Your competition Everyone has competition —nonprofits too. Think about what your prospective clients were doing about their problem the one your organization is solving before you came on this scene. Use this section to talk about your long-term goals. Strategies for funding and promotion In a for-profit business plan, this section would be about marketing and sales strategies.
Positioning statement Before you get too far into your strategies, put together your positioning statement. Everyone in your organization should get really clear on this statement. You can use this simple formula to develop a positioning statement: For [target market description] who [target market need], [this product] [how it meets the need]. Unlike [key competition], it [most important distinguishing feature].
Maybe it looks something like this: For children ages five to 12 target market who are struggling with reading their need , Tutors Changing Lives your organization or program name helps them get up to grade level reading through an once a week class your solution. Costs and service or product fees Instead of including a pricing section, a nonprofit business plan should include a costs or fees section.
Talk about how your program is funded, and whether the costs your clients pay are the same for everyone, or based on income level, or something else. If your clients pay less for your service than it costs to run the program, how will you make up the difference?
Do note that if you are not able to provide some very essential information needed about you, your team, financial projections and what have you, then you just might not be able to run with what a detailed business plan. Here is a thoroughly put together sample nonprofit business plan that you can model yours after.
The fact remains that the non — profit industry is a major component in the equation of our world; be it social welfare, health care, education, spiritual, as well as other ramification of life. On — profits organizations NPOs are establishments that make use of their excess revenues to pursue a cause that would be beneficial to the public or a particular group of people.
In a nutshell, the overall goal of non — profits organizations is not to be successful in terms of wealth creation, but to be a success when it comes to giving value to the groups of people they direct their services at or to the cause they choose to pursue. It is worthy to note that Non — profit organizations can decide to operate as a charity organization or service organization.
To avoid that to occur on a regular basis, you should find solutions on how to deal with such issues. There would be a row of hurdles you would have to get through to run your business successfully. Having an open communication system in your organization might help you get new ideas as to how to get over these hurdles easily.
You can go on to talk about their role in your nonprofit, too. Then, if you have space, you can discuss any gaps you may have and your plans to fill them. For example, if you have a growing volunteer community and require a dedicated staff member, say that you are looking for one and what their qualifications should be.
Marketing Strategy This section is where you detail how you plan to raise awareness for your cause. Do you already have local traction? Do you have a plan for acquiring media attention? Is someone on your team a master of social media marketing tactics? Do you plan on doing community outreach? What is your impact potential and how do you plan to reach it? Your marketing section should include examples of past campaigns and their effectiveness, if possible, and as space allows.
Capitalization and Finances Here you need to list where your finances stand today as well as a 3-to-5 year projection. As you will update your business plan at least every two years, these number should stay relatively current. Make sure to keep your projections realistic and in-line with current or reasonably expected growth. This section is a prime space for charts, graphs, and other visual material.
Once you have provided all the basics, talk about what you plan to do if there is a surplus from any activity. What will you do if individual financial goals fall short? What fund-raising methods will you use? How will you seek out or process donations? Appendix — Supporting Documents This is the place to put any miscellaneous supporting documents like financial statements, endorsements or agreements.
Remember, you only need to include what is most relevant, and you can leave out anything you may have covered in another section. Now you can add any of the additional sections below. Include an income statement, balance sheet, cash flow statement, and financial projections. Include your fundraising plan.
Identify gaps in your funding, and how you will manage them. Plan for what will be done with a potential surplus. Include startup costs, if necessary. If your nonprofit is already operational, use established accounting records to complete this section of the business plan. Knowing the financial details of your organization is incredibly important in a world where the public demands transparency about where their donations are going.
Step 9: Executive Summary Normally written last but placed first in your business plan, your nonprofit executive summary provides an introduction to your entire business plan. The Executive Summary is where you sell your nonprofit and its ideas.
Here you need to describe your organization clearly and concisely. Make sure to customize your executive summary depending on your audience i. Step Appendix Include extra documents in the section that are pertinent to your nonprofit: organizational flow chart, current fiscal year budget, a list of the board of directors, your IRS status letter, balance sheets, and so forth.
The appendix contains helpful additional information that might not be suitable for the format of your business plan i.
Get to the point, support it with facts, and then move on. Include relevant graphs and program descriptions. Include an executive summary. Customize your business plan to different audiences.
Stay authentic and show enthusiasm. Use too much technical jargon.
If you have ideas but no proof about who your target donors and clients should be, do some market research , or even a formal market analysis.
Do start a new page before each section. These goals have to be possible to achieve, so be practical when you make a list. Include relevant graphs and program descriptions. While your vision, values and mission will likely remain the same, your nonprofit business plan may need to be revised from time to time.
Digital marketing: website, email, blog social media, and so on.
Executive Summary You can draft this up first, but it should be the last thing you work on. Here you need to describe your organization clearly and concisely.
Outline your vision, your guiding philosophy, and any other principles that provide the purpose behind the work. Get to the point, support it with facts, and then move on. Is your goal open-ended or do you have a defined objective that you can finish? However, a business plan can still be an invaluable tool for your nonprofit. The fact that an organization is considered to be anon-profit organization does not in any way mean that the organization does not have the intention of making profits. How can the effects of your accomplishments be measured?
Include relevant graphs and program descriptions. Here, brevity is a virtue. Once you have provided all the basics, talk about what you plan to do if there is a surplus from any activity.
What accomplishments have you made?