Writing a nonprofit business plan often feels like a huge and intimidating task, especially when it’s your first time. And, it wasn't any different for Shellie Baxter, the founder of Our Genetic Legacy in San Diego.
In fact, I recently had a conversation with Shellie about her personal experience of starting from scratch.
We talked about how she overcame the challenges along the way and created a plan that laid a strong foundation for her entrepreneurial journey.
We’ve compiled those insights into this comprehensive guide, just for your help and inspiration right away!
What is a nonprofit business plan?
A nonprofit business plan isn’t just a professional, living document. But it’s a detailed roadmap that helps you run and grow a nonprofit organization successfully. It clearly articulates your goals, strategies to reach them, and steps to measure success.
Unlike a traditional business plan, it doesn’t focus on profit—but on your mission and how you’ll get funding and sustain your efforts.
Why do you need a business plan for nonprofits?
Good question, because you’re not a for-profit company.
But here’s the real fact: A business plan isn’t about just generating money. It’s about making your mission achievable and more feasible.
Here’s why it’s important for your nonprofit:
- Keeps you focused and grounded as well as ensures everyone’s working toward the same goals.
- Shows potential partners, donors, investors, and grantmakers that you’re serious about your mission, allowing you to secure enough funding.
- Helps you stay ahead and adapt to changes whether you’re expanding services or scaling your impact.
All in all, it’s about creating a lasting impact. Without a clear plan, you’re actually flying blind, and even the best intentions can fall short. So, that’s not a great look for any organization.
How to write a nonprofit business plan?
While preparing a business plan for nonprofits, it’s necessary to cover all the key aspects of your organization, such as its goals, strategies, financial projections, and many more.
Let’s break down each section and get into the nonprofit business plan outline:
1. Executive summary
An executive summary is like an elevator pitch that gives readers a quick, high-level introduction to your entire nonprofit business plan.
Though it's the first section, it should ideally be written in the end after completing all the sections. Why? Because this will help you summarize all the essential points from the rest of the plan.
Here’s a list of elements to include in your plan summary:
- Name of the organization and its location
- Nonprofit’s mission statement
- Impact of your nonprofit on society
- Programs or services provided
- Fundraising plan
- Financial projections
In short, your executive summary of business plan highlights the most important aspects of your nonprofit organization and captures readers’ attention. Hence, keep it short (1-2 pages), simple and compelling.
“When I started writing the executive summary for Our Genetic Legacy, I thought it’d be a quick, straightforward task—just something to check off the list.
But then I realized it’s the first thing potential donors and partners see, so it had to grab their attention and clearly explain why we matter.
The biggest struggle was keeping it concise while explaining our mission, vision, and impact. I kept rewriting and editing until I asked myself, ‘What would I say if I only had 60 seconds to pitch this?’
That mindset helped me focus, and suddenly, the summary flowed much better."—Shellie Baxter
2. Nonprofit organization description
This section is where you’ll need to explain what your nonprofit organization is all about, including its fundamental facts and details.
So, it’s a good opportunity to draft your nonprofit’s mission and key objectives in detail. It provides readers (whether that’s a volunteer, donor, or board member) an in-depth understanding of your organization.
While planning this section, consider describing the following components:
- Type of nonprofit business model
- Core values or guiding principles
- Vision statement
- Background history
- Key milestones achieved (if any)
- Short-term and long-term goals
Overall, this section lets you think through your nonprofit’s backstory and build trust with readers by highlighting your journey, values, and goals.
“Figuring out how to explain our mission in a way that felt real and not just full of buzzwords was tough.
I knew we wanted to focus on preserving the cultural and genetic heritage of underrepresented communities, but putting into words just how important that is—it took some time.
I finally focused on the impact we want to make—helping communities feel empowered by seeing their stories preserved and valued. That gave the whole section more meaning and made it feel authentic."—Shellie Baxter
3. Market analysis
Next, you have to conduct thorough market research and get valuable insights into the external environment or sector in which your nonprofit operates.
This will help potential donors or stakeholders understand what problem you’re addressing, who you’re going to help, and how your nonprofit stands out while comparing other nonprofits.
Here are a few components that you must include in this section:
Target market
To make this section more impactful, first, make sure there’s a real, pressing need for your services. And most importantly that you’re well-positioned to meet those market needs.
For example, Our Genetic Legacy is a dedicated NGO focused on preserving ancestral histories of Black, Indigenous, and People of Color (BIPOC) Americans.
By clearly narrowing their focus and defining their niche, they were able to identify their target audience and create programs that address a meaningful and underserved need.
Without a clear goal, it’s hard to understand and identify who actually needs your programs or services.
So, define your goals and discover your target audience. After that, break them down into smaller, more specific segments, including their needs. This will help you customize your programs and outreach efforts.
Competitive analysis
Research other similar organizations working in your area and take note of their strengths as well as weaknesses.
From that, locate the gaps in their services. What are they (key competitors) missing that your nonprofit can provide?
Highlight your unique value proposition and articulate how your approach is different or better. This shows you understand the broader environment and have a solid plan to stand out.
“Researching other nonprofits doing similar work was honestly a bit intimidating at first. Some of them were so established that it made me question how we’d stand out.
But as I kept digging, I realized there was a real gap we could fill. A lot of groups focused on cultural preservation, but very few were combining that with genetic heritage.
That helped me see our approach as something unique and gave me the confidence to lean into what makes us different."—Shellie Baxter
4. Products, programs, and services
This section is the heart of your nonprofit, as around 50% of the nonprofit entities’ revenue comes from selling goods and offering services. This eventually breaks the myth that nonprofits rely solely on donations.
So, mention what kind of products, programs, and services you’re going to offer to your neighborhood community.
Consider answering these questions to make this section more effective:
- What programs do you offer? What initiatives or projects are you working on?
- Who do they serve? What makes them special?
- How does each program align with your mission?
- What’s the impact they create for your beneficiaries?
- How do you make money? And where does your money go?
Lastly, try to outline your future plans for each program to demonstrate long-term commitment and viability.
“I wanted my offerings section to be perfect because it’s the soul of our nonprofit, but I kept getting stuck on how much detail to include.
The solution was breaking it down program by program. I made sure to highlight how each one directly supports preserving and celebrating cultural and genetic heritage.
That helped show not just what we’d do but also why it mattered."—Shellie Baxter
5. Marketing plan and outreach strategy
Your marketing plan and outreach strategy clarifies how actually you’ll raise awareness, attract supporters, and build a community around your nonprofit’s mission.
Start this section by describing your main marketing messages and key promotional channels you’ll use to reach beneficiaries, donors, and volunteers.
The following are a few strategies you may use to gain more attention and differentiate your nonprofit:
- Social media marketing
- Pay-per-click (PPC) advertising
- Print advertising or flyers distribution
- Partnerships with local businesses or other nonprofit organizations
- Public relations
- Community development workshops or events
If possible, document the return on investment for each promotional channel as thoroughly as you can. This will give investors and donors confidence that your marketing budget is being used efficiently and effectively.
“There are so many ways to market—social media, email campaigns, events—but where to focus? We couldn’t even afford to do everything.
After some trial and error, I decided to focus on platforms where we could connect directly with our target audience, like Instagram and Facebook, to share stories and updates.
We also leaned into partnerships with community leaders to help us reach more people without spending a lot."—Shellie Baxter
6. Operations plan
The business operations section sheds light on your nonprofit’s day-to-day operations and activities to explain how you’ll keep running your organization smoothly and efficiently to deliver its mission.
Here’s what to include in your operations plan:
- Everyday processes
- Supplier relations
- Inventory management
- Hiring or staff recruitment plan
- Legal requirements (necessary licenses or certifications)
- Facility and technology used
Simply put, this section gives a clear understanding of how your organization runs on a daily basis and who works on what activities.
“At first, I thought the operations plan was just about schedules and checklists. But when we had our first big event, I realized how much more planning we needed.
The biggest issue was coordinating with partners and volunteers effectively. To solve it, we created a simple communication plan—weekly check-ins and a shared calendar—so everyone is on the same page.
It’s not perfect, but it made a big difference in keeping things organized."—Shellie Baxter
7. Management team
Next, introduce the executive team members as the strong management team is the backbone of your nonprofit.
Begin by highlighting who’s leading your nonprofit business and why they’re qualified. Include a brief resume-styled summary of executive team members and board members.
Clearly define each person’s roles and responsibilities, along with their qualifications, professional experience, as well as expertise that help drive your nonprofit forward and succeed.
If required, create a clear, visually appealing hierarchical or organizational structure to showcase how decisions will be made. Something like this:
If you’ve volunteers, donors, or business partners, mention them as well. Plus, discuss how they’ll support your nonprofit.
“Highlighting our team felt awkward at first. We weren’t a big organization with fancy titles, and I worried it might look unimpressive.
Then, I decided to focus on why we were passionate about our mission. I shared snippets about our backgrounds and why each of us cared so deeply about the cause. It made our small team feel like a big deal."—Shellie Baxter
8. Financial plan
Your nonprofit financial plan is typically the detailed breakdown of the amount of funds you seek to raise and the key financial projections for the next few (3-5) years.
A well-prepared financial plan shows potential donors or investors that you have a solid financial strategy to manage money responsibly and grow your nonprofit effectively. It generally covers the following financial statements:
- Cash flow statement
- Income statement
- Balance sheet
- Fundraising efforts and goals
- Contingency plan
Besides these financial projections, estimate the revenue projections, operating expenses, and startup costs (if any).
“Numbers were never my strong suit, so writing the financial plan was intimidating. I kept second-guessing my projections, and it felt like I’d never get it right.
Then, I reached out to a financial advisor, who helped me simplify everything. They suggested using a basic financial forecasting tool and focusing on the essentials. It turned a headache into a plan I could actually be proud of."—Shellie Baxter
9. Impact measurement strategy
For a nonprofit, an impact plan is as important as a financial plan. This is so because nonprofit organizations aim to create social change and a social return on investment, not just a financial return on investment.
So, clearly define the changes your nonprofit will bring to society. Plus, highlight the below mentioned points:
- Specific goals you want to reach
- Key Performance Indicators (KPIs)
- Methods to measure progress (surveys, reports, or case studies)
- Communication plan to share the impact
Well, this section will help you prove that your nonprofit is making a difference and ensures accountability.
“I didn’t think measuring impact would be hard, but it really was. How do you put numbers on something as emotional as helping someone in need?
After a lot of thought, I focused on smaller, tangible wins—like hosting our first workshops and creating educational materials—while tying them to bigger, long-term goals, like reaching more communities and building lasting partnerships.
Breaking it down like that made it feel more real and achievable."—Shellie Baxter
Download our free nonprofit business plan template
Ready to write your nonprofit business plan from scratch? But need a little extra help to get started? No worries; here’s our nonprofit business plan template that you can download for free.
This modern nonprofit business plan template has helped thousands of entrepreneurs successfully jump into the nonprofit sector. And, I hope it does to you as well. With its practical insights and examples, you can even easily create your own plan.
Conclusion
After exploring this detailed guide, you’re now well-equipped to draft comprehensive yet professional-looking nonprofit business plans.
But if you’re feeling stuck or looking for expert-level advice, try to collaborate with one of the best business plan consultants, PlanGrow Lab. Our team of experts will help you create and refine your plan, including all the essential details that every donor will appreciate right away.
So, wait no longer; make a call and connect with us!
Frequently Asked Questions
What should be included in a nonprofit business plan?
You should include the following key elements in your nonprofit business plan:
- Executive summary
- Organization overview
- Industry analysis
- Programs and services
- Marketing plan
- Operational plan
- Management team
- Fundraising plan
- Impact plan
- Financial projections
What investors look for in a nonprofit business plan?
Here’s what investors look for in a nonprofit business plan: a clear mission, a strong impact, and a solid financial plan. Moreover, they want to see an effective strategic plan and actual proof that your nonprofit is making a big difference.
What are the most common challenges in creating a nonprofit business plan?
The biggest challenge is getting started and figuring out what to include in formal nonprofit plans. Another common struggle is developing a realistic budget or balancing big ideas with practical goals. It’s easy to overthink, but taking it step by step can really help.
How can a nonprofit organization secure funding?
If you want to secure funding for your nonprofit organization, follow these steps:
- Outline your clear mission statement and show the impact you’re making.
- Apply for grants, host fundraising events, use crowdfunding platforms, and build strong relationships with donors.
- Always show how their money will be used and follow up with updates.
How often should a nonprofit update its business plan?
A business plan is a living document—it’s not something that you’ve written one time and forget about. It’s advisable to review and update your business plan at least once a year or more often.
If there’s a sudden change, like new programs or funding challenges, update it as soon as possible. Keeping it up-to-date helps you stay focused.
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