How to Write a Non-Profit Business Plan

Collaboration with key employees

No matter if the nonprofit is new or old, the implementation of a nonprofit business plan can help to define goals for the short and long term, act as a team-building experience and can often lend itself to better serving the target audience of the organization. Most nonprofits will seek the help of a consultant to assist the organization in the development of the business plan that can, when finished, act as a blueprint for staff, stakeholders and funding sources.

Instructions

Instructions

1. 

   Diversify your planning committee.

   Form a planning committee. Executive leadership, with the help of a consultant, should decide who will be participating in the development of the nonprofit business plan. The ability to complete a comprehensive nonprofit business plan and subsequently implement that plan will be determined by how active and diverse the committee is. The organization should choose employees from various departments to include senior leadership, board members and staff members.

   Aliah Davis-McHenry, a nonprofit management consultant for the past 10 years and current association manager of the New Jersey Association of School Librarians, says, "Active participation is crucial to developing an effective nonprofit business plan."

2. 

   Analyze strengths and weaknesses.

   Conduct an environmental scan and comprehensive assessment of the organization. When nonprofits are writing a business plan they will need to do an analysis of what trends are affecting their market. Possibly, there is a branch of the organization that once served a vital function but because of technology advances or political or economic variances, that particular branch needs to dissolve or change what it is offering.

   Davis-McHenry says, " Analyze the organization using SWOT. SWOT is an acronym for considering the organization's strengths and weaknesses and the opportunities and threats the organization faces."

3. 

   Be excited, but also be practical.

   Establish practical goals and objectives. Writing a nonprofit business plan with the inclusion of key employees and board members can be a very exciting time in the evolution of an organization. It is vital that the excitement of the process not blind the committee into thinking they can be everything to everyone. It will be important to stay on track and with the help of a consultant, this is made possible. If a nonprofit lets the excitement get the better of them during a business plan writing process, the organization may come out with goals and objectives that are impossible to reach.

   "Use the vision statement and mission as the guide throughout the nonprofit business plan writing process," says, Davis-McHenry. The vision statement and mission will serve as a focal point and allow the committee to stay on task without compromising short- or long-term goals and objectives.

4. 

   Action plan

   Develop an action plan. After developing goals and objectives of what the organization wishes to accomplish as a result of writing the business plan, strategies will need to be identified. These strategies should be duties that are delegated to people on the committee who have the ability to carry out the task. The strategies are what circle back to the overall completion of the main goals that are identified.

   Davis-McHenry has used action plans in her work with nonprofits as they will list targets for each task as well as due dates, responsible persons/teams, and measures for success.

5. 

   Agree on action and implemenation of the plan.

   Acknowledge completion and implement the plan. All committee members should agree when the writing of the nonprofit business plan is complete. Acknowledgment that the plan is complete will give the green light to all committee members to begin working on their portion of the plan.

   It will be important to schedule follow up meetings with the consultant at different times to discuss progress and troubleshoot challenges. Suggested time intervals for meeting with the committee after the implementation should be determined by the nonprofit; however, a monthly and then an annual meeting schedule is recommended. This will ensure that the committee is staying on track and considering the short-term goals that were set in place. The organization may already see results in the first year.

Tips & Warnings

• Establish practical goals that are attainable by a diverse group of people.

• Don't keep it a secret. Let stakeholders know that the plan is being written.

• Have fun. This is a great team-building exercise

• Be practical. Do not establish goals that are impossible to attain.

References

• Free Management Library: Business Planning
• The Chronicle of Philanthropy: A Charity's Business Plan Faces Trouble
• Thinking Managers: Business Planning - Preparing for an Uncertain Future

Resources

• Samples Nonprofit Business Plan Templates