Include in this section who your prospective fundraising targets are, and who your competitors are. Do some research. The key here is not to report your target donors as everyone in a 3,mile radius with a wallet. The more specific you can be about your prospective donors —their demographics, income level, and interests, the more targeted and less costly your outreach can be. 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.
It will help you save money in the long run. Your target client population If your program is funded by state, local or federal programs based on participation, do clients need a referral from a social worker? How do social workers find out about your program? Your target market might include social workers who work with children in a particular geographical location.
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. A business plan prepared for a bank to support a loan application may be different from a busines plan that board members will use to help define their priorities in recruiting new board members.
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.
Financial health: what is the current status and where will the revenue come from to advance the mission over time? Assumptions and proposed changes: What needs to be in place for this nonprofit to continue on sound financial footing?
What will we prioritize? How will we acheive more ambitious revenue goals? Tools for business planning Should your nonprofit use a business model statement to complement its mission statement? A nonprofit business plan describes your nonprofit as it currently is and sets up a roadmap for the next three to five years. It also lays out your goals and plans for meeting your goals. Your nonprofit business plan is a living document that should be updated frequently to reflect your evolving goals and circumstances.
They include as much information as necessary. They may be as short as seven pages long, one for each of essential sections you will read about below and see in our template, or up to 30 pages long if your organization grows. Why do we need a Nonprofit Business Plan? Regardless if your nonprofit is small and barely making it or if your nonprofit has been successfully running for years, you need a nonprofit business plan. Regardless of your size or financial status, when you create a nonprofit business plan, you are effectively creating a blueprint for how your nonprofit will be run, who will be responsible for what, and how you plan to achieve your goals.
Your nonprofit organization also needs a business plan if you plan to secure the support of any kind, be it monetary, in-kind, or even just support from volunteers. It sometimes also happens that the board, or the administration under which a nonprofit operates, requires a nonprofit business plan. To sum it all up, write a nonprofit business plan to: Lay out your goals and establish milestones.
Better understand your beneficiaries, partners, and other stakeholders. Attract a board and volunteers. Position your nonprofit and get clear about your message. Force you to research and uncover new opportunities. Iron out all the kinks in your plan and hold yourself accountable.
Before starting on your business plan, it is important to consider the following: Who is your audience? If you are interested in fundraising, donators will be your audience. If you are interested in partnerships, potential partners will be your audience. What do you want their response to be? Depending on your target audience, you should focus on the key message you want them to receive in order to get the response that you want. Step-by-step Guide on Writing a Business Plan for Nonprofits Note: Step 1, 2, and 3 are in preparation for writing your nonprofit business plan.
Step 1: Data Collection Before even getting started with the writing collect financial, operating, and other relevant data. If your nonprofit is already in operation, this should at the very least include financial statements detailing operating expense reports and a spreadsheet that indicates funding sources. If your nonprofit is new, compile materials related to any secured funding sources and operational funding projections, including anticipated costs.
Step 2: Heart of the Matter You are a nonprofit after all! Your nonprofit business plan should start off with an articulation of the core values and your mission statement. Outline your vision, your guiding philosophy, and any other principles that provide the purpose behind the work. This will help you to refine and communicate your nonprofit message clearly. Step 3: Outline Create an outline of your nonprofit business plan. Write out everything you want your plan to include e.
An outline helps you focus your attention.
Changes should reflect staffing updates, new accomplishments, revised policies or goals, and updates financial data, etc. Title Page This is the easiest part but should not be overlooked. If you name them, you can address them. Those who are unemployed and prone to crime, youths that are exposed to crimes, street children and anybody seeking to acquire one or two skills that will help them successfully start their own business. If your nonprofit is new, compile materials related to any secured funding sources and operational funding projections, including anticipated costs. Do you have a plan for acquiring media attention?
Overload the plan with text. What fund-raising methods will you use? Make it interesting enough to keep the reader engaged.
It's a "plan" after all - and the underlying assumptions may change. Step 3: Outline Create an outline of your nonprofit business plan. For print, use a serif font like Times New Roman or Courier.
Check each page and make sure every line supports whatever section you happen to be explaining. In the Fundraising Development and Plan section of your business plan, you'll outline how you intend to achieve the levels of funding required to successfully carry out your mission or meet the objectives of a specific project. As outlined above, your nonprofit business plan is a combination of your marketing plan, strategic plan, operational plan, impact plan, and financial plan. Outline your marketing activities, highlighting specific outcomes.
Public relations: press releases, activities to promote brand awareness, and so on.
Financial charts and visual projections are always appreciated. Keeping your business plan up-to-date can help remind you and the board of what your nonprofit stands for as well as ease the burden of making rushed corrections if a significant change has occurred and you must apply for financing. Is it as easy as whipping up a few lines of your vision and mission statement on paper? Good business planning is about management, accountability, tracking performance metrics, and improving over time.
Everything else goes in between, in order of most relevant to least, however you feel that applies to your nonprofit. This is the section in which you'll discuss your nonprofit corporation's current financial status, as well as its future financial status. If your nonprofit is already in operation, describe in detail all current marketing activities: any outreach activities, campaigns, and other initiatives. As such, you should focus on what services you offer and how you plan to offer them. For digital, use sans serifs like Verdana or Arial.
Truth is that all these are part of the deal when writing a business plan, however there are still other technical areas that sure need to be detailed. If you have any strategies or research to your credit or benefit that have not been mentioned elsewhere that will be an essential part of your nonprofit, include them in this section of your business plan. There are, however, a few things to keep in mind. Here you need to describe your organization. What is your ultimate vision?
Nonprofits are also responsible for reporting regularly to the board of trustees. As you will update your business plan at least every two years, these number should stay relatively current.
Importance of Using a Business Plan Model There is however respite, as you can get a business plan template and then use it all the way to write yours. Step 1: Data Collection Before even getting started with the writing collect financial, operating, and other relevant data.