Why an Association Must Have a Business Plan
The constant challenge of all nonprofits, whether trade associations or charitable associations, is describing their activities to potential sponsors and donors. Another challenge is to project an image of responsibility and trustworthiness to the targeted beneficiaries of their services.
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Function
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A business plan describes the mission and activities of the Association as well as its plans for future growth in terms of membership, services, events and revenue generation. It also outlines how the Association receives money and how that money is spent.
Uses
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An Association can use its business plan to pitch potential sponsors and donors. It can be used as the basis of a grant application. A business plan also contains some content that is useful for websites and brochures.
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Features
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In addition to the standard business plan features that include a description of the enterprise, product or service, target market, marketing plan and revenue plan, the nonprofit business plan must describe its mission and make a case for the social need it fills. There should also be a detailed financial projections section.
Considerations
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Social entrepreneurship and venture philanthropy have grown in scope and importance since the late 1990s. It is now vital for a nonprofit to present an image of business savvy management and self sustainability if it expects to receive sponsors and large donations.
Benefits
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A well researched, carefully thought out and well written business plan improves the image of the association as effective and sustainable. It also forces the Board and management committee to formally organize the Association's internal planning and budgeting process.
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References
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- Photo Credit Image by Flickr.com, courtesy of foundphotoslj
