THE NONPROFIT BUSINESS

PLAN: THE RATIONALE AND

ESSENTIAL ELEMENTS

Elizabeth B. Bolton, Ph.D.

Community Development and Nonprofit Leadership

Department of Family, Youth and Community Sciences

University of Florida

BACKGROUND AND RATIONALE

A valuable part of the community

Leadership

Volunteers

Services

Financial Capital

Employment

Social Capital

NONPROFITS AND OTHER ORGANIZED GROUPS MAKE ECONOMIC CONTRIBUTIONS TO COMMUNITIES BY DEVELOPING LEADERS

NONPROFITS MAKE ECONOMIC CONTRIBUTIONS BY TRAINING VOLUNTEERS

NONPROFITS MAKE ECONOMIC CONTRIBUTIONS TO COMMUNITIES BY EXTENDING SERVICES TO TARGET AUDIENCES

NONPROFITS MAKE ECONOMIC CONTRIBUTIONS TO COMMUNITIES BY CONTRIBUTING TO FINANCIAL CAPITAL.

NONPROFITS MAKE ECONOMIC CONTRIBUTIONS TO COMMUNITIES BY PROVIDING EMPLOYMENT.

NONPROFITS MAKE ECONOMIC CONTRIBUTIONS TO COMMUNITIES BY CONTRIBUTING TO SOCIAL CAPITAL.

Facts you need to know:

In Florida there are more than 46,587 nonprofits Bureau of Labor Statistics IRS Exempt Orgs (2005)

In Florida nonprofits directly employ approx. 380,000 people. National Center for Charitable Statistics (2005)

Florida nonprofits generate an additional 250,000 jobs from spending by the organizations and their employees. Phil. And Nonprofit Leadership Center. (2002)

Florida nonprofits are the FOURTH LARGEST Source

of employment among all industry sectors. IRS EOMF (2005)

Florida nonprofits hold assets exceeding $76.2 billion Phil. And Nonprofit Leadership Center. (2002)

Florida nonprofits generate at least $300 million in sales tax. Phil. And Nonprofit Leadership Center. (2005)

Florida nonprofits generate more than

$14.6 billion in wages and

compensation

Phil. And Nonprofit Leadership Center. (2002)

Florida nonprofits generate more than $61Billion in total economic activity.

Phil. And Nonprofit Leadership Center. (2002)

Nonprofit sector in Florida has grown faster than the state’s overall economy. Phil. And Nonprofit Leadership Center. (2002)

Full time equivalent volunteer workers

= 250,000

Phil. And Nonprofit Leadership Center. (2002)

“Florida’s nonprofit sector is an economic powerhouse, generating and expending billions of dollars and employing a significant proportion of Floridians. However, this sector remains relatively smaller in Florida than its counterparts across the country.” (p. 4) Salamon, L.M., Geller, S.L. and Sokolowski. S.W. (2008). Florida’s Nonprofit Sector: An Economic Force. Nonprofit Economic Data Bulletin Number 29. Baltimore, Md: Center for Civil Studies, John Hopkins University.

THE BUSINESS PLAN

• Leaders/Board/Governance

• Organizing Documents

• Strategic Plans

• Financial Management

• Marketing

• Public Relations

• Fund Raising Plan

• Volunteers

• Programs/Services/Products

• Lobbying Plan

• Ethics Plan

• Risk Management Plan

THE CONCEPT UNDERLYING THE

ORGANIZATION

Problem/Issue

Who is impacted

Dimensions of the problem

What will happen if problem is not addressed

Outcomes

What is missing/needs to be done differently

Why is this NPO needed

CONTROLLING DOCUMENTS

EIN

Bylaws

Articles of Incorporation

IRS Letter of Exemption

Consumer’s Certificate of Exemption

Uniform Business Report

Solicitations of Contributions Registration

GOVERNANCE/LEADERSHIP

Board of Directors

Size

Officers w/position descriptions

Org. Chart

Committees – Standing, Ad Hoc

Executive Director

Board Assessment Plan

THE STRATEGIC PLAN

• Environmental Analysis

• External Threats and Opportunities

• Internal Strengths and Weaknesses

• Mission

• Vision

• Goals

• Objectives

• Service to be provided

• Who will provide the service

FINANCIALS

Budget

Balance Sheet

Income Statement

Statement of Cash Flow

990

MARKETING

Analysis

Target Audiences

Goals and Objectives

Analyze target audiences and competition

Develop market strategies

Price, Product, Place, Promotion

Evaluation and Monitoring

PUBLIC RELATIONS

Goals and Objectives

Vision and Mission

Values

Critical Elements

Research, message, materials, work plan

Media/endorsements/Internal com.

Crisis control

VOLUNTEER MANAGEMENT

Recruitment

Orientation

Training

Supervision

Evaluation

Recognition

FUND RAISING

Financial Goals

Special Relationships

Case for Support

Fund Raising Model

Strategies

Stewardship

CODE OF ETHICS

Values

Statements of Ethical Conduct

Conflict of Interest Statement

LOBBYING

Legislative advocacy

Election H

Prepare Board of Directors

Know legislative process

Develop data

Develop policy agenda

RISK MANAGEMENT

Volunteer elements and mitigation strategies

Financial elements and mitigation strategies

Employer/employer elements – mitigation

Insurance

Who is responsible?

GETTING TO WHERE YOU WANT TO BE:

LOCAL RESOURCES

NCNCF Workshops

Newsletters

Networking

Membership

Dept. Family, Youth and Community Sciences Certificate in Executive Leadership in NPO (Distance Ed)

BS and MS

Interns

Alachua County Government Alachua County Library – Foundation Directors

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