NONPROFIT BUSINESS PLAN GUIDE
If you are thinking of starting a nonprofit organization, you should know that even if it is not an establishment aimed at making a profit, it is still a business because almost the same rules are applied to both for-profit and not-for-profit organizations.
The writing of a business plan is necessary to guide the growth of the organization, it also shows angel investors that you know what you are doing and you can use it to show the IRS that you are legitimately exempted from tax.
So, the development of a business plan for your startup nonprofit is important to your business, you can use this non-profit business plan sample one as a prototype for preparing your own.
This article focuses on writing a nonprofit business plan, providing the essential details every such business plan should possess.
Also, nonprofits are classified under charity organizations; hence, the IRS exempts this type of business from being taxed.
Here is a sample business plan for starting a nonprofit business and free feasibility study you can use.
Table of Contents
- Executive Summary
- Our Vision
- Our Mission
- Services Rendered
- Marketing Plan
- Financial Projection
Reach Out! is a nonprofit organization established to cater to the needs of the displaced and homeless in America.
As the name suggests, this organization, located at Florida will provide critical assistance, especially where there are humanitarian disasters caused by natural disasters such as a hurricane, earthquakes, flooding, and several other natural disasters. Apart from these, we will also provide humanitarian services to the homeless and hungry through the organization of outreaches to neighborhoods with high cases of prostitution and violence (especially gun-related).
Founded by 3 friends driven by the passion for service to humanity, we have been able to raise over $120,000 as a startup funding. Although this is significant, our operations going forward will largely depend on donations from individuals and groups. Monies realized will be fully channeled into all the services we will be providing.
Our services are not only limited to these as we will also be providing counseling services to victims of domestic violence and rape. Reach Out! has put in place several marketing measures aimed at spreading the word about our services, in addition to soliciting funding from donor groups and individuals. However, our marketing will not be limited to this alone as we will be soliciting the assistance of volunteers to help us achieve our targets.
Our Vision at Reach Out! is to provide critical services essential to the progress of humanity. Our nonprofit aims at contributing significantly to alleviating the most prevalent societal problems, leading to a safer and better America.
We have a mission of reaching the unreached. To achieve this objective, total commitment to the ideals of a better and prosperous human race is necessary. This is what drives our nonprofit. We have plans of spreading our services across the United States and Canada within the shortest possible time (5 years from the commencement of operations).
As mentioned in the section above, our services are diverse and include all forms of humanitarian efforts aimed at alleviating the suffering experienced by disaster victims and the needy. Some of these include victims of hurricanes, tornadoes, earthquakes, and the homeless. Others include victims of rape, domestic violence, and drug addicts. Our nonprofit services are targeted at significantly alleviating these negative and harmful effects. These services are a capital incentive, which makes this nonprofit to be reliant on the assistance of donor groups and individuals.
We have plans for further expanding our services to cover the entire United States and Canada within the first 5 years from the date of commencing our operations. However, at present, our services will be available in Florida.
Our marketing plan covers a wide range of areas. The marketing plan is targeted at spreading the word about our services. There are several other similar nonprofit organizations. However, we do not see them as competitors, but as collaborators. Hence, our nonprofit activities will be tailored to take advantage of the leverage offered by these nonprofits. As a measure to enhance our presence nationally and internationally, we have a website that will showcase all our services and information about us.
To make our services much more effective, micro stations will be spread across our target areas. These are patterned to act as first responders in the event of a natural disaster. Also, we will collaborate with national agencies to function effectively whenever there are humanitarian challenges. Electronic and print media channels will be used to spread the word about our services. This is in addition to the use of social media space.
Although we will kick-start our non-profit operations with the sum of $120,000, we will invest a reasonable part of this into marketing. Through this, we intend to raise significant funding for our nonprofit. Using the current trends and available information on the cash flow of non-profits, we have come up with an impressive 3-year financial projection. This is summarized in the chart below;
- First Year $120,000
- Second-year $300,000
- Third Year $500,000
This nonprofit business plan seeks to address the most recurring problems faced by humanity, which are the problems of safety, shelter, and food. Solving these problems alone significantly improves the quality of life and engenders progress in society. Reach Out! seeks to pursue these objectives to find lasting solutions to the problems faced by man.
NONPROFIT BUSINESS PLAN FOR A YOUTH ORGANIZATION – EXAMPLE
NAME OF BUSINESS: THERESA YOUTH FOUNDATION
TABLE OF CONTENT
- Executive summary
- Mission statement
- Vision statement
- Aims and objectives
- Organization and personnel plan
- Startup cost
- Marketing analysis and strategy
- Sources of income
Theresa Youth Foundation is a nonprofit agency that is aimed at providing mentorship to young people, this agency will partner with high schools, colleges in the district. We are focused on helping young people live better lives and results would reflect in their friendships, interpersonal skills, and general etiquette.
Because of poor mentoring and constant failures in the classroom, our youths have lost hope in the successes that await them in the future if only they can patch their lives together.
Theresa Youth Foundation will operate by pairing a youth to a mentor for ten months.
Mentors will receive constant training to serve these young people better and also participate in weekly meetings to discuss their progress.
As time goes on, Theresa Youth Foundation will come up with a comfortable learning platform that will be a very important resource to the young members of the population, those who aim to be mentors and the community as a whole.
Our mission at Theresa Youth Foundation is to empower young people in the possibility of a great future and support them in achieving great feats.
We at Theresa Youth Foundation believe the world can be a better place through the refining of the young.
AIMS AND OBJECTIVES
Theresa Youth Foundation is focused on creating mentorship for the at-risk youths, we will pair a supportive adult volunteer to one referred youth. We will set up four distinct programs at Theresa Youth Foundation;
- Higher Ground
This activity will engage young people who are already in the juvenile court system.
At-risk young students participate in the program of support with their various volunteer mentors.
- Lunch Friends
This is not only for children in elementary schools but also for colleges as well.
This is for young people who have been suspended from school.
ORGANIZATION AND PERSONNEL PLAN
Theresa Youth Foundation will have a management group that consists of the board of directors and the agency’s executive director.
Theresa Youth Foundation will have the following staff;
- The grant coordinator who is in charge of fundraisers and general finances of the agency.
- The Mentor training coordinator, who is in charge of recruiting volunteers for mentorship and also sees to their training.
- The youth referral coordinator, who studies each volunteer and does proper matching with youths for mentorship.
- Office manager, who controls the general affairs of the office and documentation.
Theresa Youth Foundation has the following expenses for a startup;
Legal affairs $1,000
Total startup expenses cost $27,500.
- We identify troubled young people
- Offer elementary schools children the guide they need to fall back into school activities
- We serve as development models to those in high school
- We offer group activities to college students as we believe proper social life will help them become better.
MARKETING ANALYSIS AND STRATEGY
Our program is aimed at young members of society and we are aware of the ever-growing number of them that are failing in school or not getting the proper mentorship from parents.
- Youths who have stressors
- Families with many children
- Caring adults who will volunteer to be mentors
- Religious organizations
SOURCES OF INCOME
Theresa Youth Foundation will generate revenue from federal and state contracts, grants from private firms, and business sponsorship.
Money is also generated for Theresa Youth Foundation from the general public cash donation, legacy gift, corporate giving, food, and appreciated stock.
This Non-Profit Organization is founded by Theresa Stones and her husband Michael Stones, both have been in the news for so many humanitarian activities. Theresa Stones is a woman who not only loves children but is also keen on seeing the end of juvenile deliquescence.
In the future, we hope to expand our agency to other cities and even go beyond the shores of the United States of America.