Charity Business Plan Template

Are you interested in starting your own charity Business?

How to start a charity business

Introduction
If you're thinking about starting a charity, there are a few things you need to know. First, you need to be clear about your mission and what your charity will do. Second, you need to understand the legal requirements for setting up a charity. And third, you need to have a plan for how your charity will be funded. In this section, we'll cover the basics of how to start a charity. We'll talk about what you need to do to get started, and we'll offer some tips on how to get your charity off the ground.
Global Market Size
When it comes to the global market size for charity businesses, it is important to keep in mind that the industry is constantly growing. This is due in large part to the increasing number of people who are looking for ways to give back to their communities and make a difference in the world. In fact, according to a report from Charity Navigator, the total giving by individuals, foundations, and corporations reached an all-time high of $410.02 billion in 2017. Of course, with this growth comes increased competition. This means that if you are thinking about starting a charity business, it is important to do your research and develop a niche market that you can tap into. For example, you may want to focus on a specific cause or region that you are passionate about. Alternatively, you could focus on providing services that are not currently being offered by other charities. no matter what approach you take, it is important to remember that starting a charity business is a lot of work. However, if you are dedicated to your cause and have a clear plan for how you want to help others, then it can be an incredibly rewarding experience.
Target Market
When starting a charity business, it is important to first identify your target market. Who do you want to help with your charity? What are their needs? Once you know your target market, you can begin to develop a marketing strategy to reach them. There are many ways to reach potential donors, including online marketing, direct mail, and events. It is also important to consider what type of fundraising you will do. Will you solicit donations from individuals, businesses, or both? What type of donation do you want to receive? Money is not the only way to donate; goods and services can be donated as well. Once you have a plan in place, it is time to start reaching out to potential donors. Begin by creating a list of potential donors and their contact information. Then, reach out to them via phone, email, or social media. Be sure to explain what your charity does and how their donation will help.
Business Model
There are a few key things to consider when starting a charity business. The first is your business model. What will your charity do? What services will you provide? How will you generate revenue? Your business model will dictate how your charity operates and how it makes money. There are a few common models for charities:
Donation-based: This is the most common model for charities. You solicit donations from individuals, businesses, and foundations and use that money to fund your programs. Event-based: Many charities host events to raise awareness and funds for their cause. This can be anything from a gala to a bake sale.
Product-based: Some charities sell products to raise funds. This could be anything from t-shirts to coffee mugs. Investment-based: A newer model for charities, this involves soliciting investments from individuals, businesses, and foundations. The returns from these investments are then used to fund the charity's programs.
Once you've decided on your business model, you need to figure out how to make it work. What are the costs associated with your charity? How will you generate revenue? What are your fundraising goals? Answering these questions will help you create a sustainable business model for your charity..
Competitive Landscape
When it comes to starting a charity business, it's important to understand the competitive landscape. There are a number of different types of organizations competing for donations, and it's important to understand how your organization fits into the mix. There are a few different ways to categorize the competition: - By type of organization: non-profits, for-profits, or government entities - By size: large organizations, small organizations, or individual donors - By focus: organizations that focus on a specific issue or region, or those that provide general support Within each of these categories, there are a number of different organizations competing for donations. It's important to understand the strengths and weaknesses of each type of organization, as well as the needs of your target donors, in order to create a successful charity business.

Mission Statement

A mission statement is a crucial element of any charity business. It defines the purpose of your organization and the impact it aims to achieve. A well-crafted mission statement can help you attract donors, volunteers, and other stakeholders who share your vision. Your mission statement should be concise, clear, and inspiring. It should reflect your values and the goals you hope to accomplish. By defining your mission statement, you can ensure that your charity business stays focused on its core purpose and achieves its goals.

 

Legal Considerations

Starting a charity business involves legal requirements that you must comply with. You will need to register your organization with the appropriate government agencies, obtain necessary licenses and permits, and comply with tax regulations. These requirements may vary depending on your location and the type of charity you want to start. It is crucial to understand these legal requirements and ensure that your organization is in compliance with them to avoid legal issues. Consulting with a lawyer or accountant who has experience in the nonprofit sector can help you navigate these legal considerations.

 

Fundraising Strategies

Fundraising is a critical aspect of running a charity business. It is essential to have a well-planned fundraising strategy to raise funds for your organization. Some of the most common fundraising strategies include grants, donations, events, and corporate partnerships. Applying for grants from foundations and government agencies can be a reliable source of funding. Donations from individuals and companies can also be a significant source of revenue. Hosting events like galas, auctions, and charity walks can help raise awareness and generate funds. Building partnerships with companies that share your organization's values and goals can also be a great way to raise funds. Developing a comprehensive fundraising strategy can help ensure the long-term sustainability of your charity business.

 

Marketing and Promotion

To attract donors, volunteers, and other stakeholders, you need to promote your charity business effectively. This requires a well-planned marketing strategy that incorporates social media, email marketing, and traditional advertising. Social media platforms like Facebook, Twitter, and Instagram can help you reach a broad audience and raise awareness about your organization. Email marketing can help you stay in touch with your supporters and keep them updated on your organization's activities. Traditional advertising methods like print and radio can also be effective in reaching a local audience. A comprehensive marketing plan can help you build your brand, attract new supporters, and achieve your goals.

 

Financial Planning

Managing your finances is crucial for the success of your charity business. You need to develop a comprehensive financial plan that includes budgeting, accounting, and financial reporting. Budgeting involves estimating your income and expenses and allocating resources accordingly. Accounting involves keeping track of your financial transactions and preparing financial statements. Financial reporting involves communicating your financial performance to stakeholders, including donors and grantors. It is essential to have a clear understanding of your financial situation to make informed decisions and ensure the long-term sustainability of your organization.

 

Volunteer Management

Volunteers are a vital part of any charity business. You need to develop a volunteer management plan that includes recruiting, managing, and retaining volunteers. To attract volunteers, you need to communicate your mission and goals effectively. Once you have recruited volunteers, you need to provide them with training, support, and recognition. You also need to ensure that your volunteers are working safely and effectively. Retaining volunteers involves keeping them engaged, recognizing their contributions, and providing them with opportunities for growth. A well-managed volunteer program can help you achieve your goals and build a strong community of supporters.

 

Board Governance

A board of directors is responsible for the governance of a charity business. They provide strategic direction, oversee the organization's operations, and ensure compliance with legal and ethical standards. It is essential to have a diverse and committed board that reflects your organization's mission and values. Board members should have a range of skills and experience that can help your organization achieve its goals. You also need to establish clear roles and responsibilities for board members and provide them with the support and resources they need to fulfill their duties. A well-governed board can help ensure the long-term success of your organization. 

 

Risk Management

Starting a charity business involves certain risks that you need to manage effectively. Risks can arise from financial, legal, reputational, and operational issues. You need to develop a risk management plan that identifies potential risks, assesses their impact, and outlines strategies to mitigate them. This plan should include procedures for monitoring and addressing risks as they arise. By managing risks effectively, you can protect your organization's assets, reputation, and sustainability.

 

Impact Evaluation

Measuring the impact of your charity business is essential to understanding whether you are achieving your goals and making a difference. You need to develop an impact evaluation plan that outlines your organization's goals, indicators, and methods for measuring progress. This plan should also include procedures for collecting, analyzing, and reporting data. By evaluating your impact regularly, you can identify areas for improvement, communicate your achievements to stakeholders, and demonstrate accountability to donors and supporters. 

 

Sustainability Plan

Building a sustainable charity business involves developing a plan for long-term growth and impact. This plan should include strategies for diversifying your funding sources, expanding your reach, and enhancing your programs and services. It should also include measures for building capacity, improving efficiency, and maintaining stakeholder engagement. A sustainability plan can help you ensure that your organization continues to achieve its mission and goals over the long term. .

Conclusion
If you're considering starting a charity business, there are a few key things to keep in mind. First, you need to be passionate about your cause. Second, you need to have a clear vision for your charity. Third, you need to be able to articulate your mission and goals to potential donors. Finally, you need to have a solid plan for how you will run your charity. If you can do all of these things, you'll be well on your way to starting a successful charity business.

Why write a business plan?

A business plan is a critical tool for businesses and startups for a number of reasons:
  • Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
  • Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
  • Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
  • Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
  • Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
  • Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
  • Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
  • Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
  • Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
  • Business plans allow you to position your brand by understanding your company’s role in the marketplace.
  • Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
  • Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content

 

Many people struggle with drafting a business plan and it is necessary to ensure all important sections are present in a business plan:
  1. Executive Summary
  2. Company Overview
  3. Industry Analysis
  4. Consumer Analysis
  5. Competitor Analysis & Advantages
  6. Marketing Strategies & Plan
  7. Plan of Action
  8. Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at info@avvale.co.uk . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect charity business plan, fill out the form below and download our charity business plan template. The template is a word document that can be edited to include information about your charity business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning

 

With the growth of your business, your initial goals and plan is bound to change. To ensure the continued growth and success of your business, it is necessary to periodically update your business plan. Your business plan will convert to a business growth plan with versions that are updated every quarter/year. Avvale Consulting recommends that you update your business plan every few months and practice this as a process. Your business is also more likely to grow if you access your performance regularly against your business plans and reassess targets for business growth plans.

 

Want a Bespoke Business Plan for your charity Business?

Our Expertise

 

Avvale Consulting has extensive experience working with companies in many sectors including the charity industry. You can avail a free 30-minute business consultation to ask any questions you have about starting your charity business. We would also be happy to create a bespoke charity business plan for your charity business including a 5-year financial forecast to ensure the success of your charity business and raise capital from investors to start your charity business. This will include high-value consulting hours with our consultants and multiple value-added products such as investor lists and Angel Investor introductions.

 

About Us

 

Avvale Consulting is a leading startup business consulting firm based in London, United Kingdom. Our consultants have years of experience working with startups and have worked with over 300 startups from all around the world. Our team has thousands of business plans, pitch decks and other investment documents for startups leading to over $100 Million raised from various sources. Our business plan templates are the combination of years of startup fundraising and operational experience and can be easily completed by a business owner regardless of their business stage or expertise. So, whether you are a budding entrepreneur or a veteran businessman, download our business plan template and get started on your business growth journey today.