(+1) 9784800910, (+44) 020 3097 1639 [email protected]
Select Page

Executive Summary

Overview: Understanding Us is a 501(c)(3) non-profit organization founded at the grassroots level. Salt Lake City, Utah, is where we call home. We are a group of individuals dedicated to making the world a better place. This concept is carried across Salt Lake County via Understanding Us. We try to bridge gaps in aiding persons with one or more identified disorders or impairments in the following areas: psychological (particularly issues were originating from trauma), social, physiological, and neurological via our Understanding Us programs (specifically in conditions related to cognitive functioning).

Mission: To connect and comprehend the complicated issues we encounter on a daily basis. Our mission is to provide individuals with the skills and resources to connect with themselves and the world around them in new ways..

Vision: Reconstruction of society’s attitude to complicated individual and societal issues and conflicts. Suicide, imprisonment, and homelessness rates will be significantly and effectively reduced.

Industry Overview: Some NGOs have had to balance rising demand with decreasing income or financing during the last year. Some groups exacerbated this problem by the cancellation of in-person fundraising activities. Those that we’re able to shift to virtual fundraisers, on the other hand, discovered that this reduced overhead expenses without affecting contribution levels considerably. Consequently, virtual fundraisers may be used in the future by these groups. Additionally, several organizations that faced a drop in income or financing were compelled to make employment adjustments early in the epidemic, such as hiring freezes, furloughs, or layoffs (reflected in the following data). Organizations are adjusting to a drastically new employment situation more than 18 months after COVID-19 began.

Financial Overview:

Financial Overview of Non-Profit Business Plan

Financial Highlights:

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency
Interest coverage ratio8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Fund Usage

Fund Usage of Non-profit Business Plan

Industry Analysis

Nonprofit organizations serve an essential role in providing services, improving communities, and encouraging civic involvement in the United States. We concentrate on operational 501(c)(3) public charities whose activities span from direct service to community development and advocacy in our nationally representative survey of nonprofit organizations conducted from January to April of 2021.

The worldwide market for nonprofit organizations has expanded at a CAGR of 3.6 percent since 2015, reaching $255.54 billion in 2019. From $255.54 billion in 2019, the market declined by -0.9 percent in 2020. The decrease is due mainly to the implementation of lockdown and social distance regulations in many nations and a worldwide economic slowdown induced by the COVID-19 eruption and the efforts taken to fight it. The market will rebound and grow at a CAGR of 5.3 percent from 2021 to 2023. By the end of 2027, the market is predicted to have increased by 4.53 percent to $345.32 billion. Nonprofits generally have difficulty establishing and executing effective marketing strategies because of their unique circumstances. This, paired with an oversupply of social service organizations, might make it challenging to stand out and build a successful plan. Development was driven by substantial economic expansion in emerging nations and increased consumer disposable income during the historical era. During the historical period, government restrictions on some types of financial sources and money mismanagement harmed development. Future development will be aided by growing corporate social responsibility, environmental awareness, and internet use. Geopolitical tensions, stringent restrictions, and COVID-19 are all elements that might hinder the market’s development in the future.

As corporate social responsibility increases, so will the market for nonprofit groups. Companies are increasingly stressing corporate social responsibility as a critical component of their entire strategy for addressing societal issues. Millennials also want a job in companies that promote social causes. As a consequence, corporate social responsibility expenditure has increased. For example, Sysco, an American global food products company, will deliver 200 million meals and give $50 million to local communities as part of its 2025 social responsibility goals. Growing CSR will benefit nonprofits in the future.

Industry Analysis of Non-profit Business Plan

As a consequence of the growing number of older persons who would need social and community services, the Bureau of Labor Statistics anticipates excellent career prospects in lobbying, grant-making, and civic groups. Because of retirements and low pay, there will be employment growth in the nonprofit sector. The continuation of traditional social problems and public awareness of social and political concerns should keep nonprofit employees in high demand. Furthermore, the number of charitable organizations has been continuously increasing, and each new organization brings new work prospects. Many NGOs will continue to recruit new employees to manage new projects and programs to avoid employee burnout. Furthermore, more NGOs use social media as a recruiting tool, mainly LinkedIn and Facebook. Health, environment, and animals, as well as faith-based groups, are among the nonprofit industries expected to have the most employment growth.

Due to the coronavirus pandemic, nonprofit organizations faced several obstacles in 2020. Fundraising gatherings, conferences, seminars, and other activities and events were canceled as a result of business closures and social distance regulations. Simultaneously, the demand for nonprofit services to help communities cope with the epidemic grew dramatically. Because of the pandemic’s economic downturn, there was an increase in unemployment, food insecurity, loss of income for many individuals, and an increase in mental health disorders related to pandemic stress, among other things. Many nonprofits reacted to pandemic preparedness by digitizing their services and remotely organizing fundraising events and meetings. In the future years, this pattern is projected to continue.

Industry Analysis of Non-profit Business Plan

Conservation and human rights groups, many of which are nonprofits, are likely to see a 4% reduction in 2020, according to research firm IBISWorld. The introduction of the COVID-19 vaccine in 2021, on the other hand, is expected to help the economy recover, with revenue expected to rise by 1.7 percent in 2021 alone. Due to a drop in the unemployment rate after the pandemic and increased consumer expenditure, growth is predicted to rise through 2026. People will be more eager and able to donate to industry groups after the epidemic.

The National Council of Nonprofits outlined the top trends that charitable nonprofits will face in the coming years, with the top three remaining limited resources, increased demands on nonprofits (due to increased community needs), and a growing awareness that each nonprofit and board member must be an active, vocal advocate for her/his nonprofit’s mission to affect policies in the community, and at the national level.”

According to a Chronicle of Philanthropy article, new internet tools, social networks, and technical advancements will revolutionize how NGOs operate in the following years. People are increasingly adopting internet fundraising methods like Kickstarter, Indiegogo, and Gofundme to generate funds for their charitable initiatives and organizations. Job seekers who can demonstrate their understanding of “crowdfunding” networks and how they’ve effectively exploited them will be in high demand. Because an increasing proportion of the public accesses the internet primarily via their smartphone, more NGOs will strive to enhance and ensure the functionality of their websites. In reality, SMS contributions are now possible. Nonprofits will also increase the amount of Web analytics on their websites to better monitor and analyze data and enhance their fundraising efforts.

Marketing Plan:

Marketing Plan of Non-profit Business Analysis

Website: Understanding Us has an easy-to-navigate website that connects with our visitors. 

Fundraising Campaign: Different mission-related products will be sold with the help of a Peer-to-Peer Fundraising Campaign. 

Social Media: Understanding Us will be boosting our social media presence by posting regularly about our recent and future campaigns.

Content Marketing: Understanding Us will produce at least one new video per month related to our mission, our featured hero, announcements, etc.

Email:  Understanding Us will be sending newsletters about our campaign to current, past, and potential donors

Organogram:

Organogram of Non-profit Business Plan

Financial Plan:

Earnings:

Financial Plan of Non-profit Business Plan

Break-Even Analysis:

Financial Plan of Non-profit Business Plan

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
CASH FLOW from INVESTING ACTIVITIES
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
CASH FLOW from FINANCING ACTIVITIES
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet: 

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
CURRENT ASSETS
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
LIABILITIES
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
EQUITIES
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122