Follow Social Velocity on Google Plus Follow Social Velocity on Facebook Follow Nell Edgington on Twitter Follow SocialVelocity on Linked In View the Social Velocity YouTube Channel Get the Social Velocity RSS Feed

Download a free Financing Not Fundraising e-book when you sign up for email updates from Social Velocity.

A Step-by-Step Guide to Creating a Nonprofit Financing Plan

By Nell Edgington

Financing Plan Guide screenshotIn our ongoing effort to develop tools to make nonprofit organizations more effective, more financially sustainable and ultimately able to create more social impact, we are releasing today our Financing Plan Guide. This step-by-step guide provides nonprofit staff and boards a clear, systematic approach to creating a financing plan for their organization.

A financing plan, unlike a traditional fundraising plan, is an integrated, thoughtful, and strategic way to help a nonprofit achieve social impact in a more sustainable way. The financing plan is a key element of a nonprofit’s strategic plan. It is critical that an organization understand the cost of achieving the goals set out in the strategic plan (expenses) and how the organization will pay for them (revenue). Fundraising, raising money from private sources (individuals, foundations, and corporations), is just one revenue option available to nonprofits. Additional options include: earned income (selling a product or service), government grants, fee for service, and corporate sponsorships, just to name a few.

A financing plan differs from a fundraising plan in a number of ways. Unlike a fundraising plan, a financing plan:

  • Includes ALL activities that bring money in the door in a fully integrated strategy and execution plan.
  • Supports the short AND long term goals of the organization.
  • Funds the programs AND infrastructure of the organization.
  • Employs money-securing activities that are in line with the core competencies of the organization.

With a clear financing plan, your nonprofit will bring more money in the door, in a more sustainable way, ultimately achieving greater social impact.

This 8-part guide is designed to help you build a financing plan for your nonprofit. It is divided into parts and can be completed in a couple of hours, if you have all of the necessary information in front of you. If you would like to include board and staff in the process, you can pause between sections and work through it over a few weeks. The sections of the financing guide are:

1. Align Money, Mission and Competence
2. The Financing Plan Framework
3. Create Revenue Goals
4. Create A Capital Goal
5. Create A Fundraising Infrastructure Goal
6. Operationalize the Plan
7. Monitor the Plan
8. Next Steps

To learn more about the financing guide, click here.

As always, let us know what you think of our tools and what additional tools you would like to see.

Learn more about nonprofit innovation and
download a free Financing Not Fundraising e-book
when you sign up for email updates
from Social Velocity.

About the Author: Nell Edgington is President of Social Velocity (, a management consulting firm leading nonprofits to greater social impact and financial sustainability. Social Velocity helps nonprofits grow their programs, bring more money in the door, and use resources more effectively. For more information, check out Social Velocity consulting services and clients.

Tags: , , , , , , , ,

2 Comments to A Step-by-Step Guide to Creating a Nonprofit Financing Plan

[…] A Step-by-Step Guide to Creating a Nonprofit Revenue Plan […]

[…] Also geared to non-profits: Revenue planning is part of an overall non-profit financing scheme. […]

Leave a comment


Popular Posts

Search the Social Velocity Blog