A nonprofit may have a clear mission and dedicated leadership. Even with these strengths, turning its vision into measurable progress can be difficult without a clear plan. The benefits of a strategic plan go beyond defining an organization’s mission, vision, goals, and objectives. A strong plan provides the direction needed to achieve them.
Just as a home needs an architectural plan before construction begins, a nonprofit needs a strategic plan to advance its mission. The plan creates a path to success with achievable benchmarks along the way.
Benefits of a Strategic Plan for Nonprofits
The benefits of strategic planning can be seen across every area of a nonprofit organization. A thoughtful, well-developed plan can help leaders:
Create Clarity and Shared Direction
- Clarify Mission and Vision. The strategic planning process offers an opportunity to address the organization’s purpose and what it hopes to achieve in the next few years. The disruptions created by COVID-19 demonstrated how quickly nonprofits may need to adapt to changing circumstances and community needs. Clear mission and vision statements provide nonprofit leaders with a framework for decision-making and help the organization stay focused on its goals.
- Set Clear Goals and Objectives. What are the overarching goals the organization wants to achieve? Which objectives must be met to achieve those goals? A well-defined set of goals and objectives provides a roadmap for progress and helps measure the organization’s success over time.
- Identify Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis uncovers an organization’s strengths and the opportunities that can be leveraged to achieve its goals. It also reveals organizational weaknesses and environmental threats that need to be addressed.
Turn Priorities Into Measurable Progress
- Develop a Plan to Achieve Goals. A strategic plan outlines the specific steps the organization will take to achieve its goals. It begins with a shared vision among the organization’s leadership regarding which goals to prioritize during the term of the strategic plan. Each goal is then assigned to a member of senior leadership or a Board leader. This provides clear oversight and accountability. Objectives and benchmarks are identified for each goal, along with target dates for completion.
- Track Progress and Make Necessary Adjustments. A Board committee is typically assigned to monitor overall progress on the strategic plan and provide updates to the Board throughout the year. Each person assigned to a goal is responsible for updating the committee on its progress and explaining any adjustments that became necessary along the way.
- Communicate Plans to Stakeholders. A strategic plan creates an opportunity for a nonprofit to communicate how it is advancing its mission and making an impact in the community. Funders, donors, volunteers, and other stakeholders want to understand the organization’s goals and how they can support its mission. The strategic plan helps build the case for support.
Realizing these benefits requires a thoughtful, collaborative process that gives leadership the opportunity to assess where the organization is today and determine where it wants to go.
What the Nonprofit Strategic Planning Process Involves
The process of developing a strategic plan is as important as the plan itself. Each step gives the nonprofit leadership team time to reflect on the organization, its mission, and the values that unite its members around a shared vision for the future. This collaborative process also helps create a sense of shared responsibility among leadership.
Understanding what the strategic planning process involves can help nonprofit leaders prepare for meaningful participation and get more value from the experience. For a closer look at each stage, explore these essential steps to creating a strategic plan for nonprofits.
Engage an Outside Strategic Planning Consultant
Many nonprofits engage an outside consultant to guide the strategic planning process and draft the plan. A consultant can offer an objective organizational assessment, facilitate the leadership retreat, and provide confidentiality during Board, leadership, and stakeholder interviews and surveys.
Organizations that need additional guidance can also explore our strategic planning services.
Review and Assess the Organization
The strategic planning process begins with a high-level review of the organization’s key documents and resources, which may include:
- Financial statements
- Bylaws
- Board meeting minutes and onboarding materials
- Staff and volunteer roles
- Program, fundraising, and marketing reports
- Website and social media content
- Technology platforms
Reviewing these materials helps the consultant develop a clearer understanding of the organization’s current position, operations, and opportunities.
Gather Input from Stakeholders
Confidential one-on-one interviews are then conducted with Board members, senior leadership, and key stakeholders, such as staff, donors, volunteers, community partners, and those the organization serves.
Board members may also complete a confidential survey to share their views on their own Board experience and their perceptions of overall Board performance. A summary and analysis of the survey results can identify opportunities to improve both Board performance and the Board member service experience.
Bring Leadership Together for a Strategic Planning Retreat
After the interviews are conducted and the survey results are tabulated, Board members and senior leadership come together for a retreat facilitated by the consultant. The retreat guides the Board and senior leadership through a series of focused discussions. These conversations help the group establish a shared vision and develop its first draft of organizational goals.
Set Priorities and Establish Clear Goals
The retreat begins with a review of the organization’s recent accomplishments by the CEO, followed by a high-level organizational assessment presented by the consultant. The organization’s mission and vision are then reviewed to gather input and identify any suggested changes.
Next, the consultant facilitates a SWOT exercise to identify the organization’s strengths, weaknesses, opportunities, and threats. A brainstorming session follows, allowing the group to “dream big” about the future. The group then determines which organizational goals are realistic during the term of the plan.
Many organizations now use strategic planning periods of three to five years as nonprofits continue to adapt to rapidly changing community needs, economic conditions, and technology.
The group identifies its top organizational goals in areas such as:
- Programs
- Facilities
- Human resources
- Fundraising
- Marketing
- Board development
By the end of the retreat, the group has typically identified 10 to 15 goals, providing the foundation for the consultant to draft the strategic plan.
After reviewing and refining the plan, the Board may formally approve it and assign a committee to monitor its progress. That committee can then report on the plan’s progress during future Board meetings.
Put the Strategic Plan Into Action
Board approval is not the end of the strategic planning process. Each goal should have a clear owner, timeline, performance measures, and the resources needed for implementation.
Leadership should review progress regularly, communicate updates to the Board, and adjust priorities when circumstances change. Treating the strategic plan as a living document helps ensure it guides decision-making and leads to meaningful action rather than sitting unused on a shelf.
Turning Your Nonprofit’s Vision Into Measurable Progress
A strong strategic plan helps an organization stay on track and avoid being sidetracked by distractions and competing agendas. Nonprofit leaders often encounter strong voices from key stakeholders whose priorities may diverge from the organization’s mission and goals. In those moments, the strategic plan becomes an important resource—one that reflects the thoughtful consideration and shared vision leadership gave to the organization’s future.
The benefits of a strategic plan include providing nonprofit organizations with guidance, greater self-knowledge, and valuable decision-making tools. A plan can also help a nonprofit adapt to uncertainty and adjust course when needed. Its goals and measurable outcomes provide a clear way to communicate the organization’s direction and impact to stakeholders, strengthening the case for support. Ultimately, a strategic plan provides the foundation nonprofit leaders need to turn their shared vision into meaningful, measurable progress toward their mission.
Ready to turn your nonprofit’s vision into a clear path forward? We’ll help you create an actionable strategic plan that aligns your leadership, clarifies your priorities, and moves your mission forward. Schedule your free consultation to take the next step.
