Tuesday, April 29, 2008

Main Components of the NPO Business Plan

A not-for-profit business plan is generally the same as that for a for-profit enterprise. The main components include:

  1. Title page – This page lists the official name of the NPO as well as the board members (or directors in some states) with titles and a date.
  2. Executive Summary – an outline of what the subsequent pages will contain. The key points are arranged with appropriate facts.
  3. Corporation Description – a summary of how the NPO came to be and what the founder hopes to accomplish with it. This section also includes an analysis of which parts of the business model make the mission or board likely to succeed.
  4. Market Analysis and Data – This section demonstrates the need for the organization as supported by real numbers and an analysis of the local constituency. Surveys and demographic data are appropriate here.
  5. Services – a description of what exactly the NPO will offer the members of the community.
  6. Operations – a description of how the NPO will go about providing said services.
  7. Marketing Plan – a description of what types of media the NPO will use to get people interested in it, and what position the organization will take within the NPO “marketplace.” If a board member or committee of members is responsible for marketing, this section lists who is involved as well as their credentials.
  8. Board of Trustees and Members – an outline of how board operations will be handled, who will be part of the board, and how elections will be overseen.
  9. Management and Personal – This section describes a business plan that outlines each person’s responsibilities within the company. Any special or specific policies should be mentioned here.
  10. Required Funds – an explanation of what funds are necessary to the NPO and how procured funds will be spent.
  11. Financial Statements and Projections – the NPO’s five-year plan, along with the supporting reasoning, should be stated here. Historical documents are also appropriate in this section.
  12. Appendix – This section includes tables, data, exhibits and charts. NPO bylaws and other rules for order to be adopted by the board should be included here.

Having a clear and concise business plan is foundational to successful everyday operations. Gathering the information necessary to a complete plan that is illustrative of how a nonprofit will operate can help a founder to have a complete picture of the organization and to be able to anticipate any future trouble.