One of the biggest challenges faced by NGOs is not saving the world, but developing a good nonprofit business plan. These organisations stand out for their motivation to make a positive impact in the world. However, their reach is limited by a lack of funds which is primarily the result of a poor business plan.
- Every nonprofit business plan must start with the executive summary.
- The marketing section of the business plan highlights how a nonprofit intends to raise funds and publicise its mission.
How to Create the Right Business Plan
In this article, we will outline effective ways to create a nonprofit business plan for voluntary organisations.
1. Executive Summary
The executive summary comprises the most important info in your project plan. Summaries are often the most read part of any writeup probably because they are concise and straight to the point. As we all know, it is always located at the beginning. However, it might be best to develop this section after you have done the other sections.
This part of the business plan contains a brief overview of the nonprofit organisation, its mission, and its goals. It portrays the story of the change the organisation intends to make. Hence, it is best to outline the various areas of need and how your nonprofit intends to solve the problem.
The executive summary section is also very customisable and can be adjusted to suit your nonprofit needs. For instance, it can be used to apply for a loan or recruit a team.
2. Products/programs
Secondly, you will need to highlight your products or programs. In this section, you will clarify what exactly your nonprofit does. This allows you to elaborate more on what has been written in the previous section. By and large, the product/program section tends to vary based on different nonprofit types.
It is important to not only state who is benefitting but also how you would carry out those services/programs. In simple terms, you have to be specific. For instance, saying you support schools in rural areas of Africa is not detailed enough. However, telling your readers the exact kind of support is much better. The exact kind of support could be material support, educational support, health support, etc.
3. Marketing
As a nonprofit, you will require regular sources of donations. This is also the same for nonprofits that sell products to raise funds. Hence, the marketing section outlines the organisation’s strategies to raise money and promote its mission.
4. Operations
In this section, you are to elaborate on how your nonprofit plans to carry out its activities. Every single detail must be included and, none left out. This includes method of approach, number of staff needed, etc should be included.
5. Financing
This is the final stage and also one of the most important. If this section is not clear enough, it might pose a serious challenge. Even more, it might be hard to convince your readers who might be potential donors. It is best to include financial management tools like balance sheets, current financial status, assets, etc in your nonprofit business plan.
Conclusion
To sum up, a nonprofit business plan is an essential document that provides an organisation with a road map on how to effectively launch or scale an idea or business to profitability. The various processes listed in this article can assist voluntary organisations in successfully creating a nonprofit business plan.
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