A solvent-free process for making a polyol fatty acid polyester composition useful for preparation of polyurethanes is described. These compositions are preferably made by reaction of a natural oil (from plant or animal) with a multi-functional hydroxyl compound derived from a natural source, such as sorbitol, in presence of an alkali metal salt or base such as potassium hydroxide as a catalyst which also acts to saponify the reaction mixture. The hydroxyl content of the prepared composition depends on the amount of the multi-functional hydroxyl compound used in the preparation. In another embodiment, the hydroxyl groups of these compositions are reacted with an isocyanate, such as the polymeric diphenylmethane diisocyanate (also known as 4,4'-diphenyl methane diisocyanate, or MDI) to form polyurethanes in a conventional manner.