Non-Governmental Organizations (NGOs) are largely funded by private contributions and operate outside of institutionalized government or political structure. Many NGOs are grass-root organizations with social, political and environmental agendas.
An NGO’s business plan or report highlights business strategies of the NGO, experience and capabilities of management processes, marketing plans and strategies and financial forecasting.
Executive Summary of NGO Business Plan/Reporting
An NGO business plan should include a mission statement addressing its mission, goals and objectives, profitability and productivity goals, as well as financial reporting.
The mission statement defines the social development NGO’s vision. The vision for most social development NGO’s are based on the area chosen to provide services to a target market or population.
The executive summary should include an organizational history stating length of time the NGO has been in existence, initial start-up cost or seed funds which started the NGO and a brief background of the founder(s).
This section of the business plan for reporting purposes, also should include past project achievements including endorsements and statements favoring positive work the organization has accomplished.
NGO Management Team Functions
The experience and capabilities’ section of an NGO social development plan should reflect the experience of key decisionmakers, their roles in the organization and management processes.
This area should start off with current business accomplishments, listing the goals and objectives set by management to meet the mission statement and the needs of the organization. Key indicators could be raising a certain amount of funding, galvanizing and increasing a volunteer base for the organization.
The report also should highlight the management team and can include small biographies of other key executives, managers and staff.
Capabilities reporting should include new innovations which increase the capacity of the organization such as implementing a wireless network for a community, new training programs for management and personnel developing social programs.
Marketing Plan and Forecasts
Marketing plans and strategies reflect research coordinated by the organization to target resources through variables such as age, demographics, population and community or social development needs. Information compiled from marketing research determines how the organization develops a marketing strategy.
Marketing plans are critical to an NGO organization in areas of public and corporate awareness. When information from market research is compiled and streamlined, it should correctly represent the audience the NGO is targeting and the results of marketing strategies through a variety of feedback instruments.
Advertising efforts and campaigns developed by the NGO social organization should be stated in the business plan/report. The development of a new website, printing of literature and brochures, awareness campaigns and seminars are a few of the advertising methods which should be mentioned in the report.
Financial Reporting Instruments
Any business plan/report concerning an NGO social organization should have a section dedicated to the accrual of funding, fiscal management and financial projections. Financial projections provide a snapshot of the financial health of the organization and can reveal trends related to funding, expenditures and future budgets.
A detailed breakdown of donors and a reporting system should be included, which donors can request from the organization. NGOs receive a majority of their funding from private sources and the financial section of the business plan/report should reflect the amount of financial donations gifted to the organization.
Other reports that should be included in this section of the business plan/report are pro forma reports, profit and loss statements, balance sheets and an annual budget.
A well-developed business plan/report can lead to greater funding opportunities and awareness of the organization.