Nonprofit Organization

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Editor: Kristin B. Mallegg
Date: 2015
Business Plans Handbook
From: Business Plans Handbook(Vol. 32. )
Publisher: Gale, a Cengage Company
Document Type: Business plan; Organization overview
Pages: 15
Content Level: (Level 5)

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Page 147

Nonprofit Organization

United Charities, Inc.

PO Box 45564
New York, NY 10013

Unified Charities, Inc. is a New York-based 501(c)(3) corporation that will provide charitable donations to a number of charities throughout the United States and abroad. The Foundation was founded by Jeremy Meadows.

1.0 EXECUTIVE SUMMARY

The purpose of this business plan is to raise $250,000 for the development of a not-for-profit organization while showcasing the expected financials and operations over the next three years. Unified Charities, Inc. (“the Foundation”) is a New York-based 501(c)(3) corporation that will provide charitable donations to a number of charities throughout the United States and abroad. The Foundation was founded by Jeremy Meadows.

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1.1 The Charitable Operations

As mentioned above, Unified Charities will collect funds from individual donors and corporate sponsors with the intent to collect and distribute funds to other charities, hospitals, and other groups that have a charitable mission.

The Foundation will generate revenues from donations, sponsorships, and enrollment in ongoing donation programs that the Company will market to the general public. From time to time, the Company will host gala events to raise additional capital for its charitable causes, which will primary focus on the needs of children.

The third section of the business plan will further describe the operations offered by Unified Charities.

1.2 Financing

Management intends that the first round of capital will come as a sponsorship grant for $250,000, which will be used to launch the charitable operations of the Foundation. As the organization is a nonstock corporation, no equity position or distribution of EBITDA income will be distributed to any party that provides capital for the Foundation. After immediately receiving the capital infusion, the Foundation will establish its office and begin to make grants to other not-for-profit organizations and causes as discussed above. The initial funds will be used for the following:

  • Establishment of the 501(c)(3) entity.
  • Financing for the initial capital to be used for charitable causes.
  • General working capital for the Foundation
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The second section of the business plan will further document the initial uses of the grant/sponsorship funds.

1.3 Mission Statement

Unified Charities' mission is to provide donations to institutions that support positive community causes with a focus on providing benefits to children and families in need.

1.4 Management Team

The Company was founded by Jeremy Meadows. Mr. Meadows has more than 10 years of experience in the nonprofit industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Meadows expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.


Revenues and income statement (yearly)

Revenues and income statement (yearly)


Sales, operating costs, and profit forecast

Sales, operating costs, and profit forecast

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Meadows intends to implement marketing campaigns that will effectively target individuals that will donate to the Foundation's operations within the target market. The Foundation will also target corporations that want to use Unified Charities as a conduit for their charitable activities.

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2.0 COMPANY AND FINANCING SUMMARY

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2.1 Registered Name and Corporate Structure

Unified Charities, Inc. is registered as a 501(3)(c) corporation in the State of New York.

2.2 Required Funds

At this time, Unified Charities requires $250,000 of grant or sponsorship funds. Below is a breakdown of how these funds will be used:


Nonprofit Organization


Use of funds

Use of funds

2.3 Investor Equity

As the business is a non-stock corporation, no formal ownership will be held by donors, Management, or corporate sponsors.

2.4 Management Equity

The non-stock corporation exists as its own entity. Management will retain no formal equity interest in the corporation.

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2.5 Exit Strategy

In the event that Foundation wishes to cease operations, the Management will file the appropriate articles of dissolution, and the assets of the Foundation will be liquidated and granted to other charitable organizations.

3.0 CHARITABLE SERVICES

As stated in the executive summary, Unified Charities intends to collect sponsorship revenues and donations with the intent to redistribute these funds among other charities, not-for-profit hospitals, children's hospitals, and other groups with a focus on helping needy children and families.

Mr. Meadows is committed to bringing the positive mission of the Foundation to fruition by properly divesting funds to reputable organizations that serve a strong community-based purpose.

4.0 STRATEGIC AND MARKET ANALYSIS

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4.1 Economic Outlook

This section of the analysis will detail the economic climate, the nonprofit organization industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic market condition in the United States is moderate. At this time, the country has completed restructuring after the economic recession that ended three year ago. It should be noted that a downturn in the economy may lead to fewer donations and corporate sponsorships for the Foundation as consumers and corporations will have less discretionary income and profits for distribution to charitable causes, like those offered by Unified Charities.

4.2 Industry Analysis

Total charitable giving to organized charities totaled more than $245 billion dollars. Charitable giving is a luxury for most people and businesses, and as such, during periods of economic decline, Management expects a severe decrease in the amount of donations made to the Foundation. However, there are tremendous tax benefits that allow charitable giving to have benefits regardless of the overall economic market.

Below are some statistics regarding American charitable organizations:

  • The majority of that giving came from individuals, $187.9 billion. Giving by individuals grew by 1.4 percent (when adjusted for inflation).
  • Giving by bequest was $19.8 billion, foundations gave $28.8 billion, and corporations donated $12 billion.
  • Religious organizations received the most support—$88.3 billion. Much of these contributions can be attributed to people giving to their local place of worship. The next largest sector was education ($33.8 billion). When adjusted for inflation, all but two categories of charities saw increases in contributions.

4.3 Donor Profile

Management expects that the average single donor to the Foundation will be a middle aged, upper-middle income earning individual that wants to give back to the community. Management will Page 151  |  Top of Articleaggressively seek to create awareness about the Foundation's programs within the northeastern part of the United States. Demographics among individual donors include, but are not limited to:

  • Male or Female
  • Aged 35+
  • Annual household income exceeding $75,000
  • Actively supports charitable causes on a regular basis

Additionally, the Foundation expects that it will achieve donations from corporate and large foundation sponsors that are seeking to expand their portfolio of charitable works. One of the keys to achieving the Foundation's goal is to develop strong relationships with corporate benefactors.

4.4 Competition

It is extremely difficult to categorize competition among charities as each organization is competing for the same contributions from corporations, individuals, and grants from government agencies. Among the 10,000 charitable organizations in the United States, all are in competition for the same influx in capital. There are several organizations that serve to help people in need. As such, Management does not feel that Unified Charities is in competition with any other charitable organization that seeks to provide for needy people. All charities are all essentially pursuing the same goal.

5.0 MARKETING PLAN

Unified Charities intends to maintain an extensive marketing campaign that will ensure maximum visibility for the Foundation in its targeted market. Below is an overview of the marketing strategies and objectives of the Foundation.

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5.1 Marketing Objectives

  • Develop an online presence by developing a website and placing the Foundation's name and contact information with online directories.
  • Regularly hold large-scale events that will generate publicity and donation revenue for the Foundation.
  • Establish relationships with large grant trusts and corporate benefactors.

5.2 Marketing Strategies

The Foundation will solicit donation revenue from multiple sources. The Foundation intends to engage a large public relations and marketing firm to raise awareness of Unified Charities' charitable services. Management will also seek to gain celebrity support from public personas that want to contribute to growing problems related to needy children and families within in the United States.

The business will conduct mass mailings several times per year in order to gain continual support from the general public.

Timely coverage of the Foundation will be further directed thru ongoing press relations, news releases, and feature stories targeted at key charitable organization communities and other media outlets.

Publicity activities will be designed to generate ongoing coverage about the Foundation in targeted media by providing writers and editors with newsworthy releases, features, stories, briefs, and visual material for their columns and stories. In-depth coverage may also be obtained about the Foundation by hosting in-house interviews to be conducted by the Foundation's spokesperson.

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6.0 ORGANIZATIONAL PLAN AND PERSONNEL SUMMARY

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6.1 Corporate Organization


Nonprofit Organization

6.2 Organizational Budget


Personnel plan—yearly

Personnel plan—yearly

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Personnel expense breakdown

Personnel expense breakdown

7.0 FINANCIAL PLAN

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7.1 Underlying Assumptions

The Company has based its proforma financial statements on the following:

  • Unified Charities will have an annual revenue growth rate of 14% per year.
  • The Foundation will initially be seeded with $250,000 of grant capital.

7.2 Sensitivity Analysis

The Foundation's revenues are sensitive to the overall condition of the financial markets. Charitable contributions are a luxury, and as such, during times of economic recession, the Foundation expects that its incoming contributions will decrease. Management will enact several procedures to ensure that the Foundation can survive severe decreases in its charitable revenue.

7.3 Source of Funds


Financing

Financing

7.4 General Assumptions


General assumptions

General assumptions

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7.5 Profit and Loss Statements


Revenues and income statement (yearly)

Revenues and income statement (yearly)


Sales, operating costs, and profit forecast

Sales, operating costs, and profit forecast

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7.6 Cash Flow Analysis


Proforma cash flow analysis – yearly

Proforma cash flow analysis – yearly


Proforma cash flow (yearly)

Proforma cash flow (yearly)

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7.7 Balance Sheet


Proforma balance sheet—yearly

Proforma balance sheet—yearly


Proforma balance sheet

Proforma balance sheet

7.8 Breakeven Analysis


Monthly break even analysis

Monthly break even analysis

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Break even analysis

Break even analysis

7.9 Business Ratios


Business ratios—yearly

Business ratios—yearly

7.10 Three Year Profit and Loss Statement


Revenues and income statement (first year)

Revenues and income statement (first year)

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Revenues and income statement (first year cont.)

Revenues and income statement (first year cont.)


Revenues and income statement (second year)

Revenues and income statement (second year)

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Revenues and income statement (third year)

Revenues and income statement (third year)

7.11 Three Year Cash Flow Analysis


Cash flow analysis (first year)

Cash flow analysis (first year)

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Cash flow analysis (first year cont.)

Cash flow analysis (first year cont.)


Cash flow analysis (second year)

Cash flow analysis (second year)

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Cash flow analysis (third year)

Cash flow analysis (third year)

Source Citation

Source Citation   

Gale Document Number: GALE|CX3610300021