writing a non profit 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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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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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

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

Angelique O'Rourke

13 min. read

Updated October 27, 2023

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

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

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

• Why does a nonprofit need a business plan?

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

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

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

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

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

• A nonprofit business plan outline

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

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

Executive summary

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

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

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

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

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Opportunity

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

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

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

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

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

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

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

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

Target audience

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

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

Similar organizations

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

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

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

Future services and programs

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

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

Promotion and outreach strategies

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

You’ll probably do some combination of:

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

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

Costs and fees

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

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

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

Fundraising sources

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

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

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

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

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

Fundraising activities

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

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

Strategic alliances and partnerships

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

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

Milestones and metrics

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

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

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

Key assumptions and risks

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

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

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

Management team and company

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

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

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

Financial plan

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

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

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

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

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

• Business planning is ongoing

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

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

See why 1.2 million entrepreneurs have written their business plans with LivePlan

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

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Nonprofit Business Plan: A Comprehensive Guide

• by Jess Convocar on February 21, 2024
• last update on February 22, 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.

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Take your organization’s meetings to the next level.

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

How to Write a Nonprofit Business Plan in 12 Steps (+ Free Template!)

The first step in starting a nonprofit is figuring out how to bring your vision into reality. If there’s any tool that can really help you hit the ground running, it’s a nonprofit business plan!

With a plan in place, you not only have a clear direction for growth, but you can also access valuable funding opportunities. 

Here, we’ll explore:

• Why a business plan is so important
• The components of a business plan
• How to write a business plan for a nonprofit specifically

We also have a few great examples, as well as a free nonprofit business plan template.

Let’s get planning!

What Is a Nonprofit Business Plan?

A nonprofit business plan is the roadmap to your organization’s future. It lays out where your nonprofit currently stands in terms of organizational structure, finances and programs. Most importantly, it highlights your goals and how you aim to achieve them!

These goals should be reachable within the next 3-5 years—and flexible! Your nonprofit business plan is a living document, and should be regularly updated as priorities shift. The point of your plan is to remind you and your supporters what your organization is all about.

This document can be as short as one page if you’re just starting out, or much longer as your organization grows. As long as you have all the core elements of a business plan (which we’ll get into below!), you’re golden.

Why Your Nonprofit Needs a Business Plan

While some people might argue that a nonprofit business plan isn’t strictly necessary, it’s well worth your time to make!

Here are 5 benefits of writing a business plan:

Secure funding and grants

Did you know that businesses with a plan are far more likely to get funding than those that don’t have a plan? It’s true!

When donors, investors, foundations, granting bodies and volunteers see you have a clear plan, they’re more likely to trust you with their time and money. Plus, as you achieve the goals laid out in your plan, that trust will only grow.

Solidify your mission

In order to sell your mission, you have to know what it is. That might sound simple, but when you have big dreams and ideas, it’s easy to get lost in all of the possibilities!

Writing your business plan pushes you to express your mission in the most straightforward way possible. As the years go on and new opportunities and ideas arise, your business plan will guide you back to your original mission.

From there, you can figure out if you’ve lost the plot—or if it’s time to change the mission itself!

Set goals and milestones 

The first step in achieving your goals is knowing exactly what they are. By highlighting your goals for the next 3-5 years—and naming their key milestones!—you can consistently check if you’re on track.

Nonprofit work is tough, and there will be points along the way where you wonder if you’re actually making a difference. With a nonprofit business plan in place, you can actually see how much you’ve achieved over the years.

Attract a board and volunteers

Getting volunteers and filling nonprofit board positions is essential to building out your organization’s team. Like we said before, a business plan builds trust and shows that your organization is legitimate. In fact, some boards of directors actually require a business plan in order for an organization to run!

An unfortunate truth is that many volunteers get taken advantage of . With a business plan in place, you can show that you’re coming from a place of professionalism.

Research and find opportunities

Writing a business plan requires some research!

Along the way, you’ll likely dig into information like:

• Who your ideal donor might be
• Where to find potential partners
• What your competitors are up to
• Which mentorships or grants are available for your organization
• What is the best business model for a nonprofit like yours

With this information in place, not only will you have a better nonprofit business model created—you’ll also have a more stable organization!

Free Nonprofit Business Plan Template

If you’re feeling uncertain about building a business plan from scratch, we’ve got you covered!

Here is a quick and simple free nonprofit business plan template.

Basic Format and Parts of a Business Plan

Now that you know what a business plan can do for your organization, let’s talk about what it actually contains!

Here are some key elements of a business plan:

First of all, you want to make sure your business plan follows best practices for formatting. After all, it’ll be available to your team, donors, board of directors, funding bodies and more!

Your nonprofit business plan should:

• Be consistent formatted
• Have standard margins
• Use a good sized font
• Keep the document to-the-point
• Include a page break after each section
• Be proofread

Curious about what each section of the document should look like?

Here are the essential parts of a business plan:

• Executive Summary: This is your nonprofit’s story—it’ll include your goals, as well as your mission, vision and values.
• Products, programs and services: This is where you show exactly what it is you’re doing. Highlight the programs and services you offer, and how they will benefit your community.
• Operations: This section describes your team, partnerships and all activities and requirements your day-to-day operations will include.
• Marketing : Your marketing plan will cover your market, market analyses and specific plans for how you will carry out your business plan with the public.
• Finances: This section covers an overview of your financial operations. It will include documents like your financial projections, fundraising plan , grants and more
• Appendix: Any additional useful information will be attached here.

We’ll get into these sections in more detail below!

How to Write a Nonprofit Business Plan in 12 Steps

Feeling ready to put your plan into action? Here’s how to write a business plan for a nonprofit in 12 simple steps!

1. Research the market

Take a look at what’s going on in your corner of the nonprofit sector. After all, you’re not the first organization to write a business plan!

• How your competitors’ business plans are structured
• What your beneficiaries are asking for
• Potential partners you’d like to reach
• Your target donors
• What information granting bodies and loan providers require

All of this information will show you what parts of your business plan should be given extra care. Sending out donor surveys, contacting financial institutions and connecting with your beneficiaries are a few tips to get your research going.

If you’re just getting started out, this can help guide you in naming your nonprofit something relevant, eye-catching and unique!

2. Write to your audience

Your business plan will be available for a whole bunch of people, including:

• Granting bodies
• Loan providers
• Prospective and current board members

Each of these audiences will be coming from different backgrounds, and looking at your business plan for different reasons. If you keep your nonprofit business plan accessible (minimal acronyms and industry jargon), you’ll be more likely to reach everyone.

If you’d like, it’s always possible to create a one page business plan AND a more detailed one. Then, you can provide the one that feels most useful to each audience!

3. Write your mission statement

Your mission statement defines how your organization aims to make a difference in the world. In one sentence, lay out why your nonprofit exists.

Here are a few examples of nonprofit mission statements:

• Watts of Love is a global solar lighting nonprofit bringing people the power to raise themselves out of the darkness of poverty.
• CoachArt creates a transformative arts and athletics community for families impacted by childhood chronic illness.
• The Trevor Project fights to end suicide among lesbian, gay, bisexual, transgender, queer, and questioning young people.

In a single sentence, each of these nonprofits defines exactly what it is their organization is doing, and who their work reaches. Offering this information at a glance is how you immediately hook your readers!

4. Describe your nonprofit 

Now that your mission is laid out, show a little bit more about who you are and how you aim to carry out your mission. Expanding your mission statement to include your vision and values is a great way to kick this off!

Use this section to highlight:

• Your ideal vision for your community 
• The guiding philosophy and values of your organization
• The purpose you were established to achieve

Don’t worry too much about the specifics here—we’ll get into those below! This description is simply meant to demonstrate the heart of your organization.

5. Outline management and organization

When you put together your business plan, you’ll want to describe the structure of your organization in the Operations section.

This will include information like:

• Team members (staff, board of directors , etc.)
• The specific type of nonprofit you’re running

If you’re already established, make a section for how you got started! This includes your origin story, your growth and the impressive nonprofit talent you’ve brought on over the years.

6. Describe programs, products and services

This information will have its own section in your nonprofit business plan—and for good reason!

It gives readers vital information about how you operate, including:

• The specifics of the work you do
• How that work helps your beneficiaries
• The resources that support the work (partnerships, facilities, volunteers, etc!)
• If you have a membership base or a subscription business model

Above all, highlight what needs your nonprofit meets and how it plans to continue meeting those needs. Really get into the details here! Emphasize the work of each and every program, and if you’re already established, note the real impact you’ve made. 

Try including pictures and graphic design elements so people can feel your impact even if they’re simply skimming.

7. Create an Executive Summary

Your Executive Summary will sit right at the top of your business plan—in many ways, it’s the shining star of the document! This section serves as a concise and compelling telling of your nonprofit’s story. If it can capture your readers’ attention, they’re more likely to read through the rest of the plan.

Your Executive Summary should include:

• Your mission, vision and values
• Your goals (and their timelines!)
• Your organization’s history
• Your primary programs, products and services
• Your financing plan
• How you intend on using your funding

This section will summarize the basics of everything else in your plan. While it comes first part of your plan, we suggest writing it last! That way, you’ll already have the information on hand.

You can also edit your Executive Summary depending on your audience. For example, if you’re sending your nonprofit business plan to a loan provider, you can really focus on where the money will be going. If you’re trying to recruit a new board member, you might want to highlight goals and impact, instead.

8. Write a marketing plan

Having a nonprofit marketing plan is essential to making sure your mission reaches people—and that’s especially true for your business plan.

If your nonprofit is already up and running, detail the work you’re currently doing, as well as the specific results you’ve seen so far. If you’re new, you’ll mostly be working with projections—so make sure your data is sound!

No matter what, your Marketing Plan section should market research such as:

• Beneficiary information
• Information on your target audience/donor base
• Information on your competitors
• Names of potential partners

Data is your friend here! Make note of market analyses and tests you’ve run. Be sure to also document any outreach and campaigns you’ve previously done, as well as your outcomes.

Finally, be sure to list all past and future marketing strategies you’re planning for. This can include promotion, advertising, online marketing plans and more.

9. Create a logistics and operations plan

The Operations section of your business plan will take the organizational information you’ve gathered so far and expand the details! Highlight what the day-to-day will look like for your nonprofit, and how your funds and resources will make it possible.

Be sure to make note of:

• The titles and responsibilities of your core team
• The partners and suppliers you work with
• Insurance you will need
• Necessary licenses or certifications you’ll maintain
• The cost of services and programs

This is the what and how of your business plan. Lean into those details, and show exactly how you’ll accomplish those goals you’ve been talking about!

10. Write an Impact Plan

Your Impact Plan is a deep dive into your organization’s goals. It grounds your dreams in reality, which brings both idealists and more practically-minded folks into your corner!

Where your Executive Summary lays out your ambitions on a broader level, this plan:

• Clarifies your goals in detail
• Highlights specific objectives and their timelines
• Breaks down how you will achieve them
• Shows how you will measure your success

Your Impact Plan will have quite a few goals in it, so be sure to emphasize which ones are the most impactful on your cause. After all, social impact is just as important as financial impact!

Speaking of…

11. Outline the Financial Plan

One of the main reasons people want to know how to write a nonprofit business plan is because of how essential it is to receiving funding. Loan providers, donors and granting bodies will want to see your numbers—and that’s where your Financial Plan comes in.

This plan should clearly lay out where your money is coming from and where it will go. If you’re just getting started, check out what similar nonprofits are doing in order to get realistic numbers. Even if you’re starting a nonprofit on a tight budget , every bit of financial information counts!

First, map out your projected (or actual) nonprofit revenue streams , such as:

• Expected membership contributions
• Significant donations
• In-kind support
• Fundraising plan

Then, do the same with your expenses:

• Startup costs
• Typical bills
• Web hosting
• Membership management software
• Subscription
• Costs of programs

If your nonprofit is already up and running, include your past accounting information. Otherwise, keep working with those grounded projections!

To make sure you have all of your information set, include documents like:

• Income statement
• Cash flow statement
• Balance sheet

This information comes together to show that your nonprofit can stay above water financially. Highlighting that you can comfortably cover your operational costs is essential. Plus, building this plan might help your team find funding gaps or opportunities!

12. Include an Appendix

Your appendix is for any extra pieces of useful information for your readers.

This could be documents such as:

• Academic papers about your beneficiaries
• Publications on your nonprofit’s previous success
• Board member bios
• Organizational flow chart
• Your IRS status letter

Make sure your additions contribute to your nonprofit’s story!

Examples of Business Plans for Nonprofits

Here are two great examples of nonprofit business plans. Notice how they’re different depending on the size of the organization!

Nonprofit Recording Co-op Business Plan

This sample nonprofit business plan shows what a basic plan could look like for a hobbyists’ co-op. If your nonprofit is on the smaller, more local side, this is a great reference!

What we like:

• Details on running a basic membership model
• Emphasis on what it means to specifically be a sustainable cooperative
• A list of early milestones, such as hitting their 100th member
• Clarification that all recordings will be legal

Nonprofit Youth Services Business Plan

This sample nonprofit business plan is for a much larger organization. Instead of focusing on the details of a membership model, it gets deeper into programs and services provided.

What we like

• The mission is broken down by values
• A detailed look at what each program provides
• A thorough sales plan
• Key assumptions are included for the financial plan

How to Create a Nonprofit Business Plan With Confidence

We hope this sheds some light on how creating a nonprofit business plan can help your organization moving forward! Remember: you know what you want for your organization. A business plan is simply a tool for making those dreams a reality.

Is a membership program part of your business plan? Check out WildApricot ’s award-winning membership management software!

With our 60-day free trial , you’ll have all the time you need to fall in love with what we have to offer.

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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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Nonprofit Business Plan Template & Guide [Updated 2024]

Nonprofit business plan template.

Are you passionate about making a positive impact in your community? Are you part of a nonprofit organization or considering starting one? If so, you need a business plan and you’re in the right place to do that! 

Below, we’ll guide you through the essential elements of a nonprofit business plan, sharing valuable insights and a user-friendly template to set you on the path to success. 

• How to Write a Nonprofit Business Plan

Growthink’s nonprofit business plan template below is the result of 20+ years of research into the types of business plans that help nonprofit organizations (NPOs) to attract funding and achieve their goals.

Follow the links to each section of our nonprofit business plan template:

Nonprofit Organization Planning Resources & FAQs

Below are answers to the most common questions asked by nonprofits:

Is there a nonprofit business plan template I can download?

Yes. If you’d like to quickly and easily complete your non-profit business plan, download our non-profit business plan template and complete your business plan and financial model in hours.

Where can I download a nonprofit business plan PDF?

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

What Is a nonprofit business plan?

A non-profit business plan describes your organization as it currently exists (which could be just an idea) and presents a road map for the next three to five years. It lays out your goals, challenges, and plans for meeting your goals. Your business plan should be updated frequently, as it is not meant to be stagnant. It is particularly important to create/update your business plan annually to make sure your nonprofit remains on track towards successfully fulfilling its mission.

A nonprofit business plan template is a tool used to help your nonprofit business quickly develop a roadmap for your business.

Why do you need a business plan for your nonprofit?

A nonprofit business plan serves many purposes. Most importantly, it forces you to think through and perfect your nonprofit’s strategic plan, it provides a roadmap to follow to grow your nonprofit, and it provides financial and other information major donors and board members need to know before they invest in your organization. Business planning can be a challenge and business plan templates help make this task easier for your team.

What are the types of nonprofit organizations (NPOs)?

There are several types of nonprofits. These are categorized by section 500(c) by the IRS for tax exempt purposes. Listed below, are some of the frequently filed sections:

Corporations formed under Act of Congress. An example is Federal Credit Unions.

Holding corporations for tax exempt organizations. This group holds title to the property for the exempt group.

This is the most popular type of NPO. Examples include educational, literary, charitable, religious, public safety, international and national amateur sports competitions, organizations committed to the prevention of cruelty towards animals or children, etc. Organizations that fall into this category are either a private foundation or a public charity. Examples include Getty Foundation, Red Cross, Easter Seals, etc.

Examples include social welfare groups, civil leagues, employee associations, etc. This category promotes charity, community welfare and recreational/educational goals.

Horticultural, labor and agricultural organizations get classified under this section. These organizations are instructive or educational and work to improve products, working conditions and efficiency.

Examples include real estate boards, business leagues, etc. They work to ameliorate business conditions.

Recreation and social clubs that promote pleasure and activities fall into this category.

Fraternal beneficiary associations and societies belong to this section.

Voluntary Employees’ beneficiary associations which provide benefits, accidents and life payments to members are a part of this section.

When filling in your nonprofit business plan template, include the type of nonprofit business you intend to be.

What are the primary sources of funding for nonprofit business plans?

The primary funding sources for most nonprofit organizations are donors, grants and bank loans. Donors are individuals that provide capital to start and grow your nonprofit. Major donors, as the name implies, write large checks and are often instrumental in launching nonprofits. Grants are given by organizations and others to achieve specific goals and often nonprofits qualify for them. Business loans, particularly for asset purchases like buildings and equipment, are also typically used by nonprofits.

Nonprofit organizations may also sell products or services, work with investors or develop their own investments. The expertise of the non-profit staff, members and board of directors will impact funding options for a nonprofit organization. The non profits mission, resources, goals and vision will all impact the funding sources a nonprofit business will place in it’s business plan as well.

How do you write a nonprofit business plan?

To most quickly write a nonprofit business plan, start with a template that lays out a nonprofit business plan outline. Answer the questions provided in the template and discuss them with your co-founders if applicable. A templated financial model will help you more easily complete your financial forecasts.

How do you start a nonprofit?

The key steps to starting a nonprofit are to choose the name of your organization, write your business plan and impact plan, incorporate your organization, apply for your IRS and state tax exemptions and get any required licenses and permits you need to operate.

How many nonprofit organizations are in the US?

According to the National Center for Charitable Statistics , there are approximately 1.54 million nonprofits registered in the United States (data pulled from registrations with the Internal Revenue Service (IRS)).

The nonprofit sector has annual expenses exceeding 2.46 trillion U.S dollars.

Does your action plan and fundraising plan belong in your plan?

Yes, both belong in your plan.

Include your action plan in the operations plan section.  

Your fundraising plan goes in your financial plan section. Here you will discuss how much money you must raise and from whom you plan to solicit these funds, as well as outlines your fundraising events. It should clearly outline your fundraising goals and potential donors.

Where do you include your non profit mission in your plan?

Nonprofit mission statements, or a vision statement, are extremely important as it lays the foundation for and presents the vision of your nonprofit. You should clearly detail your nonprofit mission statement in both the executive summary and organizational overview of your nonprofit plan.  

What do you include in a nonprofit’s financial projections?

Your financial projections must include an Income Statement, Balance Sheet and Cash Flow Statement. These statements within your business plan show how much money your organization will bring in from donors and customers/clients and how much your organization will spend.

The key purpose of your financial projections is to ensure you have enough money to keep your organization operating. They also can be an important component of your nonprofit business plan template, as donors, your board of directors, and others may review to understand financial requirements of your nonprofit.

How do nonprofit owners get paid?

Nonprofits function like for-profit businesses in that they often have employees who receive salaries. As such, as the owner, founder and/or CEO of a nonprofit, you can give yourself a salary. Many nonprofit CEOs, particularly those running large health, finance and educational organizations earn millions of dollars each year.

How much does it cost to start a nonprofit business?

Nonprofit organizations must complete Form 1023 with the IRS in order to get exemption status. The filing fee for this form is $600. If neither actual nor projected annual income for the organization exceeds $50,000, you can file form Form 1023-EZ which costs just $275.

In addition to the filing fee, there are other costs associated with starting a nonprofit organization based on the type of organization you are developing (for example, if you require buildings and equipment). Gathering information through the business planning process will help you accurately estimate costs for your nonprofit business plan template.

Where can I download a nonprofit business plan template doc?

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

What should be included in nonprofit plans?

A nonprofit business plan should include the following information: Executive Summary, Organization Overview, Products, Programs, and Services, Industry Analysis, Market Analysis of your Target Market, Marketing Plan, Operational Plan, Leadership Team/Organizational Structure, Financial Plan and Appendix (this should include all financial statements including cash flow statement, balance sheets and income statements).

Additional nonprofit resources

Below is a list of additional resources to help you get starting with your own nonprofit organization:

• How to Start a Non Profit Organization
• Sample Nonprofit Business Plan
• Nonprofit Marketing Plan + Template
• How to Write a Mission Statement for Your Nonprofit Organization
• NonProfit Business Plan PDF
• National Council of Nonprofits
• Not For Profit Resources
• Nonprofit Quarterly
• The Fundraising Authority

Helpful Video Tips for Nonprofit Business Plans

Below are tips to create select sections of your nonprofit business plan:

How to Write Your Nonprofit Business Plan’s Executive Summary

Writing the management team section of your nonprofit business plan, how to write the operations plan of your nonprofit business plan, writing the customer analysis section of your nonprofit business plan, finish your non profit business plan in 1 day.

Don’t you wish there was a faster, easier way to finish your business plan?

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

Click here to finish your Nonprofit business plan today.

NONPROFIT BUSINESS PLAN OUTLINE

• Nonprofit Business Plan Home
• 1. Executive Summary
• 2. Organization Overview
• 3. Products, Programs, and Services
• 4. Industry Analysis
• 5. Customer Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Nonprofit Business Plan Summary

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Detailed financial projections and strategic guidance for optimal performance.

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What Our EB-5 Regional Center Business Plan Includes:

Executive summary, marketing strategy, competitive advantages, management & personnel, investment analysis, product & service description, company overview, use of funds, swot analysis, barriers to entry, branding & marketing, pro-forma financials.

Advantages of Approved EB-5 Regional Center

Eb5 regional center business plan.

EB5 Regional centers are often considered passive investments, giving investors the freedom to choose where in the country they wish to live and the degree of day-to-day involvement they want to have. EB-5 Regional Center is able to provide investors and their families with a certain degree of immigration security and flexibility with regard to unrelated employment.

Regional centers can use economic modeling and market impact planning to determine the indirect and induced jobs growth spurred by the investor’s capital contribution, making it easier to meet job creation requirements. Created by Congress, the EB-5 immigrant visa category is for foreign investors who go through a detailed qualification process and are investing in businesses that will improve the U.S. economy and result in or preserve 10 or more full-time jobs per applicant. The capital required to invest is $1 million, though it can be as low as $500,000 if the investment is made in a sparsely populated or employment-suppressed area. Although about 10,000 EB-5 visas are made available for foreign nationals entering the U.S. in a given year, Regional Centers have 3,000 reserved for their use.

In recent years, the Eb-5 Regional Center program has been a proven success, and it continues to flourish as its investors contribute to the growth of the U.S. economy.

Research and Planning is Vital to EB-5 Regional Center Success

Wading through all of the data constantly being loaded onto Internet sites can be a time-consuming and tedious, but necessary task when researching a potential investment. Even more, data is produced daily, multiplying exponentially the already enormous amount of obtainable electronic information.

Wise Business Plans’ experts systematically examine all available data so that you don’t have to, using the latest analytical and marketing information collection tools to interpret what they find and gathering the most up-to-date fiscal and statistical data to convey a definitive picture of your market and assess the full scope of a particular project. Each EB-5 client’s desired result is always at the forefront of the entire research and development process , from start to finish.

The Wise Business Planning team employs a step-by-step approach to research, detailing, analyzing, and explaining all facets of a project in complete accordance with the desired outcome of the investor. The resulting information is then presented in a way that makes future projections and financial goals clear and fulfills the expectations of the client.

By tapping into the global reservoir of information to draw forth the most relevant data models, the Wise team is able to sift through information to review, evaluate and then meet a client’s EB-5 needs for USCIS . The result is a high-quality EB-5 Regional Center Business plan that is not just informative but provides a premium outcome backed by solid research and informed expert documentation.

Wise Business Plans is committed to working with clients in the development and completion of all levels of the EB-5 process , including performing market analysis; reviewing the center’s potential commercial and economic impact; working to understand and meet investor concerns and government regulations, and collaborating to envision the EB-5 Regional Center business ideas and requirements that each client’s project entails.

Benefits to EB-5 Regional Center Applicants

Once a Regional Center is approved, immigrant investors can apply for the EB 5 investor green card . Becoming part of an EB 5 immigrant investor regional center program is a good choice for the retired investor or one who isn’t interested in direct management because of the reliability and sense of security that USCIS offers investors, the advantages of being an investor without having to employ people directly or create individual job opportunities as an individual and the ease of becoming an investor with a somewhat limited role in the day-to-day operations of the project.

There are many options available to Regional Center investors . The fact that a center has been government inspected, so to speak, and that members are willing to put their own financial and professional assets to work toward the EB-5  process , shows a commitment to the overall EB-5 program and the collective success of investors. Endeavoring to run a productive project, keeping up with government regulations, and meeting the financial expectations of the group, in the end, assures that the investor’s immigration processes will be completed, and better a financial future earned for everyone involved.

There is no direct job creation requirement for investors who are members of a Regional Center, as opposed to the direct EB-5 program . Instead, the investor must simply satisfy stipulations by showing that 10 jobs will be made or preserved in the Regional Center area as a result of the center, as shown by an economic impact review.

Simply by making a largely inactive investment in a limited partner role, EB-5 Regional Center investors can meet government management regulations while getting a secure start on the ongoing process of becoming a resident.

This is an attractive option for foreign investors, such as immigrants wishing to mainly concentrate on gaining permanent residency and not wanting the burden of involved in everyday decision-making processes. In this manner, the Regional Center helps protect the investor by controlling the financial liability of each individual involved, limiting his or her liability to the amount originally invested.

EB-5 Regional Centers applications are given priority over traditional EB-5 requests, because they can live and work anywhere in the United States, regardless of where the Regional Center is located. An investor’s spouse and dependent children may also live permanently in the country, work, and go to school, unrestricted.

EB 5 Visa Application Process

526 processing time, how to remove conditions on green card.

Upon removal, an unconditional Green Card will be issued, granting permanent resident status in the United States. At such point, investors may sell or dissolve, the original investment, as long as Regional Center regulations and terms are followed. After fulfillment of U.S residency requirements, permanent Green Card holders may expect to gain U.S. Citizenship, usually after about two and a half years.

EB-5 Regional Center programs can truly mean success for the investor who seeks a fast track to Green Card acceptance and permanent residency without the constraints of managing full-time, hands-on investments. All of this, while living anywhere in the country and keeping the family together, make the program a very good option for many investors.

Cutting Through the EB-5 Regional Center Red Tape with the Power of Strong Planning

And job creation, revenues, financial distribution information, and information about the investor and his or her family must be ready for USCIS review upon request . If they are unable to show current employment reports and offer offer-to-date, verifiable information on the location of foreign investors and their status, Regional Centers can lose their designation. This information must be available on-demand, as USCIS may visit at its discretion.

It’s enough to leave any experienced business owner reeling. For someone newer to entrepreneurship in the U.S., it can be almost paralyzing. It’s in these moments that good planning becomes absolutely vital . A smoothly running company not only allows for easier record-keeping and information at your fingertips. It also makes it easier to find time and resources to manage the meticulous record-keeping necessary to stay compliant and meet or exceed USCIS reporting expectations.

Wise EB-5 Regional Center Business Plans are carefully constructed to build the kind of infrastructure and personnel and financial modeling that makes it easy to create, manage, and maintain reports and information vital to retaining EB-5 Regional Center designation . Our plans are living documents that allow for easy, at-a-glance information gathering. And we stand ready to make updates or assist with changes as the Center grows.

The Benefits of Partnering with Wise for Your EB-5 Regional Center Planning

In addition, to being a recognized leader in the business planning and consulting industry, Wise Business Plans employ EB 5 business plan writer MBA-educated with a wealth of experience in assisting clients with visa approval processes, particularly related to EB-5 Regional Centers. Wise has been a partner in success with companies and investors from around the globe, working to create centers of distinction throughout the country.

Our consultants and EB 5 business plan writer can help you navigate the often complex and confusing world of government regulations, helping you get approved and remain compliant.

EB5 Regional Center business plan

Our specialized EB 5 Regional Center business plan offers techniques that take some of the guesswork out of taking part in the EB-5 initiative. And, since creating jobs is a key requirement of the program, we assist each EB5 Regional Center business plan client with understanding their expected staffing needs to ensure that they can support and maintain the direct or indirect job creation numbers necessary for sustaining the Visa or maintaining their Regional Center designation. And the in-depth demographics research within your EB5 Regional Center business plan offers newcomers a valuable, multi-layer view into the market environment they hope to enter.

According to USCIS, as part of the I 526 petition, an EB-5 investor must submit a comprehensive business plan showing the need for at least 10 qualifying employees for every $1 million invested per applicant. Likewise, for a targeted employment area (TEA), an EB-5 investor must submit a comprehensive EB5 Regional Center business plan showing the need for at least 10 qualifying employees for every $500K invested per applicant.

The Wise EB-5 Regional Center Business Plan , at approximately 40-50 pages in length, includes full-color charts and graphs and is comprehensive without being overwhelming. Our plans are easy to follow and made to be both eye-catching and functional.

EB-5 Regional Center Economic Impact

Demonstrating the economic impact of a proposed EB-5 Regional Center is a key required portion of the application process, and it goes hand-in-hand with outlining the center’s expected job creation numbers.

The first step in understanding — and thus, illustrating — the economic impact of a proposed center is a forward-looking business plan and analysis that outlines personnel requirements, expected market reach, and other aspects of the center’s formation that directly or indirectly create jobs and build revenue.

The MBA-educated experts at Wise have decades of planning and financial preparation experience that, when combined with cutting-edge market analytics and a deep understanding of the requirements for setting up a successful EB-5 Regional Center business plan, can help create a vivid, informative portrait of the proposed center’s induced, indirect and direct effects on the regional economy.

Careful projections of salary expenditures, management, and leadership positions, and the center’s employment structure, alongside in-depth demographics studies showcasing the strengths and needs of the area in question, ensure that projected jobs are realistic and sustainable, allowing for confidence in the economic analysis and a firm understanding of the center’s expected economic impact.

To learn more about the components in each Matter of Ho-compliant eb5 Regional Center business plan, click here , for a quote.

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Nonprofit Business Plan

2. Organization Overview

Depending on the organization’s details, you must add various organizational overview elements. Still, every organization should include some foundational elements like its name, purpose, operations, legal structure, location, and history.

Organization Description:

Provide all the basic information about your nonprofit in this section like

• Name & Type of Your Organization: Describe the name and type of your nonprofit organization. For instance, you may operate one of these types of nonprofit organizations:
• Educational organizations
• Charitable organizations
• Healthcare organizations
• Religious organizations
• Location of your nonprofit and why you selected that place.

Mission & Vision:

Organization history:.

If you’re an established nonprofit, you can provide information about your organization’s history, like when it was founded and how it evolved. If you can, add some personality and intriguing details, especially if you got any achievements or recognitions till now for your incredible community services.

Future goals:

It’s crucial to convey your aspirations and your vision. Mention your short-term and long-term goals with the nonprofit; they can be specific targets depending on your ultimate vision.

This section should provide an in-depth understanding of the nonprofit organization. Also, the business overview section should be engaging and precise.

3. Products, Programs, and Services

The products, programs, and services section of a nonprofit business plan should describe specific products, programs, and services that will offer to its beneficiaries. Your nonprofit may or may not have all products, programs, and services to offer.

So, write this section depending on your organization’s offerings:

In a nutshell, your products, programs, and services section should describe how your nonprofit meets needs and positively impacts the community. Use solid examples and numbers to back your claims.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Market Analysis

Market analysis provides a clear understanding of the market your nonprofit will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target Market:

Market size and growth potential:, competitive analysis:, market trends:.

• For example, It may be necessary for a nonprofit focused on environmental conservation to adapt its messaging to reflect the growing demand for sustainable products and practices.

Regulatory Environment:

Some additional tips for writing the market analysis section of your nonprofit business plan:

• Use various sources to gather data, including industry reports, market research studies, and surveys.
• Keep your target audience in mind while writing the business plan.

5. Sales And Marketing Strategies

Building awareness, promoting engagement, and generating revenue should be the focus of your business plan’s “Sales and marketing strategies” section. Here are some key elements to include in your sales & marketing plan:

Unique Value Proposition (UVP):

Marketing mix:, marketing channels:, fundraising strategies:.

• Identify fundraising strategies that align with the nonprofit’s mission, vision, and values.

Donor Retention:

In short, a nonprofit business plan’s sales and marketing strategies section should describe how your organization can reach, engage, and retain your target market and generate sustainable revenue.

Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s essential to consider the various aspects of your organization’s processes and procedures involved in operating a nonprofit. Here are the components to include in an operations plan:

Staffing & Training:

Operational process:.

• Your operations must also include details on monitoring and evaluating programs and their impact on the community.

Quality Control:

Facilities and equipment:, technology & information system:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your nonprofit organization.

7. Management Team

The management team section provides an overview of the nonprofit organization’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include the owners, senior management, other department managers, and people involved in the organizational operations, along with their education and professional background.

Organizational structure:

Compensation plan:.

Overall, the management team section of your business plan should mention key personnel involved in successfully running your organizational operations.

So, highlight your organization’s key personnel and demonstrate why you have the right team to execute your organization’s mission.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections and goals for the first few years of your organization.

Revenue Streams:

Fundraising goals:, financial ratios:, risk analysis:.

Remember to be realistic with your financial projections and provide supporting evidence for your estimates.

9. Appendix

Include any additional information supporting your plan’s main content when writing the appendix section. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income, balance sheets, and cash flow statements . These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the industry’s size, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your nonprofit organization should only include relevant and essential information supporting your plan’s main content.

Download a sample nonprofit organization business plan

Need help writing a business plan for your nonprofit? Here you go; download our free nonprofit organization business plan pdf to start.

It’s a modern business plan template specifically designed for your nonprofit organization. Use the example business plan as a guide for writing your own.

You may explore our other nonprofit and community business plan examples before you start writing

The Quickest Way to turn a Business Idea into a Business Plan

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Write your business plan with Upmetrics

A business plan app like Upmetrics is the best way to draft your business plan. This incredible tool comes with step-by-step instructions and 400+ customizable sample business plans to help you get started.

So, whether starting a nonprofit organization or planning to grow an existing one, Upmetrics is the tool you need to create a business plan.

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Frequently asked questions, why do you need a nonprofit business plan.

Business plans outline the organization’s goals, strategies, and tactics for achieving its mission. Nonprofit business plans serve as a roadmap for staff, lenders, and other shareholders, helping them make informed decisions, measure progress, and remain focused on the organization’s mission.

How to get funding for your nonprofit business?

Fundraising for a nonprofit can be challenging, but a few strategies and a strategic approach can help you achieve your goal. 

Here are some of the most common ways to get funding for your nonprofit:

• Individual Donations: Individual donations are among key revenue streams for any nonprofit. It includes both one-time payments as well as recurring assistance.
• Grants: Many foundations and government agencies offer grants to nonprofit organizations that meet specific criteria.
• Corporate Sponsorships: A nonprofit can approach corporations that align with its values and mission to gain sponsorships for charity events, programs, or projects.
• Crowdfunding: The process of supporting a business or organization by getting many people to invest in your nonprofit organization, usually online. 

Where to find business plan writers for your nonprofit business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your nonprofit business plan and outline your vision as you have in your mind.

What is the easiest way to write your nonprofit business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any nonprofit business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to write an effective non-profit business plan in 10 steps

Nearly 7.5% of the global workforce works in the non-profit sector. To put it simply, the nonprofit sector is huge. While it may seem like a less complicated business model than for-profit entities, running a non-profit organisation is still a business.

And like any business, one of the keys to success is having a well-thought-out business plan.

Of course, if you never wrote a business plan before, the process can be daunting. So we’re here to help with a step-by-step guide on how to write an effective business plan for your non-profit.

Let's take it from the top...

1. Collect the Data

Before you start writing, you must have all your ducks in a row. This means collecting data about your non-profit, such as:

• Financial statements for the past few years
• Programs and services offered
• Audience demographics
• Funding sources
• Income and expenses

If your nonprofit is new, simply compile any projections and assumptions you have at this stage. List secured funding sources or in-kind donations you’ve already received. The goal is to put together a clear picture of where your nonprofit currently stands.

2. Mission Statement

Now that you have all the data in front of you, it’s time to start putting pen to paper - or, more likely, fingers to keyboard. The first step in writing your non-profit business plan is to craft a strong mission statement.

Your mission statement should be clear, concise, and easy to remember. It should also sum up the purpose of your non-profit in one sentence. For inspiration, take a look at some examples of great mission statements:

• Tesla : “To accelerate the world’s transition to renewable energy.”
• Nike : “Bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)”
• Starbucks : “To inspire and nurture the human spirit—one person, one cup, and one neighbourhood at a time.”

After you have your mission statement figured out, it’s time to start working on the meat of your business plan. Begin by outlining the main sections of your document. At a minimum, your nonprofit business plan should include the following:

• An executive summary
• A description of your programs and services
• Your target audience
• A marketing plan
• An operational plan
• An impact plan
• A financial summary

During this phase, you may need some help. A company like Boardroom Advisors has helped many nonprofits and for-profits with their business plans. They can help you get in touch with a finance director who can contribute to your business plan.

4. Programs/Services

Now it’s time to start filling in the outline you created in the previous step. Begin with a description of the programs and services your non-profit offers. Include information on how these programs and services help you achieve your mission.

If you’re having trouble articulating the value of your programs and services, ask yourself the following questions:

• Who are the beneficiaries of our programs and services?
• What needs do our programs and services address?
• What are the outcomes of our programs and services?

Answering these questions will help you paint a picture of the value your nonprofit brings to the table.

5. Marketing Plan

A nonprofit business is still a business. That's why you need a marketing plan.

The first step in creating your marketing plan is identifying your target audience. What people or organisations do you want to reach with your marketing efforts?

Once you know your target audience, you can start thinking about the best way to reach them. Some ideas include:

• Social media
• PR campaigns
• Direct mail

Remember that you don’t have to do all these things. In fact, it’s often better to focus your efforts on one or two channels that will reach your target audience most effectively.

6. Operational Plan

Your operational plan outlines the day-to-day operations of your non-profit. It should feature the following information:

• Your staff and their responsibilities
• Your organisational structure
• Your office space and equipment
• Your policies and procedures

This section of your business plan should be fairly straightforward. Simply describe how your nonprofit runs on a day-to-day basis. And don’t forget to include information on your staff.

The impact section of your non-profit business plan should describe the difference you hope to make in the world. That is your chance to get specific about your goals and objectives.

For example, how many people do you hope to reach if your goal is to reduce poverty in your community? And what difference do you hope to make in their lives?

Social or environmental change can be slow, so it’s important to set realistic goals. But it’s also important to dream big. After all, that’s what nonprofits are all about.

8. Finances

No business plan is complete without a financial summary. The section should include information on your:

• Revenue streams,
• Assets and liabilities

Here's another area where Boardroom Advisors can help. They can connect you with a financial advisor who can help you write your financial summary. Talking to a professional could give you a better understanding of your nonprofit's financial health.

Not to mention help you prevent any legal issues down the road.

9. Executive Summary

Usually written last but placed first in your business plan, the executive summary should introduce your entire business plan. On the first page, you should include:

• The problem your nonprofit is solving
• Your solution
• Your target market
• Your business model
• Your competitive landscape

The executive summary is where you're selling your business and its ideas. Make sure to customise it for each person who reads it.

10. Appendix

The appendix is where you can include any additional information that might be helpful to your reader. This might include:

• Your nonprofit's tax returns
• Your most recent audit
• Articles or press releases about your nonprofit

The appendix is a great place to include any information that doesn't fit neatly into another section of your business plan.

When it comes to writing a non-profit business plan, the process can seem daunting. But it doesn't have to be. By breaking the process down into ten simple steps, you can be sure that you're covering all your bases.

And if you need any inspiration, you can download free business plan templates from HubSpot and Shopify .You ca either follow them closely or use them to guide your writing process.

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Founder and Chief Executive of BoardroomAdvisors.co, John is a serial entrepreneur, having founded 7 different businesses over 40 years and has been ranked #30 in CityAM’s list of UK Entrepreneurs.

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Nonprofit Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Nonprofit Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

You’ve come to the right place to write a nonprofit business plan.

We have helped over 10,000 entrepreneurs and business owners create nonprofit business plans and many have used them to start or grow their nonprofit organizations.

Below are links to the essential sections of our sample nonprofit business plan template to help you with the business planning process for your organization:

• Executive Summary – The Executive Summary of your nonprofit business plan explains your overall strategic plan to achieve success as a nonprofit. It will include your organization’s mission statement, goals, and objectives. This section will also include information on your target market, competition, and marketing strategy.
• Company Overview – Also called the Organization Overview, you will include the mission statement and history of your nonprofit including any significant milestones achieved to date.
• Industry Analysis – Sometimes referred to as the Market Analysis, this section will provide an overview of the nonprofit industry, trends, and the competitive landscape.
• Customer Analysis – The Customer Analysis section details the demographics and psychographics of your target audience and how you plan to reach them.
• Competitive Analysis – In your Competitive Analysis, you will identify and describe the competition, both direct and indirect, including other nonprofits with the same mission. You will also include your strategic plan for competing in the market.
• Marketing Plan – This section of your nonprofit business plan will detail your products, programs and services, your overall marketing strategies and tactics, and how you will measure success. It should include information on your target market, positioning, branding, communications, and lead generation.
• Operations Plan – In the Operations Plan, you will outline your day-to-day operations as well as your long-term business goals and how you will measure success.
• Management Team – In the Management Team section of your business plan, you should include the organizational structure of your nonprofit business as well as bios of your executive team and board members.
• Financial Plan – The Financial Plan is one of the most important sections of your nonprofit business plan. You will establish your financial goals and include financial statements such as the income statement, balance sheet and cash flow statement to show how your nonprofit will be sustainable.

Next Section: Executive Summary >

Nonprofit Business Plan FAQs

What is a non profit business plan.

A nonprofit business plan is a road map to start and/or grow your nonprofit organization. Among other things, it outlines your charitable concept, identifies your target customers, presents your marketing plan and details your financial projections. Your non profit business plan should be a living document that is updated frequently as your nonprofit grows.

You can  easily complete your nonprofit business plan using our Nonprofit Business Plan Template here .

What Are the Main Types of Nonprofit Organizations?

There are many types of nonprofits, but each has a charitable mission to help an underserved segment of society. For example, there are nonprofits that serve the underserved youth, abused or abandoned animals, homeless, veterans and impoverished. There are also many nonprofits that support social awareness and global issues such as the environment, education and equality.

What Are the Main Sources of Revenue and Expenses for a Nonprofit Business?

The primary source of revenue for nonprofit organizations are monetary donations from sponsors, government grants and funding, and tax incentives through 501c3 designations.

The key expenses for a nonprofit business are staffing, supplies, rent, utilities, program costs and working capital to ensure the sustainability of the non profit. Proper strategic planning will help your nonprofit thrive financially.

This differs from a for profit business plan because you do not have to show profitability.  Nonprofits focus away from profit and instead center on accountability.

How Do You Secure Funding For Your Nonprofit Organization?

Most nonprofit organizations are likely to receive funding from banks, grants, and donors. As the majority of the funding will come from government grants and funds, grant proposals will need to be compiled and proposed to the necessary funding organization.

A solid business plan is key to showing investors you are well-prepared to start your own business.  A nonprofit business plan template is key to proper business planning and getting started quickly.

Where can I download a Nonprofit Business Plan PDF?

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

How to Write a Non-Profit Business Plan

Sylvia Okoye

Last updated on January 29, 2024 5 mins read

So you’re starting a non-profit business but haven’t sat down to craft a business plan? 

Many entrepreneurs venture into non-profit with a truckload of impactful ideas they intend to achieve. Along the way these ideas begin to wither away due to poor planning and execution. 

To manage and grow a non-profit business, you must outline your strategies, goals and objectives. A clear, non-profit business plan is the first of many steps to getting this done.

What is a Non-Profit Business Plan?

A non-profit business plan is a strategic document outlining the mission, objectives, operational structure and financial projection of an organization.

It serves as a blueprint for achieving the organization’s goals, guiding the decision-making processes, and showcasing its viability to stakeholders, donors, and grant-making entities. 

Whether launching a new non-profit business or seeking to strengthen an existing one, having a comprehensive plan is fundamental to your success. 

Why Write a Non-Profit Plan?

A non-profit business plan differs from a for-profit business plan in that a for-profit business plan also clarifies how a business will grow in the market and in revenue.

Beyond securing funding, a well-written non-profit business plan offers several benefits:

• Clarity and Focus – The plan is a roadmap for movement and aligning everyone to the business’s missions and goals.
• Strategic Decision-Making – It helps you make informed decisions about resource allocation, program development, and fundraising strategies.
• Improved Communication – It serves as a communication tool, showcasing your organization’s credibility and professionalism to potential donors, partners and volunteers.
• Impactful Measurement – It establishes benchmarks for measuring your impact and demonstrating the effectiveness of your programs.
• Organizational Growth – It lays the foundation for sustainable growth and expansion, enabling you to reach more people and make a greater impact. 

Crafting Your Non-Profit Business Plan

Every non-profit business plan has specified components attached to it that describe your business and what you do. Below are some components:

Executive Summary

The executive summary is a concise overview of your organization. It usually appears first in the business plan, however, it’s often the last thing you write because it encapsulates the essence of the entire document. 

A good summary should include in brief the mission of your business, its key objectives, target audience and a summary of your financial projections. It needs to be well-structured such that it is easily comprehensible to anyone who reads it. Writing a poor summary negatively affects your business and its reputation around sponsors.

Mission, Vision, and Values

Whether you are a human service, educational, environmental or religious non-profit organization, you should have a clear mission and vision. Let us know why you do what you do and how you intend to positively impact the world. 

Define the mission statement that encapsulates your organization’s purpose, followed by a clear vision outlining the future you aim to create. Incorporate the core values that guide your actions and decisions, reflecting the principles on which your non-profit stands. 

For example, the Epileptic Foundation a Humanitarian non-profit organization for epileptic people clearly defines their mission statements, visions and core values. 

Your mission and vision statements should be boldly and clearly articulated to represent your business and cause. 

Organizational Structure and Management

Sponsors, donors and benefactors are more likely to give to nonprofits with organizational structure than those without. This is because a hierarchical structure shows that the business wants to be a business. 

Keep this structure as detailed as possible. Include board members, key personnel, and their role in the company. Highlight their qualifications and experiences, emphasizing their relevance to the organization’s mission.

Programs and Services

Every non-profit is created for a cause. This is the same as services or the product of a for-profit business. Let your donors know what you offer by reading your business plan. 

In a clear concise manner, describe the programs and services your non-profit offers. Explain how these initiatives align with your mission, their anticipated impact, and how they address the needs of your target beneficiaries or community.

Target Audience and Market Analysis

Identify and analyze your target audience or beneficiaries. Conduct market research to understand the needs, demographics and challenges of your intended community or beneficiaries. Clearly articulate how your programs meet those needs.

Marketing and Fundraising Strategies 

As you know your non-profit is solely based on donations and contributions to a cause. This step is crucial to writing a spectacular non-profit business plan. You need to state clearly your marketing and fundraising strategies. These tips need to answer some of the questions like?

• What are your marketing strategies?
• How to create and promote awareness about your non-profit organization?
• How to reach your potential donors, volunteers and stakeholders?
• What social media channels do you use to communicate with your target audience and benefactors?
• What fundraising initiatives and events have you designed to generate revenue for the organization?
• What are the eligibility criteria for potential donors and partners?

Financial Projections and Budget

Show your initial capital, how much you were worth, how much you are worth now and your future financial projection. Distill the reports to a fifth-grade level, such that anyone who picks it up knows the state of things.

Include your income statements, balance sheets, and cash flow statements. Present a clear budget that outlines anticipated expenses and revenue sources, demonstrating fiscal responsibility and sustainability.

Evaluation and Measurement Metrics

Define key performance indicators and metrics to evaluate the success of your programs and initiatives. Establish a framework for regular assessment and adjustment to ensure you’re effectively meeting your goals. 

Risk Management and Contingency Plans

Identify potential risks and challenges that could impact your organization’s operations. Develop contingency plans to mitigate these risks, ensuring the continuity of your programs and services.

Tips for Writing a Compelling Non-Profit Business Plan

• Focus on your impact – Clearly articulate the positive change your non-profit is making and the lives you are touching. Use compelling stories and data to showcase your impact.
• Keep it concise and comprehensible – Aim for a clear and concise writing style, avoid jargon and technical terms. Your business plan should be easy for anyone to understand regardless of their background. 
• Tailor your plan to your Audience – Adapt your language and content to resonate with specific audiences such as potential donors, grantmakers, or volunteers.
• Be realistic and Data-Driven – Base your plans on realistic assumptions and support your claims with data and research.
• Get Feedback and Revise – Share your draft plan with key stakeholders and incorporate their feedback to refine and improve it. 

Remember your non-profit business plan is a living document. It should be regularly reviewed and updated to reflect changes in your organization, the needs of your community and the funding landscape. 

By following these tips and resources, you can create a compelling non-profit business plan that will guide your organization towards a sustainable and impactful future.

The world will continue to need difference makers in the form of non-profit organizations. If you’d do the work, you might as well do it with a business 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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How to Write a Business Plan in 9 Steps

Starting a business without a business plan is quite possible. But why would you risk that, especially when you are investing thousands of dollars to set up your startup?  

Whether you aim to secure funding, need a roadmap to achieve business objectives, or want to attract the attention of stakeholders—having a well-crafted business plan is like an indispensable asset for your business. 

But writing a business plan is not that easy. One needs strategic direction, a bit of writing flair, and a thorough understanding of what each section should include. 

A lot for someone who has never written a business plan earlier in their life. 

Well, having a useful guide like this blogpost can nudge you in the right direction and teach you how to write for different business plan components. 

Ready to get started? Let’s dive right in. 

9 Steps to Write Your Business Plan  

From creating your executive summary to conducting market research and preparing your financial plan—here is a step-by-step guide to writing your business plan. 

• Draft your executive summary

An executive summary is the first and most important section of your business plan. 

It is after this section that an investor will decide whether or not to proceed with your business proposal. 

Begin this section by introducing your business idea and then summarize the key essentials of a plan in a compelling narrative. Highlight information relating to the market, product, team, competitors, financials, and business goals to help investors get a macro but thorough perspective. 

Also, write your executive summary only after you are done writing for the other aspects of a business plan. This will help you distill essential information and present it appropriately. 

• Write a brief company overview

A company overview is a detailed summary describing your business and its future objectives. It offers you a chance to tell your business story to the readers, so make sure it is engaging. 

Begin this section by detailing your company’s information like its name, location, ownership, and business structure.

Clarify if the business would be registered as a sole proprietorship, partnership, LLC, or corporation. Also, introduce the partners if any, and discuss their profit-sharing ratio. 

In this section, you will also highlight the company’s vision statement, its business objectives, and future goals after evaluating your business fundamentals and core values. 

Lastly, don’t forget to talk about the milestones you have already achieved and the history of the company, if it has been operating for a long time. 

• Define your market research

Market research and analysis is a crucial part of your business plan. It shows that you have a thorough understanding of the market and the industry you are about to enter. 

In this section, you should talk about the market size and state of market in the current economy. Elaborate further by defining your Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM) to help lenders get distilled clarity. 

Additionally, give an overview of your target market and create a buyer’s persona to show what your ideal customer looks like. Talk about the psychographic and demographic details of your ideal customer, i.e. age, gender, income, interests, pain points, behavioral pattern, etc. 

This is essential so that you can create strategies effective for your target market. 

Lastly, include details about the emerging trends in your industry and show how your product fits perfectly within that market. 

• Conduct competitor’s analysis

Competitor analysis is an aspect of market research that deeply studies the competitive landscape of your business. 

In this section of your business plan, you will identify your direct and indirect competition and analyze them on grounds of price, features, and target market. 

Such analysis will help you draw your competitive edge in the market. Not only that, it will show the lenders that competition will not come in the way of your business achieving its goals.   

• Describe your products and services

This section of your business plan explores your product and service offerings in great detail. 

Here, you will list down all the products and services that will bring money to your business. This includes all sorts of primary and secondary products/ services that are available for sale. 

For instance, if you are planning to start an online pet store, talk about all sorts of products, brands, and pet needs you will be catering to. Also, include the list of services like pet grooming, vet consultation, puppy training, and others you would be offering on your platform. 

When you list down the products also add a brief overview of those products and the prices to give lenders a thorough understanding. 

Instead of making this section purely textual, add infographics and HD images to it engaging and informative. 

• Explain your operational plan

This section of your business plan shows how you are going to run the business and turn the idea into a reality. 

It includes a detailed breakdown of each business procedure, right from the client acquisition, to training protocols, quality control practices, and everything else. 

It’s important that you take time and work on your operations plan as it most often works as a guidebook for running a business. 

Now if you are wondering what to include in your operations plan, here are a few things it must definitely have: 

• Standard operating procedures for running different business activities. 
• Logistics and distribution of products through different life cycles. 
• Production workflow, if applicable. 
• Details of supply chain like vendors and agreements. 
• Details about the physical location of your business, its dimensions, agreements, etc. 
• Equipment and technologies to perform everyday business activities and their details. 
• Staff and hiring plan and an understanding of who will perform what tasks. 

Also, include your long-term plans and show how you plan to reach there with streamlined operations. 

Again, try to add infographics, charts, and diagrams wherever possible to make this section easily absorbable for the readers.  

• Outline your marketing and sales strategies

The marketing and sales section of your business plan offers an in-depth overview of your sales and marketing strategies. 

In this section, you will talk about your sales goals, forecasts, and methods to achieve those sales goals. Explain your plans to attract new customers and retain existing clients and discuss your sales strategy in detail.

Further, describe your marketing plan, budget, and methods to track the progress of different marketing activities. 

Dive into detail and explain how you will implement different marketing strategies like print media, pay-per-click, email marketing, social media marketing, events/ launch, and others. 

Overall, offer an overview of your strategies to achieve the most important objective of your business, sales. 

• Introduce your management team

Lenders and investors want to know if you have the right people on the team to pull off your business idea. Well, this is your chance to tell them about solid people on your team. 

Introduce the CEO and members of managerial positions in this section. Talk about their experience, expertise, skill sets, achievements, and how they make the right fit for your business. 

Don’t you worry about bragging. This is absolutely the right time to brag about your star team. 

Further, introduce people at the middle and lower levels and explain the organizational hierarchy in your business through a diagram. Also, add the approximate salaries of the people to give the readers a more nuanced understanding.  

• Offer detailed financial forecasts

This is the most critical part of your business plan, especially if you are planning to seek funding from investors. 

Now, there are many things you can include in your financial plan. However, if there are 3 quintessential it must include, those are: 

• Income Statement
• Balance Sheet 
• Cash Flow Statement

While making the financial plan, include predictions and forecasts for up to 3-5 years so that investors can gauge the viability and feasibility of your business idea. 

Apart from these key statements, you can also include figures for start-up costs, the cost of goods sold (COGS), revenue forecasts, and break-even analysis in this section. 

Lastly, ensure that you add visual graphs, charts, and diagrams to make your finances easy to grasp and understand.

Let us now see if there is a way to write your business plan effectively without much effort.  

How does AI help in writing your Business Plan?

Writing a business plan from scratch without any assistance, template, or structure can be time-consuming. 

However, with AI making the rounds, it is easier than ever to perform creative and repetitive tasks, efficiently. Especially for someone who finds it difficult to transform their ideas into words, AI can make the task of writing a business plan much easier. 

Now, generative AI tools like Chat GPT and Bard can help you write the contents of your plan. However, they lack the understanding of specific nuances that a business plan must include. 

Using an AI business plan builder instead can be more effective as it structures and plans the contents specifically suited for a business plan. 

All you need to do is answer the questions relating to your business and let AI create a unique business ps easy to get a headstart and then make essential changes thereafter using AI assistance. 

AI will not only make the process less time-consuming, but it will also help in increasing the effectiveness of your business plan by working strategically on the content and structure. 

Business plans are quintessential for any business. Whether you are starting a new venture, expanding the current one, or seeking investment for your startup—having a solid business plan will give you a headstart in the right direction. 

Follow this step-by-step guide or get yourself an AI plan builder to write your business plan in no time. Get started now. 

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