NONPROFIT BUSINESS PLAN
The fundraising business is one that requires great oral and written skills for any entrepreneur intending to start this business. Asides, these two skills, the entrepreneur must also be one who has great inter-personal skills as well as public relation skills.
Donors in many decades back only donated to fundraising organizations that they had an history with and therefore treated donations to these organizations as one would with paying bills, donors now are however different and donate based on perceived needs.
Fundraising organizations are becoming more proactive than reactive by using social media to raise funds in advance for a cause that might not have occurred yet. Strategies are developed and newsworthy events maximized in order to connect a cause with their mission, even though this might look more exploitative.
Are you making a life-changing product at little to no cost for a population in need? Are you providing an essential service to your community? If something was successful in the past but is now underfunded or defunct, are you planning on giving it new life?
Your organization is special or you wouldn’t spend so much time devoted to it. Lay out some of the nuts and bolts about what makes it great. Your nonprofit probably changes lives, changes your community, or maybe even changes the world. Explain how it does this.
Analyzing your market means where knowing your money comes from. Who are your supporters? What kind of person donates to your organization? Creating a “donor persona” could be a useful exercise to help you reflect on this subject and streamline your fundraising approach.
Who is going to be involved and what are their duties? What do these individuals bring to the table?
Include both the management team of the day-to-day aspects of your nonprofit as well as board members, and mention those who may overlap between the two roles. Highlight their qualifications: titles, degrees, relevant past accomplishments, and designated responsibilities should be included in this section.
The financial plan is essential to any organization that’s seeking funding, but also incredibly useful internally to keep track of what you’ve done so far financially and where you’d like to see the organization go in the future. The financial section of your business plan should include a long-term budget and cash flow statement with a three to five year forecast. This will allow you to see to it that the organization has its basic financial needs covered. Any nonprofit has its standard level of funding required to stay operational, so it’s essential to make sure your organization will consistently maintain at least that much in the coffers.
Money management skills are just as important in a nonprofit as they are in a for-profit business. Knowing the financial details of your organization is incredibly important in a world where the public is ranking the credibility of charities on the internet based off what percentage of donations makes it to the programs and services. As a nonprofit, people are interested in the details of how money is being dispersed within organizations, with this information often being posted online on sites like Charity Navigator, so the public can make informed decisions about donating.