nonprofit organization business plan example

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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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Start » strategy, how to write a nonprofit business plan.

A nonprofit business plan ensures your organization’s fundraising and activities align with your core mission.

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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Nonprofit Business Plan Template & Guide [Updated 2023]

Nonprofit business plan template.

A nonprofit business plan is essential to start and grow your nonprofit (non-profit) organization. It helps organizations plan and execute on opportunities. All business plan templates will include a number of sections such as an executive summary, organizational overview, and industry analysis. A business plan template can be a crucial tool for any organization, but especially nonprofits as they are often founded by members with mixed levels of business experience.

How to Write a Nonprofit Business Plan

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:

Next Section: Executive Summary >

Nonprofit Organization Planning Resources & FAQs

Below are answers to the most common questions asked by nonprofits:

Is there a nonprofit business plan template I can download?

Yes. If you’d like to quickly and easily complete your non-profit business plan, download our non-profit business plan template and complete your business plan and financial model in hours.

Where can I download a nonprofit business plan PDF?

You can download our free nonprofit business plan template PDF here . This is a sample nonprofit business plan template you can use in PDF format.

What Is a nonprofit business plan?

A non-profit business plan describes your organization as it currently exists (which could be just an idea) and presents a road map for the next three to five years. It lays out your goals, challenges, and plans for meeting your goals. Your business plan should be updated frequently, as it is not meant to be stagnant. It is particularly important to create/update your business plan annually to make sure your nonprofit remains on track towards successfully fulfilling its mission.

A nonprofit business plan template is a tool used to help your nonprofit business quickly develop a roadmap for your business.

Why do you need a business plan for your nonprofit?

A nonprofit business plan serves many purposes. Most importantly, it forces you to think through and perfect your nonprofit’s strategy, it provides a roadmap to follow to grow your nonprofit, and it provides financial and other information major donors and board members need to know before they invest in your organization. Business planning can be a challenge and business plan templates help make this task easier for your team.

What are the types of nonprofit organizations (NPOs)?

There are several types of nonprofits. These are categorized by section 500(c) by the IRS for tax exempt purposes. Listed below, are some of the frequently filed sections:

Corporations formed under Act of Congress. An example is Federal Credit Unions.

Holding corporations for tax exempt organizations. This group holds title to the property for the exempt group.

This is the most popular type of NPO. Examples include educational, literary, charitable, religious, public safety, international and national amateur sports competitions, organizations committed to the prevention of cruelty towards animals or children, etc. Organizations that fall into this category are either a private foundation or a public charity. Examples include Getty Foundation, Red Cross, Easter Seals, etc.

Examples include social welfare groups, civil leagues, employee associations, etc. This category promotes charity, community welfare and recreational/educational goals.

Horticultural, labor and agricultural organizations get classified under this section. These organizations are instructive or educational and work to improve products, working conditions and efficiency.

Examples include real estate boards, business leagues, etc. They work to ameliorate business conditions.

Recreation and social clubs that promote pleasure and activities fall into this category.

Fraternal beneficiary associations and societies belong to this section.

Voluntary Employees’ beneficiary associations which provide benefits, accidents and life payments to members are a part of this section.

When filling in your nonprofit business plan template, include the type of nonprofit business you intend to be.

What are the primary sources of funding for nonprofit business plans?

The primary funding sources for most nonprofit organizations are donors, grants and bank loans. Donors are individuals that provide capital to start and grow your nonprofit. Major donors, as the name implies, write large checks and are often instrumental in launching nonprofits. Grants are given by organizations and others to achieve specific goals and often nonprofits qualify for them. Business loans, particularly for asset purchases like buildings and equipment, are also typically used by nonprofits.

Nonprofit organizations may also sell products or services, work with investors or develop their own investments. The expertise of the non-profit staff, members and board of directors will impact funding options for a nonprofit organization. The non profits mission, resources, goals and vision will all impact the funding sources a nonprofit business will place in it's business plan as well.

What's the difference between business planning and strategic planning for nonprofits?

Business planning is typically done when you start your nonprofit. Your initial business plan hopes to forecast future results and give you the best possible chance for success. Once nonprofits have launched and are operating, many of the unknowns and assumptions are answered and strategic planning is used to help grow the organization. Both business planning and strategic planning are similar processes.

How do you write a nonprofit business plan?

To most quickly write a nonprofit business plan, start with a template that lays out the sections to complete. Answer the questions provided in the template and discuss them with your co-founders if applicable. A templated financial model will help you more easily complete your financial forecasts.

What should be included in nonprofit plans?

A nonprofit business plan should include the following information: Executive Summary, Organization Overview, Products, Programs, and Services, Industry Analysis, Customer Analysis, Marketing Plan, Operations Plan, Management Team/Organizational Structure, Financial Plan and Appendix.

How do you start a nonprofit?

The key steps to starting a nonprofit are to choose the name of your organization, write your business plan, incorporate your organization, apply for your IRS and state tax exemptions and get any required licenses and permits you need to operate.

How many nonprofit organizations are in the US?

According to the National Center for Charitable Statistics, there are approximately 1.54 million nonprofits registered in the United States (data pulled from registrations with the Internal Revenue Service (IRS)).

Does your action plan and fundraising plan belong in your plan?

Yes, both belong in your plan.

Include your action plan in the operations plan section. Your fundraising plan goes in your financial plan section. Here you will discuss how much money you must raise and from whom you plan to solicit these funds.

Where do you include your mission in your plan?

Your mission statement is extremely important as it lays the foundation for and presents the vision of your nonprofit. You should clearly detail your mission statement in both the executive summary and organizational overview of your nonprofit plan.

What do you include in a nonprofit’s financial projections?

Your financial projections must include an Income Statement, Balance Sheet and Cash Flow Statement. These statements within your business plan show how much money your organization will bring in from donors and customers/clients and how much your organization will spend.

The key purpose of your financial projections is to ensure you have enough money to keep your organization operating. They also can be an important component of your nonprofit business plan template, as donors, your board of directors, and others may review to understand financial requirements of your nonprofit.

How do nonprofit owners get paid?

Nonprofits function like for-profit businesses in that they often have employees who receive salaries. As such, as the owner, founder and/or CEO of a nonprofit, you can give yourself a salary. Many nonprofit CEOs, particularly those running large health, finance and educational organizations earn millions of dollars each year.

How much does it cost to start a nonprofit business?

Nonprofits must complete Form 1023 with the IRS in order to get exemption status. The filing fee for this form is $600. If neither actual nor projected annual income for the organization exceeds $50,000, you can file form Form 1023-EZ which costs just $275.

In addition to the filing fee, there are other costs associated with starting a nonprofit organization based on the type of organization you are developing (for example, if you require buildings and equipment). Gathering information through the business planning process will help you accurately estimate costs for your nonprofit business plan template.

Where can I download a nonprofit business plan template doc?

You can download our free nonprofit business plan template DOC here . This is a nonprofit business plan template you can use in Microsoft DOC format.

Helpful Video Tips for Nonprofit Business Plans

Below are tips to creating select sections of your nonprofit business plan:

Writing the Management Team Section of Your Nonprofit Business Plan

Writing the Operations Section of your Nonprofit Business Plan

Writing the Customer Analysis Section of Your Nonprofit Business Plan

Writing Your Nonprofit Business Plan’s Executive Summary

NONPROFIT BUSINESS PLAN OUTLINE

• Nonprofit Business Plan Home
• 1. Executive Summary
• 2. Organization Overview
• 3. Products, Programs, and Services
• 4. Industry Analysis
• 5. Customer Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Nonprofit Business Plan Summary

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Nonprofit business plan template

Success doesn’t just happen—it’s planned. Stay focused on the work that supports your nonprofit’s mission with a business plan template.

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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. 

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.

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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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If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

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Nonprofit Business Plan Template

Business Plan Outline

• Nonprofit Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

You’ve come to the right place to write a nonprofit business plan.

We have helped over 10,000 entrepreneurs and business owners create nonprofit business plans and many have used them to start or grow their nonprofit organizations.

Below are links to the essential sections of our sample nonprofit business plan template to help you with the business planning process for your organization:

• Executive Summary – The Executive Summary of your nonprofit business plan explains your overall strategic plan to achieve success as a nonprofit. It will include your organization’s mission statement, goals, and objectives. This section will also include information on your target market, competition, and marketing strategy.
• Company Overview – Also called the Organization Overview, you will include the mission statement and history of your nonprofit including any significant milestones achieved to date.
• Industry Analysis – Sometimes referred to as the Market Analysis, this section will provide an overview of the nonprofit industry, trends, and the competitive landscape.
• Customer Analysis – The Customer Analysis section details the demographics and psychographics of your target audience and how you plan to reach them.
• Competitive Analysis – In your Competitive Analysis, you will identify and describe the competition, both direct and indirect, including other nonprofits with the same mission. You will also include your strategic plan for competing in the market.
• Marketing Plan – This section of your nonprofit business plan will detail your products, programs and services, your overall marketing strategies and tactics, and how you will measure success. It should include information on your target market, positioning, branding, communications, and lead generation.
• Operations Plan – In the Operations Plan, you will outline your day-to-day operations as well as your long-term business goals and how you will measure success.
• Management Team – In the Management Team section of your business plan, you should include the organizational structure of your nonprofit business as well as bios of your executive team and board members.
• Financial Plan – The Financial Plan is one of the most important sections of your nonprofit business plan. You will establish your financial goals and include financial statements such as the income statement, balance sheet and cash flow statement to show how your nonprofit will be sustainable.

Next Section: Executive Summary >

Nonprofit Business Plan FAQs

What is a non profit business plan.

A nonprofit business plan is a road map to start and/or grow your nonprofit organization. Among other things, it outlines your charitable concept, identifies your target customers, presents your marketing plan and details your financial projections. Your non profit business plan should be a living document that is updated frequently as your nonprofit grows.

You can  easily complete your nonprofit business plan using our Nonprofit Business Plan Template here .

What Are the Main Types of Nonprofit Organizations?

There are many types of nonprofits, but each has a charitable mission to help an underserved segment of society. For example, there are nonprofits that serve the underserved youth, abused or abandoned animals, homeless, veterans and impoverished. There are also many nonprofits that support social awareness and global issues such as the environment, education and equality.

What Are the Main Sources of Revenue and Expenses for a Nonprofit Business?

The primary source of revenue for nonprofit organizations are monetary donations from sponsors, government grants and funding, and tax incentives through 501c3 designations.

The key expenses for a nonprofit business are staffing, supplies, rent, utilities, program costs and working capital to ensure the sustainability of the non profit. Proper strategic planning will help your nonprofit thrive financially.

This differs from a for profit business plan because you do not have to show profitability.  Nonprofits focus away from profit and instead center on accountability.

How Do You Secure Funding For Your Nonprofit Organization?

Most nonprofit organizations are likely to receive funding from banks, grants, and donors. As the majority of the funding will come from government grants and funds, grant proposals will need to be compiled and proposed to the necessary funding organization.

A solid business plan is key to showing investors you are well-prepared to start your own business.  A nonprofit business plan template is key to proper business planning and getting started quickly.

Where can I download a Nonprofit Business Plan PDF?

You can download our free nonprofit business plan template PDF  here . This is a sample nonprofit business plan outline that you can use in PDF format.

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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!

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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.

Strategic and Business Planning

A resource guide with definitions of planning terms and examples of planning techniques.

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

Find: Amazon | Free eBook

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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.

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.

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. 

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.

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. ‍

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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The best nonprofit business plan template in 2023

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.

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.

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.

Send this article to someone who’d like it.

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

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

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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