Nonprofit Business PlansRainmaker Solutions Ltd. Co.

The Purpose The purpose of the presentation is to outline Rainmaker’s approach to the business-planning process, including related capital and operating fundraising campaigns.

Strategic vs. Business Planning• Most people equate strategic planning with business planning.

• The strategic planning process involves market research, with qualitative (stakeholder interviews) and quantitative (statistical analysis) to determine the need for a project, leveraging the results into a detailed action plan.

• The business plan tests the project’s economic logic, providing windows into the drivers of costs and revenues. This process includes the market research and strategic plan, but also incorporates financial modeling and analysis, cash-flow planning, risk assessment and pro forma budgets.

• The primary value comes from the rigorous, analytical process that drives strategic, mission-oriented decision making, drawn from financial best practices.

• Revenue generation is the criteria for business plan.

Strategic vs. Business PlanningStrategic Planning Business Planning

Develop organization responses to opportunities and challenges

Test the economic logic and operational feasibility of a proposed decision or response.

Articulate a strategy Test and elaborate on the core elements of a strategy

Define a program model Show how the program would be economically and operationally viable.

Confirm a need for a change to the business model.

Describe how and why the new business model is going to succeed.

Determine a means to increase mission impact.

Test the assumptions that prove the change is feasible.

Getting StartedRainmaker Solutions Ltd. Co.

Launch the Process Develop the planning team to answer these questions:

1. What is the focus of our business planning effort?

2. What is the strategic intent of the project?

3. What questions do we need to answer?

4. What decisions to we need to make?

5. What information do we need to make these decisions?

6. Who is the audience for the business plan?

7. Who is going to approve the final document?

Define the Scope1. What is the geographic scope? What communities do we serve?

2. What is the programmatic scope? What programs do we offer?

3. What is the customer scope? Who do we serve?

4. What is the economic logic? How do we structure the project financially?

Economic Logic1. Ensure adequate annual surpluses.

2. Determine reliability of revenues over time.

3. Project costs over time and cost allocation over programs.

4. Examine and structure assets and liabilities.

5. Plan for sufficient liquidity and cash flows.

Economic Logic1. How many months of operating expenses will reserves cover?

2. Have our financial projections factored in the need to grow our reserves commensurate with the growth of the operating budget over time?

3. Have we also factored in inflation (3-5%) for each year of operations.

4. What opportunities exist to increase our risk reserve?

5. How strong is our monthly cash flow?

6. Is the organization up to this task?

Market Research1. What is the community need for this project?

2. How can we best align our services to meet this need?

3. Are the philanthropic resources available to meet this need?

4. What’s our position on the competitive landscape?

Market Research• The personal and professional connections created during this process become the

foundation for individual giving campaigns, Board and committee recruitment and strategic partnerships.

• It provides the context for informed decision-making, grounded in the realities of the competitive landscape, increasing the client’s chances of securing major gifts.

• It becomes the general template for most grant applications for start-up nonprofits that require seed funding and established nonprofits that need to strengthen their proposals.

• This research defines the client’s position, relative to other nonprofits, operating in its particular mission niche.

• This position determines the client’s strategic priorities and inspires the most viable, compelling case statements – it provides the best compass for each client’s fundraising/marketing strategies.

Operations & Infrastructure1. What is our vision for the future?

2. What kind of staffing will we need?

3. What are the blueprints and models for our facility?

4. What kind of programs do we provide?

5. What are the highest priority implementation tasks?

6. What is the implementation timeline?

7. What are major capital and operational costs?

Governance & Management1. Who will lead the new programs and facilities?

2. What is the Board structure, nominating policies and expectations?

3. What are the staff structure and job descriptions?

4. What are the proposed salaries/benefits for each position?

5. When will the recruitment process begin and end?

6. Who will manage and implement this timeline?

7. What role does the Board play?

8. Who will recruit and manage volunteers?

9. What is the potential role and impact of strategic partnerships?

Marketing Strategies1. What is your value proposition?

2. What makes this project so compelling?

3. What are our competitive advantages?

4. Who are our audiences?

5. What is our pricing strategy?

6. What are our marketing channels?

7. What are our communications needs/costs?

8. How do we develop and audience?

9. What special event will we do?

Evaluation & Improvement1. What are the cost vs. benefits?

2. What is success? How do we know?

3. What are the short- and long-term outcomes?[

4. How do we gather and evaluate feedback?

5. Who is responsible for evaluating impact?

6. How do we share key findings and with whom?

7. How do we improve programs based on evaluation?

Building the Financial Model1. Isolate and test overarching and financial assumptions.

2. Identify key financial drivers

3. Explore financial and operational scenarios.

4. Prepare financial statements.

5. Quantify need for capital and cash reserves.

6. Consider the needs of our audiences.

Rainmaker SolutionsMore Grants & Major Gifts…Made Easier.

Five Steps to Success1. Conduct an extensive market research study, including 20-30 interviews with community stakeholders,

statistical and demographic analysis of need.

2. Leverage contacts developed from market research study to create a planning committee, which becomes the nucleus for Board development. Determine and incorporate fundraising and other goals.

3. Create a business plan that aligns services to the need, evaluates the sustainability of the project, and perform a rigorous financial and scenario-based risk analysis. Prepare three-year pro forma budget projections.

4. Develop a fundraising plan, with benchmarked goal and timelines, including the messages, public relations and communications needed to persuade prospects and donors. Provide grant research/writing services. Provide the donor and prospect research needed to maximize existing funding sources and locate new ones.

5. Assist in Board Development and governance structure, with Board training in fiduciary and fundraising expectations. Develop strong nominating policies. In cooperation, manage an integrated fundraising and capital campaign until we achieve our project goal.

Deliverables1. Twenty-thirty page, rigorously research business plan with financial analysis, cash-flow planning,

and strategic-planning component with three-year pro forma budget projection (see samples)

2. Strategic guidance and direct assistance in forming the Planning Committee, based on community contacts made during market research phase, emphasizing on the required skills and major-gift capacity. Develop a one-three year fundraising plan, with benchmarked goal and timelines.

3. Provide messages, public relations, case statement and presentations needed to conduct the fundraising/capital campaign. Provide grant research/writing services. Provide the donor and prospect research needed to identify prospects, maximize existing funding sources.

4. Board Development and governance structure, with Board trainings in fiduciary and fundraising responsibilities. Develop strong nominating policies, highly critical to long-term success. Manage an fundraising/capital campaign until we achieve our project goal.

Benefits1. Rainmaker keeps our overhead low…”best bang for the buck,” with twenty

years experience in fundraising experience, including $4 million capital

campaign for similar project.

2. Reputation based on client testimonials and references for “going above and

beyond the call of duty,” delivering more than our contracts require.

3. We save our clients time, money and stress by bundling the best research

technologies and methods - the benefits of an in-house development

department at a fraction of the cost.

4. References available upon request.

Pricing Rationale• This project is labor-intensive and 12-36 months in length.• The amount of effort required accelerates over this time period.• Rainmaker should start to produce profit by months six-eight.

• This compensation schedule covers all expenditures except printing costs.• The project begins when contract is signed.

Year Monthly Rate Totals

1 $X,000 $XX,000

2 $X,000 $XX,000

3 $X,000 $XXX,000