What Is the Purpose of a Nonprofit Development Plan

question 1

Multiple Choice

What is the purpose of a nonprofit Development Plan?

• A) To design a nonprofits's office space
• B) To plot out what work is needed to raise the required money in a year and to give staff and volunteers direction for their activities
• C) To decide how much money each program needs in order to run
• D) There is no purpose

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Definitions:

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments.

Cash Flows

The grand total of financial transactions affecting a company's inflow and outflow, significantly impacting its liquid capital.

Investment

The action or process of investing money for profit or material result.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, used in capital budgeting.