business plan template charity uk

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Free Example UK CIC or Charity Business Plan Template

Uk cic and charity business plan template - 3 steps.

I've used the term charity business plan and as an example. Your business plan is what you aim to achieve in the coming year.  However, this planning template and checklist will work just as well for fundraising, project and other plans, and will work just as well for your CIC or other not for profit organisation.

The only right way to create a charity business plan is whatever way works for your charity and you can use this simple 3 step process as a template to create your CIC or charity business plan.  That could be anything from a one page business plan in Word, for a very small CIC, to a substantial, detailed business plan for a large UK charity.

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Step 1 - charity business plan goals & objectives.

Your objectives (or goals) are what you must achieve to deliver your charity business plan.  These can either be long term (strategic plan)) or nearer term, such as annual business, fundraising and project plans.

Charity Business Plan Objectives - Strategic Plan

Often strategic and business, or other annual plans can be seen as quite separate, but these are not.  Next year's business plan, is Year 1 of your strategy.  Looking at your strategic plan objectives, what must you achieve in the coming year to deliver these?

Charity Business Plan Objectives - Operations

You also need to ensure that your charity continues to be well run and delivers the high quality support you want it to.  Look at your operations, such as delivering services for your beneficiaries, fundraising, finance, people and other activities.  What are the key activities and what must you achieve in these areas areas?

STEP 2 - CHARITY BUSINESS PLAN KPIs (TARGETS)

Trying to measure everything would take a huge amount of time and most won't really matter.  Your Key Performance Indicators (KPIs) are the key targets you use to measure and monitor your progress to achieving your business plan objectives.

Measuring Charity KPIs

There are really only 3 things you might want to measure - quality, quantity, time and cost.  And, these are interlinked.  The public sector is particularly prone to what are called perverse outcomes.  Focussing on a single KPI measure, to the exclusion of the others that nobody thought about, but which turn out to be really important.

• Buying higher quality fresh food and/or preparing food from scratch, rather than buying in pre-prepared.
• Preparing more meals and/or extending opening times.
• Using pre-prepared ingredients and buying more equipment/expanding kitchen capacity.

You don't need to measure all of them for everything, if the other factors aren't important, or won't change.  I've provided some examples of planning KPIs below.

How To Set Charity Business Plan KPIs

In order to ensure you deliver your charity business plan objectives, you need to be able to measure these and monitor progress.

The first step is to set KPIs for each objective using SMART – that is your KPIs are S imple, M easurable, A chievable, T imely and R elevant.

You then need to decide who will be responsible for delivering and reporting these, any milestones in terms of when activities will be delivered and how and when these will be reported.

Once you've set your business plan KPIs, ask yourself if these are the key issues you need to monitor and manage to deliver your business plan objective. Are there any KPIs you don't need and is there anything missing that you do?  And does each KPI meet the SMART criteria above?

STEP 3 - IMPLEMENTING YOU CHARITY BUSINESS PLAN

The Charity Excellence Data Store tracks sector resilience and a key theme is a lack of realism in charity planning.  Ambition is a hallmark of the sector, but 'Aspirational' is the flip side of planning to fail, if that involves committing people and resources to business plans that aren't achievable.  Here are my ideas to help you ensure that your business plan will succeed.

Charity Business Plan Reality Checklist

For your charity business plan to work, you need to be able to confidently answer 'yes' to each of the questions below.  That's about making an objective assessment of each.

• Our charity business plan includes everything that's important to us that we want to achieve
• Our business plan objectives and targets are realistic and achievable
• We will have enough people, with the necessary skills and experience to deliver our plan
• The key risks have been identified and quantified
• We have taken adequate steps to manage these, to ensure no risk remains unacceptably high
• There is adequate funding in our budget to resource all of our business plan objectives
• Our fundraising targets are realistic and we are confident that these should be achieved
• For example, not launching a project until funding is secured, or having plans to scale back activity
• Our business plan has been communicated to everyone who needs to know about it and it is simple, clear and will be understood by them
• The information reported focusses on the key issues and will enable us to take action in good time, if we need to

Congratulations, you have created a simple, clear and effective business plan.  If you are unsure about any of the above, revisit your plan and make any changes you need to.

Communicating Your Charity Business Plan And Making It A Success

The World is full of detailed and beautifully crafted business plans sitting on shelves gathering dust.  In any, except the smallest of charities, it is your staff and volunteers who will deliver your business plan, so they need to know what you want them to do and feel motivated to do so.  If you e mail a big complicated business plan to everyone, it may not be read and, if it is, may not mean much to its readers.

You need to communicate your plan in a simple, clear way that engages them. It also needs to be reflected in any other plans or procedures. For example, your budget and risk plans, any project plans and, for larger charities, appraisal objectives and departmental work plans.

For reporting, sometimes reports are too 'fluffy' or nor easily understandable, or far too long and complicated.  Often these can be simply rubber stamped by boards.  Ensure that your reports meet your needs, focus on the key issues, are clear and understandable for trustees, and acted upon.  Here's the  Charity Excellence guide  to making reports more effective and less work.

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Charity Strategy and Business Planning

Pro bono management consultancy, help with charity business planning, charity business strategy, and charity business plan template..

Free management consultancy for charities

Cranfield Trust provides free, tailored management consultancy support to welfare charities. 

Free management consultancy

Free charity telephone advice

Advice on immediate questions and management challenges is available via Cranfield Trust On Call, our telephone advice service.

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Working with a management consultant

Before you start work with an external consultant, Stella Smith gives some useful pointers.

Is management consultancy right for your charity?

CHARITY BUSINESS STRATEGY AND PLANNING 

Having a good charity business plan in place will not only help you to have a clear focus, it will position you to attract new funders, volunteers and supporters. , thinking about and aligning your charitable activities also gives you time to think about potential risks and opportunities. a well thought out business plan is vital part of building a robust and successful charity. .

Webinar: How to create a business plan for your charity

The below webinar was delivered by Cranfield Trust Volunteer Stephen Cahill, as part of the ongoing Essentials to Excellence webinar series. The style of the webinar is a mix of presenter input and lively case studies with as much input as possible. You will leave the session equipped with simple practical steps you can take to translate your thoughts into action quickly.

You will learn how to:

• Be successful at business planning – what has changed forever and why you need to revisit your business planning approach.
• Make your business plan robust and avoid being ‘blindsided’.
• Use your business plan as a focus for funders.
• Do business planning with half the effort for twice the result!

Stephen Cahill Bio: 

Stephen Cahill BSc MPA (Warwick) is a semi-retired executive with extensive senior experience across the public, private and charity sectors. He has over 30 years of experience in helping organisations improve their governance, strategy, and operations. He specialises in helping organisations to achieve rapid results by focusing on,"the things that really matter".  He has been an active Cranfield Trust volunteer for nearly a decade.

Reworking your strategy

Six steps to reworking your charity’s strategy in the ‘new normal’ by Cranfield Trust Volunteer, Stephen Cahill. 

Build your charity business plan

Questions to ask to help you build your charity's business plan.

Business Planning - questions to build your plan

Charity business plan template

A template for a straightforward business plan, in Word and PDF versions.

Word template for three year business plan

PDF template for three year business plan

LEAN Management

In reviewing your activities and writing your business plan you may wish to consider your processes to ensure that they are efficient and contributing to a high quality of activity.  This article on LEAN management provides some guidance.

Introduction to Lean

Is merger right for your charity?

Volunteer Matthew Wilkley, Director of Income Generation at Independent Age, considers merger as a strategic option, with particular reference to fundraising.

Blog: To merge or not to merge

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• Good Practice Guidance

Business plan good practice guidance

By reading this guidance you'll get help with how to develop a business plan, including basic headings and prompts on how to review your plan as it develops. It also includes a list of further resources and a glossary of terms to do with business planning.

Please note: if you already have a business plan, you don’t need to produce a new one.

Writing your plan

Before producing your business plan, consider:

• if you need expertise in areas such as market analysis, taxation or legal matters
• who will be involved in writing the plan, including staff and trustees
• the timelines for the business plan to be approved

The headings below give a basic framework for developing a business plan, but every organisation is different so you may want to use different headings or additional content that better explains how your organisation works:

• executive summary
• about the organisation   
• governance and management structures
• market appraisal and current approach
• financial appraisal
• risk register
• monitoring and evaluating the organisation
• organisational impact assessment
• contact details for the organisation

Once you have a draft it’s a good idea to review it to assess its strengths and weaknesses, tackle any gaps and ensure it’s as clear, concise and logical as possible.

Your business plan will be a document you refer back to continually and update in the general course of running your organisation, so ask yourself:

• Does your business plan present a strategy for achieving your aims and your mission?
• Does your business plan align with our Heritage 2033 investment principles ?

Executive summary

Your plan should start with a concise overview (no more than two pages) highlighting the most important information in the document, including:

• an overview of your organisation including your mission statement and what you want to achieve
• the organisation’s key aims for the period of the plan (usually 3–5 years)
• key elements of your strategy including how you will assure the longer-term financial future of the organisation
• the main risks facing your organisation and how you plan to manage these in the short, medium and long term
• an explanation of how your organisation is resilient enough to meet challenges: likely including financial information, how you will ensure governance and management structures are fit for purpose, and the monitoring and evaluation processes you have in place
• any additional key information

Review this section by asking:

• Is it a well-structured summary highlighting key points from the plan?
• If someone with no prior knowledge of your organisation read this summary on its own, would it make sense?

About the organisation

This should provide information on the structure, objectives and activities of your organisation, including:

• when and why it was started
• its purpose, aims and key successes
• the key areas of activity, products and/or services that you deliver, how they are distinctive and how will they be developed over the course of the plan
• details of the targets you have set for each area of activity
• Legal status, eg: unincorporated association or trust, or incorporated by Act of Parliament, Royal Charter, as a company limited by shares/guarantee, (Scottish) Charitable Incorporated Organisation or Industrial and Provident Society. Indicate whether it is a Community Interest Company or is registered or recognised as a charity.
• whether it has a membership of individuals, and if so the number of members
• the names of any other entities with which it has a formal association (eg: any bodies with which there are funding agreements or that have the right to nominate multiple board members)
• Whether it is a partnership of different organisations with a shared interest, identifying the other organisations/stakeholders you will be working with, the basis of the arrangement and whether it is formal or informal. Summarise any partnership agreements.
• the number and roles of paid staff (in total and full-time equivalents) and explain the tasks they perform within the organisation
• the role of volunteers (give estimates of the number of regular volunteers, the tasks they do within the organisation and the total number of hours they work on each task every year)
• describe how you fund your organisation’s activities, noting any sources that account for a particularly large proportion of your income and, if these come from a funding body, when this funding will be subject to review
• Have you accurately described your organisation’s purpose and main areas of activity and how you are distinctive?
• Do you highlight key successes?
• Is it clear what services or products you offer and how you intend to develop them?
• Have you set clear targets?
• Is the structure of your organisation clearly set out in a way that is easy to understand?
• Have you included key information about your legal set up and how you staff and fund core activities?

Governance and management structures

This should explain your organisation’s management structure, decision-making processes, lines of communication and reporting. It can include simple organograms/network diagrams to show your governance, management and staffing structures.

Governance summary

This should provide an overview of the governance in place within your organisation to ensure that business plans and strategies are approved and monitored.

Describe the size and composition of the governing body (eg: council, board of trustees, board of directors) and, where appropriate, arrangements in place for succession planning and board development training. List the roles covered by your senior management team.

You should explain the make-up of your board. This includes how the board provides a diversity of perspective and skills. You should also explain their engagement with the organisation, particularly in relation to:

• business planning, pricing policies and marketing strategies
• financial management and administration
• fundraising
• approving potential projects and maintaining oversight
• commissioning advisers and consultants

Summarise the functions of any sub-groups, describing their membership, roles and responsibilities, and specifying any delegated powers they are authorised to use. Indicate how frequently such groups meet.

Management structure

You should include simple organigrams or network diagrams. These should show each job title. There’s no need to include individuals’ names.

Show how many post-holders are employed in each position and whether they are full-time, part-time or volunteers. 

An accompanying schedule should list each role, summarising its purpose and function, and the name of the post-holder (so we can see if there are vacancies in key roles).

You should provide information on your recruitment policies for core staff. If you use external advisors regularly, you should give details of their company and role and how they relate to the positions on the organogram.

If volunteers are a key part of your organisation, you should explain:

• the roles volunteers play in the organisation, including the types of responsibilities they have
• how many volunteers the organisation works with
• the number of volunteer hours
• the role within your organisation responsible for managing volunteering and how this is monitored
• Have you covered how your organisation is managed and governed in a clear way? Is there any information missing?
• Have you included the main challenges you face in running your business?
• Is it clear what skills and experience are needed going forward? Have you included information on how you develop skills within the organisation?
• Have you included plans for developing your structure and processes in the future?

This should include a more detailed overview of the aims of your organisation for the period of the plan and how they relate to your overall mission, setting out the key activities you will undertake to achieve them.

Include any projects you plan to take on, demonstrating how they will work together to achieve your organisation’s aims. You should include information on the impact additional projects will have on your organisation and how you plan to deal with those impacts.

Include dates and a timetable for reviewing and updating your strategy.

Market appraisal and current approach

A market appraisal looks at your offer within the context of the marketplace. You should assess your market, your competition and your marketing strategy. Market analysis should be proportionate to the scope and size of your organisation.

Describe your current market:

• Is the profile of your heritage attraction or place of local or national interest? Is it well known?
• Is it valued by a wide cross-section of the public or a more limited special-interest group?
• How many customers have you had each year over the past 10 years?
• What are the demographics of your current customers and visitors – their age, gender, income, education, and occupation? What proportion are family groups/schools?
• Where do they live – very locally, from the surrounding region, from the UK or overseas?
• What proportion of customer contacts are repeats?

Show you know your market:

• On a national or regional basis, is your market growing, falling or stable?
• How does this relate to your organisation’s experience?
• Are there any national socio-economic trends or policies that will have an impact on your market?
• How might foreseeable political, economic, social and/or technological changes affect your market?

Consider your potential/target audience:

• Who are the people most likely to access your service?
• Are they single or repeat customers?
• What are their needs, behaviours, tastes and preferences?
• What has research shown you so far?

Review the competition

All organisations have competition of some sort. Find out what organisations are in competition with yours. Look at how they price their activities, their business strategy, strengths and weaknesses.

Develop a competitive strategy for your organisation

Do a ‘SWOT’ analysis looking at the strengths, weaknesses, opportunities and threats to your organisation.

Use evidence-based information and remember to include internal and external factors. Describe what is unique and special to your organisation and include the disadvantages you have.

Outline your marketing strategy

A marketing strategy is how you will reach new audiences. It will likely be based on evidence from:

• data you have collected, over as long a period of time as is achievable
• national data, for example, the Taking Part survey (in England), national tourism surveys, national and local authority statistics
• existing market research
• market research commissioned to estimate potential markets and the potential popularity of the business with your target market
• reviewing operations that are similar to those you propose in your own area and further afield, using annual accounts available online from the Charity Commission (England) or Companies House

Your marketing strategy should clearly set out:

• people:  who your target audiences are, including the size of these audiences
• product:  what you’re offering people
• price:  your pricing strategy and the rationale behind it
• promotion:  the communication channels and messages you will use to reach your target audiences

Financial appraisal

This should include a general financial assessment of your organisation, an overview of your total financial need to support your day-to-day operations and details of your financial model, including your main sources of funding.

Provide supporting documents in an appendix at the end of your business plan, detailing:

• a forecast income and expenditure account
• a cashflow forecast showing the expected monthly cashflow
• statements of assumptions underlying the forecasts

Detail the assumptions made in your calculations. An assumption is anything you are relying on to make forecasts. For example, the average number of visitors you are expecting based on the previous year, or any unknown costs of materials. Make sure you also include details of any reserves.

You may want to undertake a sensitivity analysis to show what your finances would look like if your projections fall short by various amounts, for example between 5% and 20%. What would the risk to your operation be if either of these scenarios were to occur and what action might you need to take?

• Have you described how your organisation operates financially in a way that is easy to understand?
• Have you included an overview of your total financial needs, what your main sources of funding are and how your main activities contribute to achieving this?
• Have you included an expected cashflow forecast and income and expenditure forecast?

Risk register

A risk assessment identifies your organisation’s internal weaknesses and external threats. A risk register, usually set out as a table, lists all the identified risks prioritised in order of importance.

For each risk, outline:

• the nature of the risk, eg: technical, market, financial, economic, management, legal
• a description of the risk
• the probability of the risk happening: low, medium, high or as a percentage
• the effect the risk could have, eg: on cost, time, performance
• the level of effect: low, medium, high, or as a percentage
• how you would prepare for and lessen the risk’s effect
• Have you listed the key potential problems that your organisation faces?
• On reflection, are they your main risks or can the list be reduced?
• Have the risks been properly calculated?
• Do you need to do any further thinking about how risks will be mitigated?
• Are there any alternative courses of action that have not been considered?

Monitoring and evaluating your organisation

In this section you should set out your plans for monitoring and evaluating your organisation's performance and impact to ensure you are meeting your aims and achieving your mission.

You will need to gather different kinds of information at various stages, starting at the earliest opportunity by benchmarking where you are to start with. You should set a series of milestones, financial targets and performance targets to track these.

Evaluation should be carried out regularly using the monitoring information. You should summarise your planned approach and include details of milestones. Your approach should show when you anticipate evaluating your achievements and specify the scope of the evaluation and whether your organisation plans to bring in any expertise to help you assess the extent to which you are meeting your aims.

• Have you included details of the changes you want your organisation to make? How does this link to your mission and aims?
• Have you set out how you intend to monitor progress? Will you need any external advice?
• Have you detailed what success looks like? How will you know if you have achieved your targets?
• Do you have a plan for linking your findings into future decision-making? How do you report back to your board of trustees?

Organisational impact assessment

Within your application we want to see how your proposed project will impact your organisation and its finances and continue to deliver against our investment principles for a period of five years from the end of the project, including:

How will any additional costs created by the project continue to be funded?

These can include additional staffing and housekeeping costs, business rates, maintenance obligations arising from implementing management and maintenance plans (and, if applicable, conservation plans ). Document these additional costs in a table.

Where the project is expected to lead to reduced expenditure (for example, reduced energy expenditure, productivity gains due to improved technology), include the costs of the savings in the table to give the planned net additional cost or saving. 

What additional volunteer input will be required?

Tell us about additional numbers of hours to be worked and the number of additional hours required. Indicate where these volunteers come from and the impact on your volunteer management and training arrangements. 

Are there any changes in governance or management that could affect the project?

Tell us about any relevant changes to board composition or committee structure, or variation in individual duties or responsibilities. If the structure will be different during different phases of your project, provide separate diagrams to explain the arrangements. Outline any other material change in how the organisation will be managed as a consequence of the project.

Provide the following financial projections:

A statement of unrestricted funds, or of income and expenditure where the organisation is a local authority, university or other large organisation and the scale of the project is immaterial to the organisation's total financial circumstances. Where the organisation has a trading subsidiary, its projections should be consolidated with those of its parent. Include:

• the organisation's balance sheet
• the assumptions on which the financial projections are based
• a sensitivity analysis

In carrying out this impact assessment you should:

• Use the market appraisal you have carried out in your overall business planning to give details of your market size and the income generated. The assumptions should clearly show the basis on which the numbers have been calculated.
• demonstrate that the general trend will be for the organisation to generate annual surpluses on its unrestricted funds
• Base your assessment on your latest completed financial year if you have been in existence for that length of time (or the current year budget). Use this as a starting point for your projections so you can clearly assess the net impact on your financial position from the incremental, on-going income and expenditure caused by the project you are proposing.
• Include in the sensitivity analysis the income items that are most critical to the organisation's success, are most uncertain or contain the greatest risk. By adjusting these by percentages between 5% and 20%, depending on their nature and risk, it is possible to see the impact on the reported surplus.

Contact details for your organisation

At the end of your business plan, include:

• head office address
• telephone number
• email address

If you need to include additional information to support your plan, for example, evidence or reports you have commissioned, external advice, financial information or visuals which support the plan, add these as appendices.

When you have completed the plan, review your appendices to make sure you haven’t missed any relevant detail. Check whether you have included information in the main business plan that should be listed in the appendix instead.

Additional resources

• Sample business plans for various industries.
• Business planning guidance for arts and cultural organisations   commissioned by   Arts Council England for the arts and cultural sector.
• The Sustainable Sun tool : 10 steps towards financial sustainability from the National Council for Voluntary Organisations.
• An introduction to benchmarking , developed by The Audience Agency.
• How to build a measurement and evaluation framework , developed by New Philanthropy Capital.
• Impact and evaluation resources from the Small Charities Coalition
• DIY toolkit on how to invent, adopt or adapt ideas that can deliver better results, created by Nesta, the UK’s innovation agency. It includes a template for  SWOT analysis .
• Various business planning resources from the Scottish Council for Voluntary Organisations.
• Various resources to help you run your organisation from the Wales Council for Voluntary Action.
• Resources and templates relating to business planning , including a template for developing a cashflow, from the Small Charities Programme. 

Glossary of terms to do with business planning

Aims:  a broad statement of intent.

Asset : an item of value owned and controlled by the organisation that has a useful life longer than a single accounting period.

Budget : a plan for future activity expressed in terms of incoming and outgoing resources.

Cashflow : the pattern of an organisation’s income and expenditure. Having surplus cash in hand after being able to meet all debts on the day they are due is a ‘positive’ cashflow, not having cash to meet debts as they fall due is a ‘negative’ cashflow.

Forecast : a   financial projection, based on performance to date, of where the organisation expects to be at the end of the current financial period. Revised forecasts are often prepared throughout the financial year.

Impact: the intended or unintended sustainable changes brought about by an initiative, project, programme or organisation.

Mission : the overall guiding direction of the organisation, which usually states your purpose, refers to what your organisation does, who it does it for and what is unique or different about what you do.

Objectives : achievements set out for a business to aim for, often within a certain timeframe. These should be ‘SMART’, ie: specific, measurable, achievable, realistic and time-based. They underpin planning and strategic activities and serve as the basis for performance monitoring and evaluation.

Trustee: a person who has independent control over, and legal responsibility for, an organisation’s (especially a charity’s) management and administration.  Find out more about trustees on the Government’s website .

Sensitivity analysis: tests different scenarios to see how they will affect your bottom line, for example by increasing and decreasing your financial projections by between 5% and 20%.

Unrestricted funds: money that can be spent on any activity that furthers the organisation’s purpose.

CHARITY BUSINESS PLAN: The Ultimate Guide To Writing A Non-Profit Business Plan

• by Kenechukwu Muoghalu
• August 14, 2023
• No comments
• 7 minute read

Table of Contents Hide

What is a charity business plan , why do i need a charity business plan, #1. executive summary, #2. present your opportunity, #3. target audience, #4. strategic plan objective, #5. your products and services, #6. operational plan, #7. marketing plan, #8. financial plan, #9. management team and board, #10. appendix, charity business plan template checklist, how many pages should my charity business plan be, how do i start a non-profit with no money, do not let your charity business plan miss out, charity business plan faqs, can i make money owning a charity business, how do charity owners make money, how do i start a small charity.

A lot of charity organizations do not like the idea of having a business plan. This is because they think that creating a business plan for their charity organization is a waste of time. But wait! What makes you think so? Isn’t a charity organization a form of business? Be it a profit or nonprofit, it makes no difference. Learn to accept that it is still in the business genre. This is why we have created an example of what a UK template checklist looks like, just to guide you while writing your charity business plan.

There are lots of benefits to having a business plan for your charity organization. This article will furtherly cover those grounds. Shall we! 

A charity business plan isn’t just a document of many pages. When you define it like that, it is said to reduce its actual value. A charitable business plan details the products and services your nonprofit organization provides. A charity business plan also contains the people on your team, the community you work for, your financials, goals, and how to attain those goals. Now, this right here can count as a definition. 

Don’t make the mistake of starting that excellent idea of yours without having a charity business plan on standby. Even those dreams and ideas can turn useless if you cannot formulate, execute, and implement a plan that can help you achieve them. 

Creating a nonprofit business plan doesn’t have to be long and bulky. Even a short business plan can serve its purpose more than a long one. All it needs to contain is the necessary information about your organization and you are good to go.

Heaven yes! You do need a charity business plan. Having a charity business plan will save you tons of pitfalls. A charity business plan can help you create forecasts for revenue and also help you plan how to utilize any money that comes in. You would have a clear guide on all the activities your organization goes through. You can even measure your growth and denote where changes are needed for more growth. 

When you talk about good business planning, you talk about setting goals , carrying your team along, tracking performance, and improving. Every business needs these essentials to grow, no matter the nature of the business. Even if you are not interested in whatever profits the organization will yield due to your large heart, you still need to run a healthy organization. Whichever angle you come from, you can’t run from it. 

Read Also: How To Register A Business: Detailed Guide To Business Registration In The Uk

For example, when you run a charity business, you need to always report and plan with the board of directors. Most of the time, the financial status of the organization is mostly what is being discussed. This is where your charity business plan comes in. It can help you compare your actual results to your financial forecasts. It can guide the amount of spending you do while keeping your financial position in check. 

Moreover, keeping a charity business plan can also help attract sponsors, donors, or even lenders who want to understand how your organization works and help you achieve your goals. 

The Ultimate Guide to Writing a Non-profit Business Plan

To create a charitable business plan, you will need to either follow some examples, which can also be accessed in a PDF, or follow these outlines. These outlines should be in check while creating a business plan for your charity organization. Nothing should be left out. This ultimate guide includes:

This is the general overview of the whole business plan. It is usually the first section to read and the last to write. While in this section, avoid jargon and write as though an external eye is going to access it. It should be easily accessible and easy to read. Go ahead to briefly state the overview of your mission. Include the services you provide and how you fundraise. 

A great way to do this is by using a positioning statement . In this section, describe the problems people face and how your organization can solve them. It can be giving tutors to kids or providing food to a large number of people. Explain how your organization is different from other, and state what you do to help the community and saves lives. 

If you have a specific target audience that your organization caters to, then specify it in this section. State who benefits from the services you render. You should also note that it is possible not to have a particular target market. This means that your product is utilized by all. 

In your strategic plan objective , mention those plans and visions you want to observe next in your organization. With those improvements and a project plan, you are ready to take. For example, you feed 300 people per year, but then you are planning on making it 500 this particular year. It can even be about your organization. You can choose to grow from a regional nonprofit to a national nonprofit organization. Talk about those long-term goals in this section and work towards getting them done. 

Just like the name implies, you will need to define the products and services you offer. Talk about how you will raise money and serve your community. Detail every item and avoid keeping it general. In this section, you will need to include even the smallest detail that you think no one would notice. 

How will your charity organization operate? What are the legal structures, organizational structures, location, and inventory? What about the management team? How would they operate? You will need to answer these questions in this section. 

When writing your charity business plan, our marketing strategy is an important factor because you will need to promote your organization. You will need to make it known, and let people know the services you offer and what your charity organization is all about. While at this, you can indirectly attract sponsors or donors that love what you do and will help in any way. 

This section will have information on your financial details. You will include all your current funding, expenses, liabilities, revenue, and assets. Add statistics and make it more professional. Add graphs to make it more comprehensive. This section is also the most crucial to loaners and donors. Add expected expenses as well, salaries, utility bills, website hosting, insurance, subscriptions, and anyone expenses that the organization will be running.

List the individuals that will be present in your organization. Clearly, they have different duties and responsibilities. Both your day-to-day team and your board members should not be left out. Feature those capable workers that always put the organization first before any other thing. Indicate their qualifications and degree, and don’t forget to also mention how good you are too. 

In this section, you will be free to include anything extra that you wish to. Any special feature that you think shouldn’t be exempted from your charity business plan? It can be the bios of your board members and any other details you feel are relevant for the section. When you follow all these, there shouldn’t be a reason why you will not have a successful charity organization. 

To help you get started with your UK charity organization, we have created a business plan example template. This charity business plan template can also be utilized in other locations apart from the UK. So we urge you to explore. Don’t fret. Let’s take a look at our charity business plan example template. They include: 

• Define your goals and milestones.
• Understand your team and other stakeholders.
• Assess your financing model.
• Identify your risks and manage them. 
• Attract investment and volunteers.
• Research and discover new opportunities.
• Kink your plan.

You can have from seven to thirty pages in your business plan. It must not be made too long before it can serve its purpose in your organization. Just keep it clear and concise for anyone to scale through without difficulty. But why bother when we have an already composed charity business plan that is highly convertible. All you need to do is to get a copy here and start your journey to success. 

The best action to take is to approach potential investors or donors for help. While doing this, you will need to explain the nature of your organization and whatever idea you have for its growth. Even with no cash at hand, you can still make this work. 

Meanwhile ,

Our main priority is to boost your charity organization and to give you an opportunity that is rare to find. 

Have you tried creating a plan and it seems tough? Do you have questions that you don’t have an answer to even after multiple trials? Stop trying! 

Your plea has been heard and that is why we will be giving you a uniquely designed charity business plan. A plan that multiple charity organizations have tested and confirmed its productivity. You won’t have to stress more because it is simplified and easy for anyone to access. Take your charity organization to another level now!

Nonprofit organizations have proven to be created out of passion and enthusiasm. But passion without a proper business plan will render your zeal powerless. Imagine being patriotic, going to war without a weapon. How would you win? Just because it is labeled “nonprofit” doesn’t mean that you should operate it like any other business out there. Make a difference with your charity business plan. 

A non-profit organization doesn’t earn a taxable profit. But that does not mean that the people that run it can’t receive a taxable salary. The founder can ensure that its workers earn a living, while still running a charity organization.

Charity businesses can earn money through regular activities like using volunteers, hosting fundraising events, sponsoring occasions, selling products, or even running adverts that can bring in donations.

Starting a charity business can be hectic but there are some steps to follow to make it a better experience. Start by defining your mission, picking a name, registering the business, opening a website, raising some cash and staying lean. Don’t forget to also own a Charity Business plan, which you can create using a UK template.

Starting a charity business can be hectic but there are some steps to follow to make it a better experience. Start by defining your mission, picking a name, registering the business, opening a website, raising some cash and staying lean. Don't forget to also own a Charity Business plan, which you can create using a UK template.

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Kenechukwu Muoghalu

Kenny, an accomplished business writer with a decade of experience, excels in translating intricate industry insights into engaging articles. Her passion revolves around distilling the latest trends, offering actionable advice, and nurturing a comprehensive understanding of the business landscape. With a proven track record of delivering insightful content, Kenny is dedicated to empowering her readers with the knowledge needed to thrive in the dynamic and ever-evolving world of business.

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How to Write A Charity Business Plan?

Writing a charity business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Highlight the charity programs you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of charity company you run and the name of it. You may specialize in one of the following charity businesses:

• Humanitarian charities
• Public charity
• Private charity
• Health charities
• Educational charities
• Environmental charities
• Animal welfare charities
• Describe the legal structure of your charity company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established charity service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Conduct SWOT analysis:

Competitive analysis:, market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your charity business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products of Your Bicycle Shop

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your programs:

Mention the charity programs your business will offer. This list may include:

• Direct assistance
• Education and training
• Healthcare & medical services
• Social services
• Advocacy and awareness

Describe the objectives behind programs:

Supportive services:.

In short, this section of your charity plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Marketing Mix:

Marketing channels:, fundraising strategies:.

Describe the fundraising strategies you plan on implementing to generate revenue for your nonprofit. Your nonprofit may generate income from grants, major gifts, individual giving, charity events, online fundraising, corporate sponsorship, etc.

Donor Retention:

Overall, this section of your charity business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your charity business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

Include the list of equipment and software required for charity, such as office equipment, software & IT infrastructure, communication & presentation tools, fundraising equipment, vehicles & transportation, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your charity business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your charity, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your charity business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample charity business plan will provide an idea for writing a successful charity plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our charity business plan pdf .

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Frequently asked questions, why do you need a charity business plan.

A business plan is an essential tool for anyone looking to start or run a successful charity business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your charity company.

How to get funding for your charity business?

There are several ways to get funding for your charity business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your charity business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your charity business plan and outline your vision as you have in your mind.

What is the easiest way to write your charity business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any charity business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a charity business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my charity business plan?

The level of detail of the financial projections of your charity business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a charity business plan include?

The following are the key components your charity business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good charity business plan help me secure funding?

Indeed. A well-crafted charity business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a charity business plan?

Marketing strategy is a key component of your charity business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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The Road Ahead

Our analysis of the major opportunities and challenges facing the voluntary sector in 2024. Learn more

Writing your business plan

Writing the title page section of your business plan

Executive summary

Writing the executive summary of your business plan

About your organisation

Writing about your organisation in your business plan

How to navigate your market and customer base

Operational plan

Writing the operational planning section of your business plan

People, management and governance

Writing the people, management and governance section of your business plan

Writing the impact section of your business plan

Cost and income structure

Writing the cost and income structure section of your business plan

Writing the risk map section of your business plan

Other help and guidance you might be interested in

Practical support bulletin: march 2024.

Resources, events, support and information on the big issues affecting small charities

• Business planning and strategy
• Involving volunteers

Charities must do more than survive, they must change too

Insights and reflections

NCVO consults staff on restructure proposals

News and updates

Planning for tomorrow's workforce

• Employing and managing staff
• Impact and evaluation

Trusted Standard

Trusted Standard helps charities and voluntary organisations improve the quality of their work, and communicate that quality through accreditation

Dates for your diary

Get involved in these key events for the voluntary sector in 2023

Trustee disqualification

Guidance to help your board learn about the rules on automatic disqualification, who this applies to and applying for waivers.

Strategy and evaluation

Learn how to develop your organisation's strategy and how to use the evaluation process to learn and make decisions

Help and guidance

Using and learning from evaluation findings

How to use and learn from your evaluation findings

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How to write a business plan for a small charity

Table of Contents

Description of charity

Explaining the audience, swot analysis, opportunities, financial projection, manage your finances for achieving objectives with countingup.

Typical businesses use a plan to secure funding by sharing it as a proposal to investors or forming part of an application to the bank for a loan. For a charity, though, there might be other uses to putting together a business plan . These may include the ability to set out a direction for your organisation or look for sizable donations, which may require you to share a plan.

This guide will make sure that you can get on with reaching your social objectives by showing you how to write a business plan for a charity. It includes:

For a social enterprise (charity), the business’ objectives are different from usual companies. Typical companies may aim to create wealth for the owner, for example. But, according to the UK Government , to be legally considered a charity, your organisation must have a charitable purpose. So the first thing to include in your business plan should be these aims.

If you can make it clear what the objectives of your business are, it provides a greater incentive for people to donate. It might also be helpful to explain why it’s the purpose you chose. With an objective, you should also describe how the organisation plans to help it. For example, if your charity aims to help blind people, they may look to fund guide dogs to be provided for them.

The other key element of your description of your charity should be how you plan to fund it. You may sell products, provide services or ask for donations. There may be other charities helping a similar cause, so you should also describe what makes you unique that will make people want to donate.

Charities rely on funding to fulfil their objectives. Without it, you may struggle to help those you would like to. As a result, running the organisation requires some business thinking. For example, identifying a target audience most likely to donate or pay for products/services shows that you are more likely to reach your goals.

To find your audience, you may have to carry out market research . Speak directly to those affected by the issue you aim to solve and those interested in helping your charity. You can gather information through surveys and interviews to find out as much as possible about your market. Another way to do this is by looking at similar charities’ focus and who they target.

It may be helpful for you to put together a customer profile (sometimes called customer avatar) to use your findings from your market research productively. By having a hypothetical person to think about, you can find insights for where you should be marketing to them and why they would donate. 

A customer profile could include:

Putting these details together helps you describe how you plan to market your charity.

For more information on how to market your small business, see: How to Market Your Small Business Effectively: 9 Top Tips

It is essential to understand where the current position of your charity is to help you plan for the future. To think about all aspects of your business, you can do a SWOT analysis . This technique focuses on your strengths, weaknesses, opportunities and threats.

Your organisation’s strengths should provide the reasons that your charity is likely to achieve its goals. For example, you could mention the quotes and information of those who would benefit you in your marketing.

There are likely some weaknesses your charity may have. Identifying them lets you talk about how you will get over them. For example, if you lack experience in financial management, mention that you plan to use an app like Countingup to make it easier.

If you show that there are opportunities your organisation can take advantage of, it might give more confidence to someone willing to donate. For example, if a sports event is coming up later this year that relates to your cause, maybe you could partner with them.

Like any business, there may be potential threats to your charity. But by mentioning them, you can also say how you plan to avoid them. For example, if you sell donated things and you run out, mention your plans to make other things to sell.

Even though the primary purpose of the business is not to make a profit for the owners, it’s still essential that the charity covers its costs and makes enough to fund its social activities. So, it could be helpful to provide your business plan with some calculations to reassure those looking to donate towards your organisation that it will go towards a successful venture.

A sales forecast estimates the sales you expect. Multiply your planned prices for products, services or typical donation amounts by the number of customers you expect. Put this to a timescale of a month, quarter or year. You can refer to your projections in later stages and compare your performance.

This section may also be helpful for you to detail what the business would be hoping to use donations for specifically. For example, you may pay a marketing agency for a social media campaign if someone provides significant assistance. If you have a smaller donation, though, that may reach your particular objective.

It is important for your financial projection to be accurate and for you to monitor whether your business is sticking to your expectations. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, you can see exactly where your costs are going in your charity. To make sure that you can fulfil the objectives of your organisation, cash flow insights let you receive reports about your finances. You can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Start your three-month free trial today.  Find out more here .

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