Why Does Your Organization
Need a Business Plan?

By Rita Galowich
President, Fund Inc.
JB&A Strategic Partner

As more and more donors are asking how their contributions are being used, and the increasing need for transparency continues to be ever more important, creating a business plan is an imperative to support the planning and growth of your organization.

Business plans can be used in two different ways: (1) As a tool to support the entire organizational structure; and (2) As a tool that provides detailed information for a specific project such as a capital campaign.

So, what is a business plan?

It is a highly detailed strategic document that is designed to execute the mission, goals and objectives of your organization and/or specific project. It incorporates the following elements:

• Description of the organization as a whole, and the specific project needing funding. It includes organizational history and growth expectations;
• Presentation of the financial plan that includes discussion of the acquisition of funds, use of those funds, monthly expenses and income statements, and balance sheet;
• Description of the marketing plan for the organization or the specific project;
• Description of the organizational plan that includes staffing structure, legal structure and your plan for managing the funds secured for the project.

In the past 12 months Jeffrey Byrne & Associates has suggested to clients considering capital campaigns that they develop a business plan to share with prospective major donors. Why? Because donors who are considering a significant investment in an organization are asking hard questions about the use and management of their gift, as well as the long-term sustainability of the project.

Donors want to see a plan that not only lays out a sound strategy for the raising of money necessary to reach the goal, but contains line-item specifics that justify the cost as well as the plan for sustainability beyond the initial fundraising.

A good business plan will demonstrate to your donors that your organization is being run like a business. After all, you are a very important business that helps sustain the vitality of your community. Be sure your donors know that.

Whether your need is to support overall organizational growth, or a capital fundraising project, we are available to lend our expertise to help you craft your business plan. Contact us at www.fundraisingjba.com, 1-800-222-9233. Contact Rita Galowich directly at rita@fundinconline.com.