How to Write Nonprofit Business Plan + Template

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

Create a logistics and operations plan

• Use strong, action-oriented language that conveys a sense of purpose and urgency.
• This site provides an overview of business planning, with a special section focusing on nonprofits.
• A business plan is the foundation of your organization — the who, what, when, where, and how you’re going to make a positive impact.
• 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.

LegalZoom provides access to independent attorneys and self-service tools. LegalZoom is not a law firm and does not provide legal advice, except where authorized through its subsidiary law firm LZ Legal Services, LLC. Use of our products and services is governed by our Terms of Use and Privacy Policy. They can explain the tax implications of a nonprofit, nonprofit LLC, and a traditional limited liability company, so you can better understand your options. Keep in mind that you can still form a traditional LLC and pursue nonprofit status with the IRS if all owners of the LLC are themselves 501(c)(3) organizations. A credible budget is both incredibly detailed and completely justified.

Key Point  3

You can even use the business proposal template to collect grantor signatures. Crafting a nonprofit business plan requires meticulous organization and seamless data collection. As you dive into the process, Jotform can help you create customized forms that streamline various aspects of your planning. 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.

Identify a board of directors

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. 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. 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.

How big is the market for my a non profit?

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. 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. It’s important to note that your nonprofit should not be set in stone—it can and should change and evolve. While your vision, values, and mission will likely remain the same, your nonprofit business plan may need to be revised from time to time. Your nonprofit organization also needs a business plan if you plan to secure support of any kind, be it monetary, in-kind, or even just support from volunteers.

Looking at examples of effective non-profit mission statements can provide inspiration and guidance as you craft your own. Consider studying mission statements from well-known non-profit organizations in your field or those with a similar focus. Pay attention to the language, tone, and structure of these mission statements, and identify elements that resonate with you. For many nonprofit organizations, competing for funding is an important issue.

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

• This includes the process of obtaining tax-exempt status, which is crucial for non-profits to operate effectively.
• 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.
• Starting a nonprofit organization is an excellent way to make a difference for a cause you’re passionate about.

Seeking feedback from beneficiaries and engaging with granting bodies and loan providers will ensure your organization is well-prepared to meet the market demands. Donor management and fundraising software support strategic planning by providing data-driven insights on donor behavior, giving patterns, and campaign effectiveness. These tools help analyze retention rates, optimize outreach efforts, and enable targeted campaigns. They streamline administrative tasks, freeing resources for core activities.

Expand this with a vision statement that outlines your ideal community. Emphasize fundamental principles such as empathy, moral rectitude, and diversity. Decide if your organization is an LLC, company, trust, or unincorporated organization. Clearly explain your nonprofit’s unique approach or services to differentiate it from competitors. Creating a successful nonprofit organization requires a thorough understanding of the requirements and expectations of your target market. Improve the success of your business plan by gathering valuable insights from in-depth research on your competitors, potential partners, and intended donors.

A nonprofit business plan may require additional sections or parts that aren’t included in a conventional business plan template. Dr. Ashleen Joy holds a Ph.D. in Business Law from Stanford University and is a professional business writer. With extensive experience in business planning, she has successfully helped numerous startups and established companies secure funding and achieve growth. Renowned in top American business forums for her strategic insights, Dr. Joy excels in writing compelling business plans and presentations.

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. 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 how do i write a business plan for a nonprofit organization good work doesn’t necessarily translate into long-term success and financial stability.