As we’ve discussed in the past, nonprofit organizations are not much different than their for-profit counterparts. In fact, we can learn a lot about running a nonprofit organization simply by researching how businesses and corporations perform certain functions. In addition to ensuring the proper bookkeeping and accounting tasks are being done, business owners create and maintain a business plan. This plan serves as a roadmap for the entire organization. It brings focus to your business goals, details your business plans extensively, and provides the necessary information required for the successful running of a business.
Nonprofit organizations can benefit greatly from implementing a business plan. Detailing the organization’s goals, strategies, and financial situation, a business plan can be revised and changed throughout the organization’s lifecycle. Keep the following structure in mind as you develop a solid business plan for your nonprofit organization:
- An Executive Summary that describes your nonprofit’s mission and vision, services, programs, marketing plans, and funding options.
- The Organizational Structure section should detail how your nonprofit will be structured. List all board members and staff positions necessary to run your organization effectively. Describe your objectives, growth plan, and any trends relevant to your organization’s industry in this section.
- The Products, Programs and Services section should list and describe all of the products and services your organization plans on offering. Provide as much detail as possible (including delivery methods, the benefits of provided programs and services, and future development plans).
- The Marketing Plan section should describe your organization’s unique approach to marketing. Ask yourself these questions: Who will your nonprofit be serving? How will you reach your targeted client? Explain your plans for getting your programs and services out in the community, and provide examples of marketing collateral in the appendix of your business plan.
- Your Operational Plan should describe how you plan to run your nonprofit organization. This is where you will detail where your nonprofit will be located, what kind of equipment/inventory/etc. will be needed to provide the services, how you plan on maintaining your organization, how you plan on delivering services, and how you plan on measuring the effectiveness of those programs and services.
- The Team and Staff section should provide information about key organizational staff, including board members, nonprofit managers, and general team members. List important information (such as a bio and a list of their expertise) along with each staff member profile. Include an organizational chart, explain responsibility, and provide an assessment of current and future staffing needs.
- The Financial Structure section should detail your organization’s current financial situation and projected financial status. List any outstanding loans/debts, holdings, bonds, and endowments in this section, along with your financial plan for the organization. If you are currently accepting (or plan on accepting) any grants or donations, list the details within this section. All sources of income should be detailed in this section. You should also consider including an income statement, balance sheet, financial projections, and a cash flow statement in this section. Include your fundraising plan and any other information related to the financial success of your organization.
- The Appendix should contain the resumes of key staff and board members, charts and graphs detailing important information, marketing materials, the organization’s strategic plan, and the annual report.
Imagine how much more organized your nonprofit can be by simply develop a comprehensive business plan. While this plan is ideally created at the beginning of an organization’s lifecycle, it can be created or updated at any point in the process. With a clear and concise business plan in place, your organization is more than likely to succeed.
If you are in need of any bookkeeping and accounting services, contact us today. While having a business plan in place for your nonprofit organization is important, you will also need to have your books and accounts in order to maintain a certain level of success. Our certified CPAs and accountants will come alongside you to help you develop the most beneficial business and financial plan for your organization.