Why are business plans needed for nonprofits?

Business plans are needed for nonprofits to outline their mission, strategies for achieving goals, and how they plan to manage and allocate resources effectively. They help communicate the organization’s purpose and value to stakeholders, including donors, volunteers, and the communities they serve. For nonprofits in Canada, a business plan is crucial for securing funding, as it demonstrates financial viability, sustainability, and the impact of their programs. It also aids in strategic planning, ensuring that the nonprofit remains focused and adaptable to changes in the environment or funding landscape.