Share 8 Shares In my last columnI wrote about the process for creating a fund development plan that produces ownership and results. As such, relationship-building strategies and measures are a central component of your written plan. And, I expect to see both donor-centered communications and extraordinary experiences outlined.
For example, many nonprofits rely on government contracts or grants. What if the particular sources of income that exist today change in the future?
And what is Plan B if they don't? According to Propel Nonprofitsbusiness plan usually should have 4 components that identify: A business plan can explain: What will be the types of revenue sometimes referred to as "income streams" that the nonprofit will rely on to keep its engine running?
A business can also take into account assumptions that exist today but may change in the future: Are there certain factors that need to be in place in order for those income streams to continue flowing? The plan should address both the everyday costs needed to operate the organization as an entity, as well as costs that are specific to the unique programs and activities of the nonprofit.
The plan may include details about the need for the organization's services a needs assessment and about the likelihood that certain funding will be available a feasibility study or about changes to the organization's technology or staffing that will be needed in order to successfully advance its mission.
Another potential 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. Finally, the business plan should name important assumptions, such as that the organization's reserve policy requires it to have at least six months' worth of operating cash on hand at all times.
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. It's a "plan" after all - and the underlying assumptions may change.
If they do, then having a plan can be useful during the process of identfying adjustments that need to be made to respond to changes in the nonprofit's operating environment. Basic format of a business plan The format may change depending on the audience.
A business plan prepared for a bank to support a loan application may be different from a busines plan that board members will use to help define their priorities in recruiting new board members.
Here is a typical outline of the format for a business plan: Table of contents Executive summary - Name the problem the nonprofit is trying to solve: Assumptions and proposed changes: What needs to be in place for this nonprofit to continue on sound financial footing?
What will we prioritize? How will we acheive more ambitious revenue goals?
Tools for business planning Should your nonprofit use a business model statement to complement its mission statement? Blue Avocado Tools for business planningcreating a theory of change, a case for support, and building a revenue plan for purchase from Social Velocity.Business & Management; Strategic Communications for Nonprofit Organizations: Seven Steps to Creating a Successful Plan, 2nd Edition.
Read an Excerpt Index (PDF) Table of Contents (PDF) Promoting the Nonprofit Organization: Issue Frames and . The business of charity: Behind every successful nonprofit is a well-thought-out business plan.
First, make sure there isn't already a nonprofit with a similar program in your region. Creating a plan for a nonprofit organization Follow.
Diane G. If you'd prefer to customize your plan outline to your needs manually, you can always do that instead. you can also access a number of sample business plans for nonprofits in the LivePlan sample plan . Nonprofit organizations have a unique set of needs and requirements. That's why these sample business plans for nonprofit organizations and social enterprise businesses can help you get started on the right foot.
These, and hundreds more sample business plans, are included in LivePlan. It's the fastest way to create a business plan for your business. Business, higher education, and community partners provide a wealth of resources to foster learning and to share the “world of work,” post–high school job training and educational options, and undergraduate and graduate school opportunities.
How To Successfully Start a Nonprofit Business in 6 Steps By Legal Templates • June 7, • Business Plan Samples, Nonprofit This article is provided by Legal Templates — the web’s leading resource for creating free legal documents simply and quickly.