Charity Business Plan Template

Are you interested in starting your own charity Business?

How to start a charity business

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. .

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 . 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.

Charity Business Plan Template FAQs

What is a business plan for a/an Charity business?

A business plan for a Charity business is a document that outlines the objectives, strategies, and financial projections of a nonprofit organization. It serves as a roadmap that helps the organization define its mission, determine how it will achieve its goals, and secure funding or support from potential donors and stakeholders.

A Charity business plan typically includes sections on the organization's mission and vision, description of programs and services, target audience, marketing and fundraising strategies, operational structure, budget and financial projections, and evaluation methods to measure the impact of the organization's work.

Having a well-developed business plan is crucial for a Charity business as it helps in demonstrating credibility, attracting donors and sponsors, guiding decision-making processes, and ensuring the organization's long-term sustainability and success.

How to customize the business plan template for a Charity business?

To customize the business plan template for a Charity business, follow these steps:

1. Open the business plan template: Download the template from the website and open it using a compatible software program such as Microsoft Word or Google Docs.

2. Review the template: Familiarize yourself with the sections and content of the template. Understand the purpose of each section and how it applies to your Charity business.

3. Modify the executive summary: Start by customizing the executive summary, which provides an overview of your Charity business. Tailor it to reflect your mission, objectives, and unique selling points.

4. Customize the company description: Edit the company description section to provide details about your Charity organization, including its history, vision, values, and target audience. Highlight what sets your organization apart from others.

5. Adapt the market analysis: Conduct thorough research on the Charity industry and your specific niche. Update the market analysis section with relevant data, statistics, and trends. Identify your competitors, target market, and potential challenges.

6. Adjust the organizational structure: Customize the organizational structure section to reflect your Charity business. Define the roles and responsibilities of key personnel, including board members, volunteers, and staff. Outline any partnerships or collaborations you may have.

7. Tailor the services and programs: Modify the section describing the services and programs your Charity offers. Include details about the specific initiatives, projects, or campaigns you plan to undertake. Emphasize the impact and benefits they will bring.

8. Revise

What financial information should be included in a Charity business plan?

When creating a Charity business plan, it is important to include key financial information that will help potential investors, donors, and stakeholders understand the financial health and sustainability of your organization. Here are some essential financial details to include in your Charity business plan:

1. Income Statement: Provide a detailed breakdown of your organization's projected or historical revenue and expenses. This statement shows the financial performance over a specific period, typically one year. Include revenue sources such as donations, grants, fundraising events, or program fees. Expenses may include staff salaries, overhead costs, program expenses, and marketing expenditures.

2. Balance Sheet: Present a snapshot of your organization's financial position at a particular point in time. The balance sheet shows your assets (such as cash, investments, property) and liabilities (debts, accounts payable) and calculates your net assets or equity. This information helps assess your organization's financial stability and its ability to meet short- and long-term obligations.

3. Cash Flow Statement: Outline the inflows and outflows of cash within your organization over a specified period. This statement shows how money moves through your organization, detailing cash generated from operations, investments, and financing activities. It helps demonstrate your ability to manage cash effectively, meet financial obligations, and plan for future financial needs.

4. Fundraising Strategy: Describe your organization's fundraising plans and initiatives. Include details about past successful fundraising campaigns, current initiatives, and future strategies to diversify revenue streams. This section should also highlight any partnerships or collaborations

Are there industry-specific considerations in the Charity business plan template?

Yes, our Charity business plan template takes into account industry-specific considerations. We understand that the charity sector operates differently from other businesses, and therefore, we have included sections that address the unique aspects of running a charity organization.

Some of the industry-specific considerations covered in our template include:

1. Mission and Vision: We provide guidance on developing a clear and compelling mission and vision statement that aligns with your charitable objectives.

2. Fundraising Strategies: Our template includes sections on various fundraising strategies commonly used in the charity sector, such as donor cultivation, grant applications, and events planning.

3. Program Development: We offer guidance on developing effective programs and services that align with your mission and meet the needs of your target beneficiaries.

4. Volunteer Management: Our template covers best practices for recruiting, training, and retaining volunteers, who are crucial to the success of many charitable organizations.

5. Financial Management: We provide guidance on creating a comprehensive budget, tracking expenses, and managing cash flow, which are all essential for effective financial management in the charity sector.

6. Compliance and Legal Considerations: Our template addresses the legal and compliance requirements specific to the charity sector, such as obtaining tax-exempt status, maintaining proper documentation, and adhering to ethical standards.

7. Impact Measurement: We guide you on how to measure and communicate the impact of your charity's programs and services to stakeholders, including donors, funders, and the community.

By addressing these industry-specific considerations, our Charity business plan template helps you

How to conduct market research for a Charity business plan?

To conduct market research for a Charity business plan, follow these steps:

1. Define your target audience: Identify the specific group of people or organizations that your charity aims to serve. Consider factors such as age, location, interests, and needs.

2. Review existing data: Look for reports, studies, and statistics related to the issues your charity addresses. This can include government data, research publications, or industry reports. Analyze this information to understand the size of the market, the demand for your services, and any existing gaps or opportunities.

3. Conduct surveys and interviews: Develop surveys or interview questions to gather insights directly from potential donors, beneficiaries, and other stakeholders. Ask about their preferences, awareness of similar charities, and their willingness to support your cause. Online survey tools or in-person interviews can be used for this purpose.

4. Analyze competitors: Identify other charities operating in your niche and analyze their strategies, impact, and fundraising methods. Study their strengths and weaknesses to understand how you can differentiate your charity and provide unique value to your target audience.

5. Engage with your community: Attend community events, join relevant online groups, and actively participate in conversations related to your cause. This will help you gain firsthand knowledge of the challenges, needs, and aspirations of your target audience.

6. Analyze social media and online presence: Monitor social media platforms, blogs, and forums where discussions related to your cause take place. Analyze the sentiment, engagement, and feedback from potential donors

What are the common challenges when creating a business plan for a Charity business?

When creating a business plan for a Charity business, there are several common challenges that you may encounter. These challenges include:

1. Defining the mission and vision: One of the primary challenges is clearly defining the mission and vision of your Charity business. It is essential to articulate the purpose and goals of your organization in a concise and compelling manner.

2. Identifying the target audience: Understanding the target audience is crucial for a Charity business. It can be challenging to define the specific group of people or community that your organization aims to serve and how to effectively reach out to them.

3. Establishing sustainable funding sources: Unlike for-profit businesses, Charities often rely on donations, grants, and fundraising activities for financial sustainability. Developing a solid plan to secure and diversify funding sources is critical to ensure the long-term success of your Charity.

4. Measuring impact: Demonstrating the impact of your Charity's work is essential for attracting donors and stakeholders. However, determining the appropriate metrics and measuring the outcomes of your programs can be challenging, especially in the social sector.

5. Navigating legal and regulatory requirements: Operating a Charity business involves complying with various legal and regulatory requirements. These may include obtaining necessary licenses, adhering to reporting obligations, and staying up to date with tax laws. It can be overwhelming to navigate through these complexities, especially for first-time founders.

6. Building strategic partnerships: Collaborating with other organizations or stakeholders can enhance the effectiveness and reach of your Charity. However,

How often should I update my Charity business plan?

The frequency of updating your Charity business plan will depend on various factors such as the nature of your organization, changes in the market or industry, and your specific goals and objectives. However, it is generally recommended to review and update your business plan at least once a year.

Updating your business plan annually allows you to assess the progress of your organization, review your financial projections, and make any necessary adjustments to your strategies and tactics. It also helps you stay aligned with your mission, adapt to any changes in the external environment, and ensure that your business remains relevant and competitive.

Additionally, you may need to update your business plan more frequently if significant changes occur within your organization, such as introducing new programs or services, expanding into new territories, or experiencing major shifts in funding or partnerships. Regularly revisiting and revising your business plan will help you stay proactive, responsive, and focused on achieving your charitable objectives.

Can I use the business plan template for seeking funding for a Charity business?

Yes, you can definitely use a business plan template for seeking funding for a Charity business. A well-written and comprehensive business plan is essential when applying for funding from potential donors, grant programs, foundations, or other sources of financial support. The business plan will outline your organization's mission, vision, goals, strategies, and financial projections, which will help potential funders understand the purpose and sustainability of your Charity. Additionally, a business plan can demonstrate your professionalism and commitment to the cause, increasing your chances of securing funding.

What legal considerations are there in a Charity business plan?

When creating a Charity business plan, there are several legal considerations that need to be addressed. Some of the key legal considerations are:

1. Nonprofit status: It is important to ensure that the organization qualifies as a nonprofit or charitable entity under the relevant laws and regulations. This includes obtaining the necessary tax-exempt status from the appropriate government agency, such as the Internal Revenue Service (IRS) in the United States.

2. Compliance with laws and regulations: Charities are subject to various laws and regulations, including those related to fundraising, financial reporting, and governance. It is important to understand and comply with these laws to maintain the organization's legal standing and credibility.

3. Board of directors: The composition, roles, and responsibilities of the board of directors should be clearly outlined in the business plan. This includes addressing matters such as board recruitment, term limits, conflicts of interest, and fiduciary duties.

4. Fundraising and solicitation: If the charity plans to engage in fundraising activities, it must comply with applicable laws and regulations related to charitable solicitations. This may include registration requirements, disclosure obligations, and restrictions on certain fundraising practices.

5. Employment and volunteer considerations: If the charity plans to hire employees or engage volunteers, it must comply with employment laws and regulations. This includes matters such as minimum wage requirements, employment contracts, and workplace safety regulations.

6. Intellectual property: If the charity uses a unique name, logo, or other intellectual property, it should consider protecting these assets