Every nonprofit could benefit from a strategic plan. Funders are increasingly asking to see organizations’ strategic plans. Talented staff and potential hires are increasingly eager to work with organizations that have clear and compelling visions. And, as leaders, we’re all looking to increase our organization’s impact.
A nonprofit strategic plan can provide all these benefits and more. In this article, we’ll cover the basics of strategic planning, how nonprofit strategic planning differs from the private sector, and how to make sure your organization’s planning process is successful.
A nonprofit strategic plan is a written roadmap for where an organization is going, how it will get there, and specific ways to determine if the organization has “arrived” at the destination. A strategic plan is the result of a process designed to create a shared vision and strategic alignment across organizational stakeholders.
This last part is especially critical for nonprofit organizations. Strategic planning isn’t solely about the written plan. It’s about building consensus across your board, staff, and other stakeholders, so that your team is focused, driven and ready to increase impact.
The process of strategic planning is designed to create shared vision and strategic alignment across organizational stakeholders.
A written plan can be put on a shelf and forgotten. But it’s nearly impossible to set aside a shared vision for the future when your board and staff are deeply invested.
Is your nonprofit ready for strategic planning?
Though we don’t often think of nonprofits as businesses, they actually are. Nonprofit is a tax status, not a business model.
Even if there’s no profit involved, nonprofit leaders still need to understand how to run a business . This includes balancing income and expenses, managing risk, securing appropriate insurance, bookkeeping and financial controls, ensuring adequate human resources support, managing staff, deciding where to invest and where to pull back, and more.
But nonprofits are also different from for-profit businesses in a few ways that affect the strategic planning process:
Nonprofit organizations exist to carry out a vision and mission to make a specific impact externally in the world. While organizations need to make sure they can afford costs, there is no profit motive and no shareholders to satisfy. Which is why vision and mission should drive every aspect of nonprofit strategic planning.
People generally work in nonprofit organizations because they want to contribute to change. Nonprofit staffers may even trade higher salaries in the private sector. This can mean that staff bring different expectations to working in nonprofit organizations. Staff want to be engaged in decision-making. They want to consistently feel like their work is contributing to a greater good. They want to feel supported in their career growth. All of which means that nonprofit leaders will need to think very intentionally about how staff are engaged in and connected to a strategic planning process.
Fundraising is one of the most essential functions in any organization. Unlike for-profit businesses, nonprofits generally raise the bulk of their income not from selling products or services, but from individual and institutional donors. This can include grants, major gifts, small dollar donations, endowed gifts, and more. In return for their contribution, donors expect to see an organization make an impact in the world. Which is why strategic planning can be especially helpful for nonprofits, as it spells out an inspiring, impact-driven, long-term vision.
The majority of nonprofit boards are non-paying positions. Yet nonprofit boards are responsible for over an incredible amount of oversight. This means that, like staff, board members will be attracted by vision and mission. Unlike for-profit boards, which are thinking about shareholders, a nonprofit board is primarily focused on ensuring an organization is able to fulfill its vision and mission. Nonprofit board members should thus be deeply involved in strategic planning.
Studies consistently show that organizations with a written plan double their likelihood of success. Yet according to research, only half of nonprofits have a strategic plan . Among those organizations that do have strategic plans, too few actually put them to use.
Investing in a strategic planning process is one of the most important things you can do to boost your organization’s impact and chance of success.
Whether your nonprofit is new or established, growing or struggling, a strategic plan can position your organization to thrive.
Are you ready to build a sustainable, impactful organization?
Running a nonprofit organization is not easy. Many nonprofits operate on lean budgets. Leaders wear multiple hats. Staff are often overwhelmed, filling multiple roles in order to meet program deliverables (and secure that next grant). Board members are volunteers, often with their own careers to manage.
Adding strategic planning to the mix can feel overwhelming. Which is why many nonprofit leaders wonder: Is strategic planning worth doing?
Strategic planning does require both financial resources and time from staff and board leadership. But research and first-hand experience working with dozens of nonprofits shows that there are incredible benefits to nonprofit strategic planning.
While it’s easy to think of a nonprofit strategic plan in terms of how much it will cost, strategic planning isn’t simply a line item in a budget. It’s an investment in your organization’s future.
The real question nonprofit leaders should be asking is: Can my organization afford to keep operating WITHOUT a strategic plan?
Nonprofit leaders often feel like they’re swimming in plans. At any given moment, we’re either creating, editing or approving annual plans, department plans, and project plans. We hone our mission statements. We work with development or marketing staff to refine proposals and brochures. And that doesn’t even include the individual development plans we craft with our direct reports.
But despite all this planning, leaders and staff can still end up feeling rudderless. That’s a sure sign that you’re spending time on the wrong plans or creating your plans in the wrong order.
A nonprofit strategic plan is a roadmap for where you’re going—and the types of plans you need to create to get there. Your strategic plan does four important things that other plans are simply not designed to do:
Once you have a strategic plan in place, then annual plans, project plans, proposals and more will all flow from that overarching vision.
Ideally, your annual plans will flow from your strategic plan. A strategic plan covers a 3-5-year period, with a focus on a clear vision and roadmap to get there. In contrast, annual planning is about the nuts and bolts of how you’ll be implementing your strategic plan in a given year, including who is responsible for specific deliverables.
Your annual plans will also go into more depth about the ongoing activities that keep the organization operating, but aren’t necessarily detailed in your strategic plan. Consider bringing the same curious and creative approach you used in the strategic planning process to assess these ongoing functions. Is there a way to handle basics like budgeting and bill payment more effectively and efficiently?
Where a strategic plan covers vision and strategy for an organization overall, a project plan focuses on goals, objectives, activities, and outcomes for an individual project. The scope of project plans varies significantly. A single project plan could cover anywhere from two weeks to two years, and involve one person or dozens. The key to a successful project plan is making sure that everyone involved in the project understands their individual roles, deliverables, and deadlines.
Once you’ve created your strategic plan, you’ll likely need many project plans as you start implementation. For example, as part of a goal to increase small dollar donations, you’ll need a project plan for your year-end appeal, as well as ongoing donor communications. If you’re organizing events, you’ll certainly need project plans for those. And if you’re executing on organizational changes that will affect staff, such as shifting to a four-day workweek, a project plan will be critical.
A prospectus is a printed booklet or brochure that serves as a promotional piece. In the nonprofit sector we tend to think of this as a marketing piece. We might call them “one-pagers,” “collateral,” or the “leave behinds” for a donor meeting.
Regardless of the name, a prospectus is the abridged, polished, and outward-facing version of your strategic plan. It’s the kind of language you use on the “about us” or “what we do” pages of your websites.
Ideally, once you have a new strategic plan, you’ll start updating all of these various materials to reflect your organization’s updated vision, direction, and impact goals. Just keep in mind that, where your strategic plan might delve explicitly into internal organizational changes , a prospectus or similar materials will focus on external impact .
Many nonprofits choose to work with a consultant for their strategic planning. This enables board and staff leadership to focus on strategy, rather than running a planning process. It’s also especially helpful to have a skilled consultant who can advise on how to best engage staff members. As a neutral third party, consultants can garner unexpected insights from staff and other stakeholders through surveys, one-on-one interviews, and focus groups.
When working with a consultant, your strategic planning process should include at least three steps:
While nonprofit and for-profit strategic planning may follow a similar process, nonprofits will want to carefully consider a few additional areas:
No! An effective nonprofit strategic planning process doesn’t have to be painful and drawn out. Though many of us in the sector have experienced the dreaded “never-ending planning process.” You can prevent that scenario from playing out in your organization by selecting the right consultant. Focus on finding consultants who understand your sector, are familiar with organizations of your size or growth stage, and are skilled facilitators.
Because a strategic plan is only as strong as the consensus-building process that creates it.
Many strategic planning consultants work with both for-profit and nonprofit organizations. We recommend being sure that your consultant has at least some experience working with organizations like yours.
