Why Do I Need a Business Plan for My Nonprofit?


A non-profit business is one which is considered to be “tax-exempt” by the government and the IRS, usually due to social causes, public benefit, and altruistic activities the organization provides.

Do I still need a business plan for my NPO, even though income is not part of the equation? 

A business plan is not only intended for for-profit businesses and their income balance sheets – but it is also to help acquire donors/grants/sponsorships and other funding methods for your company. Without this, your non-profit business will fail.

Nonprofit  business

A business plan consultant will be the sole blueprint of how your NPO will grow and develop. You can look at it as a magic crystal ball; it can possibly predict if your company will persuade a lot of donors into investing by recognizing and studying how the business plan was built. This helps set you right on track and assemble only the necessities needed.

The nonprofit nature of an organization should not derail it from having a clear business roadmap or any other business specifics in that matter. 

Your business plan (if composed correctly) will give you information on:

  • Where the source of the income will be from? 
  • What types of revenue will the company receive? 
  • Will revenue generation suffice to keep the company afloat? 
  • How will the revenue the company is receiving be affected in the future?

Without a business plan, chances of you being granted sponsorships, having corporate donors, and charitable contributions will be 0 to none. If you plan to secure the support and revenue that will be needed to keep the NPO engine running – you must have a business plan.

Nonprofit business

Knowing all this; what do I need for a non-profit business plan?

The outline of an NPO business plan is not that different from a for-profit plan. It should contain the following:

  • Executive Summary
  • Marketing Strategy
  • Financial Plan
  • Appendix

Executive Summary

What this is, is basically a brief summary of your company and what it entails. This is what future investors will be reading, and if they are satisfied with what the executive summary describes, they may become potential donors. 

Your executive summary should include the following: 

  • Highlights of your financial status
  • Target market
  • What your vision is for the future of your company
  • Accomplishments the company has achieved & what it sails towards in the future.

Marketing Strategy

Look at this as a roadmap to transform your organizations missions into actual goals.

Your marketing strategy will not remain the same – it will change as your NPO grows and develops. This outlines your business and assembles where it will fit in the market and economy. 

  • What services does your NPO offer?
  • Why should donors make charitable grants to your company?
  • How will the community benefit from your organization?

Financial Plan

Possibly the most crucial and important part of the entire plan. To bring an idea of a nonprofit organization into life, the founders need sponsors and capital. This proves if your organization is liable for sponsors and donors to invest in. 

This must include sales, personal loans from individuals, endowment funds, institutional donations, governmental grants. Not only the abovementioned benefits of having a business plan applies to the moreconservative ways of raising capital, but also to several non-conventional ways to do so. Take a strong business plan as a map that paves the way towards obtaining financing from fundraising

initiatives or public charities. Another increasingly prominent benefit of a nonprofit business plan is the improved chances of business loan approval. Though traditionally nonprofits don’t get business loans, there is a rising number of programs that provide NPOs with working capital

loans. Hence, a strong business plan makes alternative financing more accessible.

Non profile business economy


  • Any additional documentation and/or information about the organization should be included in the appendix. 
  • Charts
  • Graphs
  • Resumes from staff
  • Board members 
  • Credentials 
  • Agreements
  • Financial statements
  • Evaluation reports
  • Supporting documents

..these are some of the promotional and factual documentation needed. Avoid using unessential paperwork in this section.

A well-written NPO business plan writer effectively guides employees to the steps required to take in order for the non-profit business to work efficiently. It acts as an internal compass by ensuring that the team is on the same page.

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