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Business Planning for Nonprofits

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

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

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

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

Narrative of a business plan

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

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

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

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

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

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

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

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

Basic format of a business plan

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

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

More About Business Planning

Budgeting for Nonprofits

Strategic Planning

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

Additional Resources

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

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

The Ultimate Guide to Writing a Nonprofit Business Plan

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

Nonprofit business plans are dead — or are they?

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

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

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

What is a Nonprofit Business Plan?

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

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

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

Why do we need a Nonprofit Business Plan?

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

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

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

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

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

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

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

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

10-Step Guide on Writing a Business Plan for Nonprofits

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

Step 1: Data Collection

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

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

Step 2: Heart of the Matter

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

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

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

Step 3: Outline

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

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

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

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

Step 4: Products, Programs, and Services

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

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

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

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

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

Step 5: Marketing Plan

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

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

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

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

Step 6: Operational Plan

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

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

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

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

Step 7: Impact Plan

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

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

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

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

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

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

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

Step 8: Financial Plan

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

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

To craft your financial plan:

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

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

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

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

Step 9: Executive Summary

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

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

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

Step 10: Appendix

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

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

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

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

Nonprofit Business Plan Template

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

Download Your Free Outline

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

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

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

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

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

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

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

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

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

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How to Write a 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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Free Nonprofit Business Plan Templates

By Joe Weller | September 18, 2020

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

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

Nonprofit Business Plan Template

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

Download Nonprofit Business Plan Template

One-Page Business Plan for Nonprofit Template

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

Download One-Page Business Plan for Nonprofit Template

Excel | Word | PDF

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

Fill-In-the-Blank Nonprofit Business Plan Template

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

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

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

Startup Nonprofit Business Planning Template with Timeline

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

Download Startup Nonprofit Business Planning Template with Timeline

Excel | Smartsheet

Nonprofit Business Plan Template for Youth Program

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

Download Nonprofit Business Plan Template for Youth Program

Word | PDF  | Google Doc

Sample Nonprofit Business Plan Outline Template

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

Download Sample Nonprofit Business Plan Outline Template

Nonprofit Startup Business Planning Checklist Template

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

Download Nonprofit Startup Business Planning Checklist Template

Tips to Create Your Nonprofit Business Plan

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

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

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

Reviewed by:

January 11, 2024

Table of Contents

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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The best nonprofit business plan template

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

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

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

Get the template

What is a nonprofit business plan template?

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

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

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

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

Download Excel template

Why use a nonprofit business plan template?

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

Provide direction

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

Help you secure funding

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

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

Facilitate clear messaging

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

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

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

What are some examples of a nonprofit business plan template?

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

Summary nonprofit business plan template

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

Full nonprofit business plan template

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

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

Executive summary

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

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

Operational nonprofit business plan template

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

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

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

monday.com’s nonprofit business plan template

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

Here’s what you can do on our template:

Access all your documents from one central location

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

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

Turn your business plan into action

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

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

Keep your finger on the pulse

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

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

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

Essential sections of a nonprofit business plan template

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

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

Organization overview

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

Products, programs, and services

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

Marketing plan

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

Operational plan

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

Competitive analysis

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

Financial plan

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

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

FAQs about nonprofit business plan templates

How do you write a business plan for a nonprofit.

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

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

How many pages should a nonprofit business plan be?

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

What is a nonprofit business plan called?

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

What is the best business structure for a nonprofit?

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

How do you start a nonprofit with no money?

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

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How 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.

Still have questions about starting a nonprofit, finding grants or other fundraising and management queries? Chat with or email Candid's experts to get answers. Ask Us Now!

If you're thinking about starting a nonprofit, take Candid's course, Is Starting a Nonprofit Right for You?  Take the course in person or watch the video.

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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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Nonprofit Business Plan Template

Download our Non-Profit Business Plan and create a business plan for your non-profit!

Updated September 24, 2023 Written by Josh Sainsbury | Reviewed by Brooke Davis

Running a successful non-profit organization is challenging. A business plan is one tool that helps steer your organization in the right direction. It clearly articulates your goals and details how to accomplish them.

It also shows external stakeholders that you’re serious about your non-profit and reassures them that they can work with you or provide you with funding.

This guide helps you understand how to write a non-profit business plan and includes a free template to help you get started.

Why You Need a Business Plan for Your Non-profit Business

How to write a business plan for a non-profit, non-profit business plan example.

A business plan is a roadmap. It shows where your organization is now, where you want to go, and how to get there.

Typically, a non-profit business plan spans the upcoming three to five years. Every non-profit organization should have a business plan, regardless of size or financial status. It helps you:

• Stay organized
• Identify essential stakeholders in your organization
• Understand the feasibility of your work
• Attract volunteers and an administrative board
• Uncover new opportunities

A non-profit business plan is also an essential document for securing funding. If you hope to get significant donations or grants, you must show donors or grantmakers your goals and objectives.

They want proof that your organization will achieve its goals, and there’s no better way to reassure them than with a clear, concise business plan.

Writing a business plan is easy if you take it step-by-step and use a template to create each section. As you write, keep your target audience in mind: How do you want them to respond to this business plan?

1. Executive Summary

The executive summary gives a general outline of your entire business plan. It gives the reader a clear idea of what to expect in the rest of the document. An executive summary also contains enough information so that someone who doesn’t have the time to read your entire business plan can get a sense of your organization, goals, and methods.

In your executive summary, cover what your non-profit does, the basic need you address, and why that need exists. Most importantly, explain how your organization plans to meet the demand. This first section of your business plan concisely tells your story. Your goal in crafting it should be to sum up the whole document while convincing the reader to keep reading.

As this section is a general summary of the rest of your business plan, it helps to write the executive summary last.

2. Management Team

The second section in your non-profit business plan covers your management team or organizational structure. Here, you explain who runs your organization and what their tasks are. You should also mention which type of non-profit you are (501(c)(3), fraternal beneficiary, horticultural, labor, etc.).

In addition to discussing your management team or board of directors, mention if your organization has employees, utilizes volunteers, or both.

If you have a facility dedicated to running your non-profit, here is the place to describe it. Noting your previous successes in this section may help convince donors to fund you.

If you are a new organization, use this section to describe your vision and how you’ll use practical methods to solve real problems.

3. Products and Services

In the products and services section, discuss your plans for achieving your goals. Describe, in detail, the needs of your community that your organization addresses.

Then, document how you will meet those needs. Do you create and offer products that improve lives? Do you run programs that provide needed services and support? Be explicit about what you do and how it helps people in need.

When describing your products and services, use numbers. For instance, if you run a food pantry, provide statistics about food insecurity in your area. Mention your daily capacity for distributing food based on your expected number of donations.

Also, include information about the people administering your products and services. Who works at your food pantry? Who organizes the donations and assigns volunteers?

This section should contain specific and concrete facts about your non-profit’s work, as these numbers will help convince donors and partners to fund or work with you.

4. Customers and Marketing

Your non-profit business plan should contain a marketing strategy. In the customers and marketing section, describe how you promote your efforts and be specific. Some common types of non-profit marketing channels include:

• Printing and distributing promotional materials
• Online marketing
• Social media posts
• Email newsletters
• Maintaining and updating a website
• Marketing partnerships
• Fundraisers
• Outreach events

If you’re a new non-profit and haven’t started marketing, mention your plan. State the scope of your marketing efforts, including your target demographics and whether your strategy is local, national, or international.

In addition to marketing methods, this section of your business plan should iterate your messaging.

What type of language will your campaigns focus on? Do you have critical slogans, logos, or other brand assets you plan to use? If not, how will you develop those assets? If you’ve done a marketing analysis, include it in this section.

5. SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is a critical part of any business plan, whether for-profit or non-profit. SWOT is a strategic framework that helps you identify your vital areas and room for improvement.

To find your strengths , ask what your organization does well. Which unique resources do you have that you can draw on? Also, evaluate what competitors or other organizations might see as your strengths.

To find your weaknesses , ask what your organization can improve upon. Which resources are you lacking? What might external stakeholders identify as your weaknesses?

To find opportunities , look at the trends in your field upon which you might capitalize. Opportunities usually come from outside your organization and require a forward-thinking mindset.

To find threats , think about what could harm your non-profit. What is your competition doing better than you are? Which external factors may hurt your operations?

6. Financials

Your non-profit cannot operate without funding. Your financial section covers how you plan to pay for everything you need. This section is essential because you can’t carry out your other activities without a solid funding source.

Mention your current financial status, including assets and liabilities. Also, include essential financial documents such as income statements, a cash flow sheet, and a balance sheet.

What else should go in your non-profit business plan’s financial section? Be sure to highlight:

• Your fundraising plan
• Grants you’ve received or a plan for applying for grants
• Potential obstacles to gathering funding and proposed solutions
• What you’ll do with surplus donations
• Startup costs if you’re not established yet

You cannot give too much financial information, so always include anything you think might be relevant. Your potential partners and donors want a clear picture of your financial situation.

7. Operations

Explain how you plan to carry out your programs or provide your services in your operations section. Your products and services section is the “what,” and your operations section is the “how.”

Retake the food pantry example. You’ve already described what it is using numbers and statistical data; now, you explain how it runs.

Is it open every day, and for how long? Where and from whom will you collect food donations? Are there any goods you will not accept? Can you hold food drives with schools, churches, or other organizations? What rules will you have about distributing food for volunteers and the recipients?

As you develop your operations strategy, ask yourself, “How.” Keep asking until you have a clear, detailed plan that describes your work. Don’t forget to include a sub-section about your team, volunteers, or the people carrying out your operations.

Their strengths will also keep your non-profit running, so you should mention them in your business plan.

8. Appendix

The appendix of your non-profit business plan is where you attach additional documents that your readers may find helpful. Charts, data, or lists typically go in the appendix. Add any information that seems too lengthy or complex to read in the body of your business plan.

Some examples of appendix documents include:

• List your board of directors
• Status letter from the IRS
• Balance sheets
• Management flow chart
• Budget for the current fiscal year
• Market analysis

With an appendix, you don’t have to be as concerned about structure as you are with the body of the business plan. Think of it as a reference section for your readers.

A sample business plan already has the structure for you; you have to fill in each section with the relevant information.

Writing a non-profit business plan is simpler when you work from a template. Download our free PDF or Word template and fill it out independently.

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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.

Other Helpful Business Plan Articles & Templates

How to Start a Foundation for Your Nonprofit Organization

Nonprofits operate in a continuous cycle involving donor acquisition , fundraising efforts, and mission-driven work. As a nonprofit leader, you may be looking for new ways to give to your community and break out of your organization’s cyclical operations.

By forming a private foundation , you can continue your nonprofit’s work while supporting other organizations that address a cause you care about. In this guide, we’ll cover the five necessary steps to start a foundation:

• Understand nonprofit foundation basics
• Determine the legal structure
• Fill your foundation’s board
• Establish a fundraising plan
• Budget your foundation’s money separately

With the right funding and approach, you can create a foundation that takes your community service a step further. We’ll give you all the tools you need to start a foundation, and, more importantly, maintain it.

1. Understand nonprofit foundation basics

Before you get started, you should be able to answer one question: What is a nonprofit foundation? 

Organizations that qualify as 501(c)(3) tax-exempt are automatically defined as private foundations by the IRS unless they satisfy certain exceptions, such as being organized as a church, hospital, school, or other specifically named entity type. These private, nongovernmental organizations are usually organized by a single source—like a family or corporation—which then distributes grants to help fund other nonprofits, most often public charities.

There are three key differences between a public charity and a private foundation:

• Funding: A foundation is generally sustained through private monetary donations, securities, and other funds, not donations from the public, though that is allowed.
• Activities: While public charities provide some kind of charitable good or service to the people they assist, a private foundation exists primarily to grant funds. Although their grants usually support charitable activities, foundations don’t usually participate directly in the programs or services.
• Taxes: Private foundations are exempt from income tax, just like other nonprofits. However, they are subject to a 1-2% excise tax on income generated by investments.

With the unique role of a foundation also comes different legal requirements. For example, foundations must give 5% of their net assets in grants each year for charitable purposes. These are most often grants to public charities, but other charitable recipients can be included. Understanding how foundations work will give you the necessary context to begin planning the structure and operations of your foundation.

2. Determine the legal structure

The logistics of organizing and operating a private foundation require legal supervision. To avoid legal obstacles when starting a foundation, you’ll need to:

• Double-check your proposed name. Do a quick search to make sure that the name you’ve picked out for your foundation is not registered with another corporation.
• Fill out the Articles of Incorporation. These are essentially the legal documents that make your foundation legitimate—like a business plan, but for nonprofits. You can find plenty of templates online if you’re doing this without an attorney.
• Create bylaws for your foundation. These rules will outline how you plan to select your board, avoid conflicts of interest, manage your funds, etc. Some states don’t require bylaws, but it’s always smart to have them anyway for contractual and organizational purposes.

There are numerous legal steps to follow, and you’ll need to contact your Secretary of State’s business office to make sure you don’t leave anything out. If you’re confident in your ability to navigate these legal requirements and want to save money, you can do this all yourself. However, hiring an attorney can help you avoid the risk of noncompliance penalties. 

You should be prepared to pay a few legal fees during this process and can plan for the investment in an attorney in your legal fee budget. Decide whether or not you want to hire an attorney, then complete the necessary paperwork and submit it to the IRS. 

3. Fill your foundation’s board

After receiving tax-exempt status from the IRS, start planning the structure and operations of your foundation. Much like you’d hire employees upon starting a business, you’ll need board members to manage and operate your foundation. Board members will be responsible for many tasks, including:

• Accountability: Board members will ensure the foundation’s operations advance its mission.
• Advocacy: Board members will be ambassadors for the foundation, representing your organization and its work in their social circles.
• Governance: Board members will steward assets in the best interest of the foundation and address any conflicts of interest as they arise.
• Networking: Board members will make connections with other community leaders.

As you select board members, keep these tasks in mind and consider who would fill these roles most effectively. As the leader of your foundation, you should also be a board member (or heavily involved with this team.) 

Your board should include a variety of close-knit and resourceful members. The team members with whom you have personal connections will help cultivate a strong sense of community, while outsiders can provide the connections that bring in bigger donations and networking opportunities. 

To achieve this balance, some foundations turn to close friends, family members, experts within the field, and independently wealthy people who are passionate about their cause. Determine your foundation’s specific needs and choose your board accordingly.

4. Establish a fundraising plan

Although foundations typically have a steady funding source or a principal investment, such as an endowment, you may also need to fundraise to keep your foundation afloat. As a nonprofit leader, you likely have a solid background in fundraising strategies. You can leverage these tried-and-true techniques, such as:

• Crowdfunding campaigns
• Events, like galas or auctions
• Handwritten donation appeals

However, raising money for your private foundation isn’t as simple as just choosing a fundraising idea. To publicly solicit donations for your foundation, you may need to register for charitable solicitations in your state. Also, contributions to a private foundation will have different requirements than those to your nonprofit. Fundraising is another area of foundation management in which an attorney or budgeting expert will be helpful.

5. Budget your foundation’s money separately

However you choose to fundraise, make sure you’re always budgeting and planning for the months ahead. You’ll have different fundraising goals, expenses, and tax requirements with your foundation, so it’s important that you keep it entirely separate from your nonprofit’s budget. For example, your foundation will need to:

• Create two types of grants—general support and specific project grants.
• Keep a record of all grants given throughout the year.
• File annual tax returns, such as Form 990-PF .

Your private foundation and nonprofit are separate entities with different goals and requirements. To ensure both organizations maintain compliance with their different legal structures, you’ll need to keep their budgets completely independent from each other. Ask an attorney for help if you’re concerned they might be overlapping.

Once you know how to create and sustain a foundation for your nonprofit, you’ll be able to expand the impact of your work and give back to your community more than ever before. 

Keep up with the requirements of private foundation operation, but don’t be afraid to enlist the help of an expert if you’re able to! Compliance is their job, and social good is yours. Focus on your mission and leverage the power of private foundations to accomplish your goals.

Hannah Trull

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Nonprofit Business Plan

Business plans  are the foundation of nonprofit organizations. Without it, nonprofit organizations would not really prosper and serve their ultimate purpose since they will have a hard time obtaining support from external donors. Simply put, a business plan for non-profit organizations  describes the company, recognizes and addresses gaps, and creates a course of action for the organization over the next few years. The process of designing a business plan alone helps you to understand your organization better, which, in turn, will contribute to its further development. So how do you formulate a substantial business plan? Scroll down below to check out our examples.

10+ Nonprofit Business Plan Examples

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What Is a Non-Profit Business Plan?

Are you aware that 25% of small businesses begin operations without any financing whatsoever? It takes a leap of faith to get started in that manner, but many more businesses and organizations do have to come up with a plan for their own good. If you’re aware of what a company business plan  is and what it’s for, then it won’t take long for you to guess what the non-profit business plan is. This document serves as the culmination of your research, the epitome of your will, and the written word of your message. Even a non-profit organization business needs this not just for guidance, but to get the right loans, donors, and grants needed.

How to Create a Non-Profit Business Plan

If downloading a one-page non-profit business plan template isn’t in the cards, then you’ll have to create your own. Coming up with a non-profit blueprint does not have to be overly complicated. Whether it is a non-profit housing business plan or a non-profit ministry business plan, the steps below are sure to be of use.

Step 1: Specify Your Organization’s Goals

The key to any plan, especially something like a non-profit strategic plan , is to be clear with one’s goals. Take this opportunity to spell out what you intend to achieve through your organization.

Step 2: Articulate Your Mission Statement and Core Values

For the next step, explain what your non-profit mission statement is, along with the core values that you intend to follow. What you come up with does not have to be overly long or complex. Take for example the mission statement of UNICEF, which is only three hundred words long.

Step 3: Continue With the Outline

For the third step, this is the part where you push through with your written outline. What this comprises of will include parts of the plan that you have yet to discuss or divulge. This may involve sections like how you want to go about with your human resources , the budget that your organization will need, as well as any marketing efforts that you will have to put in. This is important because it can serve as your roadmap of sorts. There’s no need to go too much into detail here since many of the specifics will be explored later on.

Step 4: Talk About Your Services, Products, or Programs

This is the part where you describe in detail what your non-profit organization actually does. Talk about the specific services that you want to make available to others, the programs you want to start, and the products that you plan on offering. In this step, you may get into your  product marketing  for a bit, because it can tie into the next step.

Step 5: Work on Your Marketing, Operations, and Financial Plans

For the penultimate step, you must brush up on what your  marketing plan  is, along with your organization’s financial and operational plans . All will play a significant role in your non-profit going forward, so it pays to keep close attention to detail to each one. The specifics of these plans may change over time, as your organization evolves.

Step 6: Wrap Up With the Appendix

The last part is often reserved for the appendix where you can cite helpful information that may not otherwise have a suitable spot on the plan. Among the information you may put here includes your organizational flow chart , the list of your company’s board of directions, the balance sheets, and others.

What are examples of non-profit businesses?

Prime examples are churches, national charities, and foundations. Universities and hospitals also count, but only in select cases.

How much does it cost to start a non-profit?

Since a non-profit organization often operates as a business would, you need to consider where your capital comes from. Create a non-profit layout so you can map out how that capital will be spent and on what. There won’t be any set amount; instead, determine it according to your plans for the organization. If you are set on finding out specific costs, take note that you will still have to apply to the IRS for non-profit status. Once you do that, you’ll have to spend on forms like Form 1023, which costs $750. Those with projected revenue under $40,000 will see that fee reduced to a mere $400.

Is it possible to make money with a non-profit business?

Those who start non-profit businesses aren’t allowed or entitled to any profit from their organization’s net earnings. However, there are still other ways to make money, both for the individual and the company. For the latter, income can come from somebody’s fundraiser budget and corporate sponsorship.

Let it be said that plans are what makes amazing things happen, regardless if you get profit out of it or not. Like learning how to create a  non-profit proposal , coming with a non-profit business plan is one of the most important things you’ll ever do for your organization. Download a template or create your own; what matters is that you get your plans done right. So don’t waste another moment and browse through our collection of templates right now!

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Cindy is the COO of Beauty Bar Medispa .

According to statistics published in 2019 by the Small Business Administration (SBA), about 20% of business startups fail in the first year. About half succumb to business failure within five years. By year 10, only about 33% survive.

That is quite an alarming statistic. For those starting a new business, purchasing an existing business or re-evaluating their current business, building a strong foundation is essential to achieve success. Without a strong foundation, your business is more likely to end up in chaos. Anything built on rock will have a much better chance of thriving than if it were built on sand.

Having 20-plus years of experience being a top-level executive in varied businesses, I understand the importance of a strong foundation upon which all future business efforts are built. In my current career, I had the challenge of working with an existing business being sold to a new owner, which meant working with both an existing business plan and a new business plan. Within a two-year span, our growth tripled. This article will discuss ten key elements that have proven to be not only necessary but critical for success.

1. Execute an effective business plan knowing that you will more than likely need to allow for adjustments as you go. Focus more on listening than on what you already know or what you have done in the past. Your previous experience and knowledge will come into play after you listen, learn and evaluate.

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2. Build a client-focused content strategy. Knowing and understanding your client base will help you to know where to focus your efforts. This can be done in the form of the following.

• Employee feedback. This will provide you with a broader perspective for understanding your client, as your employees will more than likely be privy to client satisfaction issues on different levels, such as payment, product development, service, etc.

• Market research surveys. These surveys will allow you to understand your potential client’s wants and needs.

• Client surveys. Surveys from clients will guide you in knowing what your clients are looking for, especially when creating content, and will enlighten you to the understanding that your wants and needs may not be their wants and needs.

3. Make a user-friendly website. Create a website that is easy to navigate and has clear and condensed information, along with photos and video.

4. Build SEO. Build your search engine optimization and evaluate it quarterly.

• Find the right keywords.

• Focus on your unique offerings.

• Don’t overstuff your site with keywords.

• Build links to your site.

• Publish high-quality content.

5. Optimize your social media. Focus on high-impact activities in regard to your social media marketing.

• Know your audience.

• Prioritize quality over quantity.

• Be consistent.

• Use eye-catching visuals and videos, reels, etc.

• Create shareable content and conversational posts that provoke comments.

6. Consider community. Incorporate your community into your business plan, such as a give-back program to a local charity, as well as community involvement.

7. Use employee satisfaction surveys. This is a step that is non-negotiable when building your foundation. In most cases, your employees will have the most direct impact on your clients. Get feedback from employees on company culture and find out what values are most important to them. Ask them what areas within your company they feel need improvement, and ask them what they feel are the company’s strengths. Incorporate this information when creating a solid business plan.

8. Grant exposure to employees. Provide your employees exposure to all departments within your company. See to it that all employees have walked a day in other co-workers’ shoes. Doing so will provide them with a greater understanding and appreciation for how the business operates, as well as foster collaboration and unity.

In some instances, you may want to consider cross-training. My belief and experience in cross-training is that it is essential to running a business efficiently. However, you need to proceed with caution, as some employees feel that it is nothing more than extra work being piled up on them or consider it a threat that their position may be taken away.

9. Put people in the right roles. Transition employees to roles where they are better suited. An employee may be hired for one role, but you might later find that their forte is in another department. I call this “finding their shine.” When you can move an employee into a role that is better suited to their personality and abilities, they will shine!

This will cause a positive ripple effect within your organization. Repositioning an employee into a role better suited for them creates a business culture that truly cares about its employees’ happiness while also increasing productivity and employee retention.

10. Develop your pricing based on knowing your value. Most of us question our pricing, wondering if we have priced too high or too low. Once you have done your market research, be confident when you talk about your pricing with your clients and your employees. Many people are willing to pay more when they can see the value. Very seldom does a client want to pay less to receive less. By properly managing client expectations, the referral business will soon follow!

Similar to the foundation of a home needing to be strong in order to support its structure, the same is true for business. Always start with a solid foundation to ensure your business’ future stability.

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