunteers or volunteer coordinators. Make note of these individuals, if relevant.
• Donors/customers. If you have any significant or notable donors who plan to make sizable contributions, include them in this section of your nonprofit business plan.
• Recipients. These are the people who you’re planning to help. This may not always be a person (as is the case with environmentally driven nonprofits, for example). Sometimes this is a group of people and sometimes this is a specific person.

Sometimes these groups overlap. The Empowerment Plan, for example, actually hires the people it helps—one of the organization’s main pillars. 

5. Describe programs, products, and services

Your programs, products, and services section sums up what your organization offers. These offerings include everything for customers, donors, volunteers, and recipients. 

For example, Merit sells products as a brand on its website and then donates the proceeds of its sales to its nonprofit, Give Merit . So Merit would note all of these things in this section of its nonprofit business plan. 

If you operate like Merit, consider diversifying how you generate funds. Selling products and then donating the proceeds is one method. You can also explore direct donations, sponsorship deals, and grants.

6. Document customer segmentation

You can pull from your management and organization section for your customer segmentation, as some of these groups represent your customers as well.

For example, your volunteers are one key customer segment and your donors are another. Within each of these segments, you’ll want to drill down further into smaller segments so you can build targeted campaigns to recruit volunteers and/or donors when needed.

When documenting your customer segments in your nonprofit business plan, add the following information:

• Where they live
• Level of education
• How they spend their free time
• Where they work
• How much they earn
• What technology they use
• Their values, beliefs, and opinions
• Common behavior patterns

7. Create a marketing plan

Your marketing plan outlines how you plan to spread the word about your nonprofit organization. Marketing may include attracting donors, volunteers, and/or customers, depending how your nonprofit operates.

The four main components of this section of your nonprofit business plan are:

• Price. How much do your products cost, and why have you made that decision? If you don’t sell products, you might outline different tiers of donorship.
• Product. What are you selling and how do you differentiate it in the market? Again, if you don’t plan to sell products, outline what you plan to provide to both donors and recipients.
• Promotion. How will you get your cause in front of your ideal customer? How will you connect with recipients?
• Place. Where will you sell your products or share information about your organization? Will this be online, in person, or both? 

8. Create a logistics and operations plan

The logistics and operations section of your nonprofit business plan outlines how you plan to raise money and execute your mission. Add a few key sections:

• Suppliers. This could refer to the suppliers for products you sell, as well as donors who contribute financially. You might also include fundraising organizers. One Tree Planted , for example, allows volunteers to run their own independent fundraisers .
• Production. If you’re selling products to raise money for your nonprofit, this part outlines whether you manufacture yourself, purchase wholesale, or use a dropshipping company.
• Facilities. Where will your organization operate? You might outline where headquarters is, as well as any sites or locations. This may also include storage and warehousing facilities.
• Equipment. List which tools and technology you need for your nonprofit. Remember to include everything from phones and computers to vehicles and machinery.
• Shipping and fulfillment. If you need to ship any packages, determine how you’ll do this. You may ship yourself or work with a third-party fulfillment partner.
• Inventory. Determine how much stock you’ll keep on hand (if any) and where you’ll store it, as well as how you’ll approach inventory management .

9. Write an impact plan

The impact plan is an important part of your nonprofit business plan because it outlines the change you’ll inspire in regards to your mission. 

Many companies with a strong commitment to corporate social responsibility (CSR) publish their own impact plans as well. Though these impact plans aren’t part of a nonprofit business plan, they serve as great reference points for drafting this section of your plan.

Sustainable clothing and shoe brand Allbirds uses its annual sustainability report to show how the company has followed through on its own environmentally conscious CSR initiatives.

For your impact plan:

• Start by clearly stating what you hope to achieve.
• Detail the actions and initiatives you’ll undertake to achieve your objectives.
• Develop indicators for each output, outcome, and impact. 

Before starting your project, determine the current state or level of the issue you’re addressing. For each indicator, establish targets that you aim to achieve by specific timeframes.

10. Outline the financial plan

Every nonprofit organization needs a financial plan. This includes how you’ll collect funds, as well as how those funds will be distributed. The financial plan typically includes the following financial statements :

• Income statement
• Balance sheet
• Cash flow statement

As far as potential sources of funding, you may consider the following for your nonprofit business plan:

• Self-funding. If you have the means, you may support your nonprofit organization financially yourself. You can do this personally or through a business—like how ecommerce brand Merit donates 20% of all purchases to its organization Give Merit , which funds college scholarships for underserved youth.
• Donors. You may seek financial support from organizations, businesses, and individuals. You may also use crowdfunding sites to raise funds and build buzz for your cause.
• Investors. The downside here is that you have to pay the money back, which isn’t ideal for nonprofits in particular.
• Loans . Loans also require repayment. Check with your lender to see if it offers lower interest rates or other benefits to nonprofits. Nonprofits with a Shopify store can leverage simple loans based on sales history, which may be a more hassle-free option. 
• Credit cards. Credit cards typically come with high interest rates and lower limits, so be wary about the terms before you fund your organization this way.

Use this spreadsheet template , which includes everything you’ll need to create an income statement, balance sheet, and cash flow statement, including some sample numbers. You can edit it to reflect projections for your specific organization.

Make a positive change with your nonprofit business plan

Starting a nonprofit organization is an excellent way to make a difference for a cause you’re passionate about. The best way to kickstart your nonprofit organization is with a well-formulated business plan. Your nonprofit business plan will help you secure funding and build excitement for your organization.

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Nonprofit business plan FAQ

What should be in a nonprofit business plan.

• Executive summary
• Organization description
• Market analysis
• Management and organization
• Programs, products, and services
• Customer segmentation
• Marketing plan
• Logistics and operations plan
• Impact plan
• Financial plan

What are the 4 types of nonprofit organizations?

• Unincorporated association
• Corporation
• Limited liability company (LLC)

How do you start a nonprofit with no money?

It doesn’t cost anything to start a nonprofit. You can start a nonprofit with no money by securing donations from external sources. You can raise money to start your nonprofit from businesses, organizations, individuals, and crowdfunding.

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How to Start a Nonprofit | Step 1: Research

Starting and sustaining a nonprofit can be a significant challenge. There are currently more than one million charitable nonprofits in the United States, and many struggle to attract funding. Before starting out, you will want to identify the need for your specific organization: are there already similar nonprofits? If so are they serving the same geographic area or a similar group of beneficiaries? What will be your nonprofit’s unique competency to help it stand out from the crowd and inspire donors to contribute?

Here are four questions to answer as you start this journey:

Is there a demonstrated need in the community for a new nonprofit with the mission you envision?

• What problems will the new nonprofit solve?
• Who will it serve?
• Are there similar nonprofits (or for-profits) fulfilling the same needs/serving the same people? Are they financially stable?
• What will make your nonprofit better equipped to solve these problems?

Just as you would do if you were starting a for-profit business, you will need to define the demand and market for the services your nonprofit would provide. There is intense competition for limited dollars from individual donations and also from foundation grants.

In order to attract funding, you will need to demonstrate that there is sufficient need for your organization's services and that your organization is best equipped to address that need. As you look into who else may be providing services of a similar nature in the community, you may find other organizations doing similar work. Rather than starting a new nonprofit, it may make more sense to work with existing groups. Sometimes it's more efficient and effective to collaborate with other organizations rather than creating an organization that duplicates what others are doing.

• Have you investigated whether collaborating with a  fiscal sponsor  would be a useful first step?

What is the business plan for financing the organization during start-up and in the future?

To be successful, a nonprofit needs more than just people passionate about programs. It also needs revenue and financial systems strong enough to support those programs over time. Investing the time to develop a detailed  business plan  will be useful when you are recruiting board members and seeking start-up funding.

• More about  nonprofit business plans  (Legal Zoom)

What are the costs to start the organization?

Will you need office space or a facility? What will the program costs be, including labor (which may include payroll taxes and benefits)? In some cases, special licenses, permits, or certifications will be necessary to provide certain services, such as childcare or health care. We recommend finding experts, such as the  state association of nonprofits  in your state and/or local attorneys familiar with the operations of nonprofits, to get a clear picture of the many legal and operational requirements.

Given the ever-growing competition for limited resources, make sure you have a realistic picture not only of what it will cost in time and dollars to create a nonprofit, but also how you will finance the day-to-day activities and continue to attract revenue into the future. Financial sustainability may be one of the most difficult challenges your nonprofit will face.

How will this newly formed nonprofit demonstrate its impact?

In order for your nonprofit to be sustainable, you will need to demonstrate to funders that your organization is making an impact and is worth their continuing investment. To do that, you will need to  measure and demonstrate your impact . If you are not sure how to demonstrate the impact your organization is having, sustainability may be a challenge, and you may want to consider alternatives such as partnering with an existing nonprofit.

Is this the right solution for our community?

Once you incorporate at the state level and secure tax-exempt status at the federal level, then the real heavy lifting begins: both internal (such as recruiting and orienting a great board,  hiring and managing talented staff , finding and equipping an office, setting up  financial structures , etc.) and external (such as  registering with the state  to solicit donations, securing any required licenses or permits, launching your fundraising program, and so much more). Plus, given the importance of earning donors’ trust, you will want to have a clear commitment to  ethics and accountability  (such as adopting policies addressing  conflicts of interest ,  compensation , travel,  whistleblower protection , and more).

In many cases, there may be better options to accomplish your goal of making a difference. If there is an organization in your community that you admire, consider approaching that organization to explore establishing a new or expanded program to reach the people you are hoping to serve.

If you have decided that there is a need for and it's feasible for you to create a new organization and make a commitment of time and resources to getting it off the ground and sustaining it over time, then you're ready to move on to  Step 2 | Building a Solid Foundation .

How to Start a Nonprofit - Table of Contents

• How to Start a Nonprofit home page
• Step 1: Do Your Research
• Step 2: Build a Solid Foundation
• Step 3: Incorporation and State Forms
• Step 4: Filing for Federal Tax-Exempt Status
• Step 5: Ongoing Compliance
• Back to How to Start a Nonprofit Home Page

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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How to Write a Nonprofit Business Plan 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 ... The 6-Step Guide to Writing a Nonprofit Business Plan in 2023 Step 6: Fill in Your Nonprofit Business Plan Outline. Finally, you've made it to the last step in putting together your nonprofit business plan. By this point, you've answered just about every detail that goes into your plan—we just did it in a not-so-boring, roundabout way. Let's fill in the details. The Complete Guide to Writing a Nonprofit Business Plan 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. How to Write The Best Nonprofit Business Plan: Ultimate Step By Step Grant application goals. Remember to be specific —like with your impact plan, your goals should be easily measurable, concrete, and realistic. 10. Appendix. The appendix is where you'll attach any sort of documents that are relevant to your business plan and to your nonprofit. How do I write a business plan for a nonprofit organization? Like for-profit business ventures, nonprofits can create a business plan to describe how they will turn their mission into reality. The business planning process involves the following steps: Determining ways to evaluate success - IssueLab Results is a place for foundations and nonprofits to share funded evaluations and to access the lessons of ... 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Although it comes first in your business plan, you might find it easier to write this part last, ensuring it captures all the ... 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. 3 Sample Nonprofit Business Plans For Inspiration 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 ... Professional Nonprofit Business Plan Template A nonprofit business plan template includes fields that cover the foundational elements of a business plan, including: The overarching purpose of your nonprofit. Its long and short-term goals. An outline of how you'll achieve these goals. The template also controls the general layout of the business plan, like recommended headings, sub ... How to Start a Nonprofit Foundation Develop Your Nonprofit Foundation Business Plan. One of the most important steps in starting a nonprofit foundation is to develop your non-profit business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present ... How To Write a Nonprofit Business Plan (2024) Create a logistics and operations plan. Write an impact plan. Outline the financial plan. 1. Create an executive summary. The first section of nonprofit business plans is the executive summary. The executive summary should describe your organization and the contents of your nonprofit business plan. Write your business plan A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners. How to Start a Nonprofit What is the business plan for financing the organization during start-up and in the future? To be successful, a nonprofit needs more than just people passionate about programs. It also needs revenue and financial systems strong enough to support those programs over time. 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