This guide outlines the areas that the nonprofit organization should address in its business plan, which includes a comprehensive description of the nonprofit institution, its activities, and projects. It also defines the objectives of the nonprofit activity, its plans, financial resources, expenses, as well as the risks that the organization may face. The outline should always reflect a comprehensive understanding of the sector's requirements and ensure that the organization's activities are beneficial both socially and financially.

In this regard, the organization needs a clear business plan if it is trying to secure funding, embark on nonprofit activity, stand out in this field, or continue working within an existing system in the market. The operational plan is prepared by following these steps:

1.Executive Summary:

The summary should begin with clarifying and succinctly stating the key points of the business plan, as some stakeholders may not read beyond this section. These key points include the organization’s identity, its objectives, and its plan.

2.Organization Overview:

The organization’s definition should include all necessary details about the institution and its activity. First, it is important to present the organization’s vision, mission, values, and objectives. Secondly, it is essential to mention its founding history and the current status of the organization, along with its legal status and the services it provides.

3.Nonprofit Sector:

The organization’s business plan must reflect a clear and detailed understanding of the nonprofit sector. Therefore, a portion of it should discuss the clients (beneficiaries), the team, and the donors. On the other hand, it is important to delve into the studies or analyses conducted by the organization to understand the market, as well as the marketing strategies it intends to implement.

4.Operational Plan:

The business plan should provide an overview of the organization’s daily operations, which may include a description of the resources needed for the organization to activate its business activity, and the individuals or organizations it collaborates with (such as partners and suppliers), as well as the buildings and equipment that facilitate the organization’s work, and the transactions related to client payments. This section also includes the legal requirements that the organization must meet and the insurance policies that will be purchased.

5.Personnel:

The business plan typically describes the individuals the organization relies on and identifies any changes that may occur in the arrangement or number of staff running the activities. This may include: the resumes of the management team or the resumes of the trustees or changes in the management structure. This section may also be used to describe any skill gaps within the team, if any, and how to overcome them.

6.Financial and Social Impact of the Organization:

The business plan for the nonprofit organization needs to demonstrate the social impact of its activity, not just the financial returns. The mentioned impact is measured by the total services the organization provides to the individuals and groups it works with. This section is used to provide a clear and concise description of the change the organization aims to achieve, the methods used to study and employ the skills of the organization’s team to address the social issue to be solved, in addition to the means that will be utilized for raising awareness.

7.Financial Structure:

A summary of the organization’s financial resources and expenses should be provided in this part of the plan, which is dedicated to inventorying costs, expenses, and the main sources of income, as well as pricing strategies (if the organization provides products and services for money) and financial forecasts. Financial forecasts form one of the most important parts of the operational plan, but it is crucial that cash flow projections and cost schedules are realistic; otherwise, the outcomes may be adverse and detrimental to the organization’s operation.

8.Risks:

It is essential to identify the risks that your nonprofit activity may face. Therefore, a part of the business plan should be dedicated to detailing governance risks, external risks, organizational and financial risks, and operational risks. The next step focuses on explaining the likelihood of each risk occurring and its impact on one hand, and how to plan to confront it on the other.

Source:Know How Non Profit