Paving the way to long-term viability for your nonprofit organization (NPO) involves more than dedicated volunteers and a strong fundraising base.
To truly thrive and sustain success, strategic planning is key. This process involves setting clear priorities and directing resources toward activities that align with the NPO’s mission and goals. Effective strategic planning for nonprofits equips your organization to weather unexpected challenges and maximize opportunities, ensuring its evolution and impact in the community. Such planning isn’t just a routine task — it’s crucial to encouraging growth and stability.
What’s strategic planning for nonprofits?
A nonprofit strategic plan outlines how you’ll fulfill your purpose. Similar to corporate strategic planning, it caters to the distinct nature of NPOs. Plans typically cover a 3–5-year period, involving in-depth reflection on the organization’s mission to set long-term goals and create strategies for achieving them.
Successful planning charts how your organization will meet and exceed its goals, giving your team a clear path forward.
Benefits of strategic planning for nonprofits
The benefits of the strategic planning process go beyond offering direction to nonprofits. Other advantages include:
- Priority alignment. Identifying organizational priorities during strategic planning offers nonprofits clearer direction. This enables them to focus on activities aligned with their objectives and decline those that aren’t.
- Enhanced time management. By identifying and eliminating non-essential tasks, strategic planning empowers staff to rearrange workflows, leading to enhanced productivity.
- Improved management. Strategic planning clearly delineates roles and responsibilities for staff and board members, streamlining management structures.
- Enhanced focus. Engaging internal and external stakeholders in strategic planning defines the goal of the nonprofit. This enhances understanding of the nonprofit’s mission among members, helps it carve out a distinct industry niche, and provides financial benefits, with 86% of organizations reporting increased revenue from enhanced fundraising programs when they engage leaders and decision-makers in strategic planning.
- Renewed commitment. Often, strategic planning involves reassessing the organization’s core principles, adapting approaches to better align with the mission, and fostering renewed commitment among all involved.
- Effective result assessment. Engaging all members in goal-setting and the review process enables in-depth analysis of past outcomes. Doing so helps set realistic, achievable objectives while clarifying each member’s role in accomplishing these goals.
Types of nonprofit strategic plans
When crafting a strategic plan for a nonprofit, leadership can choose from multiple strategic planning models tailored to the organization’s specific context and goals. Here are a few examples.
Standard strategic planning model
This model is ideal for well-established organizations as it assumes a stable and predictable environment. These entities typically have defined processes, resources, and goals, making long-term strategic planning more feasible and effective.
To develop a standard strategic plan:
- Define the organization: Review or create mission and vision statements and set long-term organizational goals.
- Set specific short-term goals: Clearly define short-term objectives that align with the organization’s long-term vision.
- Outline an action plan: Develop a detailed blueprint for achieving short-term goals, specifying who’s responsible for each aspect.
- Formalize and communicate the plan: Establish a timeline and inform internal and external stakeholders.
This model requires adaptability. If external conditions change significantly, the organization may need to shift to a different strategic model to stay aligned with its mission and goals.
Example: A local shelter for unhoused persons plans to increase its capacity. Over six months, it aims to add 20 beds. To support this expansion, the shelter sets a fundraising target of $50,000, plans to bolster outreach through social media, and initiates a program to deepen relationships with existing donors. This specific, actionable plan aligns with the shelter’s broader mission and provides clear direction for its team.
Issue-based strategic model
The issue-based model is pivotal for nonprofits facing internal challenges or operating in uncertain environments. It stabilizes the organization and addresses specific issues hindering goal alignment. This model is dynamic, requiring regular updates based on progress and outcomes.
To implement this model:
- Identify key issues: Pinpoint the specific problems obstructing the organization’s objectives.
- Develop responsive actions: Organize a response to tackle these challenges head-on, planning concrete actions that directly address the identified issues.
- Monitor and adapt: Set clear milestones and regularly assess progress toward resolving these issues. Be prepared to modify your approach based on the results of ongoing evaluations.
Example: Facing high staff turnover, your NPO hires a human resources consultant to identify causes and implement a burnout reduction program. Over six months, you set milestones for turnover reduction and employee satisfaction improvement.
Initial milestones include a 10% turnover reduction and positive employee feedback within three months. You conduct regular staff surveys to evaluate progress and make adjustments based on feedback to enhance the program’s efficacy and employee well-being.
Organic strategic planning model
The organic planning model, also known as nonlinear planning, is ideal in situations where external factors challenge an organization’s sustainability. This model involves team collaboration to reassess and recommit to the organization’s goals and mission.
Follow these steps to implement this model:
- Foster unity: Convene team members to encourage alignment with the organization’s overarching goals.
- Leverage strengths: Direct team members to assess their skills and set achievable goals within a defined timeline.
- Conduct regular progress reviews: Schedule frequent meetings to discuss individual progress and how their efforts contribute to the NPO’s mission.
Example: Faced with a sharp decline in community donations amid an economic downturn, an NPO leverages a team member’s graphic design and presentation skills for a revitalized fundraising strategy. The organization tasks them with spearheading a corporate fundraising initiative, aiming to boost corporate contributions by 20%. They actively conduct engaging seminars and create visually compelling materials to attract new corporate donors, effectively countering the NPO’s financial challenges.
Real-time strategic planning model
Real-time strategic planning is crucial when an NPO confronts immediate crises like economic downturns, natural disasters, and internal issues like fraud. In this model, the focus is on setting immediate, achievable objectives. Frequent team meetings are essential during this time, as they provide a platform for discussing progress, adapting strategies, and navigating the organization through these tumultuous times.
To develop this plan:
- Set immediate objectives: Team members outline specific, short-term goals to address the crisis’s impacts.
- Evaluate progress: Conduct regular discussions on daily advancements and obstacles to meeting established objectives.
- Conduct post-crisis reevaluation: After stabilizing, assess both successes and failures, acknowledging everyone’s efforts. You might then shift to a different strategic planning model better suited to the altered operational landscape and new challenges uncovered during the crisis.
Example: After experiencing a cyberattack that compromised donor data, your NPO’s leadership convenes for urgent strategizing. The immediate plan involves informing donors about the breach and implementing enhanced security measures. The team’s rapid response and transparent communication aim to restore trust and strengthen data protection, preventing similar incidents from happening in the future.
Alignment strategic planning model
This model is ideal for nonprofit departments that struggle with intercommunication despite individual successes. It focuses on enhancing synergy through effective communication strategies.
Essential steps include:
- Initiating team integration: Conduct activities where team members learn about each other’s functions and challenges, promoting mutual understanding.
- Reaffirming organizational goals: Realign team efforts by revisiting and emphasizing the nonprofit’s mission, ensuring all departments work toward unified objectives.
- Developing communication strategies: Collaboratively identify and implement improvements in internal communication processes to enhance overall operational coherence.
Example: Despite having skilled fundraising and marketing teams, your NPO struggles to effectively collaborate with each other, hampering a major donation campaign. To rectify this, you initiate regular meetings between these teams. These sessions keep the fundraising team informed about the latest marketing strategies while the marketing team gains insights into donor feedback and fundraising needs, fostering a more cohesive and effective campaign approach.
How to create a nonprofit strategic plan: 4 steps
Regardless of the model, the first step to creating a strategic plan is finding the right people. Start by assembling a diverse team of influential contributors, including senior executives, board members, and key sponsors who can offer valuable insights for long-term organizational success.
After establishing your team, dive into this four-step process.
1. Assess
Evaluate your nonprofit’s current standing. Gather comprehensive information to provide your team with a complete understanding of the organization’s identity and situation. This includes:
- Demographics: Document your organization’s size, net assets, and other crucial statistics to build alignment along the strategic planning team.
- Success and goals: Acknowledge organizational strengths and opportunities by highlighting past accomplishments.
- Assets: Clearly articulate how your organization generates revenue and uses operational capital.
- Stakeholders: Conduct a stakeholder analysis to understand the roles and contributions of internal and external stakeholders.
- Strengths, weaknesses, opportunities, threats (SWOT): Perform a SWOT analysis to identify internal strengths and weaknesses, along with external opportunities and threats, and how they impact your nonprofit’s success.
2. Strategize
Use the insight from your assessment to define or revisit your organization’s values, mission, and vision statements.
Your mission statement describes the organization’s purpose and inspires stakeholders, while your vision uses broad strokes to explain how the group will accomplish its mission. Finally, values are the core principles detailing the approach to work, interpersonal collaboration, and employee well-being. Ensure these declarations resonate with your organization’s ethos and set the tone for your strategic plan.
3. Build
From your SWOT analysis, identify and prioritize three strategic areas. Develop high-level goals related to each to develop the implementation plan. These objectives help the team assess outcome efficacy and success.
If your SWOT analysis reveals a need for improved community engagement, one strategic priority might be strengthening outreach initiatives. A corresponding high-level goal could be to increase community awareness and involvement by 25% over the next year through targeted outreach programs and partnerships with local organizations. This goal aligns with the strategic priority and provides a clear, measurable target for your team to work toward and assess progress.
4. Establish
Translate your strategic priorities into tangible action by setting specific, measurable, attainable, realistic, and timely (SMART) goals. A goal for enhancing fundraising efforts might be: “In the next 18 months, diversify funding by securing one government grant per quarter, launching monthly social media donation drives, and organizing biannual fundraising events.”
A nonprofit strategic plan template
Drafting a strategic plan for your nonprofit organization can feel overwhelming, often requiring the alignment of intricate goals with the mission and managing various stakeholder interests. Consider using a template to speed up the process and ensure you include all crucial information and address every vital aspect for a successful action plan.
A simple strategic plan template looks like this:
| ORGANIZATION NAME | |||||
|---|---|---|---|---|---|
| Mission Statement | |||||
| Priority #1 | Priority #2 | Priority #3 | |||
| Goal #1 | Goal #2 | Goal #1 | Goal #2 | Goal #1 | Goal #2 |
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The best tools and templates for strategic planning
Take planning one step further by illustrating the outcome using a strategic roadmap generated by Tempo’s Strategic Roadmaps. Whether you’re working in strategic planning, product development, or project management, an audience-friendly roadmap helps build stakeholder alignment, prioritize ideas, and track projects across the entire organization. You’ll have everything you need to bring your plans to life and support the cause nearest and dearest to you.
