Business planning for nonprofit ventures

Writing a business plan is a pain in the ass, and you need a support group, or a group of people to produce it with, in order to not be overwhelmed... but just because entities are nonprofits doesn't mean that they shouldn't be run without a plan, allowing for responses to changing conditions and growth. For example, DC's Eastern Market doesn't really have a business plan designed like this. And more of our community revitalization organizations need to do annual strategic planning and visioning.

Thinking about this in terms of Eastern Market (I am on the board), I am struck by these sentences from an article, "Talking the walk: Sidewalks, The Civic due for some love; bus routes get nixed," from the Santa Monica Daily Press, about the Santa Monica City budget:

MANAGING THE CEMETERY
While City Hall conducts a study that will ultimately lead to a comprehensive business plan for Woodlawn Cemetery and Mausoleum, a long-time relationship with a financial firm that has overseen the management of cemetery maintenance funds will be extended.

RNC Capital Management has provided investment management services for the cemetery for the past 16 years, overseeing, along with other financial services, an account set aside for the perpetual care of the final resting place for the cemetery’s residents.

City Hall is expected to find a new investment management firm to oversee the perpetual care fund after the business plan is finalized, but since its current contract with RNC Capital Management has exceeded its $70,000 allotment, city staff is asking the council to increase the contract by an extra $60,000, bringing the total of the contract to $130,000.

It's a lot easier to move forward by planning in such a fashion. And it's much better to expend city funds after such planning. However, it's important that nonprofit sensibilities be intertwined with traditional business planning perspectives so that nonprofit objectives are achieved in an efficient, well-managed fashion.