writing a business plan for a charity

Charity Business Plan Template

Written by Dave Lavinsky

Charity Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their charity companies. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a charity business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your charity business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a charity business or grow your existing charity company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your charity business to improve your chances of success. Your charity business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Charity Businesses

With regards to funding, the main sources of funding for a charity business are personal savings, credit cards, bank loans, and major donors . When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Donations and bank loans are the most common funding paths for charity companies.

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How to write a business plan for a charity business.

If you want to start a charity business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your charity business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of charity business you are running and the status. For example, are you a startup, do you have a charity business that you would like to grow, or are you operating more than one charity business?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the charity business industry. 
• Discuss the type of charity business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of charity business you are operating.

For example, you m ight specialize in one of the following types of charity businesses:

• Public charity business: A charity business that is defined by the Internal Revenue Service as a “public service support,” is one that benefits the public at large. This may include chambers of commerce, labor unions, and certain types of insurance companies. If a charity business fits within the specifications set by the IRS, the charity is considered a 501c3 entity, and receives preferential tax treatment.
• Private charity business: By far, the majority of charities fall within the category of “private charities,” which can be identified as serving a specific group of people. This may include philanthropic foundations, churches or synagogues, and other clubs or associations that serve via a privately-funded means. If a private charity business fits within the specifications set by the IRS, the charity is considered a 501c3 entity and receives preferential tax treatment.

In addition to explaining the type of charity business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of people served, the number of charitable outcomes, reaching X number of geographic locations, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the charity business industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the charity business industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your charity business business plan:

• How big is the charity business industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your charity business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Donor Analysis

The donor analysis section of your charity business plan must detail the individuals or business entities who donate or those you expect to donate to your charitable business. 

The following are examples of donor segments: individuals, families, foundations and corporations.

As you can imagine, the donor segment(s) you choose will have a great impact on the type of charity business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target donors in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential donors you seek.

Psychographic profiles explain the wants and needs of your target donors . The more you can recognize and define these needs, the better you will do in attracting and retaining your donors . Ideally you can speak with a sample of your target donors before writing your plan to better understand their needs.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r charity businesses. 

Indirect competitors are other options that donors may contribute to that aren’t directly competing with your product or service. This includes service-related charitable endeavors, private foundations, and organizations that serve specific communities, etc. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of donors do they solicit ?
• What type of charity business are they?
• What is their donation model (cash, assets, estate-wealth)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the donors’ perspective. And don’t be afraid to ask your competitors’ donors what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide recognition for all your donors?
• Will you offer premium products or services for your top-tier donors?
• Will you provide consistent communication with your donors?
• Will you offer directorships or preferential placement for your donors?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a charity business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f charity company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide food for the homeless population? Will you improve the neighborhood park? Will you invest in artwork on behalf of your charity to support the art world? 

Value : Document the specific value your charity provides and how that compares to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their respective values.

Place : Place refers to the site of your charity company. Document where your company is situated and mention how the site will impact your success. For example, is your charity business located in an affluent neighborhood, a warehouse, a standalone office, or is it purely online? Discuss how your site might be the ideal location for the donors who contribute and the services you provide.

Promotions : The final part of your charity business marketing plan is where you will document how you will drive potential donors and charitable recipients to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your charity business, including answering calls, planning and providing fund-raising events or campaigns, correspondence with donors and charitable recipients, and maintaining records of acts of service.  

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your Xth charity recipient, or when you hope to reach $X in donations. It could also be when you expect to expand your charity business to a new city.

Management Team

To demonstrate your charity business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing charity businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a charity business or top-tier donors who are regularly involved in your charity business. 

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your donation and gift income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. In a charity business, profits can be made through sales; however, the majority of income is received from donor gifts and activity. Your income statement will show several avenues of income as a result. It will demonstrate your receipts and then subtract your costs to show the IRS the activity of your 501c3 organization. 

In developing your income statement, you need to devise assumptions. For example, will you hold 5 donor events each year, and/or offer acts of service weekly ? And will your charity business grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your charity business, this will not give you an immediate return on the investment. Rather it is an asset that will hopefully help you maintain your charity business for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can generate gifts or assets , but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a charity business business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of top-tier donors, or examples of how your charity has changed lives or communities for the better. 

Writing a business plan for your charity business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the charity business industry, your competition, and your donors. You will develop a marketing strategy and will understand what it takes to launch and grow a successful charity business.

Don’t you wish there was a faster, easier way to finish your Charity business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan consultant can create your business plan for you.  

Charity Business Business Plan FAQs

What is the easiest way to complete my charity business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your charity business plan.

How Do You Start a Charity Business?

Starting a charity business is easy with these 14 steps:

• Choose the Name for Your Charity Business
• Create Your Charity Business Plan
• Choose the Legal Structure for Your Charity Business
• Secure Startup Funding for Your Charity Business (If Needed)
• Secure a Location for Your Business
• Register Your Charity Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Charity Business
• Buy or Lease the Right Charity Business Equipment
• Develop Your Charity Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Charity Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Other Helpful Business Plan Articles & Templates

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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Start » strategy, how to write a nonprofit business plan.

A nonprofit business plan ensures your organization’s fundraising and activities align with your core mission.

Every nonprofit needs a mission statement that demonstrates how the organization will support a social cause and provide a public benefit. A nonprofit business plan fleshes out this mission statement in greater detail. These plans include many of the same elements as a for-profit business plan, with a focus on fundraising, creating a board of directors, raising awareness, and staying compliant with IRS regulations. A nonprofit business plan can be instrumental in getting your organization off the ground successfully.

Start with your mission statement

The mission statement is foundational for your nonprofit organization. The IRS will review your mission statement in determining whether to grant you tax-exempt status. This statement also helps you recruit volunteers and staff, fundraise, and plan activities for the year.

[Read more: Writing a Mission Statement: A Step-by-Step Guide ]

Therefore, you should start your business plan with a clear mission statement in the executive summary. The executive summary can also cover, at a high level, the goals, vision, and unique strengths of your nonprofit organization. Keep this section brief, since you will be going into greater detail in later sections.

Identify a board of directors

Many business plans include a section identifying the people behind the operation: your key leaders, volunteers, and full-time employees. For nonprofits, it’s also important to identify your board of directors. The board of directors is ultimately responsible for hiring and managing the CEO of your nonprofit.

“Board members are the fiduciaries who steer the organization towards a sustainable future by adopting sound, ethical, and legal governance and financial management policies, as well as by making sure the nonprofit has adequate resources to advance its mission,” wrote the Council of Nonprofits.

As such, identify members of your board in your business plan to give potential donors confidence in the management of your nonprofit.

Be as realistic as possible about the impact you can make with the funding you hope to gain.

Describe your organization’s activities

In this section, provide more information about what your nonprofit does on a day-to-day basis. What products, training, education, or other services do you provide? What does your organization do to benefit the constituents identified in your mission statement? Here’s an example from the American Red Cross, courtesy of DonorBox :

“The American Red Cross carries out their mission to prevent and relieve suffering with five key services: disaster relief, supporting America’s military families, lifesaving blood, health and safety services, and international service.”

This section should be detailed and get into the operational weeds of how your business delivers on its mission statement. Explain the strategies your team will take to service clients, including outreach and marketing, inventory and equipment needs, a hiring plan, and other key elements.

Write a fundraising plan

This part is the most important element of your business plan. In addition to providing required financial statements (e.g., the income statement, balance sheet, and cash flow statement), identify potential sources of funding for your nonprofit. These may include individual donors, corporate donors, grants, or in-kind support. If you are planning to host a fundraising event, put together a budget for that event and demonstrate the anticipated impact that event will have on your budget.

Create an impact plan

An impact plan ties everything together. It demonstrates how your fundraising and day-to-day activities will further your mission. For potential donors, it can make a very convincing case for why they should invest in your nonprofit.

“This section turns your purpose and motivation into concrete accomplishments your nonprofit wants to make and sets specific goals and objectives,” wrote DonorBox . “These define the real bottom line of your nonprofit, so they’re the key to unlocking support. Funders want to know for whom, in what way, and exactly how you’ll measure your impact.”

Be as realistic as possible about the impact you can make with the funding you hope to gain. Revisit your business plan as your organization grows to make sure the goals you’ve set both align with your mission and continue to be within reach.

[Read more: 8 Signs It's Time to Update Your Business Plan ]

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Business Planning for Nonprofits

Business planning is a way of systematically answering questions such as, “What problem(s) are we trying to solve?” or “What are we trying to achieve?” and also, “Who will get us there, by when, and how much money and other resources will it take?”

The business planning process takes into account the nonprofit’s mission and vision, the role of the board, and external environmental factors, such as the climate for fundraising.

Ideally, the business planning process also critically examines basic assumptions about the nonprofit’s operating environment. What if the sources of income that exist today change in the future? Is the nonprofit too reliant on one foundation for revenue? What happens if there’s an economic downturn?

A business plan can help the nonprofit and its board be prepared for future risks. What is the likelihood that the planned activities will continue as usual, and that revenue will continue at current levels – and what is Plan B if they don't?

Narrative of a business plan

You can think of a business plan as a narrative or story explaining how the nonprofit will operate given its activities, its sources of revenue, its expenses, and the inevitable changes in its internal and external environments over time. Ideally, your plan will tell the story in a way that will make sense to someone not intimately familiar with the nonprofit’s operations.

According to  Propel Nonprofits , business plans usually should have four components that identify revenue sources/mix; operations costs; program costs; and capital structure.

A business plan outlines the expected income sources to support the charitable nonprofit's activities. What types of revenue will the nonprofit rely on to keep its engine running – how much will be earned, how much from government grants or contracts, how much will be contributed? Within each of those broad categories, how much diversification exists, and should they be further diversified? Are there certain factors that need to be in place in order for today’s income streams to continue flowing?

The plan should address the everyday costs needed to operate the organization, as well as costs of specific programs and activities.

The plan may include details about the need for the organization's services (a needs assessment), the likelihood that certain funding will be available (a feasibility study), or changes to the organization's technology or staffing that will be needed in the future.

Another aspect of a business plan could be a "competitive analysis" describing what other entities may be providing similar services in the nonprofit's service and mission areas. What are their sources of revenue and staffing structures? How do their services and capacities differ from those of your nonprofit?

Finally, the business plan should name important assumptions, such as the organization's reserve policies. Do your nonprofit’s policies require it to have at least six months of operating cash on hand? Do you have different types of cash reserves that require different levels of board approval to release?

The idea is to identify the known, and take into consideration the unknown, realities of the nonprofit's operations, and propose how the nonprofit will continue to be financially healthy.  If the underlying assumptions or current conditions change, then having a plan can be useful to help identify adjustments that must be made to respond to changes in the nonprofit's operating environment.

Basic format of a business plan

The format may vary depending on the audience. A business plan prepared for a bank to support a loan application may be different than a business plan that board members use as the basis for budgeting. Here is a typical outline of the format for a business plan:

• Table of contents
• Executive summary - Name the problem the nonprofit is trying to solve: its mission, and how it accomplishes its mission.
• People: overview of the nonprofit’s board, staffing, and volunteer structure and who makes what happen
• Market opportunities/competitive analysis
• Programs and services: overview of implementation
• Contingencies: what could change?
• Financial health: what is the current status, and what are the sources of revenue to operate programs and advance the mission over time?
• Assumptions and proposed changes: What needs to be in place for this nonprofit to continue on sound financial footing?

More About Business Planning

Budgeting for Nonprofits

Strategic Planning

Contact your state association of nonprofits  for support and resources related to business planning, strategic planning, and other fundamentals of nonprofit leadership. 

Additional Resources

• Components of transforming nonprofit business models  (Propel Nonprofits)
• The matrix map: a powerful tool for nonprofit sustainability  (Nonprofit Quarterly)
• The Nonprofit Business Plan: A Leader's Guide to Creating a Successful Business Model  (David La Piana, Heather Gowdy, Lester Olmstead-Rose, and Brent Copen, Turner Publishing)
• Nonprofit Earned Income: Critical Business Model Considerations for Nonprofits (Nonprofit Financial Commons)
• Nonprofit Sustainability: Making Strategic Decisions for Financial Viability  (Jan Masaoka, Steve Zimmerman, and Jeanne Bell)

Disclaimer: Information on this website is provided for informational purposes only and is neither intended to be nor should be construed as legal, accounting, tax, investment, or financial advice. Please consult a professional (attorney, accountant, tax advisor) for the latest and most accurate information. The National Council of Nonprofits makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

How to Write a Nonprofit Business Plan

Angelique O'Rourke

13 min. read

Updated October 27, 2023

Believe it or not, creating a business plan for a nonprofit organization is not that different from planning for a traditional business. 

Nonprofits sometimes shy away from using the words “business planning,” preferring to use terms like “strategic plan” or “operating plan.” But, the fact is that preparing a plan for a for-profit business and a nonprofit organization are actually pretty similar processes. Both types of organizations need to create forecasts for revenue and plan how they’re going to spend the money they bring in. They also need to manage their cash and ensure that they can stay solvent to accomplish their goals.

In this guide, I’ll explain how to create a plan for your organization that will impress your board of directors, facilitate fundraising, and ensures that you deliver on your mission.

• Why does a nonprofit need a business plan?

Good business planning is about setting goals, getting everyone on the same page, tracking performance metrics, and improving over time. Even when your goal isn’t to increase profits, you still need to be able to run a fiscally healthy organization.

Business planning creates an opportunity to examine the heart of your mission , the financing you’ll need to bring that mission to fruition, and your plan to sustain your operations into the future.

Nonprofits are also responsible for meeting regularly with a board of directors and reporting on your organization’s finances is a critical part of that meeting. As part of your regular financial review with the board, you can compare your actual results to your financial forecast in your business plan. Are you meeting fundraising goals and keeping spending on track? Is the financial position of the organization where you wanted it to be?

In addition to internal use, a solid business plan can help you court major donors who will be interested in having a deeper understanding of how your organization works and your fiscal health and accountability. And you’ll definitely need a formal business plan if you intend to seek outside funding for capital expenses—it’s required by lenders.

Creating a business plan for your organization is a great way to get your management team or board to connect over your vision, goals, and trajectory. Even just going through the planning process with your colleagues will help you take a step back and get some high-level perspective .

• A nonprofit business plan outline

Keep in mind that developing a business plan is an ongoing process. It isn’t about just writing a physical document that is static, but a continually evolving strategy and action plan as your organization progresses over time. It’s essential that you run regular plan review meetings to track your progress against your plan. For most nonprofits, this will coincide with regular reports and meetings with the board of directors.

A nonprofit business plan will include many of the same sections of a standard business plan outline . If you’d like to start simple, you can download our free business plan template as a Word document, and adjust it according to the nonprofit plan outline below.

Executive summary

The executive summary of a nonprofit business plan is typically the first section of the plan to be read, but the last to be written. That’s because this section is a general overview of everything else in the business plan – the overall snapshot of what your vision is for the organization.

Write it as though you might share with a prospective donor, or someone unfamiliar with your organization: avoid internal jargon or acronyms, and write it so that someone who has never heard of you would understand what you’re doing.

Your executive summary should provide a very brief overview of your organization’s mission. It should describe who you serve, how you provide the services that you offer, and how you fundraise. 

If you are putting together a plan to share with potential donors, you should include an overview of what you are asking for and how you intend to use the funds raised.

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Opportunity

Start this section of your nonprofit plan by describing the problem that you are solving for your clients or your community at large. Then say how your organization solves the problem.

A great way to present your opportunity is with a positioning statement . Here’s a formula you can use to define your positioning:

For [target market description] who [target market need], [this product] [how it meets the need]. Unlike [key competition], it [most important distinguishing feature].

And here’s an example of a positioning statement using the formula:

For children, ages five to 12 (target market) who are struggling with reading (their need), Tutors Changing Lives (your organization or program name) helps them get up to grade-level reading through a once a week class (your solution).

Unlike the school district’s general after-school homework lab (your state-funded competition), our program specifically helps children learn to read within six months (how you’re different).

Your organization is special or you wouldn’t spend so much time devoted to it. Layout some of the nuts and bolts about what makes it great in this opening section of your business plan. Your nonprofit probably changes lives, changes your community, or maybe even changes the world. Explain how it does this.

This is where you really go into detail about the programs you’re offering. You’ll want to describe how many people you serve and how you serve them.

Target audience

In a for-profit business plan, this section would be used to define your target market . For nonprofit organizations, it’s basically the same thing but framed as who you’re serving with your organization. Who benefits from your services?

Not all organizations have clients that they serve directly, so you might exclude this section if that’s the case. For example, an environmental preservation organization might have a goal of acquiring land to preserve natural habitats. The organization isn’t directly serving individual groups of people and is instead trying to benefit the environment as a whole. 

Similar organizations

Everyone has competition —nonprofits, too. You’re competing with other nonprofits for donor attention and support, and you’re competing with other organizations serving your target population. Even if your program is the only one in your area providing a specific service, you still have competition.

Think about what your prospective clients were doing about their problem (the one your organization is solving) before you came on this scene. If you’re running an after-school tutoring organization, you might be competing with after school sports programs for clients. Even though your organizations have fundamentally different missions.

For many nonprofit organizations, competing for funding is an important issue. You’ll want to use this section of your plan to explain who donors would choose your organization instead of similar organizations for their donations.

Future services and programs

If you’re running a regional nonprofit, do you want to be national in five years? If you’re currently serving children ages two to four, do you want to expand to ages five to 12? Use this section to talk about your long-term goals. 

Just like a traditional business, you’ll benefit by laying out a long-term plan. Not only does it help guide your nonprofit, but it also provides a roadmap for the board as well as potential investors. 

Promotion and outreach strategies

In a for-profit business plan, this section would be about marketing and sales strategies. For nonprofits, you’re going to talk about how you’re going to reach your target client population.

You’ll probably do some combination of:

• Advertising: print and direct mail, television, radio, and so on.
• Public relations: press releases, activities to promote brand awareness, and so on.
• Digital marketing: website, email, blog, social media, and so on.

Similar to the “target audience” section above, you may remove this section if you don’t promote your organization to clients and others who use your services.

Costs and fees

Instead of including a pricing section, a nonprofit business plan should include a costs or fees section.

Talk about how your program is funded, and whether the costs your clients pay are the same for everyone, or based on income level, or something else. If your clients pay less for your service than it costs to run the program, how will you make up the difference?

If you don’t charge for your services and programs, you can state that here or remove this section.

Fundraising sources

Fundraising is critical for most nonprofit organizations. This portion of your business plan will detail who your key fundraising sources are. 

Similar to understanding who your target audience for your services is, you’ll also want to know who your target market is for fundraising. 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. 

You’ll also want to define different tiers of prospective donors and how you plan on connecting with them. You’re probably going to include information about your annual giving program (usually lower-tier donors) and your major gifts program (folks who give larger amounts).

If you’re a private school, for example, you might think of your main target market as alumni who graduated during a certain year, at a certain income level. If you’re building a bequest program to build your endowment, your target market might be a specific population with interest in your cause who is at retirement age.

Do some research. The key here is not to report your target donors as everyone in a 3,000-mile radius with a wallet. The more specific you can be about your prospective donors —their demographics, income level, and interests, the more targeted (and less costly) your outreach can be.

Fundraising activities

How will you reach your donors with your message? Use this section of your business plan to explain how you will market your organization to potential donors and generate revenue.

You might use a combination of direct mail, advertising, and fundraising events. Detail the key activities and programs that you’ll use to reach your donors and raise money.

Strategic alliances and partnerships

Use this section to talk about how you’ll work with other organizations. Maybe you need to use a room in the local public library to run your program for the first year. Maybe your organization provides mental health counselors in local schools, so you partner with your school district.

In some instances, you might also be relying on public health programs like Medicaid to fund your program costs. Mention all those strategic partnerships here, especially if your program would have trouble existing without the partnership.

Milestones and metrics

Without milestones and metrics for your nonprofit, it will be more difficult to execute on your mission. Milestones and metrics are guideposts along the way that are indicators that your program is working and that your organization is healthy.

They might include elements of your fundraising goals—like monthly or quarterly donation goals, or it might be more about your participation metrics. Since most nonprofits working with foundations for grants do complex reporting on some of these, don’t feel like you have to re-write every single goal and metric for your organization here. Think about your bigger goals, and if you need to, include more information in your business plan’s appendix.

If you’re revisiting your plan on a monthly basis, and we recommend that you do, the items here might speak directly to the questions you know your board will ask in your monthly trustee meeting. The point is to avoid surprises by having eyes on your organization’s performance. Having these goals, and being able to change course if you’re not meeting them, will help your organization avoid falling into a budget deficit.

Key assumptions and risks

Your nonprofit exists to serve a particular population or cause. Before you designed your key programs or services, you probably did some research to validate that there’s a need for what you’re offering.

But you probably are also taking some calculated risks. In this section, talk about the unknowns for your organization. If you name them, you can address them.

For example, if you think there’s a need for a children’s literacy program, maybe you surveyed teachers or parents in your area to verify the need. But because you haven’t launched the program yet, one of your unknowns might be whether the kids will actually show up.

Management team and company

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. It adds a personal touch to mention team members who are especially qualified because they’re close to the cause or have special first-hand experience with or knowledge of the population you’re serving.

There are probably some amazing, dedicated people with stellar qualifications on your team—this is the place to feature them (and don’t forget to include yourself!).

Financial plan

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 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.

From that point, it’s all about future planning: If you exceed your fundraising goals, what will be done with the surplus? What will you do if you don’t meet your fundraising goals? Are you accounting for appropriate amounts going to payroll and administrative costs over time? Thinking through a forecast of your financial plan over the next several years will help ensure that your organization is sustainable.

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 based on 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.

Potential contributors will do their research—so make sure you do too. No matter who your donors are, they will want to know they can trust your organization with their money. A robust financial plan is a solid foundation for reference that your nonprofit is on the right track.

• Business planning is ongoing

It’s important to remember that a business plan doesn’t have to be set in stone. It acts as a roadmap, something that you can come back to as a guide, then revise and edit to suit your purpose at a given time.

I recommend that you review your financial plan once a month to see if your organization is on track, and then revise your plan as necessary .

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Angelique is a skilled writer, editor, and social media specialist, as well as an actor and model with a demonstrated history of theater, film, commercial and print work.

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How To Write a Business Plan for Charity & Nonprofit Marketplace in 9 Steps: Checklist

By alex ryzhkov, resources on charity & nonprofit marketplace.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Welcome to our blog post on how to write a business plan for the charity and nonprofit marketplace! With the growing demand for socially impactful initiatives, it's crucial for organizations in this industry to have a solid plan in place. Did you know that the volunteer-based model is the most common and sought-after business model for nonprofits in the US? According to recent statistics, volunteerism in the US has been steadily increasing, with around 77.4 million Americans volunteering their time in 2020 alone (source: Bureau of Labor Statistics) . In this article, we will guide you through the essential steps to create a comprehensive business plan that will set your organization up for success.

The first step in writing a business plan for the charity and nonprofit marketplace is to identify the mission and vision of your organization. This will serve as the foundation for all your activities and guide your decision-making process. Next, conducting thorough market research and analyzing the current landscape will help you understand the existing challenges, opportunities, and trends in the industry.

Defining your target audience and beneficiaries is crucial to ensure that your organization is effectively addressing the needs of the community. Identifying potential partners and collaborators can also greatly enhance your reach and impact. Additionally, determining the legal structure of your organization and obtaining necessary registrations will ensure compliance and credibility.

A clear financial plan and budget are essential for any nonprofit. It is crucial to identify potential funding sources, create a realistic budget, and develop strategies for sustainability. Establishing key performance indicators and metrics for success will help you measure your progress and make informed decisions.

Creating a marketing and communication strategy is essential to raise awareness about your organization's mission and attract support. Finally, developing a strategic plan to guide your organization's activities is crucial for achieving long-term goals and making a significant impact in your community.

By following these nine steps, you can ensure that your business plan for the charity and nonprofit marketplace is comprehensive, strategic, and well-prepared. Stay tuned for our in-depth articles on each step, where we will provide valuable insights and practical tips to help you succeed in this rewarding industry.

Identify The Mission And Vision Of The Charity & Nonprofit Marketplace

At the core of every successful charity and nonprofit marketplace is a clear and compelling mission and vision statement. These statements serve as the foundation for the organization's purpose and guide its activities and decision-making processes. By identifying and articulating the mission and vision, the charity or nonprofit marketplace can establish a sense of direction and communicate its goals to stakeholders.

The mission statement should succinctly describe the purpose of the organization and the impact it aims to make in the community or cause it serves. It should answer the question of why the organization exists and what specific problem it seeks to address. The mission statement should be concise, memorable, and clearly convey the organization's values and principles.

• Ensure the mission statement aligns with the organization's goals and activities.
• Include specific and measurable language to define the desired impact.
• Consider involving key stakeholders, such as volunteers and beneficiaries, in the development process to ensure inclusivity and diversity of perspectives.

The vision statement, on the other hand, presents a future-oriented picture of what the organization aspires to achieve in the long term. It serves as a guiding light and inspires stakeholders to work towards a common goal. A well-crafted vision statement creates a sense of motivation and purpose, helping the charity or nonprofit marketplace to stay focused on its ultimate objective.

• Frame the vision statement in a way that captures the imagination and inspires action.
• Ensure the vision is realistic and achievable, yet ambitious enough to drive progress.
• Regularly review and revise the mission and vision statements to ensure they remain relevant to the organization's evolving needs and goals.
• Identify the mission and vision of the charity and nonprofit marketplace to establish a clear purpose and direction.
• To develop a compelling mission statement, succinctly describe the purpose, impact, values, and principles of the organization.
• Create a future-oriented vision statement that inspires stakeholders and aligns with the organization's long-term goals.

Conduct Market Research And Analyze The Current Landscape

Market research is a crucial step in developing a successful business plan for the charity and nonprofit marketplace. By conducting thorough research and analyzing the current landscape, you can gain valuable insights that will inform your strategy and help you stand out in a crowded market.

When conducting market research, consider the following:

• Identify the existing nonprofits: Take note of the nonprofits operating in your chosen cause area. Analyze their missions, programs, and impact to understand what sets them apart and how you can differentiate your organization.
• Assess the community needs: Understand the specific needs and challenges within your target community. This will help you tailor your programs and services to address those needs effectively.
• Analyze the competitive landscape: Identify the key players in your field, including both nonprofits and other organizations with similar missions. Evaluate their strengths, weaknesses, and strategies to identify opportunities for collaboration or areas where you can offer a unique value proposition.
• Study donor behaviors: Understand the motivations and preferences of potential donors. This will inform your fundraising efforts and enable you to develop targeted strategies to attract and retain donors.

Tips for conducting market research:

• Utilize online resources such as nonprofit directories, industry reports, and social media platforms to gather information about existing nonprofits and their impact.
• Engage with local community members and stakeholders to gain firsthand knowledge of the specific needs and challenges in your target area.
• Survey potential donors and volunteers to understand their motivations, expectations, and preferences.
• Stay updated on industry trends, news, and emerging practices to stay ahead of the curve in your market.

By conducting comprehensive market research and analyzing the current landscape, you will gain valuable insights that will shape your business plan. This step sets the foundation for a strategic approach, allowing you to identify your unique positioning and develop strategies that resonate with your target audience.

Define The Target Audience And Beneficiaries

Defining the target audience and beneficiaries of your charity or nonprofit organization is a critical step in creating a successful business plan. Identifying who your organization aims to serve will guide your decisions, strategies, and resource allocation. It ensures that your efforts are focused on addressing the specific needs of your intended beneficiaries, increasing the impact and effectiveness of your programs.

When defining your target audience, consider the demographics, psychographics, and characteristics that make up the group of individuals or communities you aim to reach. This may include factors such as age, gender, location, income level, education, interests, and values. The more specific and targeted your audience definition, the better you can tailor your programs and services to meet their unique needs.

Additionally, consider the beneficiaries of your organization's activities. These are the individuals or groups who directly benefit from the services and support provided by your nonprofit. Clearly identifying and understanding the needs and challenges faced by these beneficiaries is crucial in developing impactful programs and initiatives. For example, if your charity focuses on providing food assistance, your beneficiaries may include low-income families, homeless individuals, or elderly populations with limited access to nutritious meals.

A thorough understanding of your target audience and beneficiaries will enable you to create tailored and effective solutions that truly make a positive difference in their lives. It will also help you in crafting compelling messaging and designing targeted outreach efforts to reach and engage the right people.

Tips for Defining Your Target Audience and Beneficiaries:

• Conduct surveys, interviews, and focus groups to gather insights directly from your target audience and beneficiaries.
• Utilize existing data and research on similar demographics to develop a clearer understanding of their needs and preferences.
• Consider collaborating with other organizations or experts who have experience working with similar target audiences for valuable insights.
• Regularly review and update your audience definition as your organization evolves and new information becomes available.

Identify Potential Partners And Collaborators

Identifying potential partners and collaborators is a crucial step in building a successful charity or nonprofit organization. These partnerships can provide valuable resources, expertise, and support that will contribute to the overall mission and impact of your organization. Here are some important considerations when identifying potential partners and collaborators:

• Shared Values: Look for partners and collaborators who share similar values and a passion for the cause you are supporting. Finding individuals or organizations that align with your mission will create a stronger foundation and increase the likelihood of a successful partnership.
• Complementary Expertise: Identify partners and collaborators who bring unique skills and expertise to the table. Look for individuals or organizations that can fill gaps in your organization's capabilities and help you achieve your goals more efficiently.
• Established Networks: Consider partnering with organizations or individuals who have established networks within the nonprofit or charitable sector. These networks can give your organization access to new audiences, potential donors, and additional resources.
• Strategic Alliances: Explore opportunities for strategic alliances with other nonprofit organizations or businesses that have similar goals. By collaborating with like-minded organizations, you can amplify your efforts and create a bigger impact together.
• Research and network within the nonprofit and charitable sector to identify potential partners and collaborators.
• Attend industry conferences, workshops, and networking events to meet like-minded individuals and organizations.
• Utilize online platforms and social media to connect with potential partners and collaborators.
• Develop a clear value proposition and articulate the benefits of partnership to attract potential partners.

Remember, effective partnerships and collaborations can help your organization broaden its reach, enhance its capabilities, and ultimately achieve its mission more effectively. Take the time to identify the right partners, nurture those relationships, and work together to create a positive and lasting impact on the communities you serve.

Determine The Legal Structure And Obtain Necessary Registrations

Determining the legal structure of your charity or nonprofit organization is a critical step in ensuring its stability and compliance with relevant laws and regulations. It is important to carefully consider the options available and choose the structure that best aligns with your organization's goals and activities.

Here are some important considerations when determining the legal structure:

• Research the types of legal structures: Familiarize yourself with the various legal structures available for nonprofit organizations, such as 501(c)(3) status, which offers tax-exempt status and allows donors to receive tax deductions for their contributions.
• Consult with legal professionals: Seek guidance from an attorney or legal consultant who specializes in nonprofit law. They can provide valuable insights and help you navigate the complexities of legal requirements.
• Consider governance issues: Assess the governance structure and decide on options such as having a board of directors, trustees, or executive committees. Define the roles and responsibilities of each governing body to ensure efficient decision-making and accountability.
• Register with the appropriate authorities: Once you have determined the legal structure, you will need to register your organization with the relevant authorities, such as the state's Secretary of State office, to obtain the necessary legal status and recognition.

Helpful Tips:

• Research local, state, and federal laws pertaining to nonprofit organizations in your area to ensure compliance.
• Consider consulting with an accountant to understand any financial reporting requirements specific to your legal structure.
• Ensure you have a comprehensive understanding of the legal obligations and responsibilities that come with your chosen legal structure to protect the integrity of your organization.

By taking the time to determine the legal structure and obtain the necessary registrations, you are setting your charity or nonprofit organization on a solid foundation for success, ensuring compliance, and gaining credibility in the eyes of donors, partners, and the community you serve.

Develop A Clear Financial Plan And Budget

A clear financial plan is crucial for the success of any charity or nonprofit organization. It helps in ensuring financial stability, managing resources effectively, and achieving the organization's goals and objectives. Here are the steps to develop a clear financial plan and budget:

• Assess the organization's current financial situation: Start by reviewing your organization's current financial status. Evaluate your assets, liabilities, and existing sources of income. This will provide a foundation for building your financial plan.
• Set financial goals: Clearly define your financial goals and objectives. Determine the amount of funding required to sustain and expand your organization's operations. This will help you understand the scale of financial support you need to seek.
• Identify potential sources of income: Explore different funding options such as grants, donations, sponsorships, fundraising events, and government support. Consider diversifying your revenue streams to reduce dependency on a single source.
• Create a detailed budget: This is the core of your financial plan. Develop a comprehensive budget that outlines the expected income and expenses for each project or program. Include both fixed and variable costs to provide a realistic estimate of your organization's financial requirements.
• Allocate resources wisely: Once you have a budget in place, allocate resources in a way that aligns with your organization's priorities. Ensure that necessary funds are allocated to critical programs and operational expenses.
• Implement financial controls: Establish financial controls and policies that govern spending, expense reimbursement, and financial reporting. This will ensure transparency, accuracy, and accountability in managing the organization's finances.
• Monitor and review: Regularly monitor your financial performance against the budget and make necessary adjustments. Conduct periodic reviews to assess the effectiveness of your financial plan and identify areas for improvement.
• Consider seeking professional guidance from an accountant or financial advisor to develop a robust financial plan.
• Regularly communicate your financial goals, progress, and achievements with donors and stakeholders to build trust and transparency.
• Stay up-to-date with relevant tax regulations and reporting requirements to ensure compliance.
• Build contingencies into your financial plan to mitigate unforeseen expenses or funding gaps.
• Align your financial plan with your organization's mission and strategic objectives to maximize impact.

Establish Key Performance Indicators And Metrics For Success

When it comes to running a successful charity or nonprofit organization, establishing key performance indicators (KPIs) and metrics for success is crucial. These measurements will help you track your progress, evaluate your impact, and make informed decisions to ensure your organization is effectively meeting its goals. Here are some important steps to consider when establishing KPIs and metrics for success:

• Align KPIs with the mission and vision: Start by identifying the key objectives and goals of your organization. Your KPIs should align directly with these objectives, ensuring that you measure what matters most to the success and impact of your organization.
• Choose relevant metrics: Select specific metrics that will provide meaningful data related to your organization's activities and outcomes. Whether it's the number of beneficiaries served, funds raised, or volunteer retention rates, choose metrics that accurately reflect the progress and impact of your organization.
• Set measurable targets: Establish clear benchmarks or targets for each KPI. These targets should be specific, measurable, attainable, relevant, and time-bound (SMART) to provide a clear framework for evaluating your organization's performance. Regularly assess your progress towards these targets to identify areas of improvement.
• Regularly track and analyze data: Implement systems and processes that allow you to collect and analyze data related to your chosen metrics. This may involve using tracking tools, surveys, or other data collection methods. Regularly review this data to assess your progress, identify trends, and make data-driven decisions.
• Communicate and report: Establish a regular reporting process to keep your board, staff, and stakeholders informed about the organization's progress towards its KPIs. Prepare clear and concise reports that highlight both successes and challenges, and use this information to inform strategic discussions and actions.
• Focus on quality over quantity when choosing your KPIs. It's better to track a few meaningful metrics effectively than to track numerous metrics that provide little actionable insight.
• Regularly revisit and evaluate your KPIs to ensure they remain relevant to your organization's evolving mission and goals. Adjust them if necessary to reflect changing priorities or strategies.
• Engage your staff, volunteers, and beneficiaries in the KPI-setting process. Their input can help you identify additional metrics that capture the nuances of your organization's impact.

Create A Marketing And Communication Strategy

Marketing and communication are essential for the success and growth of any charity or nonprofit organization. A well-planned strategy helps in raising awareness, attracting donors and volunteers, and building a positive reputation in the community. Here are some important steps to create an effective marketing and communication strategy:

• Identify Your Target Audience: Determine who your organization wants to reach with its message. Understand their demographics, interests, and motivations to tailor your communication efforts.
• Define Your Unique Selling Proposition: Identify what sets your organization apart from others in the nonprofit marketplace. Highlight the key benefits and impact of your work to attract supporters.
• Establish Clear Communication Goals: Set specific objectives for your marketing and communication efforts. Whether it's increasing donations, volunteer recruitment, or community engagement, having clear goals ensures focused messaging.
• Create Compelling Content: Develop engaging and inspiring content that aligns with your mission and resonates with your target audience. This can include blog posts, social media updates, videos, and impactful stories.
• Utilize Multiple Communication Channels: Determine the most effective channels to reach your target audience. This could include social media platforms, email newsletters, website, press releases, events, and partnerships.
• Build Relationships: Cultivate strong relationships with your donors, volunteers, and beneficiaries. Regularly communicate with them, express gratitude, and keep them updated on the impact of their support.
• Measure and Analyze Results: Track the effectiveness of your marketing and communication efforts. Monitor metrics such as website traffic, social media engagement, email open rates, and donation patterns to refine your strategy.

Tips for Creating an Effective Marketing and Communication Strategy:

• Develop a consistent brand identity that reflects your organization's values and resonates with your target audience.
• Use storytelling techniques to convey the impact of your work and evoke emotions in your audience.
• Engage with your supporters by responding to their comments, messages, and inquiries promptly and thoughtfully.
• Collaborate with influencers, media outlets, and other organizations to amplify your message and reach a wider audience.
• Regularly review and update your marketing and communication strategy to adapt to changing trends and audience preferences.

By creating a well-thought-out marketing and communication strategy, your charity or nonprofit organization can effectively convey its mission, attract supporters, and make a significant impact in the charity and nonprofit marketplace.

Develop a Strategic Plan to Guide the Organization's Activities

Developing a strategic plan is crucial for any charity or nonprofit organization as it provides a roadmap for achieving its mission and objectives. A well-defined strategic plan helps to streamline and guide the organization's activities, ensuring that every action taken aligns with the overall vision and goals.

To create an effective strategic plan, consider the following steps:

• 1. Define your organization's goals: Start by identifying the specific objectives you want to achieve. These goals should be SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) to provide clarity and a clear direction for your organization.
• 2. Conduct a SWOT analysis: Perform a thorough evaluation of your organization's strengths, weaknesses, opportunities, and threats (SWOT analysis). This analysis will help identify areas where your organization excels, where improvements are needed, and potential external factors that may impact your success.
• 3. Set strategies and tactics: Based on your SWOT analysis, develop strategies and tactics that will enable your organization to reach its goals. These strategies should be actionable and tie directly to the identified opportunities and strengths of your organization.
• Involve key stakeholders and team members in the strategic planning process to gain diverse perspectives and inputs.
• Consider both short-term and long-term strategies to ensure the sustainability and growth of your organization.
• 4. Allocate resources: Determine the necessary resources, such as funding, staff, and volunteers, required to implement your strategies. This includes developing a budget that aligns with your financial plan.
• 5. Establish timelines and milestones: Create a timeline that outlines key milestones and deadlines for each strategy. This ensures accountability and allows for regular progress monitoring and adjustments if necessary.
• 6. Monitor and evaluate: Implement a monitoring and evaluation process to track the progress of your strategic plan. Regularly review your KPIs and metrics, analyze the data, and make any necessary adjustments to keep your organization on track towards achieving its goals.

A well-developed strategic plan serves as a valuable reference document that helps guide decision-making, resource allocation, and communication within an organization. It provides a framework for measuring success, adapting to changes in the nonprofit marketplace, and ensuring that your organization remains focused on its mission and vision.

Writing a business plan for a charity and nonprofit marketplace is crucial for setting clear goals and strategies to achieve them. By following the nine steps outlined in this checklist, organizations can ensure they have a solid foundation to effectively serve their mission and make a positive impact in their communities.

The first step is identifying the mission and vision of the organization, which provides a clear direction for all activities and decision-making. Conducting thorough market research and analyzing the current landscape helps identify existing gaps and opportunities to address within the marketplace.

Defining the target audience and beneficiaries ensures that the organization's efforts are focused on serving the right people and maximizing their impact. Identifying potential partners and collaborators helps create valuable partnerships that can enhance the organization's capabilities and reach.

Ensuring the organization has the appropriate legal structure and necessary registrations is important to operate within the legal framework and maintain transparency. Developing a clear financial plan and budget helps allocate resources effectively and ensure sustainable operations.

Establishing key performance indicators and metrics for success allows organizations to measure their impact and track progress towards their goals. Creating a marketing and communication strategy helps raise awareness about the organization's work and attract support.

Finally, developing a strategic plan guides the organization's activities and helps prioritize initiatives that align with the overall mission and vision.

By following these steps, organizations can build a strong foundation for long-term success, allowing them to make a real difference in their communities and the world.

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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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Charity Business Plan

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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

Fill-in-the-blanks and automatic financials make it easy.

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.

About the Author

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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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 in 5 Easy Steps

Read Time: 3 Minutes

Posted: 16 Dec 2020

16 Dec 2020

Starting up your own charity or non-profit organisation can be extremely rewarding, but it’s important to set up a strong foundation before you even think about diving into fundraising. Planning ahead is the best way to ensure you’re having the biggest impact on your cause.

Although not run like a business in the traditional sense, charities definitely benefit from having a sound business plan – plus, it’ll make it easier to launch your charity and secure funding in the long run. Here’s exactly how to write your charity business plan in 5 easy steps.

Why Do Charities Need a Business Plan?

Ultimately, a business plan is an important document for a charity because it sets out your goals and the strategies you’ll be using to achieve these goals. Like a business makes a business plan to ensure it will be profitable, a charity makes a business plan to ensure it can benefit those it sets out to benefit. 

Step 1: Say Who You Are

The first two sections of your business plan are your executive summary and charity description. In the executive summary, you’ll need to outline:

• Your personal details
• Your charity idea
• Your mission, goals and aims
• The type of organisation you’d like to set up

You’ll then go into more detail in your charity description, where you can talk about where your charity idea came from and why you believe it’s important to raise funds for this untapped cause.

You’ll also need to think about where you’ll be based and the advantages and disadvantages of this location.

Describe what you hope to achieve in the first, second and third years of your charity running, showing both ambition for your organisation but also that you know what is realistic to be able to achieve.

You may also want to brush on some of your unique selling points (USPs), explaining why your charity is necessary in the current climate and what makes you stand out from similar charities who may be raising awareness and funds for similar or the same cause.

Step 2: Understanding Your Market

It’s important to show that you’ve completed the necessary market research to understand how feasible your goals actually are. As well as knowing that there’s a community or group of people who would benefit from the funds raised for your charity, you also need to know that people will be willing to donate to you to create those funds in the first place.

Use polls or ask people face-to-face about their opinion on your cause, asking how much or how often (if at all) they’d be willing to donate to support you.

Furthermore, it’s important to know who else is raising awareness or funds for the same or a similar cause – in the business world, these would be known as your competitors. Check out what they’re doing and how you could do it better or target a more niche demographic of donors. It’s also great to look at other kinds of successful charities, who may not necessarily be supporting the same cause as you, for inspiration as to what works and what doesn’t.

We recommend completing a SWOT analysis as part of your market research. This helps you to identify yours and your competitors’ strengths, weaknesses, opportunities and threats, giving a well-rounded view on where exactly you’d sit in the current market.

Step 3: Day-to-Day Operations

Next, you’ll need to get into the specifics of the day-to-day running of your charity. For this section, you should outline:

• Any resources you’ll need to run your charity
• Suppliers and other organisations you’ll work with
• Premises of your charity
• Equipment you’ll use
• Your process for taking payments from donors
• Any legal requirements like licenses you’ll need, e.g. for preparing food 
• Any insurance you have or will need

You’ll also need to write a small biography for each person who is important to the running of your charity, including their role and their experience showing why they’re perfect for the role. Important people include the management team and any trustees. If this is set to change in the immediate future, make sure to include an overview of any planned changes to your management structure.

Finally, using your SWOT analysis, write down any skills gaps you have in your team and how you plan to fill these gaps.

Step 4: Social Impact

Whereas a regular business would need to see a financial return, a charity also needs to show a social impact. This is the difference you make for the communities and people you work with, and one of the most important parts of your charity business plan.

As well as saying what kind of impact you want to achieve for your chosen cause, you’ll also need to state what you’re going to measure to prove this impact and how you’re going to measure it. And, not forgetting, how you’ll use your learnings to keep adapting your processes.

Another important question to ask yourself for this section is: how are people going to find out about your charity? Luckily, we’ve come up with 20 budget-friendly charity marketing ideas to help give you some inspiration!

Step 5: Finances

In this section, you’ll need to outline your costs and expenditure. As great as your charity idea is, it’s nothing without a well-thought-out financial forecast.

You’ll need to include:

• Predicted costs and expenditure (using research to back this up)
• Main source of income (donors, trustees etc. and what you’d expect them to give)
• Pricing strategy if you plan on selling products or services to fund your charity
• Cash flow forecasts
• Costs table

By preparing for all eventualities with your business plan, you’re turning your charity idea into a reality - and that’s something you should be really proud of. We hope this guide has given you plenty of information to include in your business plan, and you can always view our 10-step checklist for writing a business plan for more information on this.  

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How to write a business plan for a charity shop?

Writing a business plan for a charity shop can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a charity shop business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a charity shop?

What information is needed to create a business plan for a charity shop.

• What goes in the financial forecast for a charity shop?
• What goes in the written part of a charity shop business plan?
• What tool can I use to write my charity shop business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a charity shop business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your charity shop. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your charity shop to be in the next three to five years.

Once you have a clear destination for your charity shop, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To get visibility on future cash flows

If your small charity shop runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your charity shop's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your charity shop business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your charity shop's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your charity shop.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your charity shop and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your charity shop's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your charity shop, let's explore what information is required to create a compelling plan.

Writing a charity shop business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a charity shop

As you consider writing your business plan for a charity shop, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your charity shop.

You could find out that there may be a growing demand for second-hand luxury items such as designer clothing and accessories. This could be due to an increased awareness of the sustainability benefits of buying pre-used items. Market research may also reveal that there could be a need for more pet-related items such as pet beds, toys, and food, as more people may be taking on animals as part of their households.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your charity shop.

Developing the marketing plan for a charity shop

Before delving into your charity shop business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a charity shop

Whether you are starting or expanding a charity shop, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

The staffing costs for a charity shop might include wages for the shop manager, assistant manager, and sales assistants, as well as any additional staff needed for specific tasks like sorting and pricing donations. The equipment costs could include things like a cash register, racks and shelves for displaying items, and a computer system for tracking sales.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your charity shop, it is time to start creating your financial forecast.

What goes into your charity shop's financial forecast?

The financial forecast of your charity shop's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a charity shop are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your charity shop forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established charity shop will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your charity shop

Your charity shop's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

Your charity shop's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

• Your charity shop's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
• And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

A projected cash flow statement for a charity shop is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your charity shop business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the charity shop is appropriately funded.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your charity shop as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your charity shop, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your charity shop business plan, let's shift our focus to the written part of the plan.

The written part of a charity shop business plan

The written part of a charity shop business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a charity shop business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your charity shop's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your charity shop's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

As you build your charity shop business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your charity shop, you could emphasize the potential of the area. It may be a vibrant and growing community that could attract plenty of customers. You could also mention that it could benefit from its proximity to major transportation routes, making it easy for customers to access the shop. Additionally, you could point out that the area could be a desirable place to live and work, with plenty of amenities nearby.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your charity shop might offer a selection of second-hand clothes, books, and toys. Customers can find quality items at a fraction of the cost of buying new. Furthermore, they can feel good about their purchases knowing that all proceeds benefit a charitable cause.

4. The market analysis

When you present your market analysis in your charity shop business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your charity shop, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your charity shop aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include young adults who are interested in thrift shopping. These customers are likely to be value-conscious and are looking for great deals on clothes, accessories, and other items. They may also be more likely to shop at a charity shop due to the positive environmental and social impacts associated with donating to charity.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your charity shop.

5. The strategy section

When writing the strategy section of a business plan for your charity shop, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your charity shop faces a variety of risks. For example, your shop could be robbed. A thief may steal money or goods, causing a financial loss. Additionally, your shop may be affected by external events. For example, if a natural disaster occurs, the shop could suffer physical damage or have to close for a period of time. This could result in a loss of income.

6. The operations section

The operations of your charity shop must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your charity shop - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You might have key assets such as a building, vehicle, or other physical asset. You could also have intellectual property such as trademarks, copyrights, and patents associated with your charity shop. These assets may be necessary for the success of your charity shop, so it’s important to be aware of them and take steps to protect them.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a charity shop business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my charity shop's business plan?

There are two main ways of creating your charity shop business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your charity shop's business plan

The modern and most efficient way to write a charity shop business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your charity shop's business plan

Outsourcing your charity shop business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your charity shop business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your charity shop's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a charity shop business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my charity shop business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a charity shop business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your charity shop and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your charity shop business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a charity shop? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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The Scottish Council for Voluntary Organisations is the membership organisation for Scotland's charities, voluntary organisations and social enterprises. Charity registered in Scotland SC003558 . Registered office Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh EH3 6BB.

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While the language of business can seem at odds with the aims of voluntary organisations, you still need to plan for the future to get things done, and to account to your members, to funders and to the public as you carry out your activities.

Business planning in uncertain times

Your plan may need to be revised more often in response to the current cost of living crisis. By taking the time to try and identify future risks (such as an increase in costs or a reduction of funds) and some potential ways to address these, your organisation may be better equipped to adapt and respond quickly to lower the risks.

• to clarify and meet your aims and objectives
• to spot potential risks and problems
• to set out your goals
• to measure your progress, keep on track, manage performance
• to ensure you do not accumulate losses
• to ensure you comply with legislation and regulations
• to plan your approach and monitor your activities over time
• to raise money for the organisation or specific projects. It can be shown to other people who might provide or lend money, eg funders, public bodies, the bank.

You can also use your plan to introduce new groups of people to your organisation, such as volunteers or funders.

If you decide to apply to be a charity then the Office of the Scottish Charity Regulator will want to see a copy of a business plan, organisational plan or grant application, or any other documents detailing your organisation’s intended activities.

What should our business plan say?

A business plan is a clear and documented account of the activities you have decided to undertake over a given period of time, and the cost of making them happen. It should cover objectives and strategies, and enable the organisation to deliver more effectively. Business plans are as individual as the groups that develop them, but some common elements include:

• the history and background of your organisation and current activities
• future activities – what you are going to do and why?
• when and how you are going to do it?
• where will the money come from? When and how it will be spent?
• how will you assess the potential risks to your project?
• how will you keep track of your progress and spending? How will you monitor and review?
• how will you know if the plan is working? How will you evaluate?

Remember who you are writing the plan for: your management committee, your staff, members, clients. You should be honest and realistic when setting out your aims and objectives and how you intend to deliver them.

The information supplied in the ‘public version’ of a Business Plan may be slightly different to the version you will use for yourself. You should consider the information you supply to any third party carefully.

Who should be involved in the planning process?

Depending on the size of the organisation, it is useful to involve a number – or all – key players in the development of the plan to varying degrees. In voluntary organisations it is quite common to consult with clients, service users or members, as well as staff and/or the management committee.

Useful resources

• MyGov.scot - Writing a business plan Step by step guide to preparing a business plan.
• Forth sector development A business planning guide to developing a social enterprise.
• SCVO Business Planning webinar A look at new, more agile, ways of writing a business plan
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• Oct 13, 2023

How to write a robust strategic plan for your charity

Strategic planning: it’s the most effective way for your charity to realise its mission and have a lasting impact on your beneficiaries. Unfortunately for charity leaders, balancing the endless to-do list with a shortage of time often means future planning slips down the order of priorities.

However, it’s critical that you spend the time developing a robust strategic plan for your charity. Your strategy defines where you want to go and how you’re going to get there. Without one, how will you know that your team is pulling in the same direction?

A strategic plan can be as complex as you choose to make it. Large charity, or small charity, the process is broadly similar, and we’ve outlined a useful step-by-step guide to writing a great strategic plan for your charity, along with a few tips to get you started.

Step 1. Stakeholder consultation

The first step is to undertake stakeholder consultation. This may seem a bit overwhelming at first, so let’s break it down!

Start by identifying who your key stakeholders are and how you plan to speak to them.

Examples of the ‘who’ could be your team and wider staff, trustees, funders and the general public, but most importantly, talk to your beneficiaries! Prioritise diversity of input right from the get-go to understand the totality of challenges, needs and aspirations. Think about ‘how’ you plan to gather and record the information: this could be through interviews, surveys or focus groups, or a mixture of them all!

The data from consultation sets the foundation for your strategic plan, so it’s a vitally important first step to take.

Step 2. Perform a SWOT analysis

Now you’ve gathered information from different stakeholders, it’s time to identify your organisation’s strengths, weaknesses, opportunities and threats. By performing a simple SWOT analysis, you can begin to build a clear picture of what’s working, potential areas for development, and what risks you may need to mitigate.

This is a great opportunity to ask yourselves some important questions: what do you know your charity does really well? What’s holding you back from achieving your vision? Where do you think you could add more value to your beneficiaries?

This is a helpful article geared towards charities, explaining the benefits of performing a SWOT analysis and guiding you through the process.

Step 3. Identify your aspirations, define your vision and mission

Having established a good understanding of your external environment, it’s time to set out your organisational aspirations, and define your vision and mission.

Your aspirations should be long-term in nature: what goals would you like your charity to achieve over the next 3/5/10 years? Once these have been determined, use them to inform your vision and mission, which together articulate the difference your charity is trying to make in the world.

Your vision statement should clearly set out the future you are aspiring to create. It will drive your charity towards achieving your long-term goals, defining what will be pursued and how you will get there. Your vision should be clear and inspiring to motivate everyone to commit to your journey.

Your mission statement is what will be accomplished in pursuit of your vision. It should communicate your charity’s purpose, identify your stakeholders, and set out your primary objectives.

Some useful things to consider when developing your vision and mission:

Is it unique?

Have you kept it simple and short?

Is it memorable?

Have we been ambitious yet kept this achievable?

Is it inspirational?

Is it rational, whilst still emotional?

N.B. If you have a vision and mission from a previous strategy, this is the point where you should sense-check that they are still fit for purpose and representative of your current stakeholders.

Step 4. Set out your core values

Your values are the guiding principles that define your charity’s culture and ways of working.

Values are the core beliefs that everyone in the organisation must adopt, from the leadership team right down through the wider staff team. It is important that you engage the full team in developing these: consultation with your team will give you an understanding of whether existing values still apply, and what new values might be needed to guide future behaviour. Whilst it may be the leadership team who ultimately define these values, gaining input from the team will help to ensure a higher level of buy in and diversity of perspective.

Communication is also key. Once you’ve defined your charity’s core values, make sure to communicate them clearly back to your staff team: it’s crucial that every person understands the standards by which they are expected to live and work!

Step 5. Define your strategic focus areas

Strategic focus areas are the building blocks of your strategy: they bridge the gap between your vision statement and the individual actions needed to achieve it. Focus areas help to give your strategy structure by breaking it down into distinct sections, with each section underpinned by its own strategic goal.

Cascade recommends the following for developing great strategic focus areas:

Aim to keep your focus areas short and memorable. You should be able to distil your focus into 6 words or less.

Don’t go too broad. Make sure your focus areas are… focussed!

Don’t use metrics at this stage. Keep your focus areas outcome-oriented but high level.

Every strategic plan is unique, but 3 to 6 focus areas is probably a reasonable range.

Step 6. Set your goals

Strategic goals underpin your focus areas: they are high-level, purpose-driven statements that set out exactly what it is you want to achieve.

Characteristics of strong strategic goals:

Motivating . Have strategic goals that are ambitious enough to inspire your team into action.

Realistic . Although they should be challenging, ensure that your goals are attainable within the constraints of your resources, capabilities, and budget.

Measurable . While strategic goals don’t need to be as accurately monitored as KPIs, it’s worth developing some high-level success measures to track your progress.

We’d recommend having no more than 1-2 strategic goals per focus area, which should give your team a clear purpose to rally behind.

Step 7. Draw up your action plan

Having determined your high-level strategic direction, it’s time to get down to business! This means developing a detailed action plan in order to operationalise your strategy and transform your vision into reality.

To begin this process, you should start by setting your strategic objectives. These are the definitive, quantifiable targets that organise your high-level goals into explicit actions which are driven by a deadline.

There are lots of resources out there to help you craft great strategic objectives, but a commonly adopted framework is SMART . Take a look at our previous blog, strategic objective setting for national associations and federations, which explains in detail the objective-setting process and includes plenty of tips that can be applied to charities.

You’ll also need to develop related Key Performance Indicators (KPIs), the metrics you’ll need to measure in order to monitor the progress of your strategic objectives. Examples include:

Fundraising income generated

Beneficiaries supported

Social Return on Investment (SROI)

Social media engagement

However, these are just suggestions - your KPIs are personal to your charity’s unique vision, mission, and purpose - success will look different to everyone!

Final checks and implementation

Now that you’ve finished developing your strategic plan, it’s ready to review and begin implementation. The next step is to create a polished, public facing document that can be shared with your stakeholders and the community. By approaching it systematically and paying attention to the details, your charity will be in the best position to achieve its goals – time to get planning!

If you have any questions about your own strategic plan, get in touch.

For all media enquiries contact [email protected]

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How To Start Writing A Business Plan That Works

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For the entrepreneur, knowing how to start writing a business plan can be as exhilarating as it is overwhelming. The business plan is a foundational document and the blueprint of your business and is critical for securing funding, setting clear goals, and communicating your vision to the world.

Let’s explore the significance of a business plan, the essential elements it should include, and strategies to forge a plan that resonates with stakeholders and steers your business toward success.

Whether you are about to launch your first business or need to revitalize an existing business strategy, a business plan provides the foundation that supports your entrepreneurial journey.

Why a Business Plan Is Needed

A business plan is not solely for the benefit of a bank manager or an investor . The business plan is a document that helps bring clarity to your vision and can guide every decision and strategy within your company.

A well written business plan forces you to put your goals and ideas into concrete, manageable steps. It cuts through the noise, ensuring you stay focused on what truly matters for your business’s growth.

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For startups looking to secure that critical initial investment, a business plan is often the first point of reference for potential backers. It’s a chance to sell your vision, show your financial acumen, and demonstrate a roadmap to profit.

Identifying potential pitfalls early is a vital aspect of proactive business ownership. A good business plan helps you prepare for the unexpected and develop strategies to mitigate risk and safeguard the longevity of your business.

Setting clear, measurable goals in your business plan provides a framework for tracking your progress. This will give you the insight needed to pivot or double down on strategies as the market dictates.

Creating Your Story

Before you start drafting sections and compiling data, step back and consider the story of your business. Your plan should be like a good book, with a clear narrative arc that compels the reader from the first sentence to the last.

Any good story is rooted in an understanding of the world it inhabits. Your business's narrative begins with a comprehensive analysis of the industry in which you operate, as well as the consumers you aim to serve.

Think about how you define your unique selling proposition (USP) . What sets your business apart from competitors? All good stories have a unique twist, and your business plan should articulate what makes your venture different from, and better than, the competition.

Introduce your team into the story. Highlight their expertise, experience, and any relevant achievements that lend credibility to the business’s ability to execute on its vision.

Writing Your Business Plan Is Just the Beginning

A business plan can span from a quick roadmap sketched on the back of a napkin to a hefty document carefully crafted to align with industry standards. Regardless of size, it should contain certain fundamental elements .

The act of writing a business plan, while pivotal, is just the first step in an ongoing process of refinement and execution.

Here’s how to make sure your business plan is a living document:

1. Regular reviews and updates

Markets shift, consumer behavior changes, and your business will grow. Your plan must evolve with these factors, which makes regular reviews and updates a must-do.

2. Be realistic

It’s essential to be both ambitious and realistic in your plan. Don’t over-inflate projections or underestimate costs. An unrealistic plan is as unattractive to investors as a lack of vision and ambition.

3. Seek professional input

Don’t be afraid to ask for help. Experienced business advisors, accountants, and mentors can provide invaluable feedback and spot issues you may have missed.

4. Start small

Your first draft doesn’t have to be perfect. Write down your initial thoughts, outline your ideas, and refine them over time. Starting with a large plan can be intimidating but working on it gradually can be a more manageable and effective approach.

The bottom line is that writing a business plan can feel overwhelming, but with the right approach and attention to detail, you can create a document that not only articulates your vision but actively works to make that vision a reality. It’s a living, breathing narrative that outlines your business’s course of action, and should be treated with care and enthusiasm.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business . She is the founder of She Means Profit, which is a podcast and blog . As a Finance Strategist for small business owners, Melissa helps successful business owners increase their profit margins so that they keep more money in their pocket and increase their net worth.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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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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Plus, 100+downloadable funder lists , 40+ policies , 8 online health checks and the huge resource base.

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To access help and resources on anything to do with running a charity, including funding, click the AI Bunny icon in the bottom right of your screen and ask it short questions, including key words.  Register, then login and the in-system AI Bunny is able to  write funding bids and download charity policy templates  as well.

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