When you address business operations in your business plan, you should provide an accurate picture of where you are starting from, even if you are working alone from your home or in a coworking space. Potential benefactors will find it reassuring that you are not wasting money on an expensive lease. They want to fund news, not a fancy office.
If you have not performed necessary legal paperwork or secured nonprofit tax status, you still can begin presenting your business plan. It should specify that the legal work is in process and whether there is a fiscal sponsor.
A fiscal sponsor is an established 501(c)(3)-certified organization that accepts funds on behalf of the sponsored program and ensures the funds are spent to advance the program’s mission. This allows new nonprofits to receive tax-deductible donations while they are ramping up or their status is pending with the IRS. Some nonprofits may be sponsored for a short time. Others stay under sponsorship for years as an efficient way to operate. INN offers both short and long term fiscal sponsorship.
RESOURCE on INN.org: Fiscal Sponsorship