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Nonprofit Marketing: Business Plan Foundations

by Melanie R. Negrin

Starting, operating, and evaluating the financials of a non-profit organization may be quite different than doing the same for a for-profit company, but some fundamentals are the same.  One of those fundamentals is the importance of developing a strategic business plan and marketing plan to sustain your organization. 

The primary benefit of developing a strategic business plan is that it facilitates learning and focus among an organization's Board of Directors and staff.  It forces you to take a step back from your current situation, reassess your statement of purpose and slate of service offerings, and consider the efficiency and effectiveness of marketing and fundraising alternatives before investing the time and energy into making them happen.

An Evolving Document

In the start-up phase of any non-profit organization, the learning curve is gradual and there is a lot of experimentation.  Even if you don't do a formal Return on Investment (ROI) analysis, it is likely you determine fairly early on, perhaps even before the completion of a project, that it is or isn't worth the effort and expense.  You know right away whether that activity is worth repeating year after year.

As you engage in this learning, it is important to integrate it back into your business and marketing plan.  Keep track of the activities you want to avoid as well.

An organization's strategic business plan is a constantly evolving document.  By recording an organization's current position and future plans, it provides insights into the strength of its management. 

Put Yourself in a Larger Context

In what context do you think of yourself?  I have worked with some organizations who see themselves as completely unique, without any competition, but the reality is that every non-profit organization, no matter how unique the design and marketing message, fits into a greater competitive context. 

When evaluating its strengths, weaknesses, opportunities, and threats (SWOT), each organization must consider not only internal components,

	strength of staff
	longevity
	extensive list of supporters
	lack of capital funding or endorsement
	Board turnover

but external factors as well:

	increasing competition for fewer grants
	changes in grant guidelines
	increasingly diverse population
	high area income
	strong area record of community service

Strengths and weaknesses are internal.  Opportunities and threats are external. 

Opportunities and threats can guide your organization in finding a stronger positioning or identifying additional strengths and weaknesses.

Be sure your Board is considering its mission in a greater context.  A preschool, for example, would need to understand the dynamics of that market: enrollment in pre-school programs has been proven to increase academic success (opportunity), accreditation standards for the National Association for the Education of Young Children (NAEYC) are becoming more stringent (threat).  An organization focused on mapping native tribes and helping sustain native economies must see itself in the greater context of institutions of cultural learning and economic development.

Summary

Although having a business plan neither prevents failure nor guarantees success, it is an incredibly useful exercise for thinking broadly about your organization, tracking your progress and results, capturing on-going learning, and concisely stating your vision, mission, and future goals. 

          Back to Resources for Non Profit Organizations

REFERENCES:

Native Planet - an organization focused on mapping native tribes and helping sustain native economies

ABOUT THE AUTHOR:

Melanie R. Negrin is Managing Director and Lead Copywriter for Merocuné Marketing & Public Relations, a marketing communications firm specializing in building community awareness and support for non profit organizations and entrepreneurial businesses.  Contact her at 973.252.2409 or melanie@merocune.com.