New NGOs that seek to make an impact in the business space will need to develop a nonprofit business plan. Essentially, this plan can serve as a compass to help the organization navigate successfully during the launching phase.
- A nonprofit business plan clarifies vision and boosts trust.
- You must include in your nonprofit business plan all the legal frameworks of your organization.
Effective Guide to Creating a Nonprofit Business Plan for New NGOs
In this article, we will outline the necessary steps to creating a nonprofit business plan for new NGOs seeking to launch a product, service, or project.
1. Write your Mission Statement
To begin with, your mission statement is the first and one of the most vital aspects of your plan. This section is meant to define the NGO’s purpose for which it was established. It comprises the values, purpose, and even the positive change the organization wants to make in society.
A well-written mission statement not only moves stakeholders to take action, it also resonates with the beliefs of potential supporters.
2. Outline your Goals and Objectives
In this section, the organization should detail what it hopes to achieve within a specific period. By and large, goals tend to vary but share one thing in common, which is “how much effort is applied” to make them a reality. Your organization’s goal could be to reduce poverty in a particular locality by 25% within 3 years.
Also, your strategies and plan on how you want to achieve these goals can be written in this section. You can place them side by side: Goals within a specific column, and the exact strategy for each one in another column.
3. Outline your Programs and Services
You want to let your reader know the various programs or services that your organization offers. Do you offer an agriculture empowerment program? Let it be clearly stated. This can guide them in their choice of whether to support your NGO or not.
4. Break down your Finances and Budgets
How do you plan to generate funds; through donations, fundraisers, or sale auctions? You will need to state it clearly. A new NGO requires proper financial management. Hence, you will need to outline how you will spend and earn money in this section. This would help your NGO to effectively manage its budget.
Besides, a well-written and well-accountable financial plan would attract the attention of potential donors and stakeholders.
5. Develop your Marketing Initiative
In this section, you will need to strategize on how your organization would get the recognition it needs. This also includes how the NGO plans to get visibility and support. Is it through online campaigns and ads or through newspapers? Make sure you discuss all of these areas in this section.
6. Consider the Legal Aspects
As a newly registered NGO, having proper legal backing is very important. You will need to consult with lawyers regularly for them to update you on any issue. Get acquainted with things like tax exemption (501(3)(c), local laws in the U.S), etc. to avoid any legal problems in the future.
Conclusion
To sum it all up, a new organization can effectively navigate its launch phase with the aid of a nonprofit business plan. This document can act as a compass to steer the organization in the right direction.
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