Godfrey area residents seeking to establish a nonprofit organization may wonder if a business plan is necessary. A business plan is a written document detailing the goals of a business and how those goals will be achieved. It is a commonly used tool in a for-profit business, and a solid business plan is essential for nonprofits, as well.
The advantages of a business plan
Creating a business plan for your nonprofit has many benefits. Your nonprofit depends on funding from donors, and people are more likely to contribute money to a nonprofit that appears to have a proper plan in place. You must also try to entice people to join your nonprofit board and presenting potential board members with a business plan can increase their interest in being involved.
Here are some key items that should be in a nonprofit business plan:
- Executive summary
- Organizational structure and team members
- Evaluation, financial, marketing and operational plans
- Capitalization information
Your business plan should start with an executive summary, which is a brief synopsis of the information contained in your business plan. It provides a basic outline of your nonprofit’s mission, history and other items in the plan.
A clear description of your organizational structure, along with the names and credentials of board members and management should be next. After that, provide details of how you plan to fund your business, perform regular evaluations and market your nonprofit.
Provide as much detail as possible
An operational plan provides practical information such as where your nonprofit will be located, or how you will meet your nonprofit’s goals. Capitalization information may include your capital structure and a list of any outstanding obligations. An appendix can contain a variety of information, including reiterating your mission and strategy.
Every nonprofit business plan is unique to the nonprofit itself. Along with these basic components, your business plan will likely contain additional information about your specific nonprofit.
Review and update regularly
A business plan is meant to be a living, breathing document. The goals and tasks of your nonprofit organization will change over time, and you should review and update your business plan regularly. Experienced business attorneys can help with drafting the initial document and helping you to revise when necessary.