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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.

 Four people wearing green T-shirts and high-visibility yellow vests stand at a table outside a building, packing cardboard boxes. The two people on the left, both women with long curly hair, are packing a box with cans of food. The two people on the right, both men, are speaking to each other while the shorter man on the left looks down at a long, flat box.

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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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.

business plan writing nonprofit organization

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.

business plan writing nonprofit organization

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. 

business plan writing nonprofit organization

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.

business plan writing nonprofit organization

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. ‍

business plan writing nonprofit organization

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

Female entrepreneur speaking with an employee of a nonprofit at their computer. Chatting about planning for nonprofit donors.

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.

What’s your biggest business challenge right now?

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 .

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

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

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

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

Download the Ultimate Nonprofit Business Plan Template

What is a Nonprofit Business Plan?

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

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

Why Write a Nonprofit Business Plan?

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

A well-crafted business plan will help you:

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

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

Writing an Effective Nonprofit Business Plan

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

Executive Summary

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

  • Financial Plan

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

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

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

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

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

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

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

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

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

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

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

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

Questions to answer include:

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

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

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

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

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

Some questions to consider when conducting a SWOT analysis include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nonprofit Financial Plan

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

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

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

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

Income Statement

Your income statement should include:

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

Sample Income Statement for a Startup Nonprofit Organization

Balance sheet.

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

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

Sample Balance Sheet for a Startup Nonprofit Organization

Cash flow statement.

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

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

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

Sample Cash Flow Statement for a Startup Nonprofit Organization

Fundraising plan.

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

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

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

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

Strategy : Direct mail campaign

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

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

Strategy : Special event

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

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

Strategy : Grant writing

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

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

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

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

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

Finish Your Nonprofit Business Plan in 1 Day!

Other helpful articles.

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

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

How to Develop a Nonprofit Communications Plan + Template

How to Write a Stand-Out Purpose Statement + Examples

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How do I write a business plan for a nonprofit organization?

Like for-profit business ventures, nonprofits can create a business plan to describe how they will turn their mission into reality.

The business planning process involves the following steps:

  • Researching the market, using a resource such as GuideStar , to see who else might be doing what the nonprofit plans to offer
  • Investigating the resources the nonprofit will need to provide the service
  • Devising marketing and communication strategies
  • Assessing risk
  • Determining ways to evaluate success - IssueLab Results  is a place for foundations and nonprofits to share funded evaluations and to access the lessons of their peers and colleagues.

You can also use a business plan for a specific project or venture for a nonprofit.

To help diversify their revenue sources, for example, many nonprofits explore ways to earn income by developing their own business ventures. A classic example is Girl Scout cookies. Each year Girl Scout troops sell cookies, and the money they earn goes toward Girl Scout programs. Providing goods or services for a fee can be an important way for a nonprofit to bring in revenue to supplement its fundraising activities.

Selected resources below can help you learn more about creating an overall business plan for a nonprofit organization or specifically for an earned income venture.

Still have questions about starting a nonprofit, finding grants or other fundraising and management queries? Chat with or email Candid's experts to get answers. Ask Us Now!

If you're thinking about starting a nonprofit, take Candid's course, Is Starting a Nonprofit Right for You?  Take the course in person or watch the video.

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Explore resources curated by our staff for this topic:, staff-recommended websites, business planning (for nonprofits or for-profits).

This site provides an overview of business planning, with a special section focusing on nonprofits. Includes sample nonprofit business plans.

Business Planning for Nonprofits

Provides a listing of suggested resources on business and strategic planning for nonprofit organizations.

Business Planning Tools for Non-Profit Organizations

Offers advice on strategic plans, business plans & feasibility studies, as well as information on financial options, assessing funding sources. Extensive information on planning volunteer programs as well.

Free Nonprofit Sample Business Plans

Foundation Center does not endorse the business planning software sold on this site, but the sample nonprofit business plans provided are helpful and quite comprehensive.

How to Write a Nonprofit Business Plan

This article provides a brief overview of the steps involved in creating a nonprofit business plan.

Nonprofit Business Plan Development: From Vision, Mission and Values to Implementation

This guide provides an overview of the steps in the planning process, (including SWOT analysis), vision and mission statement development, and goal setting.

Nonprofit Incorporating

This full-text article by Donald A. Griesman goes into detail on the process of starting a nonprofit organization. Beginning on page 10, he describes the elements of a business plan for a new nonprofit.

Nonprofit vs. Traditional Business Plans

Entrepreneur.com offers some information on the differences between a nonprofit and traditional business plan.

Sample Nonprofit Business Plans

Along with a link to its full-text article titled “Business Planning for Nonprofits: What It Is and Why It Matters,” the Bridgespan Group gives links to 3 sample nonprofit business plans.

Social Enterprise Business Plan

This outline was developed for nonprofit organizations wishing to embark on earned income ventures with a business model.

Write Your Business Plan

Though not geared specifically to nonprofits, these resources from the SBA cover in detail the elements that should be included in any kind of business plan.

Staff-recommended books

Business Plans Handbook: Non-Profit

Business Plans Handbook: Non-Profit

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Free Nonprofit Business Plan Templates

By Joe Weller | September 18, 2020

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In this article, we’ve rounded up the most useful list of nonprofit business plan templates, all free to download in Word, PDF, and Excel formats.

Included on this page, you’ll find a one-page nonprofit business plan template , a fill-in-the-blank nonprofit business plan template , a startup nonprofit business planning timeline template , and more. Plus, we provide helpful tips for creating your nonprofit business plan .

Nonprofit Business Plan Template

Nonprofit Business Plan Template

Use this customizable nonprofit business plan template to organize your nonprofit organization’s mission and goals and convey them to stakeholders. This template includes space for information about your nonprofit’s background, objectives, management team, program offerings, market analysis, promotional activities, funding sources, fundraising methods, and much more. 

Download Nonprofit Business Plan Template

One-Page Business Plan for Nonprofit Template

One Page Business Plan for Nonprofit Organizations Template

This one-page nonprofit business plan template has a simple and scannable design to outline the key details of your organization’s strategy. This template includes space to detail your mission, vision, and purpose statements, as well as the problems you aim to solve in your community, the people who benefit from your program offerings, your key marketing activities, your financial goals, and more.

Download One-Page Business Plan for Nonprofit Template

Excel | Word | PDF

For additional resources, including an example of a one-page business plan , visit “ One-Page Business Plan Templates with a Quick How-To Guide .”

Fill-In-the-Blank Nonprofit Business Plan Template

Fill-in-the-Blank Nonprofit Business Plan Template

Use this fill-in-the-blank template as the basis for building a thorough business plan for a nonprofit organization. This template includes space to describe your organization’s background, purpose, and main objectives, as well as key personnel, program and service offerings, market analysis, promotional activities, fundraising methods, and more. 

Download Fill-In-the-Blank Nonprofit Business Plan Template

For additional resources that cater to a wide variety of organizations, visit “ Free Fill-In-the-Blank Business Plan Templates .”

Startup Nonprofit Business Planning Template with Timeline

Startup Nonprofit Business Planning Template with Timeline

Use this business planning template to organize and schedule key activities for your business. Fill in the cells according to the due dates, and color-code the cells by phase, owner, or category to provide a visual timeline of progress.

Download Startup Nonprofit Business Planning Template with Timeline

Excel | Smartsheet

Nonprofit Business Plan Template for Youth Program

Nonprofit Business Plan Template for Youth Program Template

Use this template as a foundation for building a powerful and attractive nonprofit business plan for youth programs and services. This template has all the core components of a nonprofit business plan. It includes room to detail the organization’s background, management team key personnel, current and future youth program offerings, promotional activities, operations plan, financial statements, and much more.

Download Nonprofit Business Plan Template for Youth Program

Word | PDF  | Google Doc

Sample Nonprofit Business Plan Outline Template

Sample Nonprofit Business Plan Outline Template

You can customize this sample nonprofit business plan outline to fit the specific needs of your organization. To ensure that you don’t miss any essential details, use this outline to help you prepare and organize the elements of your plan before filling in each section.

Download Sample Nonprofit Business Plan Outline Template

Nonprofit Startup Business Planning Checklist Template

Nonprofit Startup Business Planning Checklist Template

Use this customizable business planning checklist as the basis for outlining the necessary steps to get your nonprofit organization up and running. You can customize this checklist to fit your individual needs. It includes essential steps, such as conducting a SWOT analysis , fulfilling the research requirements specific to your state, conducting a risk assessment , defining roles and responsibilities, creating a portal for board members, and other tasks to keep your plan on track.

Download Nonprofit Startup Business Planning Checklist Template

Tips to Create Your Nonprofit Business Plan

Your nonprofit business plan should provide your donors, volunteers, and other key stakeholders with a clear picture of your overarching mission and objectives. Below, we share our top tips for ensuring that your plan is attractive and thorough.

  • Develop a Strategy First: You must aim before you fire if you want to be effective. In other words, develop a strategic plan for your nonprofit in order to provide your team with direction and a roadmap before you build your business plan.
  • Save Time with a Template: No need to start from scratch when you can use a customizable nonprofit business plan template to get started. (Download one of the options above.)
  • Start with What You Have: With the exception of completing the executive summary, which you must do last, you aren’t obligated to fill in each section of the plan in order. Use the information you have on hand to begin filling in the various parts of your business plan, then conduct additional research to fill in the gaps.
  • Ensure Your Information Is Credible: Back up all the details in your plan with reputable sources that stakeholders can easily reference.
  • Be Realistic: Use realistic assumptions and numbers in your financial statements and forecasts. Avoid the use of overly lofty or low-lying projections, so stakeholders feel more confident about your plan. 
  • Strive for Scannability: Keep each section clear and concise. Use bullet points where appropriate, and avoid large walls of text. 
  • Use Visuals: Add tables, charts, and other graphics to draw the eye and support key points in the plan.
  • Be Consistent: Keep the voice and formatting (e.g., font style and size) consistent throughout the plan to maintain a sense of continuity.
  • Stay True to Your Brand: Make sure that the tone, colors, and overall style of the business plan are a true reflection of your organization’s brand.
  • Proofread Before Distribution: Prior to distributing the plan to stakeholders, have a colleague proofread the rough version to check for errors and ensure that the plan is polished.
  • Don’t Set It and Forget It: You should treat your nonprofit business plan as a living document that you need to review and update on a regular basis — as objectives change and your organization grows.
  • Use an Effective Collaboration Tool: Use an online tool to accomplish the following: collaborate with key personnel on all components of the business plan; enable version control for all documents; and keep resources in one accessible place.

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Get your nonprofit set up for success with a nonprofit business plan

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 nonprofit business plan

While a nonprofit business plan is similar to that of a for-profit company, it has a few important differences, including the need for a fundraising section.

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by   Sandra Beckwith

Sandra Beckwith has been writing for traditional and online publications since she sold her first magazine article wh...

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Updated on: June 20, 2023 · 3min read

Nonprofit business plan elements

Fundraising section is essential, keep it real.

While nonprofit organizations are purpose-driven rather than profit-driven, they have a great deal in common with their for-profit counterparts.

"We may be governed by a different part of the tax code and exempt from some—but not all—taxes, but we are businesses, too," says Rick Cohen, chief operating officer at the National Council of Nonprofits.

Like other types of businesses, successful nonprofits outline their goals and how they will achieve them in a written document known as a business plan.

A nonprofit's business plan is similar to that used by a for-profit entity but has key differences. Here's what you need to know about how to write a nonprofit business plan.

volunteers-with-clipboards-in-park sitting in the grass

For-profit business plans detail what a company does, how it does it, who does it, and how it pays for it. A nonprofit business plan outlines that as well but approaches parts of the process differently.

The biggest difference is that nonprofit organizations focus on the problem they want to solve and how to fund programs and activities that help do that.

"Nonprofits have the added burden and opportunity of impact in their business plan," says Sara Gibson, co-founder and CEO of 20 Degrees, a consulting firm serving nonprofits. "The sector doesn't measure worth in profit—it is measured in lives and in change created. That has to be part of the plan."

Typical nonprofit business plans feature many of the following elements:

  • Executive summary
  • Mission and goals
  • Community impact
  • Products, services, and programs
  • Organizational structure and staffing
  • Market and competitive analysis
  • Fundraising and development
  • Financial plan

For-profit businesses might be funded initially by owners or outside investors, but the ultimate goal is usually self-sufficiency through sales. Many nonprofit organizations aren't structured or created to generate income to support their community services, so fundraising is key.

"It is critical for the sustainability of nonprofits that they are constantly being connected with grants and funders who will provide the financial resources needed for these nonprofits to continue offering quality and valuable assistance to the communities they serve," says Fernando Urbina, director of outreach for ImmigrationHelp.org.

Mikko Sperber, managing partner and founder of Fundamental Strategy, recommends taking on a for-profit business mindset when writing the fundraising section of the nonprofit business plan.

"If you build your plan to have a budget surplus at the end of your year, you then have the capital to reinvest in growing your organization and furthering your mission," he says.

The organization's communication and marketing strategy feeds fundraising goals, so be thoughtful about that piece when writing a nonprofit business plan.

"If no one knows who you are, then no one will be donating to your cause," says Mike McKnight, director of operations at Racing for Orphans with Down Syndrome.

When outlining your business plan, be realistic about fundraising and other revenue streams, then match your budget to your fundraising goal, not the other way around. "In worst-case scenarios, fundraising numbers are plugged into a budget after the programmatic expenses are figured to just offset them without a realistic plan," Sperber says.

Matching your budget to your fundraising goal is especially important because of the organization's impact on the community served, says Cohen, whose organization offers nonprofit business plan resources on its website.

"The worst thing a nonprofit can do is get to a place where people are counting on their services, but then need to close their doors, leaving those people in the lurch," he says.

To ensure your organization's business plan properly supports your mission, consider consulting with professionals such as nonprofit advisers and attorneys specializing in this sector.

Keep your nonprofit business plan handy, too. It's your organizational blueprint, but you'll also need to update it as circumstances or market conditions change.

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Nonprofit Business Plan

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A nonprofit organization is an excellent way of serving society. If you’re someone wanting to support a cause or make a meaningful impact on society, it’s the way to do it.

Nonprofit organizations do not run for money or profits; they must still be properly managed and organized. A nonprofit business plan can do just that for any organization.

Need help writing a business plan for your nonprofit organization? Creating a business plan can help you fulfill your cause hassle-free and more manageable. So, we have prepared a nonprofit business plan template to help you start writing yours.

Key Takeaways

  • Your nonprofit business plan should have an executive summary section summarizing the entire plan and providing an overview of the organization’s mission, goals, and strategies.
  • Your organization overview section will cover your organization’s foundational elements like name, type, legal structure, location, and history.
  • Prepare a detailed section to describe your programs, products, and services as well as the impact of your offering on society.
  • Conduct thorough market research to understand and explain your target market, market size, growth potential, trends, and competitive landscape.
  • Prepare an effective operational plan outlining your day-to-day operational process, staffing requirements, quality control, and information about technologies and equipment in use.
  • Introduce your management team to your readers as well as the details about the organization structure and compensation plan.
  • Prepare accurate financial projections for your nonprofit. Emphasize providing details about revenue streams, fundraising goals, expenses, and financial ratios.

How to Write a Nonprofit Business Plan?

1. executive summary.

An executive summary is the first section of the business plan to provide an overview of the organization’s missions, goals, and key strategies. In addition to highlighting your organization’s unique value proposition, it should provide a snapshot of its operations and impact. Generally, it is written after the entire business plan is ready. Here are some key components to add to your summary:

Organization summary:

Mission statement:, products, programs, and services:, impacts and outcomes:, management team:, financial highlights:, call to action:.

Think of your readers as potential donors and someone who has never heard of your organization. So, keep your executive summary concise and clear, use simple language, and avoid jargon.

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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.

About the Author

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Upmetrics Team

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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The best nonprofit business plan template

business plan writing nonprofit organization

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.

business plan writing nonprofit organization

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.

business plan writing nonprofit organization

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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Like any business, nonprofits rely on business plans to get funding and stay on mission. But even though they often operate like a traditional for-profit organization, nonprofits need their business plans to highlight slightly different aspects of their organization. Showing cash spend becomes very important when you’re a nonprofit, so donors, board members, and government agencies recognize that you’re putting your money where your mission is. Here, we’ll show you what to include in your own custom nonprofit template, and how to use it to move your mission forward. 

[Product ui] Nonprofit business plan project in Asana, spreadsheet-style project view (List)

What is a nonprofit business plan template

A nonprofit business plan template provides a strategic overview of your nonprofit. It’s a breakdown of all higher-level information about your organization, such as the board of directors and your core mission. Use your nonprofit business plan template to give your staff, the board, potential donors, and government funding agencies an overview of your mission and strategies.

Nonprofit business plan vs. strategic plan template

Both business and strategic plan templates share certain sections, such as your core mission. However, your nonprofit business plan template should also include relevant action plans , such as your fundraising plan and marketing strategy. Normally, you share your business plan with internal and partner stakeholders as opposed to the general public. Think of your nonprofit business plan as a roadmap or higher-level operational plan—it tells you what you’re currently doing to pursue your mission, and the steps you’re taking to go even further.

Why nonprofit business plan templates are important 

Nonprofits know how to do more with less—a nonprofit business plan template will outline how. There are many benefits to creating your own, including:

Transparency. Visibility is a crucial piece of engaging with donors and board members. Nonprofit business plans showcase the work you’re doing and why others should care.

Reduce work about work . Nonprofits don’t always have the same resources as for-profit companies. As a result, freeing up time for your employees to work on their highest-impact tasks is critical—not just for your bottom line, but for your overall mission. 

One source of truth. As a nonprofit, you’re constantly fielding requests for information about your finances, mission, and structure. When compiled with project management software , you can create and share your nonprofit business plan template with anyone who asks, without any additional work on your end.

Save 50% on Asana

Partner with Asana to put more resources toward your mission. The Asana for Nonprofits program helps nonprofits do more mission-critical work. Qualified organizations can save 50% on a one-year subscription, plus get numerous free Asana resources.

How to create your non-profit business plan template

Your nonprofit business plan template should include all relevant information about how your organization operates. If you’re using a digital tool, such as project management software , be sure to attach relevant documents and projects. Your template is essentially your nonprofit business plan outline that you’ll fill in during your planning process. 

As you’re going through your nonprofit business plan template, make sure to include the following sections so you can get the most from your template.

Non-profit description

Describe the basics of your organizational structure. Include:

Executive summary

Mission and vision statement

Community benefit

Staff and management team

Board of directors

Partnerships

List any items related to what you do as an organization, including reports that demonstrate results. For example, you can include: 

Core problem we solve

Demographics we reach

Past results

Business model

Marketing plan

This is a space for your marketing strategy (the methods you'll use to reach your target audience) and the analyses you used to build that strategy. Here, you can attach: 

Target market research 

Target audience and social media messaging 

Market analysis (including a competitive analysis)

Your positioning (on hot button issues related to your mission)

Outreach plan

Financial plan

Nonprofits need to be very clear with how they spend money. Being transparent with your financial statements restores confidence for potential donors, so you can hit your fundraising goals and boost financial projections. Here’s what to include in this section:

Income statements

Cash flow statements

Grant management plan

Fundraising plan and projections

Integrated features

List View . List View is a grid-style view that makes it easy to see all of your project’s information at a glance. Like a to-do list or a spreadsheet, List View displays all of your tasks at once so you can not only see task titles and due dates, but also view any relevant custom fields like Priority, Status, or more. Unlock effortless collaboration by giving your entire team visibility into who’s doing what by when.

Goals . Goals in Asana directly connect to the work you’re doing to hit them, making it easy for team members to see what they’re working towards. More often than not, our goals live separate from the work that goes into achieving them. By connecting your team and company goals to the work that supports them, team members have real-time insight and clarity into how their work directly contributes to your team—and company—success. As a result, team members can make better decisions. If necessary, they can identify the projects that support the company’s strategy and prioritize work that delivers measurable results.

Milestones . Milestones represent important project checkpoints. By setting milestones throughout your project, you can let your team members and project stakeholders know how you’re pacing towards your goal. Use milestones as a chance to celebrate the little wins on the path towards the big project goal.

Custom fields . Custom fields are the best way to tag, sort, and filter work. Create unique custom fields for any information you need to track—from priority and status to email or phone number. Use custom fields to sort and schedule your to-dos so you know what to work on first. Plus, share custom fields across tasks and projects to ensure consistency across your organization.

Google Workplace . Attach files directly to tasks in Asana with the Google Workplace file chooser, which is built into the Asana task pane. Easily attach any My Drive file with just a few clicks.

OneDrive . Attach files directly to tasks in Asana with the Microsoft OneDrive file chooser, which is built into the Asana task pane. Easily attach files from Word, Excel, PowerPoint, and more.

Dropbox . Attach files directly to tasks in Asana with the Dropbox file chooser, which is built into the Asana task pane.

Slack . Turn ideas, work requests, and action items from Slack into trackable tasks and comments in Asana. Go from quick questions and action items to tasks with assignees and due dates. Easily capture work so requests and to-dos don’t get lost in Slack.

How do you write a nonprofit business plan template?

First, create your template including sections for your executive summary, mission statement and purpose, marketing plans, and finances. Then when you’re ready to write your nonprofit business plan, fill in the blanks and customize it to fit your organization.

Do nonprofits have business plans?

Yes, nonprofits often have business plans. Nonprofit business plans provide a structured overview of your nonprofit strategies, and can be used to share your accomplishments and goals with stakeholders . You only have to create your nonprofit business plan template once—then you can reuse it every time you need to create a new nonprofit business plan.

How do nonprofit business plans help corporations get involved in nonprofit organizations?

Nonprofit business plans show corporations your organization’s impact, including how you’re spending any potential money they donate to you. Often, corporations want to see the numbers before they decide to invest in a nonprofit, and a nonprofit business plan can help you share that information.

What should be in a nonprofit business plan template?

Include all higher-level summaries of your nonprofit, plus actionable plans like your executive summary, mission and purpose, marketing strategy, and financial plans.

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How To Write A Business Plan For A Nonprofit Organization

business plan writing nonprofit organization

Dodd Caldwell

July 21, 2020.

Moonclerk - businessplan

Writing a business plan for a new nonprofit is essential, and this guide will show you exactly what to include and how to put it together. Without a business plan, it’s easy to lose direction, harder to recruit quality personnel, and nearly impossible to successfully apply for funding.

Your business plan, once complete, should not only help you achieve those goals, but also provide you with a clear pathway to success. It should frequently be referenced during key decision-making times to stay on track and to make sure your not for profit organization always adheres to its stated vision. This guide will help you to create a business plan that fulfills all those roles.

Your Basic Nonprofit Business Plan Template

The best business plans aren’t unnecessarily long, but do include as much information as necessary. They may be as short as seven pages long, one for each of these essential sections, or up to 30 pages long as your organization grows and becomes more complicated.

Don’t worry if your business plan seems too short. Here, brevity is a virtue. If your plan has these seven sections and all the details mentioned here, you should be well on your way to meeting your nonprofit goals.

How to Write a Nonprofit Business Plan

1. Title Page

This is the easiest part but should not be overlooked. This is like the title page of a resume. You should make sure your nonprofit’s name about is 2-3 inches from the top of the page. Below it, you need to have the following details:

How to Write a Nonprofit Business Plan2

  • Business Plan – Just under your Nonprofit’s Name should be the words “business plan” to show exactly what the document is.
  • The Date Your Plan was Finalized – You can write it any way you want, from September 2017 to 09/2017.
  • Contact Information –  Name, Address, Email and Phone Number all go below.

2. Executive Summary

You can draft this up first, but it should be the last thing you work on. This is the most important part of your business plan. Here you must summarize, on one page, every critical aspect of your nonprofit. This summary will determine if someone, be it an investor or potential staff member, will continue reading.

The Executive Summary is where you sell your organization and its ideas. Here you need to describe your organization.

  • What makes your organization stand out?
  • What is your ultimate vision?
  • Which problems are you solving?

Then talk about how you are achieving those goals.

  • What accomplishments have you made?
  • What are your next steps?
  • How financially stable are you?

And, if you are applying for funding there are some things you need to think about.

  • Why do you need funding?
  • What are good sources for funding?
  • How will you seek funding from those sources?
  • What will you do to try and turn the funding into recurrent funding?
  • What grants are available?
  • What work is involved in obtaining grants?
  • What work is involved in maintaining the grants?

You should be able to answer all these questions in your executive summary.

3. Nonprofit Description – Details of Previous Accomplishments

If your nonprofit organization has a significant list of achievements and needs a dedicated space for them, this is the place to do it. At its best, this section will demonstrate how past goals were met on-time. It can also show real examples of how funding challenges were met or goals were exceeded. This should go directly after your Executive Summary.

How to Write a Nonprofit Business Plan4

4. Product, Service, and Program Details

As a nonprofit, you more than likely won’t be producing a product. (If you do, the complexities regarding your tax status and whether it is or is not eligible should be discussed with a qualified accountant or attorney.) As such, you should focus on what services you offer and how you plan to offer them. This section should be able to answer the following questions:

  • How do your programs and services make a positive change?
  • How can the effects of your accomplishments be measured?
  • Is there a chance of achieving this goal?

5. Management Team Summary

This is where you introduce the key players in your organization. List names, credentials, and relevant experience. You can go on to talk about their role in your nonprofit, too.

Then, if you have space, you can discuss any gaps you may have and your plans to fill them. For example, if you have a growing volunteer community and require a dedicated staff member, say that you are looking for one and what their qualifications should be.

6. Marketing Strategy

This section is where you detail how you plan to raise awareness for your cause.

  • Do you already have local traction?
  • Do you have a plan for acquiring media attention?
  • Is someone on your team a master of social media marketing tactics?
  • Do you plan on doing community outreach?
  • What is your impact potential and how do you plan to reach it?

Your marketing section should include examples of past campaigns and their effectiveness, if possible, and as space allows.

Business Plan For A Nonprofit Organization

7. Capitalization and Finances

Here you need to list where your finances stand today as well as a 3-to-5 year projection. As you will update your business plan at least every two years, these number should stay relatively current. Make sure to keep your projections realistic and in-line with current or reasonably expected growth. This section is a prime space for charts, graphs, and other visual material.

Once you have provided all the basics, talk about what you plan to do if there is a surplus from any activity. What will you do if individual financial goals fall short? What fund-raising methods will you use? How will you seek out or process donations?

8. Appendix – Supporting Documents

This is the place to put any miscellaneous supporting documents like financial statements, endorsements or agreements. As a brand, new nonprofit, you might not have much to put here, and that’s okay.

Remember, you only need to include what is most relevant, and you can leave out anything you may have covered in another section.

Don’t cram this section with unnecessary documents – a maximum of 5 pages is more than enough.

Additional Sections

In the above section, you learned about the eight essential components of your business plan. Now you can add any of the additional sections below. Though not necessary, they may be useful to attempt if you’re still trying to nail down all aspects of your organization.

As your nonprofit grows, or if it’s already been active for some years, these sections may be essential to providing readers with a comprehensive look at your organization.

Problem Statement

Sometimes called “Market Research” or a “Needs Analysis,” this is where you put what you have learned about other nonprofits in this area.

  • Is anyone else trying to solve this same problem?
  • Does your organization do a better job or have a different angle?
  • Is your goal open-ended or do you have a defined objective that you can finish?
  • Will that goal evolve?

How to Write a Nonprofit Business Plan5

If you have any strategies or research to your credit or benefit that have not been mentioned elsewhere that will be an essential part of your nonprofit, include them in this section of your business plan.

Organizational Structure and Personnel Plan

This section would go after your “Management Team” or “Key Roles” summary. Here you will go into further detail about what positions you need to fill and how you plan to go about doing that.

How to Write a Nonprofit Business Plan1

You may also include examples of staffing schedules. This is also the place to go in-depth about how you will handle volunteers and which tasks you should reserve for them. Effective volunteer management is a valuable skill for any nonprofit.

Operational Plan

Depending on which other sections you have chosen to include, your operational plan should show a brief outline of your current typical operating procedures as well as any changes you intend to make as your organization grows.

How to Write a Nonprofit Business Plan6

If the information you would put here is repeated in any other section, leave this section out.

Putting it All Together

Before you finalize your business plan, here are five things to keep in mind.

The Title Page goes first, followed by the Executive Statement. The Appendix always goes last. Everything else goes in between, in order of most relevant to least, however you feel that applies to your nonprofit.

You may use visuals in your business plan to underline important points. Financial charts and visual projections are always appreciated. Images of your successes may be, too.

Not only will they make it easier for others to skim over your plan (and many people will do that before deciding to read it in-depth) but it helps break up the monotony of plain text. However, don’t let them stretch your document beyond recommended levels.

How to Write a Nonprofit Business Plan

Keep it simple. A business plan that includes all the necessary information is more impressive than one with fancy formatting. There are, however, a few things to keep in mind.

  • Keep your formatting consistent.
  • Use standard 1-inch margins.
  • Use a reasonable font size for the body, such as 12 point.
  • For print, use a serif font like Times New Roman or Courier. For digital, use sans serifs like Verdana or Arial. The font does make a difference.
  • Do start a new page before each section.
  • Don’t allow your plan to print and leave a single line on an otherwise blank page. Find a way to fit it in appropriately.

Edit your work or ask someone to do it for you, maybe another board member. Writing your business plan should be fun, but it does have a purpose. Check each page and make sure every line supports whatever section you happen to be explaining.

Cut anything that is unnecessary. If you still feel like you need help, consider finding a mentor. You could approach a local nonprofit owner or contact a reputable organization like SCORE.

You should be able to write a business plan that is, excluding the Appendix, no more than 15 to 20 pages long. Being thorough is admirable, but the people who ask for your business plan may not read past your executive summary and if they do they expect to find only the information they need to support their decision, no more.

Planning for the Future

Your business plan must evolve with your nonprofit. At a minimum, it should be revised every two years. Changes should reflect staffing updates, new accomplishments, revised policies or goals, and updates financial data, etc. Keeping your business plan up-to-date can help remind you and the board of what your nonprofit stands for as well as ease the burden of making rushed corrections if a significant change has occurred and you must apply for financing.

Plan to Write a Lot of Thank You Notes

As a nonprofit, paying attention to your donors is critical to your success. It is much easier to get recurring donations than it is to find new donors. Further, given your nonprofit status, you must provide receipts for gifts of $250 or more.

Personalized notes, whether digital or hand-written, are valued by your community so make sure you collect enough information to make those thank-yous personal and include the right receipts. If you can do that, your nonprofit has a much better chance of growing from a handful of supporters to a thriving community.

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  1. Printable Nonprofit Business Plan Template

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  2. Why Do You Need a Nonprofit Business Plan?

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  3. FREE 23+ Non Profit Business Plan Templates in PDF

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  4. Nonprofit Business Plan Templates

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  5. How To Write A Business Plan For A Nonprofit Organization

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VIDEO

  1. How to Find Business Plan Writing Resources

  2. Business Plan Writing: Objectives and Methodology [Part 2]

  3. How to Write a Business Management Organization Plan for your Business

  4. Business Plan Writing: Industry Analysis

  5. Founder Fundamentals Fall 2023: Developing a Business Plan

COMMENTS

  1. The Ultimate Guide to Writing a Nonprofit Business Plan

    Step 3: Outline. Create an outline of your nonprofit business plan. Write out everything you want your plan to include (e.g. sections such as marketing, fundraising, human resources, and budgets). An outline helps you focus your attention. It gives you a roadmap from the start, through the middle, and to the end.

  2. Business Planning for Nonprofits

    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 ...

  3. The 6-Step Guide to Writing a Nonprofit Business Plan in 2023

    Operational Plan: Explain the day-to-day operations of your nonprofit and spotlight the people who'll make it happen. Marketing Plan: Outline the channels and methods you use to drive your campaigns. Impact Plan: Describe the impact you'd like your organization to make and include the impact you've already had.

  4. How to Write a Nonprofit Business Plan

    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 ...

  5. How to Write a Nonprofit Business Plan (with Examples)

    Avoid using jargon, acronyms, or any unfamiliar terms. Write for a general audience, and you'll be more likely to keep the reader engaged. 2. Outline your plan. Make a nonprofit business plan outline. Once you know what information will be put into the plan, you'll understand what data you need to source to write it.

  6. The Complete Guide to Writing a Nonprofit Business Plan

    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.

  7. How to Write a Nonprofit Business Plan

    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 ...

  8. Business Plan For A Nonprofit Organization + Template

    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.

  9. How to Write a Nonprofit Business Plan + Example [Updated 2024]

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

  10. How do I write a business plan for a nonprofit organization

    The business planning process involves the following steps: Researching the market, using a resource such as GuideStar, to see who else might be doing what the nonprofit plans to offer. Investigating the resources the nonprofit will need to provide the service. Devising marketing and communication strategies. Assessing risk.

  11. Nonprofit Business Plan Templates

    This template has all the core components of a nonprofit business plan. It includes room to detail the organization's background, management team key personnel, current and future youth program offerings, promotional activities, operations plan, financial statements, and much more. Download Nonprofit Business Plan Template for Youth Program.

  12. How to Write a Nonprofit Business Plan in 12 Steps ...

    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.

  13. How to write a nonprofit business plan

    That has to be part of the plan." Typical nonprofit business plans feature many of the following elements: Executive summary. Mission and goals. Community impact. Products, services, and programs. Organizational structure and staffing. Audiences. Market and competitive analysis.

  14. Nonprofit Business Plan: Guide & Template (2024)

    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 ...

  15. How to Write a Non-Profit Business Plan

    Before we get into the details of how to write a business plan, let's define what it is. A business plan details the services or products your non-profit provides, the people on your team, the community you serve, your non-profit's financials, the goals you plan to achieve, and how you're going to achieve them.

  16. Nonprofit Business Plan Template & Guide [Updated 2024]

    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: 1. Executive Summary.

  17. Professional Nonprofit Business Plan Template

    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 ...

  18. Free Personalized Nonprofit Business Plan Template [2023] • Asana

    A nonprofit business plan template provides a strategic overview of your nonprofit. It's a breakdown of all higher-level information about your organization, such as the board of directors and your core mission. Use your nonprofit business plan template to give your staff, the board, potential donors, and government funding agencies an ...

  19. Sample Nonprofit Business Plans

    Sample business plans from nonprofit organizations with which The Bridgespan Group has worked. For nonprofit organizations, the business-planning process offers a rare opportunity to step back and look at the organization as a whole. It is a time to connect the dots between mission and programs, to specify the resources that will be required to ...

  20. 3 Sample Nonprofit Business Plans For Inspiration

    Download our Ultimate Nonprofit Business Plan Template here. Below are sample plans to help guide you in writing a nonprofit business plan. Example #1 - Kids Are Our First Priority (KAOFP) - a Nonprofit Youth Organization based in Chicago, IL. Example #2 - Church of the Sacred Heart - a Nonprofit Church based in St. Louis, MO.

  21. How To Write a Nonprofit Business Plan (2024)

    Write an impact plan. Outline the financial plan. 1. Create an executive summary. The first section of nonprofit business plans is the executive summary. The executive summary should describe your organization and the contents of your nonprofit business plan.

  22. How To Write A Business Plan For A Nonprofit Organization

    Business Plan - Just under your Nonprofit's Name should be the words "business plan" to show exactly what the document is. The Date Your Plan was Finalized - You can write it any way you want, from September 2017 to 09/2017. Contact Information - Name, Address, Email and Phone Number all go below. 2.

  23. How to Write a Nonprofit Business Plan

    Starting a Nonprofit and wondering how to write a nonprofit business plan? Here are 8 things to include in your plan for a new nonprofit organization. #Nonpr...