how to create a business plan for a nonprofit

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

Creating a business plan is essential for any business, but it can be especially helpful for nonprofits. A nonprofit business plan allows you to set goals and track progress over time. It can also help you secure funding from investors or grant-making organizations.

A well-crafted business plan not only outlines your vision for the organization but also provides a step-by-step process of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article will provide an overview of the key elements that every nonprofit founder should include in their business plan.

Download the Ultimate Nonprofit Business Plan Template

What is a Nonprofit Business Plan?

A nonprofit business plan is a formal written document that describes your organization’s purpose, structure, and operations. It is used to communicate your vision to potential investors or donors and convince them to support your cause.

The business plan should include information about your target market, financial projections, and marketing strategy. It should also outline the organization’s mission statement and goals.

Why Write a Nonprofit Business Plan?

A nonprofit business plan is required if you want to secure funding from grant-making organizations or investors.

A well-crafted business plan will help you:

• Define your organization’s purpose and goals
• Articulate your vision for the future
• Develop a step-by-step plan to achieve your goals
• Secure funding from investors or donors
• Convince potential supporters to invest in your cause

Entrepreneurs can also use this as a roadmap when starting your new nonprofit organization, especially if you are inexperienced in starting a nonprofit.

Writing an Effective Nonprofit Business Plan

The key is to tailor your business plan to the specific needs of your nonprofit. Here’s a quick overview of what to include:

Executive Summary

Organization overview, products, programs, and services, industry analysis, customer analysis, marketing plan, operations plan, management team.

• Financial Plan

The executive summary of a nonprofit business plan is a one-to-two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your nonprofit organization
• Provide a short summary of the key points of each section of your business plan.
• Organize your thoughts in a logical sequence that is easy for the reader to follow.
• Include information about your organization’s management team, industry analysis, competitive analysis, and financial forecast.

This section should include a brief history of your nonprofit organization. Include a short description of how and why you started it and provide a timeline of milestones the organization has achieved.

If you are just starting your nonprofit, you may not have a long history. Instead, you can include information about your professional experience in the industry and how and why you conceived your new nonprofit idea. If you have worked for a similar organization before or have been involved in a nonprofit before starting your own, mention this.

You will also include information about your chosen n onprofit business model and how it is different from other nonprofits in your target market.

This section is all about what your nonprofit organization offers. Include information about your programs, services, and any products you may sell.

Describe the products or services you offer and how they benefit your target market. Examples might include:

• A food bank that provides healthy meals to low-income families
• A job training program that helps unemployed adults find jobs
• An after-school program that helps kids stay out of gangs
• An adult literacy program that helps adults learn to read and write

Include information about your pricing strategy and any discounts or promotions you offer. Examples might include membership benefits, free shipping, or volume discounts.

If you offer more than one product or service, describe each one in detail. Include information about who uses each product or service and how it helps them achieve their goals.

If you offer any programs, describe them in detail. Include information about how often they are offered and the eligibility requirements for participants. For example, if you offer a job training program, you might include information about how often the program is offered, how long it lasts, and what kinds of jobs participants can expect to find after completing the program.

The industry or market analysis is an important component of a nonprofit business plan. Conduct thorough market research to determine industry trends, identify your potential customers, and the potential size of this market. 

Questions to answer include:

• What part of the nonprofit industry are you targeting?
• Who are your competitors?
• How big is the market?
• What trends are happening in the industry right now?

You should also include information about your research methodology and sources of information, including company reports and expert opinions.

As an example, if you are starting a food bank, your industry analysis might include information about the number of people in your community who are considered “food insecure” (they don’t have regular access to enough nutritious food). You would also include information about other food banks in your area, how they are funded, and the services they offer.

For each of your competitors, you should include a brief description of their organization, their target market, and their competitive advantage. To do this, you should complete a SWOT analysis.

A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a helpful tool to assess your nonprofit’s current position and identify areas where you can improve.

Some questions to consider when conducting a SWOT analysis include:

• Strengths : What does your nonprofit do well?
• Weaknesses : What areas could your nonprofit improve?
• Opportunities : What trends or changes in the industry could you take advantage of?
• Threats : What trends or changes in the industry could hurt your nonprofit’s chances of success?

After you have identified your nonprofit’s strengths, weaknesses, opportunities, and threats, you can develop strategies to improve your organization.

For example, if you are starting a food bank, your SWOT analysis might reveal that there is a need for more food banks in your community. You could use this information to develop a marketing strategy to reach potential donors who might be interested in supporting your organization.

If you are starting a job training program, your SWOT analysis might reveal that there is a need for more programs like yours in the community. You could use this information to develop a business plan and marketing strategy to reach potential participants who might be interested in enrolling in your program.

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, if you are starting a job training program for unemployed adults, your target audience might be low-income adults between the ages of 18 and 35. Your customer analysis would include information about their needs (e.g., transportation, childcare, job readiness skills) and wants (e.g., good pay, flexible hours, benefits).

If you have more than one target audience, you will need to provide a separate customer analysis for each one.

You can include information about how your customers make the decision to buy your product or use your service. For example, if you are starting an after-school program, you might include information about how parents research and compare programs before making a decision.

You should also include information about your marketing strategy and how you plan to reach your target market. For example, if you are starting a food bank, you might include information about how you will promote the food bank to the community and how you will get the word out about your services.

Develop a strategy for targeting those customers who are most likely to use your program, as well as those that might be influenced to buy your products or nonprofit services with the right marketing.

This part of the business plan is where you determine how you are going to reach your target market. This section of your nonprofit business plan should include information about your marketing goals, strategies, and tactics.

• What are your marketing goals? Include information about what you hope to achieve with your marketing efforts, as well as when and how you will achieve it.
• What marketing strategies will you use? Include information about public relations, advertising, social media, and other marketing tactics you will use to reach your target market.
• What tactics will you use? Include information about specific actions you will take to execute your marketing strategy. For example, if you are using social media to reach your target market, include information about which platforms you will use and how often you will post.

Your marketing strategy should be clearly laid out, including the following 4 Ps.

• Product/Service : Make sure your product, service, and/or program offering is clearly defined and differentiated from your competitors, including the benefits of using your service.
• Price : How do you determine the price for your product, services, and/or programs? You should also include a pricing strategy that takes into account what your target market will be willing to pay and how much the competition within your market charges.
• Place : Where will your target market find you? What channels of distribution will you use to reach them?
• Promotion : How will you reach your target market? You can use social media or write a blog, create an email marketing campaign, post flyers, pay for advertising, launch a direct mail campaign, etc.

For example, if you are starting a job training program for unemployed adults, your marketing strategy might include partnering with local job centers and adult education programs to reach potential participants. You might also promote the program through local media outlets and community organizations.

Your marketing plan should also include a sales strategy, which includes information about how you will generate leads and convert them into customers.

You should also include information about your paid advertising budget, including an estimate of expenses and sales projections.

This part of your nonprofit business plan should include the following information:

• How will you deliver your products, services and/or programs to your target market? For example, if you are starting a food bank, you will need to develop a system for collecting and storing food donations, as well as distributing them to the community.
• How will your nonprofit be structured? For example, will you have paid staff or volunteers? How many employees will you need? What skills and experience will they need to have?
• What kind of facilities and equipment will you need to operate your nonprofit? For example, if you are starting a job training program, you will need space to hold classes, as well as computers and other office equipment.
• What are the day-to-day operations of your nonprofit? For example, if you are starting a food bank, you will need to develop a system for accepting and sorting food donations, as well as distributing them to the community.
• Who will be responsible for each task? For example, if you are starting a job training program, you will need to identify who will be responsible for recruiting participants, teaching classes, and placing graduates in jobs.
• What are your policies and procedures? You will want to establish policies related to everything from employee conduct to how you will handle donations.
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is the section of the business plan where you elaborate on the day-to-day execution of your nonprofit. This is where you really get into the nitty-gritty of how your organization will function on a day-to-day basis.

This section of your nonprofit business plan should include information about the individuals who will be running your organization.

• Who is on your team? Include biographies of your executive director, board of directors, and key staff members.
• What are their qualifications? Include information about their education, work experience, and skills.
• What are their roles and responsibilities? Include information about what each team member will be responsible for, as well as their decision-making authority.
• What is their experience in the nonprofit sector? Include information about their work with other nonprofits, as well as their volunteer experiences.

This section of your plan is important because it shows that you have a team of qualified individuals who are committed to the success of your nonprofit.

Nonprofit Financial Plan

This section of your nonprofit business plan should include the following information:

• Your budget. Include information about your income and expenses, as well as your fundraising goals.
• Your sources of funding. Include information about your grants, donations, and other sources of income.
• Use of funds. Include information about how you will use your income to support your programs and operations.

This section of your business plan is important because it shows that you have a clear understanding of your organization’s finances. It also shows that you have a plan for raising and managing your funds.

Now, include a complete and detailed financial plan. This is where you will need to break down your expenses and revenue projections for the first 5 years of operation. This includes the following financial statements:

Income Statement

Your income statement should include:

• Revenue : how will you generate revenue?
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, what is the net income or loss? 

Sample Income Statement for a Startup Nonprofit Organization

Balance sheet.

Include a balance sheet that shows what you have in terms of assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Nonprofit Organization

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Income : All of the revenue coming in from clients.
• Expenses : All of your monthly bills and expenses. Include operating, marketing and capital expenditures.
• Net Cash Flow : The difference between income and expenses for each month after they are totaled and deducted from each other. This number is the net cash flow for each month.

Using your total income and expenses, you can project an annual cash flow statement. Below is a sample of a projected cash flow statement for a startup nonprofit.

Sample Cash Flow Statement for a Startup Nonprofit Organization

Fundraising plan.

This section of your nonprofit business plan should include information about your fundraising goals, strategies, and tactics.

• What are your fundraising goals? Include information about how much money you hope to raise, as well as when and how you will raise it.
• What fundraising strategies will you use? Include information about special events, direct mail campaigns, online giving, and grant writing.
• What fundraising tactics will you use? Include information about volunteer recruitment, donor cultivation, and stewardship.

Now include specific fundraising goals, strategies, and tactics. These could be annual or multi-year goals. Below are some examples:

Goal : To raise $50,000 in the next 12 months.

Strategy : Direct mail campaign

• Create a mailing list of potential donors
• Develop a direct mail piece
• Mail the direct mail piece to potential donors

Goal : To raise $100,000 in the next 24 months.

Strategy : Special event

• Identify potential special event sponsors
• Recruit volunteers to help with the event
• Plan and execute the special event

Goal : To raise $250,000 in the next 36 months.

Strategy : Grant writing

• Research potential grant opportunities
• Write and submit grant proposals
• Follow up on submitted grants

This section of your business plan is important because it shows that you have a clear understanding of your fundraising goals and how you will achieve them.

You will also want to include an appendix section which may include:

• Your complete financial projections
• A complete list of your nonprofit’s policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• A list of your hard assets and equipment with purchase dates, prices paid and any other relevant information
• A list of your soft assets with purchase dates, prices paid and any other relevant information
• Biographies and/or resumes of the key members of your organization
• Your nonprofit’s bylaws
• Your nonprofit’s articles of incorporation
• Your nonprofit’s most recent IRS Form 990
• Any other relevant information that may be helpful in understanding your organization

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your nonprofit organization. It not only outlines your vision but also provides a step-by-step process of how you are going to accomplish it. Sometimes it may be difficult to get started, but once you get the hang of it, writing a business plan becomes easier and will give you a sense of direction and clarity about your nonprofit organization.  

Finish Your Nonprofit Business Plan in 1 Day!

Other helpful articles.

How to Write a Grant Proposal for Your Nonprofit Organization + Template & Examples

How To Create the Articles of Incorporation for Your Nonprofit Organization + Template

How to Develop a Nonprofit Communications Plan + Template

How to Write a Stand-Out Purpose Statement + Examples

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

Every nonprofit needs a mission statement that demonstrates how the organization will support a social cause and provide a public benefit. A nonprofit business plan fleshes out this mission statement in greater detail. These plans include many of the same elements as a for-profit business plan, with a focus on fundraising, creating a board of directors, raising awareness, and staying compliant with IRS regulations. A nonprofit business plan can be instrumental in getting your organization off the ground successfully.

Start with your mission statement

The mission statement is foundational for your nonprofit organization. The IRS will review your mission statement in determining whether to grant you tax-exempt status. This statement also helps you recruit volunteers and staff, fundraise, and plan activities for the year.

[Read more: Writing a Mission Statement: A Step-by-Step Guide ]

Therefore, you should start your business plan with a clear mission statement in the executive summary. The executive summary can also cover, at a high level, the goals, vision, and unique strengths of your nonprofit organization. Keep this section brief, since you will be going into greater detail in later sections.

Identify a board of directors

Many business plans include a section identifying the people behind the operation: your key leaders, volunteers, and full-time employees. For nonprofits, it’s also important to identify your board of directors. The board of directors is ultimately responsible for hiring and managing the CEO of your nonprofit.

“Board members are the fiduciaries who steer the organization towards a sustainable future by adopting sound, ethical, and legal governance and financial management policies, as well as by making sure the nonprofit has adequate resources to advance its mission,” wrote the Council of Nonprofits.

As such, identify members of your board in your business plan to give potential donors confidence in the management of your nonprofit.

Be as realistic as possible about the impact you can make with the funding you hope to gain.

Describe your organization’s activities

In this section, provide more information about what your nonprofit does on a day-to-day basis. What products, training, education, or other services do you provide? What does your organization do to benefit the constituents identified in your mission statement? Here’s an example from the American Red Cross, courtesy of DonorBox :

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

This section should be detailed and get into the operational weeds of how your business delivers on its mission statement. Explain the strategies your team will take to service clients, including outreach and marketing, inventory and equipment needs, a hiring plan, and other key elements.

Write a fundraising plan

This part is the most important element of your business plan. In addition to providing required financial statements (e.g., the income statement, balance sheet, and cash flow statement), identify potential sources of funding for your nonprofit. These may include individual donors, corporate donors, grants, or in-kind support. If you are planning to host a fundraising event, put together a budget for that event and demonstrate the anticipated impact that event will have on your budget.

Create an impact plan

An impact plan ties everything together. It demonstrates how your fundraising and day-to-day activities will further your mission. For potential donors, it can make a very convincing case for why they should invest in your nonprofit.

“This section turns your purpose and motivation into concrete accomplishments your nonprofit wants to make and sets specific goals and objectives,” wrote DonorBox . “These define the real bottom line of your nonprofit, so they’re the key to unlocking support. Funders want to know for whom, in what way, and exactly how you’ll measure your impact.”

Be as realistic as possible about the impact you can make with the funding you hope to gain. Revisit your business plan as your organization grows to make sure the goals you’ve set both align with your mission and continue to be within reach.

[Read more: 8 Signs It's Time to Update Your Business Plan ]

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Business Planning for Nonprofits

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

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

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

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

Narrative of a business plan

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

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

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

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

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

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

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

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

Basic format of a business plan

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

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

More About Business Planning

Budgeting for Nonprofits

Strategic Planning

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

Additional Resources

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

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

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Nonprofit Business Plan: A Comprehensive Guide

• by Jess Convocar on February 21, 2024
• last update on May 06, 2024
• Reading Time: 7 minutes

Like any other business, nonprofit organizations need careful, structured planning to ensure sustainable growth. This is possible by creating a business plan that not only serves as a roadmap but also helps in attracting donors and volunteers needed to bring the organization’s vision to fruition.

Crafting the perfect business plan involves many things, but the most important part is understanding what it should look like and how it can help the organization forward its mission. This guide simplifies the process, breaks down its unique components, and provides step-by-step instructions on how to write a nonprofit business plan.

What is a business plan for nonprofits?

A business plan for nonprofits is a strategic document that outlines a nonprofit organization’s goals and operational approach. While similar to for-profit business plans, the focus here is on achieving social impact rather than financial profit.

Projects implemented by nonprofit organizations typically revolve around fostering social welfare, advocacy, education, or humanitarian aid. For instance, a nonprofit working to address homelessness might outline projects such as providing shelter and meals, offering job training programs, and collaborating with local agencies to advocate for affordable housing policies.

A typical business plan for nonprofits includes:

• The nonprofit’s mission, which sets the foundation for the entire plan;
• Specific objectives,
• Fundraising strategies,
• Resource allocation,
• And how it plans to measure success in terms of societal or community benefit.

But one thing to note is that there is no one-size-fits-all plan. Every little detail incorporated into the plan must be tailored to the organization’s needs, where it currently stands, and how it can contribute to its primary purpose – guiding the nonprofit to success.

Why Your Nonprofit Needs a Business Plan

A good plan does not only help attract external support but also benefits the organization internally. Listed below are the key reasons why your nonprofit needs a business plan:

Clarity of Mission, Vision, and Strategic Direction

Running a nonprofit organization isn’t the easiest task, and there may be times when you question whether you’re truly making an impact. Having a business plan gives you a perspective of the progress you’ve made and provides a distinct path moving forward.

This clear-cut framework ensures that the mission, vision, and strategic direction remain focused, helping the nonprofit make informed decisions and navigate challenges with purpose.

Proper Resource Planning and Financial Management

Poor financial management can lead to many problems, especially in nonprofits. With a business plan, this can easily be taken care of.

Since nonprofit organizations rely on various external funds, there should be an emphasis on resource planning and management. This involves forecasting the organization’s needs, such as financial, human, and technological resources, and strategically allocating them to support the mission and vision. Doing so also demonstrates fiscal responsibility to donors and stakeholders.

Strategic Fundraising and Sustainability

One of the most common and effective ways nonprofits gain support is through fundraising activities. A business plan helps you develop a targeted fundraising strategy that aligns with the organization’s goals. Clearly outlining the fundraising objectives, target audiences, and specific tactics provides a roadmap for effective resource mobilization.

Additionally, a structured plan attracts and retains donors by instilling confidence in them about the tangible impact their contributions can make.

Risk Management

A business plan is vital for developing strategies to handle risks and potential challenges. This proactive approach helps minimize the impact of unforeseen events, like economic recessions or natural disasters, on the nonprofit’s operations.

A robust risk management strategy not only saves time and money but also improves decision-making, avoids surprises, and, most importantly, prevents harm to the people your nonprofit serves.

Legal and Regulatory Compliance

Because the business plan already lays out how the organization works, it’s easier to understand and adhere to nonprofit laws like tax exemption and revenue regulations.

Dealing with these things from the start helps prevent potential problems, maintains transparency, and builds trust with stakeholders. This allows you to focus on carrying out the mission without legal conflicts.

How to Create a Business Plan Strategy

When gearing up to create a business plan for your nonprofit organization, it’s important to begin by thoroughly understanding the unique aspects of your mission. This solid foundation will guide you through the next steps of crafting a well-thought-out plan, which includes:

1. Create a strategy

Before anything else, you must identify your why .

Ask yourself what you want to happen. What does the organization stand for? Who does it serve? What do you hope for it to become?

If your long-term goal is to create a lasting impact and expand the community you serve, establish a strategy that mirrors your mission. Begin by assessing your organization’s current position, strengths, weaknesses, and opportunities. Based on your assessment, leverage the strengths and address weaknesses that may hinder progress.

Next, clearly define who your target audience is. Understand their specific needs and preferences to tailor your approach effectively.

Once the key factors have been determined and written down, it will serve as the starting point for the strategy.

2. Plan programs

The planning step is where you delve into the how. What are your plans to sustain and amplify the impact you aim to create?

Since you are not selling products or providing services to generate revenue, you’ll need to rely on fundraising events to support your cause. To do this effectively, create detailed program plans covering goals, activities, timelines, and expected outcomes. As always, ensure these plans align with your organization’s mission.

After establishing the programs, set up a monitoring system that tracks their effectiveness and evaluates them regularly. This helps you make informed changes as the nonprofit or the community’s needs evolve.

3. Ensure financial sustainability

Nonprofits receive financial support from various channels, such as individual donations, grants, sponsorships, and fundraising events. To ensure economic sustainability, building relationships with potential donors, individuals, institutions, and various funding sources is important to avoid relying too much on a single avenue.

In this sense, a well-thought-out budget is crucial for financial stability. Make sure to allocate resources carefully, considering program costs, administration expenses, and other needs. A clear and transparent budget not only aids in financial planning but also boosts trust with supporters.

4. Prioritize legal considerations

Even though dealing with changing rules might seem to lead to more paperwork than focusing on your mission, remember that compliance is as important as pursuing your organization’s goals. Some vital legal considerations include:

• Legal structure and registration
• Tax exemption (if applicable)
• Fundraising compliance
• Financial accountability
• Intellectual property (such as logos, trademarks, and copyrights)
• Data protection and privacy

Maintaining a good standing is crucial for obtaining licenses, securing grants and funding, protecting your organization’s reputation, and keeping the right to solicit support.

If you don’t have an in-house legal counsel, it’s a good idea to seek advice from experts who know nonprofit laws in your area when planning your business.

How to Write a Nonprofit Business Plan

Now that you’ve covered all the essential details, the next step is to create the business plan outline. There’s no strict format to follow, as it all depends on your organization’s specifics. However, make sure not to exclude these essential components when creating a nonprofit business plan:

1. Executive Summary

This part is a quick overview of the whole document. Since it’s the first thing people see in the business plan, it’s crucial to make it clear and interesting enough to grab their attention and encourage them to read the entire plan. Include the organization’s fundamentals – its history, objectives, and financing plans.

2. Organizational Overview

Provide a gist of who you are and who you serve. Here, express the organization’s mission, vision, and specific short-term and long-term goals.

3. Products, Programs, or Services Rendered

In this section, you must provide a detailed description of all the products and services mentioned in the executive summary. Highlight any unique aspects, such as innovative features and distinct advantages, that set you apart. State how instrumental these are to the success of your initiatives and how each one addresses the industry need.

4. Operational Plan

This is where you detail how your nonprofit will function on a day-to-day basis. Outline each team member’s daily, weekly, and monthly tasks, specifying responsibilities, timelines, and collaboration points to ensure a cohesive and efficient operation.

Additionally, spotlight any key processes, workflows, or systems necessary to achieve your mission.

5. Marketing Plan

The marketing plan should reflect the mission of the organization. Under this section, outline the strategies and channels to get your nonprofit out there. Include details about your target audience, methods for reaching them, and any promotional activities. This section may also cover partnerships, collaborations, and outreach efforts.

6. Financial Plan

The financial plan provides a comprehensive overview of your nonprofit’s financial health and projections. Include a budget, funding sources, and a breakdown of how funds will be allocated to support your operations and programs. This part is vital for demonstrating sustainability and helping make better-informed decisions.

7. Appendix

In the appendix, incorporate all the additional documents and information supporting the business plan’s main body. This may include resumes of key personnel, detailed financial statements, legal documents, or any other relevant materials.

Here’s a quick step-by-step guide on how to write a business plan:

• Start by outlining the executive summary providing a concise overview of the plan.
• Develop the organizational overview, which includes the mission and vision of the nonprofit.
• Conduct a SWOT (strengths, weaknesses, opportunities, threats) analysis to identify and address internal and external factors.
• Clearly articulate short-term and long-term goals and objectives.
• Describe the programs and activities that will help achieve these goals.
• Develop a marketing and outreach strategy to engage the community and attract support.
• Create a detailed financial plan, including budgets, revenue streams, and financial projections.
• Outline the governance and management structure, including roles and responsibilities.
• Detail monitoring and evaluation processes to assess program effectiveness.

Nonprofit Business Plan Template

Once you have a clear grasp of your organizational goals and strategies, here’s a sample nonprofit business plan template to get you started:

Frequently Asked Questions (FAQs) on Nonprofit Business Plan

Q: how often should a non-profit business plan be updated.

Although nonprofit plans usually set up a roadmap for at least three to five years, they should be regularly reviewed and updated to ensure they remain relevant and aligned with the organization’s purpose and changing external factors. For younger companies, an annual update with six monthly reviews may be sufficient, while more established nonprofits might opt for an annual review with quarterly check-ins.

Q: What role does evaluation play in a non-profit business plan?

Smaller nonprofits often conduct formal evaluations because their funders require it, but the benefits extend in both directions. Internally, evaluations help the organization assess its performance, impact, and effectiveness. In doing so, the nonprofit meets funder expectations and gains valuable insights for improvement, ensuring transparency and better alignment with its mission.

Q: How can a non-profit maintain adaptability in its strategies?

To stay adaptable, a nonprofit can follow three basic practices. First, keep the business plan up-to-date to align with the changing goals and environment. Second, stay on top of current industry trends to anticipate shifts in the landscape and prepare ahead of time. Lastly, revamp tools and approaches to ensure strategies remain innovative and effective.

Plan for Nonprofit Success with Convene

A well-crafted nonprofit business plan is crucial for success. To achieve this, cooperation is necessary within the internal teams and partners. However, communication can be a common roadblock, especially in a remote workplace.

This is where Convene comes into play.

Convene is a reliable board portal for nonprofits that facilitates effective planning through its interactive and secure features. Easily collaborate with everyone in the organization by leveraging Convene’s live meeting capabilities, such as annotations and digital sign-offs. Also, keep track of the updates and reports with its secure document management features.

Check out this page to learn more about Convene and how it can benefit your nonprofit organizations.

Jess is a Content Marketing Writer at Convene who commits herself to creating relevant, easy-to-digest, and SEO-friendly content. Before writing articles on governance and board management, she worked as a creative copywriter for a paint company, where she developed a keen eye for detail and a passion for making complex information accessible and enjoyable for readers. In her free time, she’s absorbed in the most random things. Her recent obsession is watching gardening videos for hours and dreaming of someday having her own kitchen garden.

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Learn how Convene can give your boards a superior meeting experience. Enquire for a free demo with no cost or obligation.

Raise More & Grow Your Nonprofit.

The complete guide to writing a nonprofit business plan.

August 14, 2019

Leadership & Management

July 7, 2022

TABLE OF CONTENTS

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

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

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

The purpose of a nonprofit business plan

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

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

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

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

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

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

More Reading

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

Creating a nonprofit business plan

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

Step 1: Write a mission statement

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

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

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

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

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

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

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

Step 2: Collect the data

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

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

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

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

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

Step 3: Create an outline

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

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

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

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

Using a business plan template

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

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

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

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

Nonprofit business plan sections

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

1. Executive summary

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

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

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

2. Products/Services/Programs

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

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

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

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

3. Marketing

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

Nonprofits not in operation

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

Nonprofits already in operation

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

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

4. Operations

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

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

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

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

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

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

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

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

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

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

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

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

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

6. Finances

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

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

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

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

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

7. Appendix

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

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

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

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

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How to Write a Nonprofit Business Plan: Tips for Success

Writing a business plan for a nonprofit organization requires a strategic approach, combining the passion for a cause with the practicality of running an efficient organization. Unlike for-profit businesses focused on financial gains, nonprofits aim at fulfilling a societal need. The following guide provides a comprehensive overview of the key components and practical tips to craft a compelling nonprofit business plan.

Understanding the Nonprofit Landscape

Before diving into the business plan, it’s crucial to grasp the unique environment in which nonprofits operate. Nonprofits are driven by a mission, often addressing social, educational, or humanitarian issues. The success of a nonprofit is not measured in profit margins but by the impact on the community or cause it serves. A clear comprehension of this landscape helps in tailoring the business plan to align with these unique objectives and constraints. If you need help creating a perfect business plan, check out  Domont consulting .

Articulating the Mission and Vision

The heart of any nonprofit is its mission and vision statements. These statements should clearly articulate the organization’s purpose and aspirations. The mission statement outlines the immediate objectives and what the organization seeks to accomplish, whereas the vision statement depicts the future aspirations. These statements should be inspiring, clear, and concise, guiding the overall direction of the nonprofit.

Conducting a Thorough Market Analysis

Just like in the for-profit sector, understanding the market is vital for a nonprofit. This involves researching the needs of the community, identifying gaps in services, and understanding the competitive landscape. A thorough market analysis helps in refining the mission and setting realistic goals. It also demonstrates to potential funders and stakeholders that the organization understands and is prepared to address the specific needs it aims to serve.

Defining Programs and Services

The programs and services are the vehicles through which a nonprofit achieves its mission. This section should detail what the organization plans to offer, how these offerings address the identified needs, and the anticipated impact. It’s important to demonstrate how these programs are sustainable and scalable over time, and how they align with the overall mission and vision.

Establishing Organizational Structure and Management

A well-defined organizational structure is crucial for operational efficiency. This part of the business plan outlines the governance structure, management team , and staffing requirements. It should include information on the board of directors, executive leadership, and key personnel. Highlighting the experience and expertise of team members adds credibility and assures stakeholders of the organization’s capability to fulfill its mission.

Developing a Marketing and Outreach Strategy

Even the most impactful nonprofits need to communicate their message effectively to garner support and attract funding. A marketing and outreach strategy is essential for raising awareness, engaging the community, and building partnerships. This strategy should detail the channels and tools the organization will use, such as social media, events, public relations, and collaborations with other organizations.

Creating a Financial Plan

While nonprofits are not driven by profit, financial stability is crucial for sustainability. The financial plan should include detailed budgets, projected income, and expenses. It’s important to demonstrate a sound financial strategy that includes diverse revenue streams such as grants, donations, and fundraising events. This section should also address financial controls and accountability measures.

Measuring Impact and Success

For a nonprofit, success is measured by the impact on its cause or community. This section should outline the key performance indicators and how the organization will measure and report its impact. These metrics not only help in evaluating the effectiveness of programs but also build trust with funders and stakeholders by demonstrating accountability and transparency.

Risk Management and Sustainability

Every organization faces potential risks, and nonprofits are no exception. Identifying potential risks and having a mitigation plan is crucial. This could involve financial risks, operational challenges, or changes in the external environment. Also, outlining a sustainability plan ensures the longevity of the organization, detailing how it plans to adapt and grow over time.

Leveraging Technology and Innovation

In today’s digital age, incorporating technology and innovation into a nonprofit’s strategy is not just beneficial; it’s essential. The use of technology in program delivery, donor management, and communication can significantly enhance efficiency and outreach. A nonprofit business plan should discuss how the organization plans to use technology to further its mission. This might include leveraging social media for awareness, using data analytics to track and improve program outcomes, or implementing innovative fundraising strategies.

Building Partnerships and Community Engagement

Nonprofits thrive on strong relationships and community support. A critical aspect of a nonprofit business plan is outlining a strategy for building partnerships and engaging with the community. This goes beyond traditional fundraising; it’s about creating a network of support that includes other nonprofits, businesses, government entities, and the community at large. A robust partnership strategy can lead to shared resources, collaborative projects, and greater reach. Community engagement is equally vital. It’s important for nonprofits to actively involve the community they serve in their planning and decision-making processes.

Adapting to Change and Future Planning

The nonprofit sector, like any other, is subject to change. Economic fluctuations , policy changes, and shifting societal needs can all impact a nonprofit’s operations. A forward-thinking nonprofit business plan anticipates potential changes and includes strategies for adaptation. This might involve contingency plans for funding, flexibility in program delivery, or ongoing market analysis to stay abreast of changing needs. Additionally, the business plan should not be static; it should be a living document, regularly reviewed and updated to reflect new goals, challenges, and opportunities.

A nonprofit business plan is more than a document—it’s a narrative that tells the story of a mission-driven organization poised to make a difference. By integrating these components into a cohesive and compelling business plan, nonprofits can effectively communicate their vision, strategies, and value to stakeholders, funders, and the community they serve. Remember, a successful nonprofit business plan blends the passion for a cause with pragmatic planning, setting the foundation for meaningful impact and lasting change.

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How to Write a Nonprofit Business Plan + Full Example

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

What is a Nonprofit Business Plan?

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

Download our Ultimate Nonprofit Business Plan Template here

Why Do You Need a Business Plan For Your Nonprofit?

A nonprofit business plan is important for several reasons.

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

Preparing To Write Your Nonprofit Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

How to Write Your Nonprofit Business Plan

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

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

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

Sample Nonprofit Business Plan

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

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

Organization Overview

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

Nonprofit Mission Statement

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

Vision Statement

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

Products, Programs, and Services

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

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

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

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

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

Market Analysis

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

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

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

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

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

Customer Analysis

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

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

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

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

Source: Tulane University

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

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

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

Marketing Strategy

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

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

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

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

Source: Nielsen

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

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

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

Operations Plan

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

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

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

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

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

Goals & Initiatives

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

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

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

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

Management Team

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

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

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

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

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

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

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

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

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

Board of Directors:

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

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

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

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

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

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

Financial Plan

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

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

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

Income Statement

Our nonprofit’s income statement is shown below:

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

Balance Sheet

Our nonprofit’s balance sheet is shown below:

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

Cash Flow Statement

Our nonprofit’s cash flow statement is shown below:

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

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

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

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

Fundraising Strategy

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

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

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

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

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

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

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

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

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

Nonprofit Business Plan Example PDF

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

Writing a Nonprofit Business Plan Conclusion

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

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

How to Finish Your Nonprofit Business Plan in 1 Day!

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

Other Helpful Business Plan Articles & Templates

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

July 6, 2023

Adam Hoeksema

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

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

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

In this article I hope to cover the following:

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

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

Why write a business plan for a non profit? 

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

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

What should be included in a non profit business plan? 

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

Non profit business plan outline

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

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

3.3. Target Beneficiaries

Key Point  1

4. marketing and fundraising, 4.1. strategic plan.

4.2. Program or Service Offerings:

4.4. Distribution Channels

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

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

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

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

Do non profits have competitors .

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

How to analyze the competition for a non profit?

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

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

How big is the market for my a non profit?

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

How to market a non profit?

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

How to structure a non profit board?

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

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

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

How to Create Financial Projections for a Nonprofit Business Plan

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

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

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

Example Non Profit Business Plan

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

Table of Contents

1. organization overview.

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

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

   1.2. Objectives

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

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

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

  1.3. Mission Statement

 Describes the organization's purpose and core values.

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

   2.1. Organization History

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

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

   2.2. Legal Structure

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

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

 2.3. Unique Value Proposition

  Emphasizes the organization's competitive advantage or unique values.

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

  2.4. Target Beneficiaries

Defines the organization's ideal beneficiary base.

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

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

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

 Identification of similar non-profit organizations and potential collaborators

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

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

3.3. Target Beneficiaries 

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

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

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

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

Describes the organization's programs or services in detail.

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

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

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

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

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

4.2. Program or Service Offerings: 

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

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

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

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

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

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

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

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

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

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

5.3. Governance, Financial Management, and Accountability:

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

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

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

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

   6.1. Startup Costs

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

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

Watch how to create financial projections for your Non-Profit

6.2. Revenue Projections

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

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

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

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

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

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

 Outlines the organization's projected cash inflows and outflows.

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

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

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

Key Point 4

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

   7.1. Supporting Documents

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

   7.2. Glossary of Term

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

   7.3. References and Resources

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

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

Nonprofit Business Plan FAQs

How do i start a non-profit organization.

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

How can I fundraise for my non-profit?

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

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

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

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

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

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

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

About the Author

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

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How to Create a Nonprofit Business Plan

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

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

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

Executive Summary

Organization overview.

• Products, Programs, and Services

Industry Analysis

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

Let’s break each of these down.

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

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

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

Products/Services/Programs

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

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

Also answer the following questions:

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

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

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

Below are sample promotional activities that many nonprofit organizations use:

Public relations

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

Social media marketing  

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

Blogs and Other Content  

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

E-newsletters  

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

Event marketing  

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

Newspaper/Magazine ads  

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

PPC advertising  

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

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

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

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

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

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

*This spotlighted blog post is courtesy of Growthink

Dave Lavinsky

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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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How to Start a Nonprofit Business

10 min. read

Updated July 3, 2024

Starting a nonprofit is one of the most rewarding ways to spend your time. 

However, establishing a charitable organization that lasts and truly makes a difference requires thorough planning and solid dedication.

In this guide to starting a nonprofit; we’ll outline the steps to get you up and running. 

Check out our startup hub for more in-depth guidance on starting a business.

• 1. Conduct a needs analysis

First, do some legwork. There are more than 1.5 million nonprofits in the U.S. alone, so you should verify that some other organization isn’t already serving your identified needs. 

Confirming that there’s demand for your organization’s mission is called a needs analysis.

You’re looking to answer the following questions:

• Is any other nonprofit organization already serving your target audience?
• How many people need the service you plan to provide?
• Who is your target demographic—who needs what you’re offering? What do they need or want?
• Is a 501(c)3 the best way to meet the need?

For this market research , you need to identify your target population (the people you think need what you’re offering) and potential donors.

Until you’ve spoken with (or surveyed) those audiences, you haven’t validated that there’s truly a need for what you’re offering. 

You may find that the need in your target population is different or exists within a different demographic. The point here isn’t to simply prove your assumptions—it’s okay if you need to adjust your idea .

Lastly, become familiar with the IRS nonprofit compliance guide . This information is worth reviewing early on so you know what’s required of a 501(c)3.

Dig deeper: Mistakes to avoid as a nonprofit

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2. Decide on a name 

Deciding on your charitable startup’s name is an essential step. You’ll need it finalized before incorporating your nonprofit or filing official paperwork.

Do research to ensure no other nonprofit organizations or for-profit businesses are using the name you’d like to use. At the very least, it will be a hassle if you’re constantly competing with another organization for brand visibility—or answering messages from confused donors or clients.

Check out our branding guide for further guidance on choosing a winning business name.

• 3. Write your mission statement

While for-profit entities aim to generate profits for shareholders—nonprofits emerge to address specific societal, environmental, or community challenges. This fundamental difference increases the importance of your mission statement. 

A well-crafted mission statement articulates the core reason for the organization’s existence. Your mission is a guiding beacon, ensuring that every action and initiative aligns with the organization’s overarching goals. 

Donors, volunteers, beneficiaries, and the broader community often engage with a nonprofit based on its mission. Your mission can help generate support, foster trust, and ensure transparency. 

Since your mission impacts so many individuals, it’s worth taking a collaborative approach when developing it. Involve diverse stakeholders who will be part of your organization—from volunteers to your first donors. 

When finalizing your mission, remember to keep your message concise. Focus on your unique impact and how you differ from similar nonprofits. Once you have a first draft, seek feedback to ensure it resonates with your staff, donors, and those you support. 

Dig deeper: What is a social enterprise and how to create one

• 4. Build your board of trustees

Every U.S. state requires a nonprofit to form a board of directors, who assume governing responsibilities and liability for the organization. For most states, a single person is considered the minimum requirement for a board, but in some states, as many as three people are necessary.

The National Council of Nonprofits has a great guide on reasonable responsibilities and expectations you might have of your board members. They also make solid recommendations on creating an orientation for new board members to set the stage for their role with your organization.

Annie Rogaski, founder of the Silicon Valley nonprofit The Club , offers this tip: 

“Form a strong board that works well together but brings different perspectives and creates an environment that encourages discussion of those different viewpoints to arrive at the best decision.”

• 5. Write your nonprofit business plan

Nonprofits need a good business plan just as much as for-profit companies—maybe even more. 

Lorrie Lynn King, founder of international women’s health nonprofit 50 Cents Period, says, “Nonprofit administration and programming require business acumen, financial planning, strategic planning, and people management skills—sometimes all at once.”

Writing your plan helps you think through every aspect of your organization. Plus, every bank will expect to see a business plan if you seek a business loan for larger capital expenses, like building or remodeling.

But it’s not just about getting a bank loan. Business planning helps you know where your organization is going and how you’ll get there. 

“It is crucial to have three-year plans for both the program and administrative sides of your organization, with measurable outcomes,” King says. “Know where you want to go, then create the map for getting there and make adjustments along the way.”

Tip: Check out our guide for writing a nonprofit business plan , and download a free business plan template to get started. 

Nonprofit business plan outline

Here are the sections you’ll want to focus on when writing your business plan . If you’re unsure about specific sections—check out completed nonprofit business plan examples for inspiration.

Executive summary

Treat this section as a brief overview of your vision for the organization. Make sure your executive summary includes your mission statement and how your nonprofit will execute it. 

Products and services

Are you making a life-changing product at little to no cost for a population in need? Are you providing an essential service to your community? Your products and services are what you’re delivering to meet a demand.

Market analysis

Doing a market analysis will help you better understand the population you intend to serve and your donor base. 

Management team

Who will be on your management or leadership team and board of directors? What are their duties, and what do they bring to the table?

Financial plan

Your nonprofit’s financial plan is essential. Just because you’re not focusing on generating a profit doesn’t mean it isn’t critical to put together a plan for how you’ll sustain your organization, deal with cash flow , and grow in the future.  

Dig deeper: Why your nonprofit needs a better budget

6. Register for 501(c)3 status and file articles of incorporation

In the United States, nonprofits have to meet regulations and requirements at both the state and federal levels. 

While there are 29 different categories of 501(c) organizations, the most commonly created is a 501(c)(3) organization— defined by the IRS as a “charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to children or animals.”

Most nonprofit organizations in the U.S. will fall under this classification, making them exempt from federal income taxes. (It is important to note that employees of these organizations are still required to pay income taxes.)

Tip: Approval can take up to a year, so get a jump on filing for tax exemption early .

In addition to filing for tax exemption, you will need to register or reserve the intended name of your organization and file articles of incorporation as a nonprofit . 

The specifics of this process will vary from state to state. Every state has a State Charitable Official from the National Association that you can contact for more detailed information about what you must prepare.

It’s always a good idea to retain the services of a lawyer familiar with the nonprofit creation process, too. Knowledgeable advisors will be invaluable as you prepare your filings at both the state and federal levels.

Dig deeper: 5 reasons to incorporate your nonprofit

7. Create a fundraising plan and get to know your donor base

Your organization will require a minimum amount of money to maintain regular operations. Then, there are special projects, unforeseen expenses, and growth to account for. 

King advises: “Start a funding and a savings reserve for your organization the minute donations start rolling in. Create a system of paper trails and transparency.”

Beyond setting an initial plan for bringing in funds, you’ll want to set up and monitor your financials. You can start with an Excel spreadsheet, but consider long-term accounting solutions like QuickBooks or Xero . 

Plus, if you connect it to a business dashboard solution like LivePlan , assembling financial reports for your board meetings becomes much less time-consuming.

Connect with your donors

Nonprofits rely mainly on donations for this money, and having a committed donor base will be essential. 

To start building a support network, revisit your research from earlier. Who have you identified as prospective donors? Talk to them, if you can, and understand what drives them. 

Use this direct feedback to craft your branding and marketing efforts . Your goal is to choose communication channels that your prospective donors frequent and package your mission in a way that will resonate with them. 

You may also want to look into grants . Keep in mind that grant applications take time to write. They usually come with reporting requirements, and there’s no guarantee that you’ll get the same grant next year.

Tip: Many donors will want assurance that you have been granted your 501(c)3 status so they can write off their donation on their taxes.

Dig deeper: How to find the right nonprofit partners

• 8. Hire your first staff or find volunteers

Your board of trustees are really your first volunteers. From there, you need to identify skill gaps within your organization that a volunteer or employee can fill.

Start by briefly describing the role you need to fill and how much time per week you think it might take. Then, get the word out. Depending on the volunteer work you’re offering, you might use a service like Volunteermatch.org to list your opportunity. Or you might put it on Craigslist or advertise in a high school or college newspaper.

A word of caution: It’s perfectly reasonable to ask a potential volunteer to do an initial project if your need is somewhat involved or requires a specific skill set. 

Volunteers can be beneficial, and many nonprofits are primarily volunteer-driven. But now or at some point in the future (when your finances allow), it might be appropriate to consider bringing on full or part-time paid staff. 

Before hiring, revisit your financial plan (specifically your personnel forecast ) and determine when to hire a new employee. 

Check out our hiring guide for more on successfully interviewing, choosing, and managing a new employee.

Dig deeper: How to successfully run nonprofit meetings

• Keep your eyes on your mission

As your charitable organization takes shape—make time to review both your mission statement and your business plan. 

Keep your mission at the forefront of every conversation around services, finances, and hiring. “Does your next move support our mission?” is a great question to ask frequently. Review your business plan , especially the financials, regularly.

Set milestones so you know you’re on track and can recalibrate if you ever find that you’re not meeting your goals. Use that plan to set you in the right direction and ensure your nonprofit is sustainable well into the future.

• Nonprofit tools and resources

Business plan template

Make writing a business plan easy and improve your chances of success with this fill-in-the-blank template.

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Quickly consider every aspect of your business, build your business plan, and create accurate financial reports that help you start and grow.

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• 2. Decide on a name 
• 6. Register for 501(c)3 status
• 7. Create a fundraising plan

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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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Non-Profit 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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The document above is a sample. Please note that the language you see here may change depending on your answers to the document questionnaire.

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Ideas and insights from Harvard Business Publishing Corporate Learning

How to Create a Successful Leadership Development Program

• Leadership development initiatives are most effective when they focus on performance outcomes that support a key business priority, like revenue increase.
• Leadership development program content and design should be tailored to different leadership levels for maximum relevance and engagement.
• Data should be collected before, during, and after the program to measure progress and optimize for impact.

As organizations evolve in response to technological advancement, external events, and generational paradigm shifts, it can feel like the only constant for leaders is change. If so, there is no greater leadership asset than the drive to keep learning. And there is much to learn. Today’s leaders have a broader scope of priorities than ever before. They must manage volatility in the short term while maintaining a vision for the long term. They must be silo-bridgers, thoughtful innovators, and stewards of company culture. Companies that prioritize continuous learning can realize extraordinary potential ; those that don’t will stagnate.

Learning at this scale doesn’t happen without a plan. It’s great to set development goals for leaders during yearly evaluations, but without a solid leadership development plan that directly connects to business outcomes, other priorities and distractions will take over.

At Harvard Business Publishing Corporate Learning, we partner with companies to create curated learning experiences for leaders at every level. Though each partnership is unique, there is a proven process for designing and developing impactful learning initiatives. This guide shows you how to use that process to shape, implement, and optimize a leadership development program for your organization.

Process for designing and developing impactful Leadership Development Programs

Alignment: what do you need, goals: how will performance change, assessment: where are you now, development: what kind of learning experiences will work for you, executive involvement: how can senior leaders support learners, implementation: how will you integrate the learning experience, feedback and evaluation: how are learners performing, measuring impact: how effective was the program, what’s next: creating a culture of learning.

A generic leadership development program will yield generic results, so your plan should be grounded in a firm understanding of your organization’s unique values, challenges, and priorities. The process begins with alignment on one foundational question: What is the business priority driving leadership development? In the most general terms, most business priorities fall into a few broad buckets: Companies want to increase profits, cut costs, and mitigate risks .

Once you’ve established the key business priority, identify how employees can support it. What do you want leaders (and by extension, their teams) to do differently as a result of the program? Do leaders need to be more agile ? More innovative ? More inclusive ? These performance outcomes will shape the structure, content, and measurement of the learning experience.

Concentrate on the most critical needs. It’s tempting to try to improve everywhere, but learning experiences are most effective when they focus on a few key outcomes. If your goal is to inspire leaders to innovate more, ask yourself: What is preventing them? Skills gaps might include digital competency, navigating complexity, cross-functional collaboration, or even talent development. Identifying these gaps will ensure your learning objectives have the greatest impact on the business’s most important priorities.

The process begins with alignment on one foundational question: What is the business priority driving leadership development?

When we partnered with the global theater chain Cinépolis , their key business priority was growth through innovation. Their primary performance outcome was developing innovative leaders from the C-suite to the frontline. Cinépolis had total alignment on what they wanted, so their leadership development program could be highly focused. Their program used a cascade approach, beginning with intensive training for senior leaders and extending all the way to individual theater employees. The culminating exercise asked employees to propose one-page solutions to identified problems, which resulted in innovative new projects that increased revenue and customer satisfaction.

Checklist for Alignment

• Align on the key business priority
• Choose a focused set of performance outcomes

Additional Resources

• Key Alignment Questions
• Top 10 In-Demand Leadership Skills for the Future of Work

Now that you’ve identified your business priorities and performance outcomes, you can set leadership development goals . Your program should deliver impact in three areas: learner experience, on-the-job performance, and impact on the business. Success indicators might include strong engagement in the program, more confident decision-making, and improved retention, respectively.

Whether success indicators are qualitative or quantitative, each will need corresponding metrics to measure at the beginning and the end of the program, and each metric should have clear methods and sources for measurement. Success indicators should be specific to your organization and the unique ways you measure performance.

Leadership Development Program Goals Example

Checklist for goals.

• Set program goals, including success indicators and metrics
• How to Define Impactful Leadership Development Goals
• Learning Experiences That Get Results

With detailed goals in hand, leadership skills assessment can begin. Start with an honest assessment of your business’s organizational systems and norms. Can they support the changes you’re advocating for? If entrenched company culture or processes will disincentivize leaders from applying new skills and approaches, the investment in training will be wasted. If you expect leaders to evolve, the broader organizational culture must welcome and support it.

The clarity you established in the previous phases will be helpful here. Ensure that senior leaders understand the leadership behaviors you’re targeting and the business priorities they serve. Encourage executives to raise awareness of why certain leadership behaviors are needed and reinforce those behaviors by highlighting success. Celebrating early wins by sharing success stories—the “what,” “the why,” and most importantly, “the how”—will link those behaviors to desirable outcomes and encourage other leaders to practice these new habits.

If you expect leaders to evolve, the broader organizational culture must welcome and support it.

Now you’re ready to segment leaders by senior, mid-level, and frontline (or whatever distinctions make sense for your organization) and assess their baseline. You may already have a strong anecdotal sense of what each level needs, but data will always surface fresh insights. You may be able to leverage yearly evaluations or previous survey results, but you’ll probably want to do a new survey to capture more targeted data that you can track through the end of the program.

Make sure you’re hearing from individuals as well as supervisors. We’ve found that employees clearly understand their own needs. In our survey , 85% of respondents recognized the skills needed to improve their current performance. It’s worth understanding what leaders want to learn, because employees are most engaged when learning is linked to individual goals and aspirations, not just company performance.

With data in hand, consider the gaps between the current state and the ideal one. Where are the gaps most significant? This will help you prioritize who and what to focus on.

If your business is at an inflection point, your program should target leaders at all levels. The learning experiences will vary in content or method, but they’ll all be driving towards organizational transformation. You’ll want to decide if learning will be segmented, conducted in parallel with tailored learning experience for each level, or cascaded, where leader-teachers train their staff.

If you’re working towards a narrower goal, focus your effort on the learner levels that will be most impactful. For example, in our work with Fortune 2000 global companies who want to innovate, a common goal is getting leaders to foster group norms of innovation on their teams. To that end, we’ve found that starting with mid-level leaders is most impactful.

Checklist for Assessment

• Assess organizational context
• Consider the gaps between the current state and the ideal one
• Identify target audiences
• How to Assess Leadership Skills for a Leadership Development Program
• Don’t Let Your Company’s Culture Stifle Leadership Development
• How L&D Can Create More Effective Learner-Driven Experiences

Leadership development programs are a significant investment. Not only do they cost time and money, but they also connect to individual emotions about workplace performance and worth. Employees feel valued, engaged, and empowered if the program is worthwhile. If it isn’t, it can be a powerful drag on morale.

Because the stakes are high, organizations often partner with learning experts like Harvard Business Publishing Corporate Learning to guarantee that their investment has value and impact. Through decades of research and continuous focus on improvement, we’ve found that clarity, thoughtful design, and quality content yield the most successful programs.

The right experience will consider what leaders at each level need and how much time and focus they can devote. Self-guided programs are consistent and low-maintenance; immersive group experiences allow for more nuance and depth.

Different leadership levels have distinct responsibilities, needs, and expectations. The architecture of the learning experience should consider these factors. Frontline leaders who are new to management may feel isolated and can benefit from an experience that connects them with mentors and peers. Mid-level leaders, managing both up and down, are highly leveraged and can benefit from micro-learning and skill practice that is directly applicable to their work. Executives benefit from depth and high-touch interactions with peers and experts that provide an outside-in perspective.

Most enterprise leadership development programs leverage a combination of experiences. Our partnership with Capital Group , designed to reinforce leadership standards and priorities across locations, included a mix of in-person and virtual learning with curated content, facilitated discussions, executive sponsorship, and structured assignments that pushed participants to apply learning on the job.

Content is another critical factor. There’s no shortage of leadership development resources, and a coming wave of low-quality AI-generated content will only exacerbate that. Resources should be vetted, relevant, and applicable to learning goals. This is essential to building trust in the program.

With learning content, less is more: too many choices will overwhelm the learner; too many priorities distract from the key goals. Keep the program focused, even in the face of pressure from senior leaders to add new things to the mix. Generally, what is highly relevant is much more important than what is “interesting.” Make learner relevance your touchstone.

Checklist for Development

• Define the learning experience
• Tailor architecture for different leadership levels
• Curate content
• Strategies to Effectively Engage Learners Across the Enterprise
• When Designing Employee Learning Programs, Less Is More

The behaviors that are reinforced and rewarded by senior leaders greatly influence how employees act. If time and structure allow it, consider how you can integrate senior leadership in your leadership development program, beyond simply seeking buy-in.

Our learning solutions often include a “leader as teacher” element. Leaders might share a personal story at the program’s kick-off, host a discussion, participate on a panel, or sponsor an action learning project. Some of our clients also use formal mentorship programs to reinforce learning. Whatever the method, the payoff is significant: the presence of leaders as teachers significantly increases relevance and engagement.

Even if leaders aren’t directly involved, they should be very aware of the context of your learning initiative so they can identify teachable moments in the day-to-day work. Regular updates from you will keep the program content top-of-mind for them.

When American Express wanted to strengthen close to 16,000 mid-level leaders, we co-created a virtual, blended cohort program customized for relevancy and immediate application. Over 100 senior leaders acted as sponsors, sharing career stories and contextualizing learnings to American Express’ business environment. Frontline, mid-level, and upper-level leaders got to explore how important topics like collaboration really worked at American Express. For sponsors, it was a good opportunity to connect authentically with a large number of leaders in a psychologically safe space to discuss topics they were passionate about, which helped build these senior leaders’ personal brands in the company.

Checklist for Executive Involvement

• Determine how senior leaders will be integrated into the program
• How to Turn Your Busy Leaders into the Teachers They Need to Be

Successful implementation requires clarity, ease, and support. Leaders’ time is precious, so program delivery should be relatively seamless. Experiences can be integrated into an existing environment to minimize learning curves and platform fatigue or delivered on a separate, all-in-one platform. The right choice will vary by organization, but the most critical factor is ease. It should be easy to access lessons, content, schedules, cohort information, and progress indicators. Make sure there’s a responsive support contact to provide platform training and field questions.

Before you launch a leadership development program, make sure everyone understands how the program aligns with your learning development strategy and the organization’s broader business strategy. Drawing clear connections between desired behaviors and business outcomes will encourage employees to prioritize learning. If it’s one of multiple learning initiatives, help employees understand the unique part this program plays.

Drawing clear connections between desired behaviors and the ultimate business priority will encourage employees to prioritize learning.

Beyond serving company goals, leadership development has a lot of value for individuals. Defining “What’s in it for me?” for employees is a powerful motivator, especially at the beginning of the program. Share the scope of the learning development plan with participants so they understand that it will be relevant and practical, with clear outcomes that align with what leaders believe will make them even more successful.

Checklist for Implementation

• Choose the right platform
• Delegate a support contact for participants
• Contextualize the program before launch
• The Changing Face of Leadership Development

Leaders can read a thousand articles, but if they’re not putting learning into practice, the effort is wasted. Managers and leadership development teams must cultivate a safe space for application and experimentation. Digital simulations and peer discussion groups can help, but it’s just as critical for senior leaders to encourage and support applications of learning throughout the workday and to provide regular feedback.

You shouldn’t wait until the end of your learning experience to find out if it worked. Some digital platforms, including Harvard ManageMentor® and ManageMentor Spark® , can provide real-time reporting in aggregate, in groups, or at the individual level, including real-time polling on behaviors. With this data, managers and learning partners can adjust lessons and content to address gaps and areas of challenge. Over time, trends can be identified, helping organizations deepen their understanding of organizational strengths and weaknesses. This also provides useful information on how leaders learn best, to guide future programming.

Checklist for Feedback and Evaluation

• Create a plan for learning application and feedback
• Collect data for analysis and optimization
• Decisions, Decisions: How L&D Can Use Data to Gain Insight on Learning
• How to Give Feedback—Especially When You’re Dreading it

Once a leadership development program ends, you can analyze its business impact and learner engagement and satisfaction. Depending on your program timeframe and goals, it may be months before some quantitative business metrics like increased revenue or retention are proven out, but others—like program engagement and application of learning on the job—can be assessed immediately.

Engagement data might include participation by team and level; hits and return visits for specific content; and social and sharing metrics. Application data can be quantitative (number of learners who used new behaviors on the job) and qualitative (self-reported ratings of success, confidence, and desire for more practice).

An end-of-session satisfaction survey for participants provides feedback on many points, including perceived value, program strengths and drawbacks, logistical and platform feedback, success stories, and more. A survey aimed at supervisors can determine if the program influenced behavior change. We typically recommend conducting a follow-up survey two or three months after the learning experience to assess the program’s impact on behavior.

Change requires effort and risk—make sure participants know their efforts are appreciated.

Evaluating satisfaction, engagement, and impact data will provide valuable information about the levers you can pull to improve future learning experiences. But no matter what the outcome is, be sure to celebrate employees for their commitment to learning. A third of employees don’t think their companies provide enough recognition or reward for the learning they’re doing. Change requires effort and risk—make sure participants know their efforts are appreciated.

Checklist for measuring imapct

• Measure outcomes against the baseline
• Celebrate program success!
• Measuring the Impact of Leadership Development

Analyzing your learning experiences will yield important information about the structure, content, and concepts that work. You can bring that information into the next learning initiative, which might tackle a new business priority or scale the program for a different leadership level or geography.

Between formal learning experiences, learning and development teams can offer self-guided options and resource libraries to help employees maintain a continuous learning cadence. We’ve found that companies with strong learning cultures share a few key strategies.

Strategies that Nurture a Learning Culture

The leadership development journey is ongoing. Critical skill sets are rapidly evolving, and there will always be new leaders entering the field who need to learn the evergreen skills of management. Developing a culture of continuous learning is one of the most forward-looking investments a company can make in an era marked by uncertainty and disruptive shifts.

• Create a Culture of Learning: Five Critical Strategies
• Six Ways to Scale Corporate Leadership Development Quickly for Strategic Advantage
• Driving Learning Across the Organization at ABB

Explore further

Ready to level up your leaders? Use our checklist to help your organization develop a leadership development program that delivers results.

Download Now

If you have a question about leadership development programs, get in touch with one of our learning design specialists.

About the authors

Deanna Foster

• Senior Director, Global Solutions at Harvard Business Publishing
• Connect with Deanna on LinkedIn

Dr. Gregg Kober

• Director, Global Solutions at Harvard Business Publishing
• Connect with Dr. Gregg o n LinkedIn

Let’s talk

Change isn’t easy, but we can help. Together we’ll create informed and inspired leaders ready to shape the future of your business.

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