What is inside this nonprofit organization business plan
The download is a complete sample plan for Riverbend Community Kitchen, a fictional nonprofit organization business, written so you can see what a finished plan looks like and then swap in your own details. It includes all twelve sections lenders and investors expect:
- Executive summary
- Company description
- Products and services
- Market analysis
- Competition
- Marketing and sales
- Operations, licenses and permits
- Management and staffing
- Key performance indicators
- Risks and mitigation
- Financial plan with startup costs and 3-year projection
- Funding request and appendix checklist
Who your nonprofit organization business will serve
Typical customers
- Program participants and beneficiaries
- Individual donors
- Foundations and grant makers
- Corporate sponsors and volunteers
Products and services to describe
- Core mission programs
- Community events
- Volunteer programs
- Earned income such as fees or a social enterprise
Common revenue streams
- Grants
- Individual and major gifts
- Events and earned income
Nonprofit Organization startup costs
These rough ranges are a starting point for your own budget. Real costs depend heavily on your city, the size of the operation and whether you buy new or used. Get quotes and replace them in your plan.
| Startup cost | Typical low | Typical high |
|---|---|---|
| Incorporation and 501(c)(3) application | $500 | $3,000 |
| Program startup costs | $5,000 | $50,000 |
| Office or program space | $0 | $30,000 |
| Donor database and website | $500 | $4,000 |
| Insurance (including directors and officers) | $1,000 | $4,000 |
| Fundraising launch | $1,000 | $10,000 |
| Operating reserve | $5,000 | $40,000 |
| Estimated total | $13,000 | $141,000 |
Build your own budget with the free startup costs calculator.
Sample 3-year projection
The template includes an illustrative projection for a nonprofit organization business with first-year revenue of $250,000 and a 100% gross margin. Use it to see the shape of the numbers, then build your own with the 3-year financial projections spreadsheet.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $250,000 | $312,000 | $359,000 |
| Gross profit | $250,000 | $312,000 | $359,000 |
| Operating expenses | $237,500 | $261,250 | $282,150 |
| Net income before tax | $12,500 | $50,750 | $76,850 |
Key numbers to track
- People served
- Program reach.
- Outcome measures
- Changes your programs create.
- Program expense ratio
- Share of spending on programs.
- Donor retention
- Share of donors who give again.
Licenses and permits to research
- State nonprofit incorporation
- IRS 501(c)(3) determination
- State charitable solicitation registration
- Annual Form 990 filing
Requirements differ by state, county and city. Check with your local business licensing office, health department or Small Business Development Center before you open.
Marketing ideas for a nonprofit organization business
- Impact stories and photos
- Annual giving campaigns
- Grant applications
- Corporate partnerships
Risks lenders will ask about
- Dependence on a few grants
- Volunteer turnover
- Founder burnout
- Compliance with nonprofit rules
Tips for writing your nonprofit organization business plan
- Write a logic model linking activities to outcomes.
- Show a diverse funding plan.
- Introduce your board and their roles.
Prefer a guided version?
Answer questions one section at a time and download your finished plan as a Word file.
Frequently asked questions
Do nonprofits need a business plan?
Yes. Funders and boards use a plan to understand the need, programs, outcomes and how the organization will be funded over time.
How is a nonprofit plan different?
It focuses on mission and outcomes, and replaces profit projections with a sustainable budget and funding mix.
Is this nonprofit organization business plan template really free?
Yes. Download the Word or PDF file and use it for your own business at no cost, with no sign-up required. Replace the example text and numbers with your own.
Related business plan samples
Brewery and Taproom Business Plan
Breweries require serious capital and long licensing timelines, so plans are reviewed carefully by lenders...
Food & HospitalityBed and Breakfast and Small Hotel Business Plan
Bed and breakfasts and boutique inns combine real estate, hospitality and food service.
Retail & EcommerceVending Machine Business Plan
Vending businesses are built one location at a time.
Home ServicesLaundromat Business Plan
Laundromats are often bought rather than started, and the plan centers on equipment age, utility costs,...
Home ServicesPressure Washing Business Plan
Pressure washing is a low-cost, high-margin home service with seasonal demand.
Creative & MediaContent Creator and YouTube Channel Business Plan
Creators increasingly run their channels as real businesses.