Developing a Strategic Plan for Your Nonprofit
Every nonprofit can benefit from having a well-developed strategic plan. A strategic plan helps outline an organization's future direction, guides decision-making, and leads to greater impact and success. While the process requires time and resources, the payoff can be substantial.
There are several benefits to strategic planning for nonprofits:
Clarifies mission and vision. The planning process helps refine and articulate an organization's mission, values, and vision for the future. This provides direction for all stakeholders.
Sets strategic priorities. The plan determines 3-5 key strategic priorities or goals the nonprofit will focus on to advance its mission over the next 3-5 years. This focuses efforts and resources.
Evaluates internal and external factors. A good planning process assesses the nonprofit's strengths and weaknesses, as well as opportunities and threats in the external environment. This results in a strategic plan adapted to the organization's current realities.
Aligns board and staff. The planning process gets the entire organization on the same page about priorities, objectives, and next steps. This alignment leads to greater efficiency, collaboration, and impact.
Secures funding. Funders want to see that nonprofits have a thoughtful, well-developed plan guiding their work. A strategic plan demonstrates an organization is intentional, transparent, and poised to achieve significant outcomes, which boosts their chances of fundraising success.
Here are the main steps to create your nonprofit's strategic plan:
Form a strategic planning committee. Gather board members, staff, and key stakeholders to oversee the planning process. This group should be representative and know the organization well.
Review mission and values. The committee revisits the nonprofit's mission, vision, values, governance structure, programs, finances, etc. to gain an in-depth understanding of where it currently stands.
Conduct internal and external analysis. The committee objectively analyzes the organization's strengths, weaknesses, opportunities, and threats to determine what needs to change or improve. External analysis examines outside factors that can impact the organization.
Set strategic priorities. Based on the reviews, the committee identifies 3-5 strategic priorities or goals the organization will prioritize to achieve its mission. These should include outcome statements and metrics for measurement.
Develop a plan and timeline. The committee outlines objectives, action steps, responsibilities, timelines, and resource allocation for each priority. This is the point where the strategic plan starts coming together.
Finalize and approve the plan. The board reviews and officially approves the strategic plan for implementation. Communication and buy-in throughout the organization are essential to success.
Monitor and revise. The board and staff regularly monitor progress on strategic priorities using metrics and benchmarks. They revisit the plan annually to determine if any revisions are needed based on internal or external changes.
Strategic planning helps nonprofits gain clarity and direction, secure more funding, and achieve greater impact. While developing a strategic plan requires an investment of time and resources, the potential benefits to the organization and its mission are well worth the effort. A successful planning process and strategic plan can mean the difference between a nonprofit that is just getting by and one that is thriving and changing the world for the better.
Come back next week to learn more about some common strategic planning challenges and how you can overcome them.
