Nonprofit Insurance Program

How to Compose a Nonprofit Business Plan

By Alexa Connelly
July 07, 2013

The success of a non profit organization is influenced through the development of a well-established business plan.  This is because a business plan aids in establishing the foundation by which the organization is built upon.  A business plan has been defined as a strategic approach to identifying and developing business operations within a non profit organization.  Furthermore, a non profit business plan assists in identifying key components of an organization to include its mission, objectives, target demographics, key roles, and identifies how services will be delivered.

If your organization is in the process of developing a business plan or evaluating the organizations’ current business plan, there are many variables to consider.  Keep in mind, there are many steps that can be taken in writing a successful business plan.  When you begin the process of developing a non profit business plan it is important to brainstorm and compile pertinent information regarding key factors regarding the organization that will be needed to compose a thorough business plan.

  • Executive Summary – This section of the business plan is required to provide a description of the organization.  Within the executive summary you will tell about the purpose of the organization, services that are offered, identify the targeted population, and identify the community that will be eligible to receive such services.
  • Market Analysis Summary – The market analysis identifies the marketing strategy, service geographic, and market segmentation.  Furthermore, the marketing plan will identify funding initiatives such as donations, contributions, and sponsorships.
  • Management Summary – The structure of the organization will be identified within this section of the business plan.  The management summary will identify any state registrations, organizational charts, management team, board of directors, executive directors, and the location of the daily operations of the organization.
  • Financial Plan – The financial plan will be used to demonstrate how funding will be used.  It will consist of projected cash flow, assets, inventory, and liabilities.

As a non profit organization, it is essential to develop an effective business plan.  Doing so will minimize risks and safeguard the assets of the organization while establishing a thorough overview of operational goals and projected outcomes.  This in part ensures the mission and objectives of the organization are carried out.  Furthermore, a non profit business plan demonstrates the organizations commitment to its purpose.  After all, an effective business plan can assist in expanding funding opportunities for the organization.

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