1. 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

2. BACKGROUND AND RATIONALE
 A valuable part of the community
 Leadership
 Volunteers
 Services
 Financial Capital
 Employment
 Social Capital

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

4. NONPROFITS MAKE ECONOMIC CONTRIBUTIONS BY
TRAINING VOLUNTEERS

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

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

7. NONPROFITS MAKE ECONOMIC CONTRIBUTIONS TO
COMMUNITIES BY PROVIDING EMPLOYMENT.

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

9. Facts you need to know:

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

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

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

13. Florida
nonprofits are
the FOURTH
LARGEST Source
of employment
among all industry
sectors.
IRS EOMF (2005)

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

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

16. Florida nonprofits generate more than
$14.6 billion in wages and
compensation
Phil. And Nonprofit Leadership Center. (2002)

17. Florida nonprofits generate
more than $61Billion in total
economic activity.
Phil. And Nonprofit Leadership Center. (2002)

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

19. Full time 250,000
equivalent =
volunteer
workers
Phil. And Nonprofit Leadership Center. (2002)

20. “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.

21. 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

22. 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

23. CONTROLLING DOCUMENTS
 EIN
 Bylaws
 Articles of Incorporation
 IRS Letter of Exemption
 Consumer’s Certificate of Exemption
 Uniform Business Report
 Solicitations of Contributions Registration

24. GOVERNANCE/LEADERSHIP
 Board of Directors
 Size
 Officers w/position descriptions
 Org. Chart
 Committees – Standing, Ad Hoc
 Executive Director
 Board Assessment Plan

25. 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

26. FINANCIALS
 Budget
 Balance Sheet
 Income Statement
 Statement of Cash Flow
 990

27. MARKETING
 Analysis
 Target Audiences
 Goals and Objectives
 Analyze target audiences and competition
 Develop market strategies
 Price, Product, Place, Promotion
 Evaluation and Monitoring

28. PUBLIC RELATIONS
 Goals and Objectives
 Vision and Mission
 Values
 Critical Elements
 Research, message, materials, work plan
 Media/endorsements/Internal com.
 Crisis control

29. VOLUNTEER MANAGEMENT
 Recruitment
 Orientation
 Training
 Supervision
 Evaluation
 Recognition

30. FUND RAISING
 Financial Goals
 Special Relationships
 Case for Support
 Fund Raising Model
 Strategies
 Stewardship

31. CODE OF ETHICS
 Values
 Statements of Ethical Conduct
 Conflict of Interest Statement

32. LOBBYING
 Legislative advocacy
 Election H
 Prepare Board of Directors
 Know legislative process
 Develop data
 Develop policy agenda

33. RISK MANAGEMENT
 Volunteer elements and mitigation strategies
 Financial elements and mitigation strategies
 Employer/employer elements – mitigation
 Insurance
 Who is responsible?

34. 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
 E civis