Organization Plan

Working Draft

Organization Plan

Table of Contents
EXECUTIVE SUMMARY ..
Introduction
Mission .............
Market
Objectives
Keys to Success

3
3
3
3
3
3

MARKET ANALYSIS
Overview
History
Demographics
Value Chain
Statistics

4
4
4
4
5
5

OPPERTUNITY RECOGNITION .
Independent Development
Video Game Modifications
Industry Challenges
Free To Use Game Engines
Decentralized Development
Digital Distribution .
Opportunity Recognition ........

6
6
6
6
7
7
7
7

ORGANIZATION STRATEGY
Overview ..............
Assumptions About The Future ..
Philosophy and Ethics .......................
Organization Stakeholders .
Growth Roadmap ..
Brand Awareness And Presence .
Project Titles ..........
Product Development .
Product Distribution .
Revenue Generation .
Suppliers and Vendors ....
Absorption of Dead Projects ...
Competitive Advantage
SWOT Analysis ...
Strategic Fit ..
Revenue Generation ..

8
8
8
8
8
9
10
11
11
11
11
11
11
12
12
12
12

ORGANIZATION STRUCTURE ....

Overview
Matrix Structure
Chain of Command ...
Board of Directors ...
Advantages .
Control Process .
Management By Objectives ..
Recruitment Process ..
Channels of Communication ..
Organization Culture ...

13
13
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15
15
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15

RISK MANAGEMENT ..
General Overview ..
Regulatory Compliance
Consumer Relations ..

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FINANCIAL PROJECTIONS .
Important Assumptions ..
Surplus Or Deficit Projections..............
Cash Flow Projections ....................

17
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18

FISCAL RESPONSIBILITY .................

Definitions ................
Administrative Expenditure .........
Capital Investments ....................................
Use Of Proceeds ...........

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20
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EFFECTIVE OUTCOMES .................

Long Term Mission ................
Conclusion ..........

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Organization Plan

Executive Summary: About Our Organization

Introduction
As technology becomes increasingly advanced, the educational requirements associated with related fields of study
will continue to expand. Perhaps the even greater predicament arising within the technology fields is the need to
combine both technical expertise and creative talent to complete a specific task at hand. An example of this
combination where the blending of technical and creative skills are beneficial is within the video game development
industry. The game development industry is an extremely demanding field. As a result, the need to keep up to date
with the increasingly complex advancements in technology is unavoidable. This industry requires a firm understanding
of complex software tools, the implementation of a team player mentality, and a mutually shared creative vision
1.1
Objectives
amongst the development team. This is the realm where our organization embarks on the execution of our vision: The
world of nonprofit game development.

Our Organization's Mission

Nonprofit Development Group was founded in the United States as a skills incubator intended to advance the know-how
required for young people to enter the creative and technical industries. Centering on videogame development, our
organization provides a practical haven where young people can cultivate their knowledge and further consolidate their
professional portfolios. We seek to foster an environment of learning and creative expression through a series of
community directed game development projects centered in the video game industry.

The Market and Industry

Considered by some as a mere curiosity in the mid-1970s,
the computer and video game industries have grown from
modest focused markets to a highly profitable mainstream
industry. Sales have quadrupled since the 1990's, increasing
from approximately USD$7.1 billion in 2004, to USD$9.5
billion in 2007. By 2015 they have continued to increase to
USD$22 billion (ESA annual reports). With the US
entertainment industry advancing near USD$600 billion in
revenue in 2015 (Source-PwC), it indicates the US video
game industry approaches nearly 5% of the total US
entertainment market, and this percentage is likely to
increase over the years to come.

Keys To Our Success:

Organization Objectives:
1.
2.
3.
4.
5.
6.

Establish and market an internet brand and

presence in the community.
Develop a marketable video game project
intended to attract donations.
Network with large organizations and
corporations aligned with our vision.
Found high school and college affiliated
outreach programs.
Institute a physical dormitory presence near
a major university campus.
Cultivate a lasting and self sustaining
donation driven organization.

The Spirit Of Our Organization

Innovative We are one of the few, if not the only, nonprofit organization in the game development community positioned to
establish projects, educate the community, and provide common resources for everyone to use.
Practical Our organization is structured with a means to operate and grow in a self-reliant and sustainable manner. We are
not wagering on the availability of grants or generous donations. Constructed for success, we utilize community projects to
generate community donations while cumulatively pursing grants and sizable donations from members of the community.
Level Headed We embrace and encourage an equable mentality in our organization. We believe progress has not been
driven by the few, but rather progress has been the culmination of everyone working together to achieve economic growth
throughout the ages. We wish to confer a judicious spirit in all the relationships our organization builds, whether with
corporations, educational institutions, government agencies, or individuals. It is our belief that everyone's input and
contributions is valuable, and we hope to instill that attitude in all of our interactions in the future.

Organization Plan

Market Analysis: The Videogame Industry

Overview
The video game industry is a subdivision of the global economy involved with the development, marketing, and sale of
video games. It encompasses dozens of job disciplines and employs thousands of people worldwide.
Considered by some as a curiosity in the mid-1970s, the computer and video game industries have grown from focused
markets to mainstream. They grossed about USD$9.5 billion in the US in 2007, and 11.7 billion in 2008 (ESA annual reports).
Modern, personal computers owe many advancements and innovations to the game industry. Video games are among the
most demanding computer applications on the market today. Cutting-edge games drive enthusiasts to purchase powerful,
personal computers and game consoles to keep pace with industry advances. As a result, the inertia of computing power
and technological advancement is bolstered by the market forces introduced by the video game industry.

History and Economics

During the following years of its inception,
development costs were minimal, and video game
development could be quite profitable. Game
studios consisting of a single programmer, or were
led by a very small team of programmers and
artists, capable of selling hundreds of thousands of
copies of a single hit title. Compared to today, many
titles took nominal time to create, and developers
could release multiple titles a year. Thus, publishers
were often generous with benefits, such as royalties
on sales. Many early game publishers, such as Origin
Systems, Sierra Entertainment, Capcom, Activision
and Electronic Arts, spread their roots in this
economic climate.
In the 1908's, the industry experienced its first large
scale growth as mass produced home computers
began saturating the market. Products such as the
Apple II, Commodore 64, and the Atari 8-Bit Series
created a platform for the development of
numerous titles. By the mid to late 80s, the market
was saturated both with a combination of
innovative and creative titles, along with endless
knockoff clones of successful games. The enormous
number of clones in the late 80's and the lack of
innovation within US game development companies
enabled rivals in Japan to gain market dominance in
the US and abroad. The success of the Nintendo
Entertainment System is a notable example of
Japanese growth in the US gaming market.

Demographics:

The average gamer is thirty-four years old and has been

playing for twelve years.
Forty percent of all players are women, and women over
eighteen years of age are one of the industry's fastest
growing demographics. Today, adult women represent a
greater portion of the game-playing population (33%)
than boys, age seventeen or younger (20%).
Twenty-six percent of game players are over the age of
fifty, an increase from nine percent in 1999. This figure is
sure to rise in coming years with nursing homes and
senior centers across the nation now incorporating video
games into their activities.
Sixty-seven percent of homes in America own either a
console and/or PC used to run entertainment software.
Fifty-eight percent of online game players are male and
forty-two percent are female. Forty-two percent of heads
of households report they play games on wireless
devices, such as a cell phone or PDA, upped from 20% in
2002.
Parents are present ninety-three percent of the time at
the instance games are purchased or rented. Seventy-six
percent of parents believe that the parental controls
available in all new video game consoles are useful. In
addition, sixty-four percent of parents believe games are
a positive part of their childrens lives.

2010 Essential Facts About the Computer and Video Game Industry
http://www.theesa.com/facts/pdfs/ESA_Essential_Facts_2010.PDF

Organization Plan

In 1990s, the video game industry experienced the most

extensive number of technological changes compared to
any other decade. The 90s saw tremendous technological
advances and leaps in innovation. Fueled by exponentially
rising computing power and a market demand for more
real-life graphics, these innovations have influence many
aspects of todays society.
The jump from 2d to 3d level design, the introduction of 3d
models, skeletal animations, colored lighting, and real-time
shaders were all experienced during this period. Early
adoption of higher speed internet combined with high end
computers enabled the development of large multiplayer
games. Game design mechanics rapidly evolved, and the
early stages of game modification communities began to
take root.
By the mid to late 2000s, the video game industry was a
major player in the global economy. For example, Grand
Theft Auto IV was released on multiple game platforms
and took in over USD$500 million in sales during its
opening week. The game's income was more than the
opening weekend of Spider-Man 3 and the previous title
holder for a video game, Halo 3. Many individuals have
benefited from the economic success of video games.
Before his death in September of 2013, Japan's third
richest man and former chairman of Nintendo, Hiroshi
Yamauchi, is a notable example.

The Videogame Industry Value Chain

Ben Sawyer of Digitalmill observes that the game
industry value chain is made up of six connected and
distinctive layers:
1. Capital and publishing layer: involved in
paying for development of new titles and
seeking returns through licensing of the
titles.
2. Product and talent layer: includes
developers, designers, and artists, who may
be working under individual contracts or as
part of in-house development teams.
3. Production and tools layer: generates
content production tools, game
development middleware, customizable
game engines, and production management
tools.
4. Distribution layer: otherwise known as the
"publishing industry is involved in
generating and marketing catalogs of games
for retail and online distribution.
5. Hardware layer: or the providers of the
underlying platform. This layer now includes
non-hardware platforms, such as Facebook.
6. End-users layer: the users/players of the
games.

Statistics: Economic Contributions To The U.S. Entertainment Industry

Growth From 2003 to 2006, the entertainment software industrys annual growth rate exceeded seventeen percent. Over
the same period, the entire U.S. economy grew at a less than four percent rate.

GDP In 2006, the entertainment software industry's value added $3.8 billion to the U.S. Gross Domestic Product (GDP). The
industry also makes a disproportionate contribution to the real growth of the nation as a whole. For example, in 2005-06, the
industry's contribution to real growth exceeded its share of GDP by more than four to one.

Employment The entertainment software industry also continued to grow as a source of employment. For the four-year
period 2002-06, direct employment for the industry grew at an annual rate of 4.4%. Currently, computer and video game
companies directly and indirectly employ more than 80,000 people in 31 states. By 2009, its projected industry will
encompass over a quarter of a million American jobs. The average salary for game industry employees in 2010 was $92,300,
resulting in total national compensation of over $2.2 billion.
Video Games in the 21st Century Entertainment Software Association
http://www.theesa.com/facts/pdfs/VideoGames21stCentury.pdf

Organization Plan

Opportunity: Independent Development

Chan

A fairly recent practice within the video game industry is

the rise of video game players incorporating their own
content into an already released commercial title. The
trend of end users becoming fourth-party game content
developers encourages an increasingly open model of
game design, development, and engineering within the
industry. These end users create what is known as a mod
or a videogame modification. In some cases, these mods
can become just as popular, or even more sensational,
than the original title itself. Counter-Strike is a notable
example, which began as a modification of the popular
video game Half-Life, and eventually became a very
successful title on its own.
Counter-Strike was so successful in the online community
that the developer of Half-Life, Valve Software, bought the
rights to develop Counterstrike further. The company hired
the lead developer and set plans for a commercial release
of the game. Later in 2004, Valve released an updated
version of the game called Counter-Strike: Source. It was
included free of charge with the release of the sequel to
Half-Life. Valve Software has gained a reputation of
supporting the modification community and employing
talent forged within these communities.
Before the release of Half-Life, id Softwares Quake was a
popular video game to modify. One of the first major
modifications to gain popularity under Quake was Team
Fortress. Released in 1996, Team Fortress was created by
a team of three people: Robin Walker, John Cook, and Ian
Caughley. The modification team gained the attention of
Valve Software. Valve hired the modification developers to
work on a sequel to Team Fortress called Team Fortress
Classic. In 1999, the game add-on was released for free to
everyone who purchased Half-Life.
In 2007, the sequel to Team Fortress Classic called Team
Fortress 2 was released. The project was led by some of
the original developers of the mid-nineties Quake
modification. The game was released on Sonys Playstation
3, Microsofts Xbox 360, OS X, and the PC as a part of a
package marketed as The Orange Box.

Modification Community Growth

While this "community of modifiers" may add up to less
than 1% of a particular game's user base, the number of
those involved will grow as more games offer modifying
opportunities, such as releasing source code, and as the
international community of gamers rise. According to Ben
Sawyer, as many as 600,000 established online game
community developers will exist by 2012. This will
effectively add a new component to the industry value
chain. Given time, this component will eventually
integrate itself into the overall videogame industry.

Recent Industry Challenges

Over the last decade, many changes have altered the
traditional climate of videogame development. As computing
and graphic power increases, so too does the size of
development teams. Larger staffs are needed to address ever
increasing graphical and programming complexities. The
budget of modern game development projects can easily
reach millions of dollars, even if middleware and pre-built
game engines are used. Most professional games require five
years or more to develop. The time required to develop these
titles further increases the strain on budgets and multiplies
the apprehension involved in funding such a venture.
Some developers are utilizing improved production and
distribution methods, such as more streamlined development
tools and online distribution to reduce development costs.
The video game industry is facing financial strain as it aims to
attract and compensate talent while continuing to turn a
profit. This results in smaller development studios
increasingly merging with larger conglomerates or seeking
development funding from major publishers. The industry is
experiencing a phase of consolidation and vertical integration
in response to spiraling development costs. This climate has
given birth to a culture of vibrant indie game developers
using the internet rather than traditional retail channels to
reach an audience.
The question remains as to how the game development
community will be transformed as it responds to these
changes over the next decade.

Organization Plan

Free To Use Game Engines

A video game engine is the set of software code which runs
on a specific platform, such as a PC, and produces the effects
and visuals which the player sees on the screen. They are
extremely complex and difficult to program. It would likely
cost millions of US Dollars for a development team to design
their own engine that works efficiently and is up to standards
with its competitors. In the past, most independent
development teams licensed game engine technology from
one of the larger companies to further their development.
Although this is cheaper, it is by no means easily affordable.
In the early 2000's, some game engine licenses could cost
upwards of more than USD$100,000, and this fee does not
include a percentage of sales royalties these companies
typically charged.
Luckily for the world of independent game development, this
industry trend has changed. Increased competition between
major game engine vendors has forced many in the industry
to adopt a free to use licensing model. Major game engines
such as Unity Technologies Unity 5, Epic's Unreal Engine 4,
Valve's Source 2, and Amazon's Lumberyard all allow
developers meeting certain criteria to utilize their engines for
free. They all have adapted to different models of revenue
generation. For example, Epic charges 5% of sales beyond
USD$3,000, Amazon forces the use of their subscription
Amazon Web Services, Valve requires the use of their online
digital distribution platform, and Unity requires paid
subscriptions for organizations raising more than
USD$100,000 in revenue in any single year.

Decentralized Development
Decentralized development is where team members of a
project work together but not in the same physical
location. Instead, they work together remotely. This form
of development is becoming increasingly popular with the
advent of team management, collaboration, and video
chat software. Independent game developers and
modification teams have been utilizing decentralized
development models for decades now. With the advent
of this method of development, it has become
increasingly less expensive to produce game titles as the
overhead of maintaining an office is no longer necessary.

Digital Distribution
Traditionally, the majority of video game titles were
designed by a development company in partnership
with a publisher who, in turn, marketed and distributed
the title. However, with the advent of always on
broadband internet, digital only copies of a game
without any physical media whatsoever became
feasible. Although this form of distribution has been
around since the early 1980's, consumers failed to adopt
it in mass until internet technology matured to a point
where the time spent waiting for your device to acquire
the content became reasonable. This digital only
distribution method has cut out a large percentage of
retail sales and, in turn, has increased the developers
profit margins from 30% to 60%.

Opportunity Recognition
The recent availability of digital distribution methods, the ability to conduct decentralized development, and the
accessibility to cutting edge game engines opens a unique window to craft an innovative and internally self-sustaining
nonprofit organization. This is where our organization aims to execute our vision and integrate ourselves into the
technological transformation, which is occurring simultaneously throughout the various sectors of the global economy.
Our organization intends to place ourselves into the flow of these converging forces where we will educate and recruit
members of the community to work on collaborative game development projects, which will be released and marketed as
revenue generating instruments, while at the same time pursing grants and donations from various institutions in our
communities. Initially, we will operate completely from a web presence with periodic public events at educational
institutions. Once our web based projects generate sufficient revenue, we will build a physical dormitory facility in
partnership with a major university, where talented community members can live for free and further their education.

Organization Plan

Organization Strategy: Nonprofit Game Development

Overview
The recognition of this combination of social, economic, and technological forces opens the opportunity to create a new
model for educational organizations, where a high level of technical skills and creativity are required. Digital distribution,
free to use game engines, and changes within the industry has unlocked the potential for a nonprofit game development
organization to be established and builds its reputation. With this in mind, we shall begin to illustrate our organizations
strategy.
We begin with a general overview of our environment, an outlay of a loose strategic plan, and paint a broad picture of our
operating plan. We will conclude this document with a discussion of our organizations strategy, along with risk mitigation
and management considerations. These considerations will be applied to our organization as it expands. The following
plan is a living document, meaning it will mature alongside our organization. For now, it is intended as a basic framework
to express the concepts and structure of our organization. Its purpose is to set an overall tone for our community and
exhibit a general guiding direction for us to aim towards.

Assumptions About The Future

Initial future planning in any given industry is
built upon basic assumptions. These
assumptions are important to specify in order
to provide clarity, which are enumerated
below.
1. Video games will remain a sizable
sector in the global economy in
both the near and long-term
regardless of specific national or
regional economic performance,
meaning video games will always
sell.
2. Video game development will
always require a high level of skill
and creativity despite advancement
in tools and technology to increase
productivity and workflow
efficiency, implying video games will
always be difficult to make.
3. Substitutes, competitors, and
rivalries will become less likely once
our organization becomes wellknown. Two nonprofits serving
similar functions is irrational.

Philosophy and Ethics

We consider our organizations philosophy from a philanthropic
perspective and not from that of a charity. This difference can be
highlighted in the common analogy of teaching one to fish instead of
providing the food. Our organization seeks to solve problems in society.
Whereas charities, by contrast, have a tendency to be oriented around
seeking to mitigate the pains of a specific social dilemma.
It is from this perspective we seek to maintain a transparent and
altruistic organization. We have a strict policy against using the
organizations assets and resources for personal gain. We also aim to
ensure a positive learning environment. We dont condone negative
criticism, bullying, group think, or selfish aims within our organization.
Anyone who is not a harmonic team player will be approached about
their behavior. If the behavior continues, they may be asked to leave
our organization.
We understand clearly that all organizations will evolve an ethical
culture of their own, which frequently starts at the top to trickle down.
With this in mind, we embrace a policy of constantly cautioning our
members of the importance of a principled attitude and will hold the
senior members of our community accountable for violations of these
standards.

Organizations Stakeholders
Our organizations stakeholders are centered around the game development community and its immediate
environment. The primary stakeholders, those engaging directly with the organization, include but are not limited
to its volunteers, board of directors, customers, contributors, and sponsors. The secondary stakeholders, those not
engaged in a direct exchange with the organization, include the community and the public. Since our organization is
engaged in philanthropic objectives targeting the youth, most of our secondary stakeholders affected by our
organization are predominately young people, educational institutions, and families.

Organization Plan

Growth Roadmap: Sustainable Plan For The Future

Milestones: Four Phases of Expansion
Our organization aims to construct a series of presences both physically and internet based. These presences will be
established in a series of four phases.
1.
2.
3.

4.

The first phase consists of a web presence where individuals become aware of our organization and can help
participate in our undertakings.
The second phase is the establishment of in person engagements and after school meetings where we can
network and establish a presence in the community.
The third phase is where we seek to forge a partnership with a major university or universities in order to found
a physical dormitory-like facility where students with a similar background and interests can live and grow
together.
The fourth phase is where we will reach self-sustainability in our organization. Concurrently with all the other
stages, we are actively developing free, electronically distributed products, which will generate revenue via a
donation based model.

Use of Proceeds: Three Stages of Growth

Our organization will grow in three stages.

The first stage is incubation. This is when we launch our incorporating documents, produce our
business plan, draft our documentation, launch our web presence, and establish a framework
to guide us in the future. Currently, our operating expenses are less than $500 a year and are
completely internally funded.
The second stage is where we establish our roots. For an organization to be successful, building
industry contacts and participating in the community is vital. In this stage, we embark on
attracting media attention via the development of our game project's technical demonstrations
while, at the same time, forging as many positive relationships as possible to attract talent to
volunteer with our organization. Our expenses will continue to be less than $500 a year during
this phase.
The third stage is when our organization begins to sprout. Here we will begin our fundraising
campaign to found our first dormitory facility. The phase ends when the facility is completely
owned by the organization. Once this stage is complete, our organization will be selfsustainable. We will only require enough revenue to maintain our facility and web presences.
Dues from members living in the facility can be assessed or adjusted depending on the cash
flow of the organization.

Organization Plan

Brand Awareness and Presence

Our organization utilizes a brand presence that differentiates itself from its corporate structure. Legally, our
corporation is known as Nonprofit Videogame Development, Inc. This name is a generic corporate name and is not
fitting as a brand presence. For our community name, we are known as Metahusk Cooperative. From a marketing
perspective, we are using agricultural imagery and the concept of collaborating as a cooperative to grow ourselves.
Having a separate brand presence also allows our organization to withdraw from the name if environmental
changes indicate such a move would be appropriate.

Project Titles
The structure of our organization allows flexible development of a wide range of project titles. As of now, we are
working on three different titles. Our first title is Random, which is a community directed example project that has
been released to the Unreal community as an example. Another project currently under development is Cardinal
Fall. This title is a 2.5d sidescroller fighting game where multiple players are pitted against each other in an arena
with a single weapon. Our third project is a multiplayer exploration game called Spectral Rift where players explore
different landscapes in a struggle to restore order to their fractured reality.

Product Development
We utilize various methods to coordinate our product development. Since we have decentralized virtual
development, we heavily utilize web based project management tools such as Open Project, messaging clients, and
NodeBB forum software. For version control, we use Git and Mercurial repositories with Kallithea as a web graphical
user interface. Our infrastructure runs on both a shared web host and a virtual private server located in Brea,
California and Dallas, Texas.

10

Organization Plan

Product Distribution
Our products will be distributed entirely digitally via the internet. For early releases of our projects, we utilize direct
links on our website or peer-to-peer torrent seeds. Products that have reached a level of quality where they can be
accepted by the distribution platform Steam will utilize that venue for their release. To release a project over
Steam, the project must be approved by the Steam community through a process known as green lighting.
For all projects which fall between these two levels of development, we utilize an open source application known as
LaunchPad. LaunchPad is a digital distribution application which allows automatic updates to be distributed via file
transfer protocol to the end user. When a patch to our project is released, we can push it to all of our clients. In the
future, LaunchPad will be adapted to support peer-to-peer distribution to reduce our infrastructure overhead.

Revenue Generation
Revenue generation for our organization will be conducted through donations, grants, and a few for sale projects
released at a low price through a digital distribution medium, such as Steam. All of our released projects and
websites have links to donate to our organization via PayPal. We may also release projects with a free to play model
or as an in-game asset purchasing system to raise revenue.

Suppliers and Vendors

Our suppliers are fairly limited. We utilize Dreamhost and VPSDime as our webhost to server our web traffic. All of
our game projects currently run on Unreal Engine 4 developed by Epic Games, Inc. For digital distribution of our
game projects, we predominately use our own web servers, an open source game distribution system known as
LaunchPad and Steam, which is a game distribution platform developed by Valve Software.

Absorption of Dead Projects

Our organization seeks to become a venue to absorb dead projects where developers have lost interest and
motivation to continue their projects development. If you wish to handoff a project to us, we will keep it in hiatus
or possibly continue developing it until you wish to return. We will do our best to support your user base and
respond to inquiries about the project. At any point you wish to return, we will give you and your team back full
control of your project. Weve personally witnessed many wonderful projects disappear due to website outages and
other similar problems. Hopefully, we can help alleviate some of these community challenges.

11

Organization Plan

Competitive Advantage: Diversification and Differentiation

A useful challenge for any organization is to find a way of achieving a sustained competitive advantage over the
other competitors in its market while, at the same time, not being stuck with a single strategy. Our organization
seeks to do this in a three-fold manner. First, many of our projects will maintain a distinct cost leadership
advantage. Because our projects are community developed on a volunteer basis, our overhead is extremely low. We
are capable of operating slowly over time using very few resources. Due to this, we can market our project releases
on a free or very low cost basis while seeking alternative revenue generation models, such as donations.
Secondly, our organization will also maintain a differentiation strategy intended to set ourselves apart from
competitors. We dont seek to do this by offering superior products or industry-wide distribution across all
channels, but rather through brand presence. In the mid 1990s to late 2000s, there were many game projects
which were extremely popular by those who played games regularly simply because they were community
developed, but this type of development model seemingly receded by the late 2010s as game development
became increasingly complex.
Third, we diversify ourselves by running many parallel projects in different genres and markets. Although this
radically slows development time, this keeps us from being placed in the manifold of a single position, strategy,
path, or audience. We created our organization to be long-lasting. Many great open source projects in the past have
expired as a result of periods of lack of interest. Over time this had a tendency to result in the eventual evaporation
of the infrastructure surrounding the project. With our organizations structure, projects can be placed on hiatus
while the organization continues its existence. If anyone wishes to take up the project again as a team lead in the
future, it will be a simple matter to continue development where it was last left off.

HELPFUL

HARMFUL

INTERNAL

STRENGTHS
Low Overhead
Less Risk Adverse
Adaptable

WEAKNESSES
Limited Resources
Dependent on Donations
Subject to Game Engine Suppliers

EXTERNAL

Strengths Weaknesses Opportunities And Threats (SWOT) Analysis

Op

OPERTUNITIES
New and Unique Idea
Hybrid Cost Leadership and Differentiation
Prevailing Industry Trends

THREATS
Well-Funded New Entrants
Lack of Interests or Volunteers
Copyright Violation Lawsuits

Strategic Fit
Strategic fit is the measure of an organizations particular product, project, or objectives alignment with the
capabilities or position that the organization currently possesses. The unique positive qualities our organization
possesses is the lack of overhead in terms of salary or compensation for project development and the ability to take
risks as a result. This enables our organization to attempt innovative ideas a profit-orientated organization may not
attempt due to the perceived risk of the idea.
As a result, our organizations best strategic fit is with projects that are unique and distinct in scope. We will never
be adept at developing cookie cutter games or rehashed ideas, which have already been done as we dont have the
resources for quick development time, and we will find difficulty in attracting volunteers to develop worn ideas.

12

Organization Plan

Organization Structure: Effective and Open Minded Chain of Command

Overview

Matrix Structure

Our organization is arranged as a virtual organization managed under a matrix

structure. This structure will enable us to develop our projects in a decentralized
and adaptable manner. Members of our organization work together through the
internet and do not need to be physically located in the same region or even the
same country. This increases our pool of possible volunteers and it also allows
members to work on their own schedules. A virtual organization structure greatly
increases our efficiency. There are no need for offices and all the resources which
go along with maintaining physical facilities.

A matrix structure is the practice of

managing people with more than
one reporting line and allows
members to work in cross
functional or cross project groups.
This structure contrasts to typical
management structures in that
they are not bound by traditional
vertical business units, which are
commonly segregated on a regional
basis.

Structure

At the top of our organizations chain of command is the board of directors. This board has direct control over the
organization and the managing director. The managing director oversees the daily operations of the projects and
managers. All of the managers and team leads answer directly to him. The managing director and the team leads are
encouraged to have an accommodating leadership style, while the managers are encouraged to maintain a
competitive leadership style.

Organization Chain of Command

Board of Directors
Chair

Vice Chair

Secretary
Managing Director

Treasurer

Members

Management Structure
Project A
Team Lead
Project B
Team Lead
Project C
Team Lead

Programming
Manager

Level Design
Manager

Modeling
Manager

2d Art
Manager

Character
Manager

Animation
Manager

Audio
Manager

Effects
Manager

Writing
Manager

Project A
Programming
Project B
Programming
Project C
Programming

Project A
Level Design
Project B
Level Design
Project C
Level Design

Project A
Modeling
Project B
Modeling
Project C
Modeling

Project A
2d Art
Project B
2d Art
Project C
2d Art

Project A
Characters
Project B
Characters
Project C
Characters

Project A
Animations
Project B
Animations
Project C
Animations

Project A
Audio
Project B
Audio
Project C
Audio

Project A
Effects
Project B
Effects
Project C
Effects

Project A
Writing
Project B
Writing
Project C
Writing

Board of Directors
The organization is C Corporation founded in Des Moines, Iowa. The boards responsibility include:
maintaining oversight of the organizations general direction, fundraising activities, financials, and the
activities of the managing director. As the organization grows, the boards bylaws are written to allow
more positions within the organization. Currently, the board is comprised of a Chair, Vice Chair,
Secretary, and a Treasurer.

13

Organization Plan

Matrix Structure Advantages

A matrix structure has many advantages for an
organization like ours. It allows for a greater level of
flexibility with who is assigned to what projects and what
projects are currently being developed. It enables us to
deliver work across the organization more effectively,
develop broader people capabilities, and respond more
flexibly to the tasks at hand. This allows individuals to be
chosen for the specific needs of a project, to organize
teams that are unique and dynamic to the problems they
face, and enable direct responsibility to the project
managers for completion of deadlines and goals.
The most notable advantage of having a matrix
organizational structure is that our organization can
allocate one dedicated member to be the head of a
specialized skill, such as character animations. This skill
based manager conducts managerial duties for all the
character animators, spanning all our projects without
having to deal with the specifics of the project itself,
which can be led by the specific project team lead. This
enables us to have a manager with knowledge
concerning a specific skill monitoring the performance of
all the members with that same skill in our organization
instead of a project lead, who may or may not be well
versed in that particular area. Basically, the manager can
be the enforcer for members who miss deadlines, have
poor quality control, or are breeding a bad environment.
This leaves the team lead in a position to be a more
positive leader.
The project lead is free to manage a project at hand and
is less focused on micromanaging, while at the same
time the organization has a better grasp of its talent as a
whole. Recruitment, for example, is easier when one
manager for a particular skill set manages the talent
pool, while the project team leads are free to focus on
the particulars of a specific project. Our management
structure can be thought of similarly to the captain and
fist mate of a ship. The director and team leads are more
inspiring, while the managers make sure everything is
running smoothly and harmoniously.

Management Roles:

Team Lead Arguably the most important role in

the organization, the team leads are responsible for
the direction and maintaining the creative vision of
each of our projects. They have complete freedom
to design management structures for the project
they manage in any way they see fit. A key
component to our organizations matrix structure is
to allow for the team leads to play a more
inspirational role within the organization, while the
managers of each skill conduct the managerial dirty
work of enforcing rules and disciplining members.
Line Manager Line managers are organized by the
particular skillset they will oversee in the
organization. For example, the programming
manager will oversee all of the programmers in our
projects. They will be well versed in both
management and programming, and thus they will
be better equipped to deal with recruit selection,
performance evaluation, and coordinating directly
with the team lead of the project concerning
programming matters. Team leads may or may not
be proficient in every field. As a result, the line
manager of a specific skill can be a crucial resource
for the team leads.
Programming Manager Oversees programming
and other more complex related tasks.
Level Design Manager Oversees game level design,
layouts, maps, and logical flow of the game
mechanics.
Modeling Manager Oversees the creation of
meshes and other non-character related
environmental assets.
2d Art Manager Oversees the 2d art, such as
textures, user interfaces, materials, and so on.
Character Manager Oversees the creation and
design of characters and other complex meshes.
Animation Manager Oversees mesh animations.
Audio Manager Oversees audio effects and music.
Effects Manager Oversees particle effects and
other visual effects, such as shaders.
Writing Manager Oversees press releases, in-game
writing, and story progression of projects.

14

Organization Plan

Control Process
Each project has well-defined objectives and requirements. The tasks
assigned to team members all have deadlines and quality standards
applied to them. We measure the performance of our members based
on successful deadline hit or missed ratios and the quality of the
members work. The Team Leads function predominantly as a
directional compass and moral support; however, they also monitor
the progress of each Team Member. If there is a problem with a
specific team member, the project lead will report it to the manager in
charge of the members particular skill and a course of action will be
decided. These actions may range from mild corrective actions, such as
informing the team member of the grievance, all the way up to
dismissing them from the organization and removing their credentials
to access our systems.

Management by Objectives
We utilize a system of management
by objectives where the team lead
and team members identify
common goals, define each others
common areas of responsibility,
and set the terms of the results,
which are to be expected. This
method allows for the project to be
completed in a calm yet productive
manner, while also mitigating the
pressure of the day to day
development process.

Recruitment Process
Recruitment is conducted via the use of the internet. Each project has its own standards. Some projects have higher
standards of quality and commitment levels than some that are more casual, and others may be as aggressively run
as a for profit studio. Project team leads and managers work together to decide who is given what privileges and
titles in the community. Each project has different systems of formal and informal control. Some may be more
relaxed than others. We employ a recruitment process based on competence. Our organization does not
discriminate based on age, race, sexual orientation, nationality, or religion.

Channels of Communication
We understand there are many avenues for communication. These venues
can be both informal and formal. Consequently, some informal
communication may be used in an undesirable fashion. Officially, all of our
communication happens via our web presence. Unofficially, we realize that
its natural for people to communicate through informal channels.
Informal communication within an organization is known as a grapevine.
Grapevine communications frequently fall into the realm of gossip, where
information is disseminated to many people like the spokes in a wheel, or
as a cluster chain where information exchange is spread through
individuals informal relationships, which may not follow official chains of
command.
We encourage the use of grapevines as a sounding device, both internally
and externally from our organization. Rules can be made against using
improper channels of communication; however, often times this does not
work, especially in an all volunteer force. Instead, our organizations
members are encouraged to utilize this grapevine communication to
discover how team members and the community really feel about the
decisions and direction of the organization.

Organization Culture
All organizations hold some basic
assumptions about the environment
in which they operate and the values
that are encouraged or discouraged.
These assumptions show people what
the organization considers
appropriate and inappropriate
behavior. Over time, these values
have a tendency to be taken for
granted and may eventually drop out
of awareness.
Appreciation of this predilection goes
a long way in combating this
tendency. We will help mitigate this
by holding periodic reminders of the
importance of a healthy culture in our
organization. Once our organization
grows large and the ethics and culture
of our organization become difficult
to manage, we will utilize social audits
and draft a code of ethics to keep our
organization on track with its
objectives.

15

Organization Plan

Risk Management and Contingency Plans

General Overview
The world is a complex and constantly changing place. As a result, all organizations, no matter how secure or
well-planned, will face risks in their future. Our organization is doing its best from the top down to foresee
potential risks and put contingencies in place to mitigate their effects.
First and foremost, an organization such as ours is quite vulnerable to content creators submitting work which
is not their own. To mitigate these risks, we have a strict copy write dispute process in place. All disputes and
claims will be handled swiftly and promptly by management and the board of directors, if need be.
Another problem we will face is resistance to change, organization adaptability, and avoiding decline. We have
decided on a hybrid matrix organizational structure to help alleviate the problems many top down
organizations typically face. We encourage constant discussion about the growth and momentum of our
organization. Its easy to lose focus on these realities as the organization transitions from its initial founding
phase to self-sustainability, especially as comfort and complacency naturally sinks into the culture of an
organizations environment.
We seek to mitigate conflicts of interest, maintain transparent operations to the community, and listen to all
voices and concerns. All opinions are welcomed, and any level of management which does not respond to
criticisms or observations should be reported immediately to another senior member of our organization.
Nobody is too senior to not be held accountable for their actions or choices.
We will sustain our expenses through donations and grants. Our expenses will be kept to an absolute
minimum. As per our bylaws, the majority of our revenue is either saved or invested into physical capital.
Students in the dormitory facility and from around the world will help develop our projects in the same
manner which major open source software project are developed. Thus, those benefiting will be directly
helping fund our organization. In this sense, self-sustainability is our highest priority.

Regulatory Compliance
Our organization will do its best to ensure all of our activities and standards are compliant with the regulations
involved in our activities. We will not tolerate any members violating local laws or regulations. Any violation
from a member of our organization, no matter how senior, should be immediately reported to the board of
directors and the matter will be dealt with promptly.

Consumer Relations
We understand the importance of our reputation. Because of this, we have strict controls on the quality of our
products, whether they are free or paid. Our organization does not directly control all aspects of the projects
we affiliate with, but we take our reputation very seriously. If you have any grievance or concern, do not
hesitate to contact us. We take great pride in making sure our products work as they are intended.

16

Organization Plan

Financial Projections: Sustainable Growth

Important Assumptions
The majority of our funding we predict to receive before year six will be driven almost entirely by PayPal donations.
PayPal has a fee of 2.2% + USD$0.30 on each donation for nonprofit organizations. We will attract donations
primarily through our web presence and through links contained within early releases of our game projects. Below
are the donation projections we used to calculate our cash flow.
YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

60 DONATIONS
AVERAGING $5 EACH

60 DONATIONS
AVERAGING $10 EACH

600 DONATIONS
AVERAGING $10 EACH

600 DONATIONS
AVERAGING $20 EACH

2,400 DONATIONS
AVERAGING $10 EACH

$300

$600

$6,000

$12,000

$24,000

Year three through four mark the early alpha and beta release dates of our game projects. These projects will be
released for free. Donation links will appear frequently in a manner similar to Wikipedia. By year five, our game
projects will become more complete. Beyond our fifth year, we will consider a for sale release of one of our game
projects depending on how the climate of the community and the popularity of the title.

Surplus Or Deficit Projections

SURPLUS AND DEFICIT
FUNDING
Direct Cost
Other
Total Direct Cost
Gross Surplus
Gross Surplus %
EXPENSES
Payroll
Sales, Marketing, Other Expenses
Depreciation
Insurance
Rent
Other
Insurance
Payroll Taxes
Other
TOTAL OPERATING EXPENSES
Surplus Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
NET SURPLUS
Net Surplus/Funding

YEAR 1
$300
$9.60
$0
$9.60
$290.40
99.97%

YEAR 2
$600
$19.20
$0
$19.20
$580.80
99.97%

YEAR 3
$6,000
$192
$0
$192
$5,808
99.97%

YEAR 4
$12,000
$384
$0
$384
$11,616
99.97%

YEAR 5
$24,000
$768
$0
$768
$23,232
99.97%

$0
$271.95
$0
$0
$0
$0
$0
$0
$0
$271.95
$18.45
$18.45
$0
$0
$18.45
6.15%

$0
$271.95
$0
$0
$0
$0
$0
$0
$0
$271.95
$318.45
$318.45
$0
$0
$318.45
53.10%

$0
$271.95
$0
$0
$0
$0
$0
$0
$0
$271.95
$5536.05
$5536.05
$0
$0
$5536.05
92.27%

$0
$1,000
$0
$0
$0
$0
$0
$0
$0
$1,000
$10,616
$10,616
$0
$0
$10,616
88.47%

$0
$1,000
$0
$0
$0
$0
$0
$0
$0
$1,000
$22,232
$22,232
$0
$0
$22,232
92.63%

17

Organization Plan

Cash Flow Projections

Our pro forma cash flow projection assumes we will take out no loans in the first five years, that our organization
will receive no grants, and that we will make no investments with our proceeds. If we receive a substantial
donation or grant, it may change the direction our organization takes. We will update these projections to
incorporate those values accordingly.

PRO FORMA CASH FLOW

CASH RECEIVED
Cash from Operations
Cash Funding
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
EXPENDITURES
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
NET CASH FLOW
Cash Balance

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

$290.40
$0
$290.40

$580.80
$0
$580.80

$5,808
$0
$5,808

$11,616
$0
$11,616

$23,232
$0
$23,232

$0
$0
$0
$0
$0
$0
$0
$290.40
YEAR 1

$0
$0
$0
$0
$0
$0
$0
$580.80
YEAR 2

$0
$0
$0
$0
$0
$0
$0
$5,808
YEAR 3

$0
$0
$0
$0
$0
$0
$0
$11,616
YEAR 4

$0
$0
$0
$0
$0
$0
$0
$23,232
YEAR 5

$0
$271.95
$271.95

$0
$271.95
$271.95

$0
$5536.05
$5536.05

$0
$10,616
$10,616

$0
$22,232
$22,232

$0
$0
$0
$0
$0
$0
$0
$271.95
$18.45
$120.45

$0
$0
$0
$0
$0
$0
$0
$271.95
$318.45
$438.90

$0
$0
$0
$0
$0
$0
$0
$271.95
$5536.05
$5,974.95

$0
$0
$0
$0
$0
$0
$0
$1,000
$10,616
$16,590.95

$0
$0
$0
$0
$0
$0
$0
$1,000
$22,232
$38,822.95

Pro Forma Balance Sheet And Ratio Analysis

Pro Forma balance sheets and ratio analysis will not be useful tools for the first five years of our organization's
existence. We do not anticipate having any liabilities or capital until we past the sixth year from our 501c(3)
recognition. Once we raise a substantial cash flow, we will consider using a pro forma balance sheet and ratio
analysis. If you have any questions or concerns about this course of action, please do not hesitate to let us know.

18

Organization Plan

Fiscal Responsibility: Rules and Bylaws

We take fiscal responsibility very seriously. Our
organization has implemented policies within our
governing framework to counter some of the issues
that may manifest themselves as we grow.

Rules Governing Administrative Expenditure

Beyond the first $1,000 raised annually, up to but no
more than 15% of our organizations revenue of the
previous year can be allocated toward administrative
expenditures. Our organization splits administrative
expenditure into two categories: compensation and
expenses.

Everyone is encouraged to email us with his or her

thoughts. We aim to be as open and transparent as
possible.

Definitions
Administrative Expenditure: defined as the
money allocated to the operation of our
organization. The total amount of money
allocated can be up to, but no more than, 15% of
the previous years annual revenue. It is broken
down further into two categories, referred to as
expenses and compensation. Expenses can be up
to 100% of the administrative expenditure but
compensation cannot exceed 50% of the
organizations operating expenditure.
Compensation: defined as any organizational
funds used to pay for services performed for our
organization.

Expenses can be utilized up to 100% of the total

administrative expenditure. Compensation cannot
exceed 50% of the administrative expenditure. This
implements a hard limit on compensation spending to
no more than 7.5% of the previous years revenue.
Any remaining funds unused from our organizations
administrative expenditure can be retained for use as
an operating reserve. Funds held as an operating
reserve can be withdrawn at any point for use as
administrative expenditures. Up to 100% of the
operating reserve can be used towards administrative
expenses but only 20% can be allocated towards
compensation.

Expenses: defined as any organizational funds,

excluding compensation used to run the day to
day operations of our organization.

Total paid compensation cannot exceed a

combination of 50% of the administrative expenditure
and 20% of the organizations total operating reserve.
This rule is in place to keep our operating reserve from
being exhausted by compensation in the future.

Operating Reserves: defined as any unused or

saved administrative expenditures from the
previous year that are retained for future use in
times of need.

Monthly compensation for a single individual can

never exceed 700% of the United States Federal
Poverty Level, regardless of the task performed. In
2013, 700% FPL was an annual salary of $80,430.

Capital Investments

Annual Revenue

Administrative Expenses
0%

20%

40%

60%

80%

100%

19

Organization Plan

Capital Investments
Example:

The majority of the funds we raise (over 85%) will be

applied towards capital investments. In accordance
with NPDGs long term goal, we will save and invest
the donations we receive until we can safely purchase
a facilities to further our educational activities.

If our organization raises $10,000 in 2014, in

2015 we are allowed to spend up to $1,500 on
administrative expenditures. In that year, we would be
limited to spending $750 on paid compensation out of a
$1,500 pool. $8,500 will then be saved for future capital
investments, which will be used to further our
educational activities.

Our organization will pursue this goal in a pragmatic

and frugal manner. Unlike many non-profits today, we
don't believe in wasting resources on anything that is
unnecessary.

If in 2015 our organization only raises $500 then in 2016

these numbers will change to no more than $37.50 for
compensation and up to $75 for operating costs,
totaling $425 remaining for capital investments. At any
point, up to 100% of the administrative expenditure can
be saved as an operating reserve. Only 20% or less of
the operating reserve can be allocated towards
compensation. So, for the years 2015 and 2016, the
organization could have allocated up to $1,575 to the
operating reserves if no money was spent at that time.

All of our activities, board meetings, and actions will

be documented and posted on our website at
npdg.org, or available upon request. It is in our best
interest to maintain excellent transparency, especially
with our finances. Far too many organizations have
become overextended as a result of careless and
unsustainable spending. We aim to never become one
of those organizations.

Comments, Suggestions, Advice? Please Contact Us

We strive to be an open and transparent organization. If you have any thoughts, questions, concerns, or
advice you would like to pass along to us, we highly encourage you to do so.
Feel free to contact us at any time.

No Less Than
85%

Up To 15%
of Total

Up To
15%

Capital Investments
Compensation

No More
Than 7.50%

Expenses

Operating Reserve

Remaining Operating Reserve

[Expenses Pool]
0%

20%

40%

60%

80%

100%

20

Organization Plan

Effective Outcomes: Desired End Results of our Organization

Long Term Mission
Once we complete the third stagethe foundation of a dormitory facility as mentioned above on page 9, we
will use what we have learned in this venture to raise revenue and build more facilities around the world.
Ultimately, we envision our organization as a youth scholarship program for the talented members of the
community. Promising members of the community can apply for dormitory housing which, in turn, will lower
their education expenses, provide access to a community of likeminded individuals, and subsidize them the
time and motivation to participate fully in our projects.
Our development plan is designed to minimize our operating requirements while, at the same time, maximize
the chances of building a successful, enduring, and sustainable organization.

Conclusion
Since the inception of the gaming industry, industry advancements have been made at an exponential rate.
This growth has resulted in a demand for the rise of new businesses, organizations and job opportunities. In
effect, the game industry has become an extremely demanding field which requires its participants to have
advanced technical skills and a firm grasp on various software tools. Perhaps the most critical component of
the game development community is the cohesive melding of technical expertise and creative talent.
With this in mind, our organization aims to provide a positive impact on our society. Some of the qualities we
hope to instill in our community are meaningfulness, recognition, self-actualization, social outlets, personal
achievement, positive reinforcement, and a progressive learning environment motivated by creativity.
This living document is designed to help aid our organization on its journey in building a successful, enduring,
and sustainable organization.

Thank you for taking the time to read about our organization.

Thank you,
-The Nonprofit Development Group

21