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Homeless Shelter Business Plan Sample

Published Dec.22, 2016

Updated Sep.14, 2024

By: Noor Muhammad

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Table of Content

Do you want to start a Homeless Shelter business plan?

Do you want to establish a homeless shelter business? Well, whatever the scope or domain of the business, good planning in the initial stages is a must. Starting a non-profit business like a homeless shelter is no easy feat. However, if you spend significant time in the initial planning phase then it can be much easier for you.

Every business needs a sample of a strategic plan to get started. So, if you want to learn how to write a business plan for a homeless shelter, you must look through all the necessary details. To help you, we will be showing a business plan for Rest&Peace, a homeless shelter startup.

You can develop a business plan for a homeless shelter by reading relevant examples and collecting information about your target market. For developing a homeless shelter business, guides like property management business plan can also be helpful.

Executive Summary

2.1 about the business .

Rest&Peace will be a homeless shelter started by Penny Holmes and Jack Dawson. The business aims to provide a safe space for homeless people where they can rest to sustain themselves. It will offer many services such as free resting places, meals, and cleaning supplies along with guidance and connections to get jobs and deal with legal issues. 

2.2 Management of Homeless Shelter Company

A non profit homeless shelter business plan will be different than any other business plan. Many approaches are necessary to be taken to ensure the successful working of a non-profit. Therefore, Penny and Jack went through every single sample homeless shelter business plan they could find. 

A homeless shelter business plan needs to include logistic, technical, and human resource planning. Opening a franchise business that is focused on the rehabilitation of homeless people, the planning can be a bit different. However, for general info and market trends, you can refer to this homeless shelter business plan sample. 

2.3 Customers of Homeless Shelter Company

In addition to boarding traditional homeless, Rest&Peace will also cater to people who need a place to stay for a while to get back into health and take care of themselves. For this purpose, the company will be partnering with many investors to sustain itself. Some categories of these customers will include:

• Homeless People
• Government Fund Institutions 
• Philanthropists 
• Educational Facilities
• Employment Agencies

2.4 Business Target

The target of the business is to provide a dynamic recovery program for people who have the talent and determination but not opportunities. The achievement metrics that we want to attain will include getting at least 60% of the people who pass through the system rehabilitated. 

The financial targets we want to achieve within the first 3 years are demonstrated below

Company Summary

3.1 ownership & management of company.

Penny Holmes and Jack Dawson will be the owners and managers of Rest&Peace. Both of them worked together as partners in a law firm and both had aspirations to create an organization that would help people and that is self-sustainable.

3.2 Company History 

Penny noticed that most non-profits were only helping people in certain situations and many people who needed help stood ignored. Jack realized that most people were willing to work for making their life better but they could not afford residence within their salaries. Therefore, Jack partnered with potential investors to establish Rest&Peace and fill the gaps in the market. 

3.3 How the Homeless Shelter company will be started

Step1: Identify Gaps

The primary step in setting up a homeless shelter is to look into the market and find what the current businesses are lacking. This can better be done by developing a sample business plan for a homeless shelter that outlines the comparison. So, if you are wondering how to start a homeless shelter business, going through a business plan and developing your one is the way to go.

Step2: Plan Your Solution 

Once you have identified the gaps in the market and have learned how to open a homeless shelter , you should move to the next step. The next step is to create a strategy to provide adequate solutions to the problems you identified. 

Jack saw that there was a need for dynamic recovery programs and asked himself how can I start a homeless shelter that will train people to sustain themselves? In this business plan, you can see how Jack developed his marketing, financial, and personnel plan to execute the business. You can also study hotel business plan for more understanding.

Step3: Get Funding

After you have learned how to open up a homeless shelter, the next step is to get funding. It is because a business like this cannot stay operational without significant funds. So Jack and Penny set out to approach as many organizations as they could to obtain funding for Rest&Peace.

Step4: Develop Awareness 

A non-profit organization looking to help people is of no use if its target customers don’t know about it. Therefore, Penny and Jack will start awareness campaigns at least two months before the opening. Social media managers will be hired and other sales strategy ideas will be implemented. 

Step5: Find a Location

Your homeless shelter should be located in a place where homeless people could easily approach it. Penny and Jack decided on a three-story building to offer as much space as possible.

Before starting a homeless shelter, it is necessary to figure out what you will be offering to your customer. This will not only help you present a good homeless shelter business plan to your investors but also organize the resources you need. 

You can learn a lot about how to run a homeless shelter once you know what you will be offering to your customers. You can go through related plans like a home inspection business plan or something that resonates with your services and business ideas. 

Penny and Jack decided that as they were still learning how to start a homeless shelter, they would provide a few basic services in the beginning. So, if you are looking at how to start a homeless foundation, you can get help from the following list of services offered by Rest&Peace:

• Rooming Service

We will provide basic living and rest spaces for homeless individuals who are still gaining education or learning a skill to get employment. The supplies will be obtained from businesses as well as investors.

• Meals 

We will also provide three meals a day for people who come in looking for a place to stay for a few days. Meals will be provided to those as well who are committed to working with us to help in the preparation of at least one meal a day. 

• Employment Opportunities

Rest&Peace will also provide employment opportunities to homeless folks. These opportunities will come from our investors and the companies who will invest in the setup for getting labor. However, these companies will be vetted by us to ensure good working conditions. 

• Rental Clothes and Clean-Up Areas

We will also provide rental clothes and clean-up areas where people can come and make themselves presentable for interviews. 

• Rehab Services

We will help people find a living space suitable to their income and requirements so that they can be rehabilitated back into society.

Marketing Analysis of Homeless Shelter Company

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Running a homeless shelter requires constant vigilance and marketing so that you can raise awareness about your services. Penny and Jack knew that starting a homeless shelter would require a very focused marketing strategy to gain investors. So, they decided to invest a good amount of time in developing the business plan for a homeless shelter . 

They learned as much as they could on how to create a homeless shelter. And then they set out to open a homeless shelter named Rest&Peace. So, if you want to know how to build a homeless shelter and market it efficiently, you can look into the marketing plan for Rest&Peace.

5.1 Market Trends

According to IBISWorld, the homeless shelter business was growing at a rate of 0.9% in the past 5 years before it took a hit due to COVID. There are about 11000 community houses, but the number is declining because these places don’t have a source to sustain themselves. Therefore, if you’re wondering how do I start a homeless shelter, you should also focus on figuring out ways to sustain your business. 

5.2 Marketing Segmentation

The customers and investors of Rest&Peace are divided into the following groups:

Business plan for investors

5.2.1 homeless people.

We will be serving homeless folks who are looking to improve their lives and looking for jobs. 

5.2.2 Government Institutions & Philanthropists

Organizations and people that fund rehabilitation projects are expected to be a target group. They would not be availing of our services, but they would be referring the roofless to us and providing funding. 

5.2.3 Educational Facilities 

We will have contracts with educational facilities to provide vocational training and courses to individuals who don’t have a marketable skill but who want to learn. These efforts will be funded by government funds and philanthropist contributions. 

5.2.4 Employment Agencies  

We will have contracts with employment agencies that will be interested in employing homeless people and funding our ventures.

5.3 Business Target

While building a homeless shelter, Jack had the following business targets in mind:

• To establish an all-rounded community service and rehab center for struggling or homeless people.
• To expand the services to other states across America.
• To help with the rehabilitation of at least 30% homeless community of New Orleans.
• To help at least 80% of people passing through the system with rehabilitation.

5.4 Product Pricing

Our customers will not have to pay for our services in any shape or form. Therefore, the pricing strategy as given in mortgage lender business plan cannot help us. All the costs will be covered by investors and collected funds, along with our commissions for contracts.

Marketing Strategy

Starting a homeless shelter home needs consistent contributions and investments. And investments to start a homeless shelter are not so simple to come by. Jack and Penny, while learning how to open a shelter for homeless, realized that constantly approaching new investors was key. So, along with keeping their current investors up to date, they also approached other investors such as those who provided funds for home inventory business plan and other opportunities. 

If you want to learn how to open a shelter home, you can look into the marketing analysis below. It will guide you in developing a sales strategy for your own business. In this blog on how to start a shelter home, we will also list the sales forecast for three years.

6.1 Competitive Analysis

• We are a self-sustained business and do not require any financial contribution from the people we’re helping.
• We not only provide short-term care but also guide long-term rehabilitation efforts.
• We will provide employment opportunities.
• We will provide better facilities than our competitors. 

6.2 Sales Strategy

• We will start marketing via Google Ads and social media sites a month before the launch to get contributions.
• We will constantly approach investors for funds.
• We will provide quarter-year updates to all of our investors.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

A homeless shelter business plan must also include the details of employees and salary structure. If you are starting a homeless shelter for women, you should focus on hiring more females than males. Besides, you must ensure that you hire compassionate and friendly people. 

If you want to learn how to get a homeless shelter started, you can take guidance from here. Here we are providing the list of employees made for Rest&Peace. 

7.1 Company Staff

• 2 Professional Cooks
• 6 General Cleaners
• 1 Web Developer/ Mobile App Developer to manage online sites
• 2 Sales Managers to manage advertisements 
• 1 Accountant
• 1 Receptionist

7.2 Average Salary of Employees

Financial plan.

You might be wondering how much it costs to start a homeless shelter . The best way to figure out the financial requirements of the business is to develop a financial plan. 

A financial plan helps sustain a business and identify ways to increase profits. Developing a financial plan for a home shelter business is going to be an entirely different process than making one for the usual businesses. Since investments are unpredictable and non-recurring, the planning for cash flows and profit projections can be complicated.

After Jack had learned how to open a homeless shelter, he decided to hire a financial analyst to get an accurate financial plan. Here we’re providing the detailed financial plan made for Rest&Peace that you can follow to create a financial plan for your business. 

8.1 Important Assumptions

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8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

• How do I start a homeless shelter business plan?

Opening a homeless shelter requires you to go through not only business plan for homeless shelter but also other plans like a property preservation business plan for guidance and planning. After studying these business plans thoroughly, you will be able to start writing one for your startup.

• How to write a business plan for a homeless shelter?

You can learn how much is needed to build a homeless shelter and other details by developing a homeless shelter business plan. To create a business plan, you can follow the steps mentioned in this sample

Download Homeless Shelter Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rated document, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

4 thoughts on “ Homeless Shelter Business Plan Sample ”

your idea is amazing and was really helpful to me

Thank you for your comment. If you need assistance in writing your business plan please contact us by email: [email protected] or call us at USA +1-619-727-5304, UK +44-203-318-1069, Canada +1-613-699-7822, Australia +61-385-956-735.

We always needs emergency shelters for disaster relief, but shelters for the homeless should be long term and in either lockable cubicle rooms or tiny houses. This works best. Thank you for your business plan. It helps put availability to create a shelter out there on the net.

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Emergency Shelters Business Plan

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Transitional Housing of Pittsburgh

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Transitional Housing of Pittsburgh is a start-up not for profit social service agency serving the greater Pittsburgh area. The organization was founded by Amy Rand who has both the practical experience and the education to lead the organization. Amy is currently working on assembling a strong Board of Trustees which will be invaluable for the organization.

Services Transitional Housing of Pittsburgh is an organization that provides transitional housing and life skill training for women. It offers assistance to women, frequently homeless, as they move from dependent, often abusive relationships into independent, self-sufficient lifestyles. Additionally, it assists clients in child reunification. This is particularly important as 80% of the clients have children but no custody.

This is the city’s only women-only facility and the only one with long-term transitional housing. All other shelters only offer 30 days or less of housing whereas Transitional Housing offers up to two years. On staff is a chemical dependency counselor, AIDS counselor, and a family reunification counselor to assist clients.

The facility provides clients within an eight-step program that teaches them necessary life skills. This collaborative approach to empowerment is the keystone to developing self-sufficiency in the clients. The steps include personal development, vocational training, substance abuse counseling, interpersonal skills building, community involvement, leisure activities, and independent living skills.

The Market Transitional Housing has identified two distinct market segments of customers based on age; those who are under 30 and those who are 30 and over. The distinction is important because of the high percentage of clients with children, and those in the younger market segment having far younger children. The under 30 age group is growing annually at 9%, and the 30 and over age group growing at 8%. The two groups respectively have 165,454 and 158,745 potential clients. The overwhelming majority of clients come from lower socio-economic population groups. These segments can be difficult to communicate with, yet their use of Transitional Housing’s services would give them some profound benefits.

Management Amy Rand is the driving force behind the organization and fills the Executive Director role. Amy earned a B.S. degree in Sociology from Case Western Reserve University and a Master’s in Non-for-Profit Management from the University of Pittsburgh. Additionally, she has several years of social service project management. While working as the program manager of Pennsylvania’s largest domestic abuse relief service provider, Amy developed a proactive empowerment program which has become the foundation for Transitional Housing’s collaborative approach to empowerment. During and since her tenure as program manager, Amy has developed a comprehensive network of personal and professional contacts with key community leaders. This will be instrumental in raising the profile of Transitional Housing within the community as well as having a significant impact on fundraising activities.

1.1 Mission

Transitional Housing’s mission is to provide women of Pittsburgh a safe transitional housing alternative, teach a multitude of skills to empower the women to self-sufficiency, and facilitate the possible reunification of clients with their children.

1.2 Keys to Success

• Build a strong, active Board of Trustees.
• Ensure that the offered services satisfy market needs.
• Design and implement strict financial controls and accountability.

1.3 Objectives

• Secure sufficient funding, both start up and operational.
• Create a women’s-only transitional housing facility that provides housing and a variety of empowering skills.
• Develop a strong Board of Trustees that can offer guidance, help with fundraising efforts, and oversee the smooth operation of the organization.

Organization Summary organization overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Transitional Housing was founded as a Pittsburgh, PA based not for profit 501(c)(3) organization. Upon the Board of Trustees’ final approval, Amy Rand will be the Executive Director. The nonprofit will serve female clients in need of transitional housing and life skills training.

The goal of the organization is to provide interim housing and skill training so that clients become empowered, independent individuals. Transitional Housing’s services are unique in their female-only clientele, long-duration transitional housing, and comprehensive empowerment program. Transitional Housing will make a significant impact on the Pittsburgh community, in both short-term relief, and long-term skill development and empowerment.

Real property will take the form of the old Motel 6 building located in downtown Pittsburgh. This building has been identified as an ideal facility for Transitional Housing. The asking price for the building is $2 million with $100,000 down. The building will need some renovation, primarily fixing up the 65 different rooms. A donor has approached us willing to buy the building, with the intent of leasing it back to Transitional Housing long term, for the organization’s use.

2.1 Start-up Summary

Transitional Housing will require the following real property and equipment for the start-up phase.

• Assorted furniture, furnishings, and appliances for the different rooms.
• Seven desk/chairs, computers, and additional accessories.
• A computer server, two laser printers, broadband Internet connection.
• Fax machine and copier.
• Several file cabinets and shelving units.
• Paper shredder.

2.2 Legal Entity

Transitional Housing has been formed as a 501(c)(3) not for profit entity. The purpose of this organization is to offer women transitional housing as well as teach skills that allow these women to become self-sufficient, independent, and drug and alcohol free. Additionally Transitional Housing will, when applicable, assist women who attempt to gain custody of their children.

Funds for the organization will come from many sources including: silent auctions and other in house fund raising efforts, local government funds, foundation grants, corporate and individual donations, and money from the federal government. Amy Rand has in-depth experience with fundraising as well as grant writing and this will be instrumental in Transitional Housing’s search for funding.

Transitional Housing of Pittsburgh is an organization that provides transitional housing and life skill training for women. It offers assistance to women, frequently homeless, as they move from dependent, often abusive relationships into independent, self-sufficient lifestyles. Additionally, it assists clients in child reunification. This is particularly important as 80% of the clients have children but no custody.

Collaborative Approach to Empowering Individual. This program is an eight-step program to develop self-sufficient clients. The different elements of the program are:

• Personal development planning.
• Vocational development.
• Substance abuse prevention.
• Interpersonal skill development.
• Personal and spiritual development.
• Community involvement.
• Creative leisure activities/celebration.
• Independent living preparation/follow up.

Transitional Housing is a women-only facility. This is of significant value to the clients as it eliminates the possibility of sexual abuse from the opposite sex within the facility. This is Transitional Housing’s competitive edge, for more detail please refer to section 5.1.

Market Analysis Summary how to do a market analysis for your business plan.">

Transitional Housing has identified two distinct market segments of customers based on age; those who are under 30 and those who are 30 and over. The distinction is important because of the high percentage of clients with children, and those in the younger market segment having far younger children. The under 30 age group is growing annually at 9%, and the 30 and over age group growing at 8%. The two groups respectively have 165,454 and 158,745 potential clients. The overwhelming majority of clients come from lower socio-economic population groups. These segments can be difficult to communicate with, yet their use of Transitional Housing’s services would give them some profound benefits. The good news is if the people are willing to accept help from Transitional Housing they are far more likely to be able to get out of the dire circumstances that they currently face.

The other service providers are temporary shelters that only allow stays of less than 30 days. These service providers are only housing shelters, they do not offer the in-depth self empowerment programs. Some alternative service providers take the form of religious service organizations that assist clients, but on a much smaller scale. The lack of true competition makes Transitional Housing the premier source of interim housing and life skill training. Other agencies would like to offer the comprehensive services that Transitional Housing offers but are unable to because of organizational design constraints or economic restraints. The following sections provide demographic detail regarding the target market.

4.1 Market Segmentation

Transitional Housing has segmented the market into two distinct categories: women under 30 years old and those 30 and older. This is a significant distinction since the children of the younger group will be younger as well. Some demographic information that is relevant to both groups:

• 95% are or were chemically dependent.
• 17% have undergraduate coursework.
• 85% are African-American.
• 80% have children (but generally no custody).
• 6% are H.I.V. positive- generally a result of their drug addiction.
• 7% are Hepatitis C positive- generally a result of their drug addiction.
• 22% were at one time prostitutes.
• 20% have been in prison.

4.2 Target Market Segment Strategy

Transitional Housing has chosen to target their services to these two market segments because they are the segments that are in the most need of the services. Because of a variety of factors including: time in prison, abusive relationships, alcohol and drug dependencies, and exposure/participation to prostitution, these women have nowhere else to go, no one to turn to. They are in desperate need of transitional housing as well as life skills to empower them to self sufficiency.

Transitional Housing has chosen to serve only women because women who are homeless are far more vulnerable than homeless men. They need more protection because of the increased risk of sexual abuse.

4.3 Service Providers Analysis

The services provided within this industry are typically broken down into two segments: transitional housing and life skills.

• Housing- These services are provided by shelters that offer temporary shelters.
• Life skills- Skills to help empower the individual are offered through daytime programs, but are never (at least in Pittsburgh) part of a transitional housing program where the skills training is part of a comprehensive program.

The following section, 4.3 offers an analysis of the alternative service providers.

4.3.1 Alternatives and Usage Patterns

Housing Please note that the shelters are only housing and do not offer any type of life skills.

• Womenspace: This is a temporary shelter with an emphasis on women. The maximum stay is 30 days. It is first-come first-served with the prerequisite that the client does not have any other alternatives. This shelter has space for 25 clients with a central cooking area that is staffed. Children are not allowed.
• The 42nd Street Shelter: This is also a temporary shelter with a maximum of 10 clients, also with a central kitchen area. This shelter allows at most two children under the age of 18 to stay with the parent. This facility is typically full, it is difficult to get a room in it.
• The Refuge Shelter: This is a Catholic Church operated temporary shelter that has two main rooms with bunk beds that supports 16 people per male and female room.

Life skills There are several service providers that teach these skills. They are typically religious based organizations or community based organizations. The courses are generally one hour long and span a few weeks. They are far less comprehensive than Transitional Housing’s and many people miss several sessions because they are taught over a longer period of time.

Strategy and Implementation Summary

Transitional Housing is in an excellent market position to be able to attract good talent and funds due to their sustainable competitive edge. This edge is Transitional Housing’s ability to provide women-only housing that lasts longer and is more complete than traditional “transition housing.”

No one else is able to offer the benefits of a single gender, reasonably long term, housing with skills training. Transitional Housing will be active in their marketing campaign to increase awareness of the facility to the target clients, as well as visibility within the community to aid fundraising efforts, and acquire referrals from other community service agencies.

5.1 Competitive Edge

Transitional Housing has three distinct competitive edges that will be leveraged to help make it a successful service provider with sufficient financial resources:

• Same-gender services: This is quite valuable because homeless women are far more vulnerable than homeless men. The same-gender environment allows women to deal with self-esteem issues which are very typical in abusive and chemical dependent situations. Same-gender settings also allows a sisterhood to develop, allowing the women to bond and develop meaningful, supportive relationships together. Lastly, it minimizes the risk of sexual relations between residents.
• Length of stay: Transitional Housing has the ability to offer clients the option of staying up to two years at the facility. The ability to stay a longer time significantly increase the chance of rehabilitation/skill development/self-sufficiency.
• Empowerment Program: This eight-step program, when fully engaged by the residents (which generally occurs because of the program being on-site and the duration of the stay of the clients) is quite successful in building/empowering self-sufficient, confident women.

5.2 Marketing Strategy

Transitional Housing’s marketing strategy will be two pronged. One goal is to raise awareness about the services to the target customers. The second goal is to increase awareness of Transitional Housing within the community for fundraising efforts.

Transitional Housing will also campaign to develop visibility within the community for both client recruitment as well as corporate fundraising. Activities such as participation on radio shows, sponsorship of one day events/seminars, and other public events that are designed to give a presence to Transitional Housing within the community as a leader and an effective social service organization. Fundraising efforts are made more efficient when people know about Transitional Housing and the positive work they are doing.

5.3 Fundraising Strategy

Transitional Housing will rely on many different sources of funds, in part to increase the overall budget, in part to decrease the reliance on any one source. Some of the funds are available immediately, others such as the grants require six to eight month lead/applications periods.

• Silent Auction (and other organizational activities): An annual silent auction will be held to generate funds as well as to generate visibility within the community. The auction will solicit donations of services and goods and then auction them off to auction participants. This will raise money for the organization as well as increase the visibility of Transitional Housing since the auction participants are upper income socialites. There will be other organizational activities.
• United Way: This national not-for-profit organization is a powerful nation-wide fundraiser that collects money and then disperses funds to local groups.
• Pennsylvania Department of Development (local government): Funds are available from this government agency.
• Alcohol and Drug Addiction Services of Mahoney County (local government): This county organization has funds available to organizations that assist with alcohol and drug prevention services.
• Foundation grants (public and private money): This is a rich source of available monies.
• Corporate and individual donations: One program to solicit the corporate donations will be the sponsorship by a corporation of a specific room within the center. With enough corporate sponsorships of different rooms, the renovation/furniture costs for each living quarter can be reduced or eliminated.
• H.U.D (federal government): This source of funds is dedicated to housing organizations.

5.3.1 Funding Forecast

The funding forecast indicates that it is expected to take six months before there are sufficient funds to to get operations rolling. With the expected opening date of month seven, initial funding will trickle in from month two to four with larger quantities arriving around months five and six.

The initial funds will be spent in preparation for the start-up, however Transitional Housing will need a substantial amount for the down payment of the building. Please note that the fundraising effort is not a static one time or annual event. In order to gain true operating sufficiency, Transitional Housing will need to raise funds throughout the year. Consequently, one of the main tasks of the Executive Director will be fundraising.

5.4 Milestones

Transitional Housing has identified several important milestones for the organization. Each one must be achieved in a timely manner in order to stay on schedule. Please review the following table for a breakdown of the pertinent information regarding the milestones.

Web Plan Summary

The website will be used as a resource to provide information to clients, referral social service agencies, and donors. The site will be a straightforward source of information including details regarding the empowerment program, information about the facilities, and biographical information about the staff.

6.1 Website Marketing Strategy

The website will be marketed to all referral social service agencies as well as to prospective corporate and individual donors.

6.2 Development Requirements

A programmer (friend of a staff member) has been identified as someone who is willing to develop the site. There will be no labor costs associated with the website as the developmental labor will be donated.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Amy Rand received her undergraduate degree in sociology from Case Western Reserve. While at Case Amy was the chairperson of the Volunteer Student Organization. Amy’s duties for this organization include leadership and member motivation, fundraising, and  marketing within the school environment as well as the local community. Following Case, Amy applied and was accepted to The University or Pittsburgh’s Masters in Nonprofit Management. This two year Masters program had an emphasis on management skills, and also encouraged students to undertake practical, one-on-one clinical work, to gain experience managing and being managed in a work environment. Amy’s time in the practicum program was spent working with women victims of domestic abuse.

After graduation, Amy went to work for the largest service provider for survivors of domestic abuse in Pennsylvania. This was a relief agency that offered daytime training and counseling. When she entered the organization as a program manager, they offered some counseling which was geared toward making the person feel better, a reactive approach. Over the three years that Amy spent there she steered the program so that it became more proactive, empowering the women to effect positive change in their life. While this was rewarding, she longed to have more control and ability to effect change within the organization. Amy began discussions with local community leaders to determine the level of support for a new social service organization. She found that there was money/funds to be had for a well run, efficient social service organization that would offer transitional housing and a comprehensive empowerment program, services that were absent from the market. Before she even began the business plan she was informally assembling the Board of Trustees and arranging sources of funds.

7.1 Personnel Plan

• Executive Director- Nonprofit management, fundraising, marketing, and other activities.
• Associate DIrector- Supervise the clinical staff.
• Chemical Dependency Counselor- In-house dependency counselor to assist clients manage their chemical and alcohol dependencies.
• AIDS Counselor- Part-time counselor to assist clients manage their HIV positive status.
• Family Reunification Counselor- Responsible for the strategic, concerted efforts to assist clients to gain custody of their children
• Administration Staff (2)- Responsible for administrative duties.

Board of Trustees- This board will be composed of 15 different influential community leaders. The board will be used as a resource for business decisions and management as well as a source of fundraising. Transitional Housing recognizes the significant value that a board can offer.

Financial Plan investor-ready personnel plan .">

The following sections outline important financial information.

8.1 Important Assumptions

The following table includes important financial assumptions.

8.2 Break-even Analysis

The Break-even Analysis is shown in the following table and chart.

8.3 Projected Surplus or Deficit

The following table and charts show projected surplus and deficit.

8.4 Projected Cash Flow

The following table and chart illustrate projected cash flow.

8.5 Projected Balance Sheet

The following table shows the projected balance sheet.

8.6 Standard Ratios

The following table presents standard ratios. Transitional Housing has a Standard Industrial Classification (SIC) code: 8322.0304 – Emergency Shelters. Industry profile ratios are shown for comparison.

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3 Sample Nonprofit Business Plans For Inspiration

Download our Ultimate Nonprofit Business Plan Template here

Below are sample plans to help guide you in writing a nonprofit business plan.

• Example #1 – Kids Are Our First Priority (KAOFP) – a Nonprofit Youth Organization based in Chicago, IL
• Example #2 – Church of the Sacred Heart – a Nonprofit Church based in St. Louis, MO
• Example #3 – Finally Home – a Nonprofit Homeless Shelter in Los Angeles, CA

Sample Nonprofit Business Plan #1 – Kids Are Our First Priority (KAOFP) – a Nonprofit Youth Organization based in Chicago, IL

Executive summary.

Kids Are Our First Priority (KAOFP) is a 501(c)3 nonprofit youth organization that seeks to provide opportunities for students who might otherwise not have access to the arts and humanities. We believe all students should have the opportunity to discover and develop their interests and talents, regardless of socioeconomic status or geographic location. We offer completely free after-school programming in music production, digital photography, creative writing, and leadership development to 12-18-year-olds at risk of dropping out of high school.

Our organization has been active for over five years and has run highly successful programs at two schools in the city of Chicago. We have been awarded an active grant from a local foundation for this coming year, but we will need to cover all costs on our own after that point. Nonprofit administrators have seen a lot of turnovers, leaving the organization without a sustainable plan for reaching its goals.

Organization Overview

The Kids Are Our First Priority (KAOFP) is a 501(c)3 nonprofit youth organization with a mission to provide opportunities for development and self-expression to students who might otherwise not have access. Audiences include at-risk, low-income students from elementary through high school in the Chicago area.

Our programs are built around creative learning with two goals: firstly, creating a space for learning and growth; secondly, encouraging students to share their work with the world.

KAOFP runs three different programs in partnership with closely related nonprofit organizations, providing after-school programming for elementary, middle, and high school-aged children. Programs take place twice a week at different schools around Chicago. While each program is unique in its goals and activities, all programs focus on creative development in the arts and humanities.

Products, Programs, and Services

The three programs offered by KAOFP are Leadership Development (LD), Creative Writing (CW), and Music Production (MP). Students learn in small groups led by skilled instructors. All activities are designed to encourage student engagement, creativity, expression, and community building. Instructors encourage students to share their work with the world through presentations on- and off-site.

Leadership Development (LD)

The Leadership Development program is designed to provide leadership opportunities for high school students who might not otherwise have access to these experiences. Students learn about facilitation, collaboration, communication, and organizational skills as they plan and run projects of their own design. The program’s goal is to provide a structured environment that encourages students to become more confident and comfortable being leaders in their schools, communities, and future careers.

Creative Writing (CW)

Students learn how to use writing creatively as a tool for expression, discovery, and communication. In small groups led by skilled instructors, students write poetry, short stories, and essays of their own design. They also learn about the publishing industry, read each others’ work, and share their writing with the community.

Music Production (MP)

Students learn how to use digital media as a tool for expression, discovery, and communication. In weekly sessions led by skilled instructors, students explore music production through computer software and recording equipment. Students produce their own music and write about their experiences in weekly journals. Industry professionals in the community often volunteer to lead special workshops and seminars.

Industry Analysis

The youth arts and humanities field is extremely competitive. There are many different types of nonprofit organizations doing similar work, but few credible providers with long-term commitments to their communities. KAOFP’s greatest strengths and competitive advantages are our stable and qualified staff, a strong foundation of funding and community support, and a diverse set of programs.

Our biggest competitors include national non-profits with large budgets for advertising and marketing as well as commercial programs that offer music lessons and creative writing courses which may be more cost-effective than our programs. We feel that by focusing on specific areas of creative expression, KAOFP can better serve its communities and differentiate itself from other nonprofit organizations effectively.

Customer Analysis

KAOFP serves elementary, middle, and high school-aged students with programs that include both after-school and summer programming.

Our focus is on low-income neighborhoods with a high population of at-risk youth. In these areas, KAOFP fills a void in the education system by providing opportunities for creative expression and leadership development to students who would not otherwise have access to these resources.

The demographics of our current students are as follows:

• 91% African-American/Black
• 6% Hispanic/Latino
• 5% Multiracial
• 3.9% Low Income
• 4.9% Not Identified

Our main target is low-income African American and Latino youth in Chicago Public Schools. We would like to expand our outreach to include other communities in need of creative enrichment opportunities.

Marketing Plan

KAOFP’s marketing program is designed to support student, parent, and staff recruitment by promoting the organization’s goals and programs. Our main target audience consists of parents seeking after-school enrichment opportunities for their children that emphasize creativity and the arts.

To reach this audience, we advertise in public schools as well as on social networking sites such as Facebook and Twitter. We intend to begin marketing online through a company-sponsored blog, which will feature regular updates about KAOFP events and activities. We also intend to use word of mouth as a form of marketing.

Strategic partnerships with local schools and community centers will provide us with additional exposure as well as additional resources to secure funding.  

Operations Plan

KAOFP’s day-to-day operation is structured around its programs on Tuesdays from 4 pm to 8 pm.

Administrative offices are located in the same space as each program, allowing instructors to closely monitor their students and provide support as needed. The administrative offices serve the essential function of fundraising, communications, record-keeping, and volunteer coordination. KAOFP’s Board of Directors meets bi-monthly to provide further leadership, guidance, and oversight to our board members and volunteers.

Customer service is conducted by phone and email during our regular business hours of Monday – Friday 9 am to 12 pm.  We are not open on weekends or holidays.

Management Team

KAOFP’s organizational structure includes a Board of Directors, an Executive Director, and Program Directors. The Board of Directors provides guidance and oversight to the organization, while the Executive Director manages day-to-day operations. The Program Directors oversee each of KAOFP’s programs.

KAOFP has a small but dedicated staff that is committed to our students and our mission. Our team has a wide range of experience in the arts, education, and nonprofit sector.

Executive Director

The Executive Director is responsible for the overall management of KAOFP. This includes supervising staff, developing and implementing programs, overseeing finances, and representing the organization to the public.

Our Executive Director, Susie Brown, has been with KAOFP since its inception in 2010. She has a B.A. in Fine Arts from the University of Illinois at Urbana-Champaign and an M.F.A. in Creative Writing from Columbia College Chicago. Susie is responsible for the overall management of KAOFP, including supervising staff, developing and implementing programs, overseeing finances, and representing the organization to the public.

Program Directors

Each of KAOFP’s programs is overseen by a Program Director. The Program Directors are responsible for developing and implementing the program curricula, recruiting and training program instructors, and evaluating student progress.

Art Program Director

The Art Program Director, Rachel Smith, has a B.A. in Fine Arts from the University of Illinois at Urbana-Champaign. She is responsible for developing and implementing the program curricula, recruiting and training program instructors, and evaluating student progress.

Music Program Director

The Music Program Director, John Jones, has a B.A. in Music Education from the University of Illinois at Urbana-Champaign. He is responsible for developing and implementing the program curricula, recruiting and training program instructors, and evaluating student progress.

Theatre Program Director

The Theatre Program Director, Jane Doe, has a B.A. in Theatre Arts from the University of Illinois at Urbana-Champaign. She is responsible for developing and implementing the program curricula, recruiting and training program instructors, and evaluating student progress.

Board of Directors

KAOFP’s Board of Directors provides guidance and oversight to the organization. The Board consists of community leaders, educators, artists, and parents. Board members serve three-year terms and can be renewed for one additional term.

Financial Plan

KAOFP’s annual operating budget is approximately $60,000 per year, with an additional one-time cost of about $10,000 for the purchase of equipment and materials. The agency makes very efficient use of its resources by maintaining low overhead costs. Our biggest expense is instructor salaries, which are approximately 75% of total expenses.

Pro Forma Income Statement

Pro forma balance sheet, pro forma cash flow statement, nonprofit business plan example #2 – church of the sacred heart – a nonprofit church based in st. louis, mo.

The Church of Sacred Heart is a nonprofit organization located in St. Louis, Missouri that provides educational opportunities for low-income families. We provide the best quality of education for young children with tuition rates significantly lower than public schools. It has been voted Best Catholic Elementary School by the St Louis Post Dispatch for four years running, and it has maintained consistently high ratings of 4.5 out of 5 stars on Google Reviews since its opening in 1914.

The Church of Sacred Heart strives to build strong relationships with our community by making an impact locally but not forgetting that we operate on global principles. As such, our school commits 10% of its profits to charitable organizations throughout the world every year, while also conducting fundraisers throughout the year to keep tuition rates affordable.

We are currently transitioning from a safe, high-quality learning environment to an even more attractive facility with state-of-the-art technology and modern materials that will appeal to young students and their families. New facilities, such as additional classrooms and teachers’ lounges would allow us not only to accommodate new students but also attract current families by having more places within the school where they can spend time between classes.

By taking full advantage of available opportunities to invest in our teachers, students, and facilities, we will be able to achieve steady revenue growth at 4% per year until 20XX.

The Church of Sacred Heart provides a safe learning environment with an emphasis on strong academics and a nurturing environment that meets the needs of its young students and their families. Investing in new facilities will allow us to provide even better care for our children as we continue to grow as a school.

Mission Statement: “We will strive diligently to create a safe, respectful environment where students are encouraged and inspired to learn through faith.”

Vision Statement: “Sacred Heart believes education gives every child the opportunity to achieve their full potential.”

The Church of the Sacred Heart was built in 1914 and is located in the Old North St. Louis neighborhood, an area with a high concentration of poverty, crime, unemployment, and abandoned buildings.

The church houses the only Catholic school for low-income families in the north city; together they formed Sacred Heart’s educational center (SCE). SCE has strived to provide academic excellence to children from low-income families by providing a small, nurturing environment as well as high academic standards.

The facility is in need of renovations and new equipment to continue its mission.

The Church of the Sacred Heart is a small nonprofit organization that provides a variety of educational and community services.

The services provided by Sacred Heart represent a $5 billion industry, with nonprofit organizations accounting for $258.8 billion of that total.

The health care and social assistance sector is the largest among nonprofits, representing 32 percent of revenues, followed by educational services (18 percent), and human and other social service providers (16 percent).

The key customers for the Church of the Sacred Heart are families in need of affordable education. The number of students in the school has increased from 500 when it opened in 1914 to 1,100 at its peak during 20XX-20XX but has since declined due to various reasons.

The children at Sacred Heart are from low-income families and 91 percent qualify for free or reduced lunches. Most parents work or have a family member who works full-time, while others don’t work due to child care restraints. The number of children enrolled in Sacred Heart is stable at 1,075 students because there is a lack of affordable alternatives to Catholic education in the area.

SCE offers K-5th grade students a unique learning experience in small groups with individualized instruction.

Sacred Heart has an established brand and is well known for its high standards of academic excellence, which include a 100 percent graduation rate.

Sacred Heart attracts prospective students through promotional materials such as weekly bulletins, mailers to homes that are located in the area served, and local churches.

Parents and guardians of children enrolled in Sacred Heart are mainly referrals from current families, word-of-mouth, and parishioners who learn about the school by attending Mass at Sacred Heart.

The Church of Sacred Heart does not currently advertise; however, it is one of the few Catholic schools that serve low-income families in St. Louis, MO, and therefore uses word of mouth to attract new students to its school.

The Church of Sacred Heart has an established brand awareness within the target audience despite not having direct marketing plans or materials.

The operations section for the Church of the Sacred Heart consists of expanding its after-school program as well as revamping its facility to meet the growing demand for affordable educational services.

Sacred Heart is located in an area where more than one-third of children live below the poverty line, which helps Sacred Heart stand out among other schools that are more upscale. Expansion into after-school programs will allow it to capture a larger market share by providing additional services to its target audience.

In order to expand, Sacred Heart will have to hire additional personnel as well as invest in new equipment and supplies for both the school and the after-school program.

The Church of Sacred Heart’s financial plan includes a fundraising plan that would help renovate the building as well as acquire new equipment and supplies for the school.

According to the National Center for Education Statistics, Catholic elementary schools across all grade levels spend an average of $6,910 per pupil on operating expenses. A fundraising initiative would help Sacred Heart acquire additional revenue while expanding its services to low-income families in St Louis, MO.

Financial Overview

The Church of the Sacred Heart expects to generate revenues of about $1.2 million in fiscal year 20XX, representing a growth rate of 2 percent from its 20XX revenue level. For 20XX, the church expects revenues to decrease by 4 percent due to a decline in enrollment and the lack of new students. The Church of Sacred Heart has experienced steady revenue growth since its opening in 1914.

• Revenue stream 1: Tuition – 22%
• Revenue stream 2: Investment income – 1%

Despite being located in a poverty-stricken area, the Church of Sacred Heart has a stable revenue growth at 4 percent per year. Therefore, Sacred Heart should be able to attain its 20XX revenue goal of $1.2 million by investing in new facilities and increasing tuition fees for students enrolled in its after-school program.

Income Statement f or the fiscal year ending December 31, 20XX

Revenue: $1.2 million

Total Expenses: $910,000

Net Income Before Taxes: $302,000

Statement of Financial Position as of December 31, 20XX 

Cash and Cash Equivalents: $25,000

Receivables: $335,000

Property and Equipment: $1.2 million

Intangible Assets: $0

Total Assets: $1.5 million

Balance Statement

The board of directors has approved the 20XX fiscal year budget for Sacred Heart Catholic Church, which is estimated at $1.3 million in revenues and $920,000 in expenditures.

Cash Flow Statement f or the Fiscal Year Ending December 31, 20XX

Operating Activities: Income Before Taxes -$302,000

Investing Activities: New equipment and supplies -$100,000

Financing Activities: Fundraising campaign $200,000

Net Change in Cash: $25,000

According to the 20XX fiscal year financial statements for Sacred Heart Catholic Church, it expects its investments to decrease by 4 percent and expects to generate $1.3 million in revenues. Its total assets are valued at $1.5 million, which consists of equipment and property worth approximately 1.2 million dollars.

The Church of Sacred Heart’s financial statements demonstrate its long-term potential for strong revenue growth due to its steady market share held with low-income families in St. Louis, MO.

Nonprofit Business Plan Example #3 – Finally Home – a Nonprofit Homeless Shelter in Los Angeles, CA

Finally Home is a nonprofit organization that aims to provide low-income single-parent families with affordable housing. The management team has a strong background in the social service industry and deep ties in the communities they plan to serve. In addition, Finally Home’s CEO has a background in real estate development, which will help the organization as they begin developing its operations.

Finally Home’s mission is to reinvent affordable housing for low-income single-parent families and make it more sustainable and accessible. They will accomplish this by buying homes from families and renting them out at an affordable price. Finally Home expects its model of affordable housing to become more sustainable and accessible than any other model currently available on the market today. Finally Home’s competitive advantage over similar organizations is that it will purchase land and buildings from which to build affordable housing. This gives them a greater amount of ownership over their communities and the properties in which the homes are located, as well as freedom when financing these projects.

Finally Home plans on accomplishing this by buying real estate in areas with high concentrations of low-income families who are ready to become homeowners. These homes will be used as affordable housing units until they are purchased by Finally Home’s target demographic, at which point the organizations will begin renting them out at a base rate of 30% of the family’s monthly household income.

Finally Home plans on financing its operations through both private donations and contributions from foundations, corporations, and government organizations.

Finally Home’s management team has strong backgrounds in the social service industry, with deep ties to families that will be prepared to take advantage of Finally Home’s affordable housing opportunities. The CEO of Finally Home also brings extensive real estate development experience to the organization, an asset that will be especially helpful as Finally Home begins its operations.

Finally Home is a nonprofit organization, incorporated in the State of California, whose mission is to help homeless families by providing them with housing and support services. The centerpiece of our program, which will be replicated nationwide if successful, is an apartment complex that offers supportive living for single parents and their children.

The apartments are fully furnished, and all utilities are paid.

All the single parents have jobs, but they don’t earn enough to pay market-rate rent while still paying for other necessities such as food and transportation.

The organization was founded in 20XX by Henry Cisneros, a former U.S. Secretary of Housing and Urban Development who served under President Bill Clinton. Cisneros is the chairman of Finally Home’s board of directors, which includes leaders with experience in banking, nonprofit management, and housing professions.

The core values are family unity, compassion for the poor, and respect for our clients. They are the values that guide our employees and volunteers at Finally Home from start to finish.

According to the United States Conference of Mayors’ Task Force on Hunger and Homelessness 20XX Report, “Hunger & Homelessness Survey: A Status Report on Hunger & Homelessness in America’s Cities,” almost half (48%) of all homeless people are members of families with children. Of this number, over one quarter (26%) are under the age of 18.

In 20XX, there were 9.5 million poor adults living in poverty in a family with children and no spouse present. The majority of these families (63%) have only one earner, while 44% have zero earners because the person is not old enough or does not work for other reasons.

The total number of people in poverty in 20XX was 46.5 million, the largest number since Census began publishing these statistics 52 years ago.

Finally Home’s goal is to help single parents escape this cycle of poverty through providing affordable housing and case management services to support them long term.

Unique Market Position

Finally Home creates unique value for its potential customers by creating housing where it does not yet exist.

By helping single parents escape poverty and become self-sufficient, Finally Home will drive demand among low-income families nationwide who are experiencing homelessness. The high level of need among this demographic is significant nationwide. However, there are no other organizations with the same market position as Finally Home.

Finally Home’s target customers are low-income families who are experiencing homelessness in the Los Angeles area. The organization will actively seek out these families through national networks of other social service providers to whom they refer their clients regularly.

Finally Home expects to have a waiting list of families that are interested in the program before they even open their doors.

This customer analysis is based on the assumption that these particular demographic groups are already active users of other social service programs, so referrals will be natural and easy for Finally Home.

Industry Capacity

This information is based on the assumption that these particular demographic groups are already active users of other social service programs, so referrals will be natural and easy for Finally Home.

There is a growing demand for low-income single-parent housing nationwide, yet there is no one organization currently providing these services on a national level like Finally Home.

Thus, Finally Home has a competitive advantage and market niche here because it will be the only nonprofit organization of its kind in the country.

Finally Home’s marketing strategies will focus on attracting potential customers through national networks of other social service providers. They will advertise to their referral sources using materials developed by the organization.  Finally Home will also advertise its services online, targeting low-income families using Google AdWords.

Finally Home will be reinventing affordable housing to make it more accessible and sustainable for low-income single parents. In this new model, Finally Home will own the land and buildings on which its housing units are built, as well as the properties in which they are located.

When a family is ready to move into an affordable housing unit, Finally Home will buy the home they currently live in. This way, families can take advantage of homeownership services like property tax assistance and financial literacy courses that help them manage their newfound wealth.

Finally Home has already partnered with local real estate agents to identify properties for purchase. The organization expects this to result in homes that are at least 30% cheaper than market value.

Finally Home will finance its operational plan through the use of private contributions and donations from public and private foundations, as well as corporate sponsorships.

Finally Home’s management team consists of:

• Veronica Jones, CEO, and Founder
• Mark MacDonald, COO
• Scott Bader, CFO

Management Summary

The management team has a strong history of social service advocacy and deep ties in the communities they plan to serve. In addition, the organization’s CEO has a background in real estate development that will be helpful as Finally Home begins operations.

• Year 1: Operation startup costs to launch first five houses ($621,865)
• Year 2: Deliver on market offer and complete first capital raise ($4,753,000)
• Year 3: Deliver on market offer and complete $5 million capital raise ($7,950,000)
• Year 4+: Continue to grow market share with a national network of social services providers ($15,350,000).

This nonprofit business plan will serve as an effective road map for Finally Home in its efforts to create a new model for affordable housing.

Nonprofit Business Plan Example PDF

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Home » Non Profit

How to Start a Homeless Shelter [Business Plan]

Homeless shelters are a type of homeless service agency that provides temporary residences for homeless individuals and families. These shelters exist to provide residents with safety and protection from the weather while simultaneously reducing the environmental impact on the community.

They are similar to, but distinguishable from, various types of emergency shelters, which are typically operated for specific circumstances and populations. Extreme weather conditions create problems similar to disaster management scenarios and are handled with warming centers, which typically operate for short durations during adverse weather.

The homeless shelter is thriving in the United States because, on a single night, more than half a million Americans go homeless, which represents 0.2 percent of the US population. Of those homeless persons, 65 percent are sheltered whereas 35 percent are living on the streets. Please note that there are 11,180 Community Housing & Homeless Shelters in the US as of 2022, an increase of 1.3 percent from 2020.

Steps on How to Start a Nonprofit Homeless Shelter With Government Funds

1. conduct market research.

The first step in the market research process for homeless shelters is to develop market-based research questions in line with your overall business goals and objectives. In this regard, you should source information that will help you maximize your business, information that will help you know what your potential market is looking for from a homeless shelter, and that will help you operate your homeless shelter with less stress and more efficiently.

a. Who is the Target Market of a Homeless Shelter?

• Families (Homes)
• Victims of natural disasters, war, and abuse (Asylum Seekers)

b. Is Homeless Shelter a Profitable Business?

Not really because homeless shelters are more of charity, and operators of homeless shelters make money from donations, grants and fundraising et al. But it is important to state that the market size for the community housing and homeless shelters industry is $17 billion.

c. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to a homeless shelter, but a homeless shelter may also specialize in offering some or all of the following services;

• Short-term emergency shelter for victims of domestic violence, sexual assault, or child abuse
• Temporary residential shelter for homeless, runaway youths, and families caught in medical crises
• Transitional and assisted housing for low-income individuals and families
• Volunteer construction or repair of low-cost housing
• Repair of homes for elderly or disabled homeowners

d. Who are the Major Competitors?

• The Bridge Homeless Recovery Center
• Volunteers of America
• The Bowery Mission Tribeca Campus – formerly New York City Rescue Mission
• Covenant House Georgia
• Union Station Adult Center
• Atlanta Mission: The Shepherd’s Inn
• Bucks County Emergency Homeless Shelter
• Twin Oaks Shelter
• Coalition For the Homeless
• Good Samaritan House Homeless Shelter
• Arlington Life Shelter
• Upward Bound House – Family Shelter
• HRA Men’s Shelter
• Austin Street Center
• MSC Homeless Shelter
• Pine Street Inn
• SHELTER, Inc.
• Alexandria Community Shelter
• Harvard Square Homeless Shelter
• Bethesda Project’s My Brother’s House

e. Are There County or State Regulations or Zoning Laws for Homeless Shelter?

Yes, there are county or state regulations and zoning laws for a homeless shelter, and players in this industry are expected to work with existing regulations governing such business in the county or state where their business is domiciled.

f. Is There a Franchise for Homeless Shelter?

Yes, there are franchise opportunities for homeless shelters, and here are some of them;

• STREATS (Strive To Reach Educate And Transform Society)

g. What Do You Need to Start a Homeless Shelter?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Furnished and Equipped Facility (Homeless Shelter)
• Computers, Laptops, and Software Apps
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Startup Capital

Memorable Business Name ideas for Homeless shelter

• Home for All
• Saint Barnabas™ Homeless Shelter
• Helping Hands® Homeless Shelter.
• Safe Abode® Homeless Shelter
• Jason Jeffrey Memorial House
• Eden’s Garden® Homeless Shelter
• Paul Labium Homeless Shelter
• Inner City® Homeless Shelter
• All Colors© Homeless Shelter
• Theo Mission© Homeless Shelter
• Zion House® Homeless Shelter.
• Street Children® Homeless Shelter
• Jonathan Paddington® Homeless Shelter.
• Covenant Ministry® Homeless Shelter
• Rock Ministry® Homeless Shelter
• Paula and Paul® Homeless Shelter
• St. Lucas® Homeless Shelter
• Mother Therasa® Homeless Shelter
• Sister Rosaline Park® Homeless Shelter
• Chicago Boys® Homeless Shelter.

Register Your Business

A. what type of business structure is best for homeless shelter.

Generally, when starting a homeless shelter, the best choice for legal structure is to form a nonprofit corporation at the state level and to apply for 501(c)(3) tax exemption at the federal level. Please note that on the state level, you can file a nonprofit LLC for your homeless shelter.

You can apply for an exemption with an LLC, but you would need to be an LLC taxed as a corporation; then, you ask the federal government to treat your homeless shelter as a nonprofit or tax-exempt organization. Interestingly, in the United States of America, several states allow a nonprofit LLC, including California, Ohio, Michigan, Minnesota, and Tennessee. Texas allows the formation of an LLC with a nonprofit purpose.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Homeless Shelter?

• 501(c)(3) tax exemption at the federal level
• Health and Safety Permit
• Zonal Permits (Applicable in some cities)
• Signage Permit
• Operational State Facility Inspections

d. What Type of Certification is Needed to Open a Homeless Shelter?

These are some of the certifications you can work towards achieving if you want to run a homeless shelter;

• Community and Social Worker Certifications

e. What Documents are Needed to Open a Homeless Shelter?

These are some of the basic legal documents you are expected to have if you want to legally run a homeless shelter in the United States of America;

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Fire and Safety Permit
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a homeless shelter, you may not need to file for intellectual property protection, copyright, patent, or trademark. This is because the homeless shelter does not require one except on rare occasions.

Cost Analysis and Budgeting

A. how much does it cost to start a homeless shelter.

When it comes to starting a homeless shelter, the startup costs vary and it could range from $500,000 to well over $2 million.

b. What are the Costs Involved in Starting a Homeless Shelter

• The total fee for filing 501(c)(3) in the United States of America – $350 – $675.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
• Publicity, and promotion – $3,580.
• Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
• The cost of securing and reconstruction of the facility – $1.5 million
• Other start-up expenses including phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for furnishing and equipping the facility: $500,000
• The cost of launching a website: $600
• The cost for organizing fundraising event: $10,000
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Homeless Shelter?

• The size of the homeless shelter
• The choice of location
• The required licenses and permits
• The cost of hiring and paying an attorney and fundraiser
• The cost for branding, promotion, and marketing the homeless shelter
• The cost for the purchase of furniture, gadgets, and equipment.
• The cost for insurance policy covers
• The cost for registering the organization as 501(c)(3)
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your homeless shelter, but if you have the required finance, it will pay you to build your homeless shelter from scratch. The truth is that building or reconstructing a homeless shelter facility will help you come up with an edifice that will conform to what is expected of a standard homeless shelter in your city.

e. What are the Ongoing Expenses of a Homeless Shelter?

• Supplies such as food, toiletries, cleaning chemicals, blankets and pillows et al
• Fueling and maintenance of the facility
• Utility bills – (internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Chief Executive Officer (Owner) – $67,000 Per Year
• Facility Manager – $43,000 Per Year
• Fundraiser – $40,000 Per Year
• Accountant – $32,000 Per Year
• Facility Assistants – $25,650 Per Year
• Front Desk Officer -$25,000 Per Year
• Security Guards – $24,000 Per Year

g. How Do You Get Funding to Start a Homeless Shelter?

• Raise money from personal savings and sale of personal stocks and properties
• Raise money from the community via fundraising and donations
• Apply for a loan from your bank/banks
• Apply for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and your friends.

Write a Business Plan

A. executive summary.

Sister Rosaline Park® Homeless Shelter is a nonprofit organization that will be based in Rio Rancho – New Mexico and will major in the operation of homeless shelters to provide a variety of community housing services, including short-term emergency shelter for victims of domestic violence, sexual assault or child abuse; temporary residential shelter for the homeless, runaway youths and parents and families caught in medical crises.

b. Products and Service

Providing temporary residence for homeless individuals and families.

c. Mission Statement

Our mission is to help victims of domestic violence, sexual assault or child abuse, the homeless, runaway youths, and parents and families caught in medical crisis, and average low-income earning families find safe shelter in and around Rio Rancho – New Mexico.

Vision Statement

Our vision is to become the number one homeless shelter in the whole of New Mexico.

d. Goals and Objectives

The goals and objectives of the homeless shelter are to provide accommodation for people who have nowhere to sleep. Hence homeless shelters are used to quickly deal with emergencies such as adverse weather conditions or domestic abuse.

e. Organizational Structure

• Chief Executive Officer (Owner)
• Facility Manager
• Facility Assistants
• Front Desk Officer
• Security Guards

Marketing Plan

A. swot analysis.

We have highly qualified and experienced social workers and fundraisers in our organization, and we are strategically located.

We critically looked into our business model and we were able to identify two major weaknesses. One is the fact that we are a new nonprofit organization and the second is that we may not be able to initially attract the required financial resources to run the organization as required.

Opportunities:

The opportunities available to homeless shelters not just in the United States but across the globe are massive because, on a single night, more than half a million Americans go homeless, which represents 0.2 percent of the US population. Of those homeless persons, 65 percent are sheltered whereas 35 percent are living on the streets.

The majority of industry revenue comes from the federal, state, and local government-funded homeless and housing assistance programs. Any changes in funding or government policy will drastically affect industry revenue. Federal funding for social services is expected to decrease going forward, posing a potential threat to the industry.

b. How Do Homeless Shelters Make Money?

Homeless shelters make money from fundraising, donations, and grants from the government.

c. Payment Options

• Donation via bank transfer
• Donation via credit cards
• Donation via online bank transfer
• Donation via check
• Donation via mobile money transfer
• Donation via bank draft

d. Sales & Advertising Strategies

• Advertise your homeless shelter facility on community-based newspapers, local TV and radio stations
• Promote your homeless shelter facility online via your official website and all available social media platforms
• Introduce your homeless shelter facility by sending introductory letters alongside your brochure to charity organizations, churches, and key stakeholders in your city
• Print out fliers and cards and strategically drop them in offices, libraries, public facilities, and train stations et al.
• Make use of attractive handbills to create awareness and also to give direction to your homeless shelter facility
• Position your signage/Flexi banners at strategic places in and around your city

Financial Projection

A. how much should you charge for your product/service.

A homeless shelter is free of charge to all homeless people.

b. How Much Profit Do Homeless Shelter Owners Make a Year?

Although, homeless shelters make money via fundraising, donation, and grants from the government, yet the average homeless shelter makes on average $37,482 per year or $868 (2 percent) more than the national average annual salary of $36,614.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the homeless shelter
• The location of the homeless shelter
• The management style of the homeless shelter
• The business approach of the homeless shelter
• The advertising and marketing strategies adopted by the homeless shelter.
• The number of years the homeless shelter is in business

d. What is the Profit Margin of a Homeless Shelter?

The fact that homeless shelters operate as nonprofits means that they are not designed to make profit.

e. What is the Sales Forecast?

Below is the sales forecast (fundraising forecast) for a Homeless shelter based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year (FY1): $750,000
• Second Fiscal Year (FY2): $1.5 million
• Third Fiscal Year (FY3): $2.5 million

Set Up your Office

A. how do you choose a perfect location for a homeless shelter.

• The demography of the location as it relates to the number of homeless people
• The demand for the services offered by homeless shelters in the location
• The purchasing power of businesses and residents of the location (the poorer they are, the more likely they are to run to homeless shelters)
• Accessibility of the location
• The number of homeless shelters in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Homeless Shelter?

• San Diego, California (151,278 Homeless people)
• Hempstead, New York (92,091 Homeless people)
• Tallahassee, Florida (28,328 Homeless people)
• Dallas, Texas (25,848 Homeless people)
• Spokane, Washington (21,577 Homeless people)
• Springfield, Massachusetts (18,471 Homeless people)
• Salem, Oregon (15,876 Homeless people)
• Allentown, Pennsylvania (13,199 Homeless people)
• Atlanta, Georgia (10,443 Homeless people)
• Cincinnati, Ohio (10,345 Homeless people)

c. What Equipment is Needed to Operate a Homeless Shelter?

You should be prepared to purchase a public address system, first aid kits, and other related equipment that will aid you in carrying out your job. You will also need computers and laptops, an internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves), and all these can be gotten as fairly used.

Hire Employees

When it comes to hiring employees for a standard homeless shelter, you should make plans to hire a competent chief executive officer (owner), facility manager, fundraiser, accountant, facility assistants, front desk officer, and security guards.

Launch the Business Proper

When it comes to an organization like a homeless shelter, fundraising events and dinners are usually the best way to launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the homeless shelter, you will be able to officially inform people in your city that your homeless shelter is open to shelter the homeless and of course to receive donations.

a. What Makes a Homeless Shelter Successful?

• Strong and focused leadership
• Financially stability
• Passionate volunteer base
• Having an innovative fund-raising idea
• Following a clear vision
• Finding the right talent and network
• Building a strong organizational culture
• Maintaining excellent customer service and outreach
• Being open to change
• Security consciousness
• Accepting and learning from feedback

b. What Happens During a Typical Day at a Homeless Shelter?

• The homeless shelter facility is open for the day’s work
• The to-do list is reviewed by employees
• Most homeless shelters provide meals and low-cost board.
• Residents are assigned a case manager who will assist them with the issues they are dealing with. They can help them get the things they need by connecting them with relevant services.
• The residents are instructed to follow the light out time
• The circle starts the following day because most homeless shelters have staff that are available 24 hours a day.

c. What Skills and Experience Do You Need to Build a Homeless Shelter?

• Good managerial and human development skills
• Compassionate and Empathetic.
• Excellent communication and negotiation skills.
• Organizational skills.
• A strong understanding of how nonprofits are managed
• The ability to connect with homeless people.
• Good supervisory skills
• Experience in networking and fundraising
• Experience in working as a social worker
• Experience in managing people
• Experience in charity and business administration

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How to Start a Nonprofit Homeless Shelter

Last Updated: November 4, 2024 Fact Checked

Organizing Your Shelter

Completing legal requirements, preparing to open, things you'll need.

This article was co-authored by Dan Bodner . Dan Bodner is a Transitional Shelter & Homelessness Expert and the CEO & Founder of QuickHaven Transitional Shelters. With over 20 years of experience, he specializes in executive leadership, product development, and innovation, which have helped him develop modular tiny homes to improve the lives of those affected by homelessness. Dan earned a BA from Vassar College and an MS from the University of Texas at Austin. There are 15 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 497,444 times.

Anyone can be homeless at any time. While most people can't fathom the idea of not having a roof over their head or a daily shower, millions of people suffer everyday with homelessness. Unfortunately, the number of homeless people far outweighs the number of shelters. You can help people by starting your own nonprofit homeless shelter, but be prepared for a lot of hard work.

• Also make requests for a donation through media, such as radio/TV shows, newspapers, and social media.
• You can only have a shelter in an area zoned for it, so check zoning laws as well.

• Decide whether you want to provide meals to your residents as well. If you do, there needs to be a working kitchen where you can prepare food. You'll also need space for residents to eat, which should be separate from the sleeping area.

• Consult with religious institutions, such as churches, synagogues, and mosques. Their values should align with yours, so they might be particularly eager to help you start a homeless shelter.

• Friends and family. Show them your proposal in which you explain why you are starting the homeless shelter and how you will use the money. [5] X Research source
• Donors. People who don't know you might donate to the homeless shelter. They'll need some way to find you, so you might want to create a website. Set up the website so that you can accept Paypal.

• Some lawyers are happy to provide services pro bono to nonprofits. Talk to a local attorney and ask if they know someone willing to work pro bono.

• Your articles will require basic information about your corporation, e.g., your name, principal place of business, and a registered agent who can accept legal papers. [7] X Research source
• Submit your articles to the address provided along with your fee. Each jurisdiction sets its own fees, but plan on spending a couple hundred dollars. [8] X Research source

• Basic information, such as your corporate name and the location of your principal office.
• A description of your business purpose.
• An explanation of how you are dedicating your nonprofit's assets. For example, if you dissolve, you will probably give your assets to another nonprofit.
• The number of directors, as well as their qualifications and duties.
• The number of officers, including information about how they will be elected, their duties, and compensation.
• A well-developed conflict of interest policy, which is meant to protect your nonprofit from being taken advantage of by directors, officers, and other insiders.

• You'll need to provide financial information. If you're a new nonprofit, you must provide financial data for every year you've been in existence and estimates for future years. You may need an accountant to help you.
• You should file for tax-exempt status within 27 months of filing your articles of incorporation. If you do, your tax-exempt status is retroactive to the date you filed your articles. [10] X Trustworthy Source Internal Revenue Service U.S. government agency in charge of managing the Federal Tax Code Go to source
• Once you are approved, you'll receive a determination letter. Hold onto this, since you will probably need to show it to many people.

• You can obtain a policy by find an insurance agent in your phone book. Also talk to other homeless shelters about what insurance they carry.

• Find people with skills that will benefit your homeless shelter. For example, a former manager of a homeless shelter might make a great director.
• Prominent business people also make good directors. They know other business owners in the community and can raise your profile.

• Adopt your bylaws.
• Appoint officers, such as President, Vice President, Treasurer, and Secretary. In a small nonprofit, one person can take on more than one role.
• Note that you have received tax-exempt status.
• Authorize someone to open a bank account for the homeless shelter.

• If you partner with a religious institution, you can ask its members to volunteer. Request an opportunity to speak to the congregation about your homeless shelter.

• Your staff also needs to be aware of state laws regulating homeless shelters. For example, in some states, the homeless are given ID numbers. Your staff will need to enter this information into a computer system. [15] X Research source

• In the U.S., you'll need to report all new hires to your state's New Hire Reporting office within 20 days. This is required for all full- or part-time employees but not independent contractors. You should register for an account with your state office.
• You could hire and train homeless veterans, as veterans, in particular, are reliable. The expectation is that they're reliable and sober and ready to work every day.
• You may also need to buy workers' compensation insurance. Talk to your insurance agent.

• However, also cast a wider net. Write a letter to your local Chamber of Commerce describing your homeless shelter and stating what you need. They can share your letter with members.
• Also consider giving an interview to local media. Point out that you are a nonprofit and you are accepting donations.

Community Q&A

• Shelter Location and Building
• Mission Statement
• Business License
• IRS Paperwork
• Professionals
• Volunteers or Employees

You Might Also Like

• ↑ https://www.zakat.org/start-homeless-shelter/
• ↑ https://georgewbush-whitehouse.archives.gov/government/fbci/guidance/partnering.html
• ↑ https://www.grants.gov/applicants/grant-applications/how-to-apply-for-grants
• ↑ https://www.sos.ca.gov/business-programs/business-entities/faqs
• ↑ https://www.tax.virginia.gov/nonprofit-organizations
• ↑ https://www.irs.gov/charities-non-profits/other-non-profits/exempt-organization-bylaws
• ↑ https://www.irs.gov/charities-non-profits/applying-for-tax-exempt-status
• ↑ https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard
• ↑ https://www.samhsa.gov/sites/default/files/volunteer_handbook.pdf
• ↑ https://www.justice.gov.nt.ca/en/non-profit-societies/
• ↑ https://www.councilofnonprofits.org/running-nonprofit/employment-hr/volunteers
• ↑ https://www.ohchr.org/en/special-procedures/sr-housing/homelessness-and-human-rights
• ↑ https://www.usda.gov/sites/default/files/documents/usda-good-samaritan-faqs.pdf

About This Article

To start a nonprofit homeless shelter, try to find someone to donate a building to you by asking on social media and in newspapers. Once you’ve found a location, try to get funding from other nonprofits or through the government. Then, find and train volunteers to help you clean, check people in, and handle fights. At that point, you can start asking grocery stores to donate food, and ask any business to donate cots, bedding, toys, and other items. Keep reading to learn how to handle the liabilities and paperwork associated with nonprofits. Did this summary help you? Yes No

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