Board-Approved Business Plans: Why Your Charity Board Expects One
Strengthen your charity's future with strategic planning that aligns your board, purpose, and sustainability.
Navigating the not-for-profit landscape in Australia has never been more complex. With increasing governance obligations and a competitive funding environment, having a robust, board-approved business plan is essential. Many charities I work with share that they often struggle to meet their board's expectations, often unaware that strategic planning is the missing link. In this blog, we'll explore why your board requires a clear business plan and how a tailored Strategic Planning workshop can help you create one that meets compliance, secures funding, and keeps your mission thriving.
Why Do Charity Boards Expect a Business Plan?
Australian charity boards have a fiduciary responsibility to ensure their organisation is operating legally, ethically, and sustainably. Without a structured business plan, it's nearly impossible to provide the clarity and direction your board requires to make informed decisions.
In my experience, charities that lack a clear plan often find board meetings become repetitive, with the same issues arising over and over again. Does your board feel confident in your organisation's direction?
Common reasons boards expect a business plan:
Compliance with ACNC (Australian Charities and Not-for-profits Commission) standards.
Clear financial forecasts and sustainable funding strategies.
Defined goals and measurable outcomes.
Risk management frameworks to protect the organisation.
Boards rely on these plans to guide governance and hold leadership accountable, ensuring the charity remains aligned with its mission and legal obligations.
The Role of Strategic Planning in Board-Approved Business Plans
A well-facilitated Strategic Planning session goes beyond setting goals. It involves:
Engaging your board members to align on long-term vision.
Identifying operational improvements to support growth.
Mapping out revenue diversification strategies.
Establishing performance measures the board can monitor.
Pro Tip: Involve your board early in the planning process. Their input ensures ownership and smoother approval. It’s never too late to create the clarity your board needs.
What Happens If You Don’t Have a Board-Approved Plan?
I see it often—organisations with incredible missions and passionate teams, but without a clear, board-approved business plan, they hit roadblocks:
Missed funding opportunities due to vague objectives.
Governance issues and compliance breaches.
Mission drift from lack of cohesive strategy.
Difficulty retaining engaged, proactive board members.
A board-approved business plan isn’t just a governance formality—it's the roadmap your charity needs to deliver real impact. With the right strategic planning approach, you can confidently align your board, secure funding, and ensure your organisation’s future. If your charity is ready to get serious about its strategy, learn more about our tailored support for not-for-profits on our Business Plans for Not-for-Profits page
Why You Should Get Professional Help with Your Business Plan
Creating a business plan that meets board expectations, aligns with ACNC compliance, and secures funding is no small task. Many charity leaders struggle with balancing daily operations while also developing a clear, strategic document that drives long-term success. That’s where professional guidance can make all the difference.
With my experience working with not-for-profits, I offer Group Business Planning Workshops or Custom Strategic Planning Facilitation designed to help you craft a tailored business plan that is practical, actionable, and board-ready.
FAQs about Business Plans for Not For Profits
1. Do all charities need a formal business plan?
Yes, especially if you’re seeking funding, maintaining ACNC compliance, or supporting board governance. A Strategic Planning workshop ensures you develop a plan fit for purpose.
2. How often should a charity update its business plan?
We recommend reviewing your business plan annually, particularly following a Strategic Planning session to keep it aligned with current objectives and regulations.
3. Do all charities need a formal business plan?
Yes, especially if you’re seeking funding, maintaining ACNC compliance, or supporting board governance.